Fixed Rate Mortgage A fixed rate mortgage is a basic mortgage with limited prepayment privileges and often has high penalties for refinancing or payout out your mortgage. This is a good mortgage to have if interest rates are low and you don’t foresee any imminent changes required in your term or payments. However, if you plan on paying out your mortgage because you anticipate a large lump sum of money or inheritance, this might not be a good mortgage for you. Variable Rate Mortgage As prime rates fluctuate, so will your mortgage rate. There is slightly more risk, so in turn, you are offered the lowest rates, but you must pay attention to prime rate and lock in if they climb too high. This is a great mortgage if interest rates are low or lowering, but not a good idea for somebody who likes minimal risk and prefers security with their finances. CHIP Reverse Mortgage CHIP (Canadian Home Income Plan) Reverse Mortgages have been in Canada for over 25 years and are designed for Canadian senior homeowners giving them access to borrow up to 50% against the value of their home. The great thing about this loan is that you don’t have to repay the loan for as long as you own and live in the home.