Variable Rate Mortgages
The Variable Rate Mortgage
While variable rate mortgage (VRM) products are nothing new to Canada, there are now more types and they are constantly evolving to provide a better fit for each individual mortgage holder. With our experience and help, we will tailor your mortgage to suit your needs. To learn more about these products, apply online, and a mortgage agent will be happy to discuss our current offerings.
What is a variable rate mortgage?
A variable rate mortgage or floating rate mortgage is a loan where the interest rate changes depending on market conditions. Two things to know about variable rate loans are that they are closely related to the Canadian prime lending rate and are generally based on a 5-year term or less. This is a great concept because it allows you to take advantage of low prime rates while securing your position just long enough as not to tie you to a high interest rate if "prime" increases during your term.
Current Variable Rate Mortgage:2.45%
Is a Variable Rate Mortgage right for you?
Here are some questions to help you determine whether a VRM is the right choice for you.
- Do you like taking calculated risks?
- Do you believe that the prime lending rate is expected to go down?
- Are you okay with a fluctuating mortgage payment?
- Are you comfortable knowing that your mortgage rate could jump 2 or more percentage points?
- Is your credit good and do you have at least 5% down payment (for a purchase) or at least 20% equity (for a refinance)?
If you answered yes to all of these questions, then a variable rate mortgage is likely the best option for you.
Contact one of our licensed mortgage professionals today.