The same old debate but new landscape? Home buyers don't always have the option to chose a variable rate since we now have to qualify based on the bank posted rate (currently at time of writing is 5.69%) instead of the 5 year fixed discounted rate (currently around 4.09%). One should understand the potential risks and rewards of both options. If you really can't decide you can always go with a 50/50 or "hybrid" mortgage where half of the mortgage is in a fixed and the other half is in a variable. Here is a link to an interesting article. The author has analysed the results of both options assuming that prime will double over the next 5 years. Prime is currently at a very attractive 3% rate.
http://www.canadianrealestatemagazine.ca/news/106662/details.aspx?utm_medium=email&utm_source=MyNewsletterBuilder&utm_content=187556831&utm_campaign=Fixed+or+variable+old+debate+new+landscape+1410854697&utm_term=Fixed+or+variable+old+debate+new+landscape
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