What is a fixed rate mortgage and a variable rate mortgage?

A fixed rate mortgage offers a guaranteed rate of interest and set payment amount for a specified period. It could be your best bet if you’re risk-averse, as you can take comfort in knowing exactly how much equity you’ll build by the end of your term. A variable rate mortgage includes a set payment each month, but the amount you pay toward principal and interest fluctuates as rates change. At SCU, variable-rate closed mortgages are available in 5-year terms.