Take Advantage of Interest Rate Fluctuations!
A variable rate mortgage is a mortgage with fixed payments where the interest rate fluctuates when there’s a change in the prime rate. If interest rates go down, more of the payment goes to principal and if interest rates go up, more of the payment goes towards the interest. The interest rate is set on the first day of each month, and your payment remains the same. If the interest rate falls, then more of your payment is used to pay off your mortgage principal. This means that your mortgage is paid off faster! There’s also the option to make lump sum payments of any amount that will be directly applied to the principal or to lock in your interest rate by converting to a Fixed Rate Mortgage at any time.
- Term: 1-, 2-, 3-, 4-, or 5-year
- Rate: Varies monthly
- Payment Options: weekly, bi-weekly, semi-monthly, monthly
- Prepayment Options: All variable rate mortgages are fully open