Variable-Rate Mortgage in Mississauga
Save money on your mortgage with eMortgage Solutions. We are Mississauga's leading team of mortgage brokers, offering top-tier service, and impartial financial guidance. We help our clients find the lowest variable-rate mortgages available today, giving them the chance to shop around and see what works best for them.
Call us at (416) 258-0156 to get started today!
What Is a Variable-Rate Mortgage?
The defining feature of a variable-rate mortgage is its floating interest rate. The amount of interest you pay on your loan will vary-either year to year or month to month-according to any fluctuations in the prime lending rate.
If prime increases, you can expect your mortgage rate to increase. But if it decreases, so too will your mortgage rate. It comes with a bit of risk, but also a chance of saving money.
With a variable-rate mortgage, although your interest rate will fluctuate, your monthly payment amount will always stay the same. Your rate may go up or down, but you won't have to worry about having to budget accordingly from month to month. Instead, these rate changes will affect how long it will take to pay off the loan.
If your mortgage rate increases, more of your money will go towards paying off the interest, meaning it will take longer to pay off the principal balance. On the other hand, if you see a decrease, then more of your money will be spent paying off the principal, in turn shortening your loan period.
Why Choose a Variable Mortgage Rate vs. a Fixed-Rate Mortgage?
Fixed-rate mortgages are by far the most popular option for a mortgage in Canada, but don't let that fool you. There are plenty of reasons to opt for a variable-rate mortgage, as they offer several advantages.
Generally, variable-rate mortgages will have a lower overall interest rate. The reason is that the borrower is assuming more of the risk involved in the loan, should interest rates go up or down in the national economy. At the same time, variable-rate mortgages are somewhat shielded from severe market fluctuations, as you still will pay the same amount each month. The only thing you'll have to worry about is whether the length of your loan extends or contracts.
A variable-rate mortgage may be right for you if:
- Interest rates are high and expected to decrease
- You don't mind the possibility of a longer borrowing period
- You want consistent monthly payment amounts
How Can a Mortgage Broker from eMortgage Solutions Help Me?
Our local mortgage brokers work with a wide range of lending institutions to offer you the best rates available. And because we're not affiliated with any particular lender, we offer you an unbiased opinion on your various options. We give you a chance to shop around and compare different deals. Rest assured-we're the team that puts you and your needs first.
Finding You the Best Mortgage Rates on the Market
Get Started Today!
We're here to find you the best rates available. If you're considering a variable-rate mortgage, we can help you weigh your options and determine whether it's the right type of loan for you, or if you're better off with something else. We'll give you all the information you need to find the best course of action for you.
To book a consultation with one of our variable-rate mortgage brokers, contact us today.