Which is better: a fixed-rate mortgage or a variable-rate mortgage? If rates are high, it is recommended that a borrower use a variable rate mortgage or shorter terms (1 to 3 yrs). When rates are low, lock in for extended periods (4 to 10 yr terms). Decision is based on individual lenders’ risk tolerances and long/short term plans for the property. How does credit history impact the eligibility for a fixed-rate mortgage? Credit history affects borrowers ability to qualify for all mortgages. The poorer the credit history the more likely the borrower will be using a high risk lender who charges higher rates and fees How is the interest rate determined for a fixed-rate mortgage? Interest rates are set by each lender and it is usually tied to BOC Bond rates