• The Best Variable Mortgage Rates in Canada

The Best Variable Mortgage Rates in Canada

The Best Variable Mortgage Rates in Canada
Borche Stefanov
October 24, 2018

Variable mortgage rates are mortgage rates that are not fixed and keep on changing depending on the fluctuation and volatility of market interest rates. Such rates have certain terms and conditions that apply accordingly to the different plans. The rates and plans are decided on the requirements of a particular individual. If you are looking for the best variable mortgage rates for your benefit, you will have to weigh in your options to come up with a suitable plan.

The 3-Year Mortgage Variable Rates

Variable mortgage rates are mostly awarded to the most responsible customers by the respective banks lending the credit. A basic way to recognize variable rates is that they are mostly listed as premiums with both addition and subtraction on the prime rates.  An example for better understanding is that if there is a prime rate of 3% with a variable rate of 0.5% then the overall interest rate of 3.5% will be applied.

There will be a 3-year time period applied for any further adjustment being made in the interest rate. In this time period, you will have to stay committed to all the listed terms and conditions of the contract with your lender

The 5-Year Mortgage Variable Rates

It is important to know that in case of variable mortgage rates, the rate is mostly dependent on the changes made in the usual market interest rate. This interest rate is known as the ‘prime rate’ and is demonstrated as an addition or a subtraction percentage amount.

An example that explains the theory states that if the prime rate of a plan is 5% then the final interest rate will be listed as 4.2% after a deduction of 0.8% to prime.

In the 5-year variable mortgage rates plan, you basically have to pay according to the variable rate set and also have to stay committed to the regulations.  The plan might also involve some rare mortgage payments as well.

There are two ways in which you can handle your mortgage payments. The first method is the set payment methods that include changes being made in the interest rate. The second method that can be applied is the fixed sum method in which the whole mortgage payment is affected. For example, in case of the former, if the interest rates are decreasing, most of the mortgage payment amount is used for reducing the principal amount, which doesn’t affect the overall layout of the plan.

For better understanding, the variable mortgage plan should not be confused with the amortization term which mostly consists of the mortgage payment period. In case of a quick fall in the interest rate, the amortization rates are also reduced.

You should probably look for a plan which offers the best and lowest rates for your ease. If you are looking for a proper solution for your mortgage payments, we are here to guide you.

Talk to someone
Checkout personalized quotes and see how much you can save now1
What type of mortgage are you looking for?
Current Average Mortgage Rate*: 2.660% APR *5 Year fixed term
Great! What type of property are you purchasing?
Great! What type of property are you purchasing?
What is your estimated purchase price?
$0k - $10k
How much are you putting as a down payment?
0% - 5%
Choose Your Province:
  • Airdrie
  • Ajax
  • Alberta
  • Barrheard
  • Barrie
  • Brampton
  • Brantford
  • British Columbia
  • Brooks
  • Burlington
  • Calgary
  • Cambridge
  • Canmore
  • Cardston
  • CFB Suffield
  • Drayton Valley
  • Drumheller
  • Durham
  • Edmonton
  • Edson
  • Etobicoke
  • Fort Macleod
  • Fort McMurray
  • Guelph
  • Hinton
  • Husky Sunrise Camp
  • Kingston
  • Kitchener
  • Lloydminster
  • London
  • Manitoba
  • Markham
  • Medicine Hat
  • Milton
  • Mississauga
  • New Brunswick
  • Newfoundland and Labrador
  • Niagara
  • North York
  • Northwest Territories
  • Nova Scotia
  • Nunavut
  • Oakville
  • Ontario
  • Ottawa
  • Pincher Creek
  • Prince Edward Island
  • Quebec
  • Red Deer
  • Saskatchewan
  • Scarborough
  • St. Catharines
  • St. Thomas
  • Stettler
  • Stratford
  • Strathroy
  • Taber/Bow Island
  • Thunder Bay
  • Tillsonburg
  • Toronto (GTA)
  • Vaughan
  • Vermilion
  • Waterloo
  • Westlock
  • Windsor
  • Woodstock
  • Yukon
Choose Your Rate Type:
Choose Your Term
1 Year
Your mortgage options are ready to be sent to you.
*Your information is 100% confidential.