Have a Question?


Enter your question in sentence form (e.g., How do I contact Simplii Financial?).
Do not include any confidential information, such as card or account numbers.

We matched your question to:

What's the difference between a fixed-rate mortgage and a variable-rate mortgage?

Rate this response

With a variable-rate mortgage, your interest rate fluctuates when the CIBC Prime Rate changes. If the CIBC Prime Rate drops, the amount of interest you pay also drops. Your regular mortgage payment amount increases or decreases as interest rates change.

With a fixed-rate mortgage, you pay the same interest rate for the entire mortgage term. Even if the CIBC Prime Rate changes, your regular mortgage payment amount stays the same. You know exactly what your interest payments will be and how much of the principal you’ll pay off during the term.

† Simplii Financial personal banking services are provided by the direct banking division of CIBC. Banking services not available in Quebec.
Close Window
powered by [24]7
Copyright © Simplii Financial