At Mortgage Suite we perform so many different mortgages. Every day, our clients choose which mortgage suits their needs and financial journey. Within this journey, an option is always chosen.
This mortgage option typically falls into 2 main categories; the Fixed Rate and the Variable Rate mortgage.
Always remember a variable rate mortgage will fluctuate with the Bank Prime rate throughout the mortgage term.
While your regular payment will remain constant, your interest rate may change based on market conditions. This impacts the amount of principal you pay off each month. When rates on variable interest rate mortgages decrease, more of your regular payment is applied to your principal. Additionally, if rates increase, more of your payment will go toward the interest.
A variable rate mortgage generally offers more flexible terms than a fixed-rate mortgage.
- Penalties are typically lower – being 3 months of interest
- Ability to Lock in your rate in future
This Mortgage Product is different than the Adjustable-Rate mortgage.
Don’t think you need to make this decision lightly. Always discuss rate options with your Licensed Mortgage Broker/Agent.
