Variable Rate Mortgages

The Variable Rate Mortgage (VRM)

As Canada's top rated mortgage website, we strive to bring you new and updated information on products and services that are available to Canadian consumers. While Variable Rate Mortgage (VRM) is nothing new in 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 fit your needs. Our new variable rate mortgage products allow you to order "off the menu" and receive the best possible term that fits for you.

Variable Rates affected by the Prime Rate

Two constants within the VRM is that they are affected by the prime rate and are generally based on a 5 year term. This is a great concept because it allows you to secure your position while still giving you the flexibility and interest savings that you deserve. There are more options now available to you than ever before. Be sure you understand your personal needs and what your financial plan is before you decide which variable rate mortgage to choose. Our mortgage professionals will give you all the options and assist you in achieving your goals and eventual mortgage freedom.

As an educated consumer you should know what to watch for: make sure you understand the variable rate mortgage that you seek. Many companies will advertise super low rates like 1.99% or similar. These rates are correct but they are merely introductory rates within a 5 yr fixed term. Meaning, they will offer that very low rate for a short pre-determined amount of time, thereafter increasing the rate to closely match the prime-lending rate.

Should you choose a VRM or a Fixed Rate?

The chart above demonstrates prime rate activity and how it compares to the fixed rate market, which is directly affected by the Canadian Bond market.

Is a Variable Rate Mortgage right for you? Here are some questions to help you determine whether the VRM is the right financial tool for you.

1. I am ok with a fluctuating monthly payment if prime rate moves
2. I need a mortgage that will allow me to break it without penalty after 3 yrs in the term.
3. I want to take advantage of the lower interest rates that a below prime mortgage provides, regardless of what fixed rates are doing.
4. My credit is good and I have at least 5% down payment (purchases) or 10% equity (refinances).

If you answered yes to all of these questions, a variable rate mortgage is likely the best option for you.

Contact one of our Licensed Mortgage Professionals and we will walk through the process with you to determine your best plan.

^* Mortgage interest rates are subject to change without notice at any time. Some rates may be subject to minimum credit score, loan amount and may only be available certain lending areas. A quick closing loan condition may be required. Does not apply to preapprovals. Contact CanEquity for details. Although every attempt is made to ensure the accuracy of our website, the above mortgage information should only be used as a guideline and CanEquity makes no guarantees on any rates shown. CanEquity Mortgage always recommends that you consult a mortgage broker before making a decision. For any mortgage related questions or to speak to one of our mortgage specialists, please call 1-888-818-4262. CanEquity does not guarantee to have the lowest rate in Canada. We do make every attempt though to find the best mortgage deal possible for all of our clients.

^§ Our mortgages are only available to Canadian residents or foreigners purchasing property located in Canada.