What Is a Variable Rate Mortgage?
- 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.