Fixed vs. Variable Rate Mortgages in Alberta: Which One is Right for You?

By Amneet Kaur – Calgary Mortgage Advisor Who Actually Listens

Buying a home in Alberta is exciting—but let’s be real: choosing between a fixed or variable mortgage rate can feel like flipping a coin... with your future on the line.

It’s one of the most common questions I get as a mortgage broker:
“Amneet, should I go fixed or variable?”

The truth?
There’s no one-size-fits-all answer.
But there is a right answer—for you.

Let’s walk through both options, human to human, so you can make the kind of decision that feels smart, safe, and aligned with your life.

What’s a Fixed Rate Mortgage?

Think of it like your favourite playlist—reliable, consistent, and no surprises.

With a fixed rate, your interest stays the same for the entire term (usually 1, 3, or 5 years). Your payments don’t change, which means:

✅ Budgeting is super simple
✅ You’re protected from rate hikes
✅ Peace of mind—especially if you're risk-averse

✅ Best for:

• First-time buyers who want stability

• Families working within a set monthly budget

• Anyone who loses sleep over fluctuating numbers

What’s a Variable Rate Mortgage?

This one’s more like your favourite Netflix series—you never know what’s coming next, but it might be worth the thrill.

A variable rate starts lower than fixed, but it moves with the prime rate (set by the Bank of Canada). So while you might save more in the short term…

Your payments can increase
It’s less predictable (especially in uncertain economies)

✅ Best for:

• Buyers with financial flexibility

• People planning to sell or refinance before the term ends

• Those comfortable riding the rate wave to potentially save more long-term

Real Talk: What’s Happening in Alberta Right Now?

As of 2024–2025, Alberta’s mortgage landscape is shifting.

• Interest rates have levelled off after recent hikes

• There’s talk of gradual rate drops starting soon

• Buyers are more cautious—and rightly so

What does this mean?
A lot of people are leaning into short-term fixed or hybrid solutions—locking in peace of mind now, with flexibility later.

Still Torn? Ask Yourself These 4 Questions:

1. Can I handle a surprise increase in my monthly payments?
   If not, fixed is probably your friend.

2. Am I planning to stay in this home for 5+ years?
   If yes, fixed helps you plan long-term. If not, variable or short-term fixed might be smarter.

3. What’s more stressful to me: higher payments or missing out on savings?
   Your comfort level matters more than spreadsheets.

4. Do I have wiggle room in my budget?
   Variable rates are lower upfront, but only make sense if your finances can flex.

The “In-Between” Option: Adjustable or Hybrid Mortgages

Did you know you don’t have to go all-in on one or the other?

Some lenders offer:

• Adjustable-rate mortgages (payments change as rates move)

• Hybrid mortgages (part fixed, part variable)

These can give you the best of both worlds—but they’re not for everyone. I’d be happy to walk you through the pros and cons in plain English.

Let’s Make This Easy

Look, you’re not expected to know it all. That’s what I’m here for.

When you work with me, we talk real life—not just rates and rules. I help you compare options side by side, based on your:

✔ Income
✔ Goals
✔ Tolerance for risk
✔ Life plans (including those “what if I want to travel?” moments)

We’ll figure it out together—and you’ll walk away feeling empowered, not overwhelmed.

Final Thought: The “Right” Mortgage is the One That Feels Right for YOU

Whether you’re a numbers person or more gut-feeling driven, the choice between fixed and variable should leave you feeling secure, not scared.

Let’s chat. No jargon. No pressure. Just an honest conversation about what works best for your life in Alberta.

Reach out to Amneet here

Here to help you make home happen—on your terms.

— Amneet