Fixed mortgages now trump variable, report says. Not everyone agrees.

Fixed-rate mortgages have gained an edge over variable-rate mortgages given the improving economy and attractive offers on longer-term deals, says a new report from economists at one of Canada’s big banks.

While many mortgage brokers agree with that assessment, others caution that locking into a fixed rate is not the best way to go.

“While we have in the past supported going variable, and even though short-term rates are likely to remain low this year, current offers on long-term mortgage rates and the improving economic outlook tilt the balance in favour of locking in at this stage.”

So which is better, fixed or variable? Well that really depends on your personal financial situation as well as your emotional capacity. If you can afford a possible higher mortgage in the future and won't stay up at nights wondering if rates are going to move then taking a variable may be a good option.

Otherwise a fixed rate for 5 years or longer might make you sleep better at night knowing your mortgage rate will not change for the entire term.

Always consult a mortgage professional for up to date mortgage information and trends.