High stakes for homeowners: fixed or variable mortgage?

Choosing between a fixed-rate or variable-rate mortgage has always been a difficult decision, and with interest rates at unprecedented levels, the stakes are even higher. Variable-rate mortgages have become less popular as Bank of Canada's rate hikes increased the cost of loans linked to prime rates, but the cost of fixed-rate mortgages have also gone up. Depending on the terms of the loan, higher monthly payments or extending the amortization period may be necessary if interest rates go up. When making this decision, borrowers should consider the potential changes in interest rates by the Bank of Canada.