# Fixed vs. Variable Comparison Table

> Fixed locks a 5-year rate with IRD penalty risk; variable floats with prime and typically caps break fees at 3 months interest.

Category: Strategy
Last verified: 2026-04-14
Source: https://ratellow.com/faqs/strategy/fixed-vs-variable-comparison-table

## Answer
| Item | Fixed Rate | Variable Rate |
|------|------------|---------------|
| Prediction | Certainty | Fluctuating |
| Penalty | IRD (Interest Rate Differential, can be high) | 3 Months Interest (typically lower) |
| Best For | Budgeting | Savings (if rates drop) |
| 2026 Trend | High Demand | Growing (as rates peak) |
| Stress Test | 6.25% (fixed example) | 6.45% (variable example) |

## Related guide
- https://ratellow.com/guides/lock-in-fixed-vs-variable

## Sources
- Final Capital Adequacy Requirements Guideline (2026) - OSFI — https://www.osfi-bsif.gc.ca/en/news/backgrounder-final-capital-adequacy-requirements-guideline-2026