What’s the difference? 

• Fixed-rate mortgage: Your interest rate stays the same for the term you choose (e.g. 1–5 years), so your payments remain predictable. 

• Variable-rate mortgage: Your rate is tied to your lender’s prime rate and can change over time. 

In fact, many lenders let you switch from variable to fixed during your term without penalty, giving you flexibility if things change. 

Why you might pick a short-term fixed rate 

• You want certainty in how much you’ll pay each month. 

• You like having stability while keeping your options open — you can reassess when your term ends. 

• If you expect rates to drop later, a short fixed-term gives you the chance to lock in a lower rate when renewing. 

Why a variable rate could make sense 

• Variable rates are often lower initially because lenders price in less risk for themselves.  

• If interest rates decline in the future, your rate could go down. 

• Some variable mortgages allow you to convert to fixed later. 

Which path might be best in 2025? 

Because of economic uncertainty, short-term fixed could offer a good balance: you lock in current rates for a short period, retain flexibility later, and avoid being stuck in a longer-term fixed rate that may turn out to be too high. 

If you’re comfortable with some fluctuation and believe rates might ease, a variable rate offers more upside — just be ready for occasional shifts in payments. 

There’s no perfect option for everyone. The right choice depends on your comfort with risk, your financial stability, and your plans for the next few years. 

The post Fixed vs. Variable: Which Mortgage Rate Is Right for You Before 2025 Ends? appeared first on Nl Mortgage Brokers.

Most lenders allow you to lock in a new rate up to 120 days (about four months) before your current mortgage term ends. This “rate hold” protects you from potential rate increases while still giving you the chance to benefit if rates drop before your renewal date.

Here’s how to make the most of it:

1. Start early. Contact your mortgage broker about four months before your renewal. This gives you time to compare rates and options.
2. Shop around. Don’t automatically accept your current lender’s renewal offer. A broker can help you find competitive rates across multiple lenders.
3. Review your financial goals. If your situation has changed — such as higher income, new debts, or plans to move — your broker can tailor your renewal to fit your needs.
4. Get pre-approved for a new rate. Once you lock it in, you’re protected from rising rates until your renewal date.

Even a small difference in your mortgage rate can save you thousands of dollars over the life of your loan. Talking to a mortgage professional before your renewal ensures you’re not leaving money on the table.

The post How to Lock in a Lower Rate Before Your Renewal appeared first on Nl Mortgage Brokers.