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:
1. ARM – Adjustable-Rate Mortgage AND
2. 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.