Variable-Rate Mortgage in Toronto
If you’re looking for a variable-rate mortgage in Toronto, let eMortgage Solutions find it for you. We are the area’s top team of mortgage brokers, offering the best deals on the market today. We help our clients save time, save money, and find optimal mortgage plans that suit their needs.
We’re happy to answer any questions you may have about what we can do for you. For more information, feel free to give us a call at (416) 258-0156 today.
What Is a Variable Mortgage Rate?
A variable mortgage rate has a floating interest rate: The amount of interest you pay will fluctuate based on any changes to the prime lending rate in Canada.
If prime goes up, so will your interest rate. But if prime goes down, you’ll be able to enjoy a lower interest rate on your mortgage.
Typically, variable-rate mortgages have a five-year fixed term, after which the mortgage can be renewed or renegotiated. During the length of your term, your monthly payments will stay fixed at a set amount. Even if prime decreases, your monthly payments will remain the same. What will change is the length of time it’ll take to pay off your mortgage: with a lower interest rate, you’ll pay it off sooner. But again, the opposite is true, too. If prime goes up, you can expect to be paying off your mortgage for a longer length of time (also known as the amortization period).
A variable-rate mortgage may be right for you if:
- Interest rates are high and expected to drop
- You can handle a more extended borrowing period
- You don’t mind trading higher risk for higher reward
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Variable-Rate Mortgage vs. Fixed-Rate Mortgage: What’s the Difference?
Unlike a variable mortgage, a fixed mortgage rate stays constant throughout the mortgage term, regardless of any changes to the prime lending rate. As such, a fixed-rate mortgage offers more predictability and stability but tends to have a higher overall interest rate.
Fixed-rate mortgages can have different term lengths. Whereas a variable-rate mortgage usually has a five-year term, a fixed-rate term can last anywhere from one year to five years to anywhere in between.
A variable-rate mortgage has:
- A floating interest rate based on prime
- A fixed five-year term
- Fixed monthly payments
- A varying amortization period
- Lower interest, higher risk
A fixed-rate mortgage has:
- A fixed interest rate
- Varying term lengths
- Fixed monthly payments
- A standard amortization period
- Higher interest, lower risk
How Do I Find a Good Variable-Rate Mortgage?
A local mortgage broker from eMortgage Solutions is your best bet for finding a good rate on your mortgage.
If you’re considering a variable-rate mortgage, you can trust our team to find it for you. We explore some of the most competitive deals available, and we’re confident we can save you money on your mortgage. Take advantage—and take the stress out of homebuying.
Discover Your Dream Mortgage with eMortgage Solutions
Get the right mortgage for you. Our team of brokers is ready to aid in your search and find you the best mortgage rate available.
To book a consultation with one of our variable-rate mortgage brokers, contact us today.