What is the difference between floating rate and fixed rate mortgages?
Variable or floating rate mortgages provide that the interest rate will change on a periodic basis during the term of the loan based on a predetermined formula. This formula is typically based on the prime-lending rate set by the Bank of Canada.
Fixed rate mortgages provide that the interest rate will not change throughout the term of the mortgage. The rate is set at the beginning of the term.
Article: Fixed or Variable rate mortgage