Glossary · Financing
What is Variable-rate mortgage?
A variable-rate mortgage has an interest rate that moves with the lender's prime rate, so payments can change over time.
Definition
A variable rate rises and falls with the market. When rates drop, more of your payment goes to principal; when they rise, more goes to interest (or your payment increases). Historically, variable rates have often cost less over time — but with more uncertainty.
Variable mortgages suit homeowners who can handle some payment fluctuation and want to potentially save on interest. Many can be converted to a fixed rate if your circumstances change.
When variable-rate mortgage matters
- Potentially saving on interest when rates are low
- Keeping flexibility to convert to fixed later
- Matching a mortgage to your risk tolerance
With Homeprint
How Homeprint helps with variable-rate mortgage
Homeprint helps you keep an eye on your mortgage alongside your home's overall financial picture.
- Keep every related document in one secure place
- Track your home's value and finances over time
- Stay connected with trusted neighbourhood experts
Variable-rate mortgage — FAQ
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