Definition
A fixed-rate mortgage has an interest rate locked into the contract for the entire term (1 to 10 years, most often 5). Your monthly payments stay identical until you renew.
The fixed rate is priced off Government of Canada bonds of equivalent term, plus a spread reflecting credit risk and lender margin. When bond yields rise, fixed mortgage rates rise too, usually with a few days' lag.
Main advantage: predictability — useful for borrowers maxing out their TDSR/GDSR ratios or those without a financial cushion. Main drawback: the breakage penalty for early termination is calculated on the Interest Rate Differential (IRD), often several thousand dollars, whereas a variable-rate breakage caps at 3 months of interest.