What Is a Variable Rate Mortgage?

Author: Boychuk Mortgage Group |

  • A floating interest rate, also known as a variable rate or adjustable rate, refers to any loan that is not fully fixed, but rather shifts with any changes to the Bank of Canada’s overnight policy rate.
  • There are two types of variable rate products:
  • ARM – Adjustable-Rate Mortgage AND
  • VRM – Variable Rate Mortgage
  • When deciding on what variable rate product works best for you and your family, it’s best to ask yourself if you are more comfortable with a fixed monthly payment or paying your mortgage off on the agreed upon amortization. (See our variable rate mortgage section for more)
  • While both options are great products, not every lender will offer both. Depending on the lender, some will have a variable rate mortgage product, while others have an adjustable-rate mortgage product. Speak with one of our team members today to learn more about which product is best suited for you.