Purchase Variable Rates: What Are They?
A variable-rate is one of the two most common types of mortgages, along with fixed-rate. With a variable rate, your interest rate will fluctuate based on changes to the market. If market conditions cause the prime lending rate to go up, then your interest rate will too. If the prime goes down, so will your interest rate, meaning you’ll pay less in interest over the length of your mortgage.
Generally speaking, a variable-rate mortgage will still have fixed monthly payments. You’ll pay the same dollar amount each month—that won’t change. What will change is your amortization period: how long it will take you to pay off your loan. If your rate goes down, you’ll pay your mortgage off sooner. But if your rate goes up, then it will take you longer. It involves a bit of risk, but also deems reward.
Why Choose a Variable-Rate Mortgage?
A variable-rate mortgage can end up saving you considerable amounts of money, especially if interest rates are predicted to go down. What’s more, variable rates tend to be lower than fixed rates, since the borrower takes on more of the risk involved in market fluctuations.
A variable-rate mortgage may be right for you if:
- You want fixed monthly payments
- You don’t mind the possibility of a longer borrowing period
- Interest rates are expected to go down
A local mortgage broker from Today's Mortgage Choice can help you determine whether a variable rate is the right choice for you. Feel free to contact us to seek our advice.
How Does Today's Mortgage Choice Help Me Find the Best Purchase Variable Rates?
Our years of experience have helped us cultivate connections with a vast array of lending institutions. We put that network in front of you, allowing you to tap into it and access exclusive deals across the mortgage industry.
For purchase variable rates, we put you in touch with the mortgage products that the banks don’t want you to know about it. We give you a range of options, and we help you hone in on the perfect one for you. The result? Long-term savings, favourable mortgage conditions, and more money in your pocket. Set yourself up for success, and choose Today's Mortgage Choice as your variable-rate mortgage broker.
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If you’re in the market for a new home, don’t hesitate to reach out to us. We’ll be sure to give you everything you need for a steady and successful investment—for you, your family, and your future.
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