In this mortgage, the interest rates fluctuate depending on the status of the market. They usually have terms of five years or less and the rates depend on prime rates.
Variable Rate Mortgages are suitable for:
- Renovations/ Refinancing
- Purchases
- Investment Refinancing
When the rates go down, most of the amount you pay will go to the principal and thus reduce the time in which you have to repay the mortgage. If the prime rates increase, then your rates also increase and vice versa. You can contact our Mortgage Broker to help you switch to a product with fixed rates.