Variable vs. Fixed Mortgage Rates: Are You Team FOMO or JOMO?

Hi, I’m Edith Parinas—a mortgage broker, yoga teacher, and firm believer in finding balance, whether it’s in your finances or on the yoga mat (yes, even in a handstand).

And today, we’re talking about balance in mortgage rates—specifically, the ongoing debate between variable and fixed rates.

With variable mortgage rates finally showing signs of decline, homebuyers are at a crossroads:

• FOMO (Fear of Missing Out): Should you go variable and potentially save big as rates drop?

• JOMO (Joy of Missing Out): Or do you lock in a fixed rate for peace of mind, knowing your payments won’t fluctuate?

Let’s explore the pros and cons and what might be the best move for you.

What’s Happening with Mortgage Rates?

After a few years of heart-racing rate hikes, we’re finally seeing variable rates start to decline alongside prime rates. The Bank of Canada has already dropped rates by 2.0% since June 2024, and predictions suggest another 0.50% drop by the end of 2025.

But here’s the catch: variable rates are still higher than fixed rates right now.

So, do you take the leap into variables, hoping for lower rates ahead? Or do you play it safe and lock into a fixed rate?

The Case for Variable Rates (Team FOMO)

If you’re someone who thrives on flexibility and wants to ride the rate wave down, a variable mortgage could be your best bet.

Here’s why:

✅ Lower Payments as Rates Drop – If the Bank of Canada continues cutting rates, your mortgage payment could decrease over time.

✅ Faster Mortgage Payoff – If you have a fixed-payment variable mortgage (offered by major banks), rate drops mean more of your payment goes toward the principal, helping you pay off your mortgage faster.

✅ Easier to Switch – Variable mortgages generally have lower penalties if you break your term early (compared to fixed mortgages).

✅ Option to Lock In – Feeling anxious about future rate hikes? Many variable mortgages let you convert to a fixed rate anytime—penalty-free.

🔹 Best for: Buyers who can handle some risk and want to maximize potential savings.

The Case for Fixed Rates (Team JOMO)

If you like predictability, a fixed-rate mortgage might be your happy place.

Here’s why:

✅ Set It and Forget It – Your mortgage payments won’t change, no matter what happens with interest rates.

✅ Less Financial Stress – If budgeting is important to you, locking in a fixed rate eliminates the uncertainty of fluctuating payments.

✅ Current Fixed Rates Are Low – Fixed rates have already come down in anticipation of future rate cuts, meaning you can lock in a competitive rate now.

🔹 Best for: First-time buyers, budget-conscious homeowners, or anyone who prefers certainty over potential savings.

How to Decide? Ask Yourself These Questions:

✔ Can I afford fluctuations in my mortgage payments?

✔ Would I lose sleep over rising interest rates?

✔ Do I plan to stay in my home for the next 5 years?

✔ Do I want the flexibility to switch mortgages easily?

Your personal comfort level with risk should be a big factor in your decision. If your heart rate spikes just thinking about rates going up, JOMO might be your best bet. But if you’re financially stable and willing to take a calculated risk, FOMO could pay off.

A Middle Ground: The Short-Term Fixed Rate

If committing to a 5-year term feels too long, consider a shorter-term fixed mortgage (like 2 or 3 years).

This could:

✅ Bridge the gap while rates settle

✅ Give you stability now but flexibility later

✅ Potentially let you renew into lower rates sooner

This is a great option if you’re not quite ready to embrace variables but don’t want to lock in for the long haul.

Final Thoughts: The Best Mortgage Is the One That Fits YOU

Just like in yoga, finding balance in your mortgage choice is about understanding your comfort level, flexibility, and long-term goals.

📌 If you want to maximize savings and can handle some uncertainty, variables could be your best move.

📌 If you want security and stress-free budgeting, fixed will give you peace of mind.

📌 If you want a compromise, a short-term fixed rate can be a great option while rates settle.

Not sure what’s best for you? Let’s chat! Book a free consultation, and I’ll help you figure out the best mortgage strategy for your unique situation.

📅 Book Your Free Call Here

You don’t have to make this decision alone—I’m here to guide you every step of the way.

– Edith Parinas

'The Mortgage Broker ~ The Yogi ~ The Blogger'

Hello@EdithParinas.com