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eMortgage Solutions

Trusted Mortgage Brokers Located in Toronto

eMortgage Solutions's Logo

eMortgage Solutions

Trusted Mortgage Brokers Located in Toronto


Brokerage License #10530

Variable-Rate Mortgage

Variable-rate mortgages may not be as common as their fixed-rate counterparts, but that doesn’t mean they’re not worth considering. We explore some of the most competitive variable-rate mortgage products on the market today, giving our clients a vast range of options with low-interest rates.

To discover the value of our services for yourself, don’t hesitate to give us a call at (416) 258-0156.

Variable-Rate Mortgage

How Does a Variable Rate Mortgage Work?

A variable-rate mortgage has a floating interest rate, which can vary from month to month or year to year.

Your interest rate consists of the prime rate (the lending rate set by national banks), plus the interest rate set by your mortgage lender. If the prime lending rate increases, then so too will your mortgage rate. On the other hand, if the prime lending rate decreases, you’ll be able to enjoy a lower rate on your mortgage.

What Drives Change in 5-Year Variable Mortgage Rates?

Generally, a variable-rate mortgage will be locked into a five-year term. During those five years, your monthly payments will stay the same, but changes in the interest will affect what your money goes towards. With a lower interest rate, more of your money will be spent paying off the principal balance of your mortgage, meaning you’ll pay it off sooner. A higher interest rate, however, means more of it will go toward paying off the interest, not the principal, and you’ll be left with a more extended borrowing period for your mortgage.

Which Is Better a Variable-Rate Mortgage or a Fixed-Rate Mortgage?

Unlike a variable-rate mortgage, a fixed-rate mortgage does not have a floating interest rate. Whereas a variable mortgage rate will fluctuate according to changes in the market, a fixed rate will stay the same—month after month—throughout the mortgage term. 

As mentioned, variable-rate mortgages usually have a five-year term length. By contrast, the term for a fixed-rate mortgage can last anywhere from one year to ten years.

The stability of a fixed-rate mortgage makes them the more popular choice. Almost three-fourths of mortgages in Canada are set with a fixed interest rate. That said, variable-rate mortgages can be advantageous for certain borrowers, as they tend to have a lower overall interest rate.

A variable-rate mortgage may be right for you if:

  • Interest rates are at a market high and are expected to decrease
  • You can commit to a five-year mortgage term
  • You can withstand fluctuations in the market

How to Find the Best Variable Mortgage Rate?

We work with a plethora of banks, financial institutions, and other lenders offering some of the best variable-rate mortgages available. We leverage those contacts so that our clients can enjoy a wide array of options for their mortgage. For you, that means more power, more choice, and more money in your pocket. We give you more, for less. Take advantage.

Ready to Find Your Mortgage? So Are We

Get in Touch Today

If you’re looking to save time and money on finding your ideal mortgage, look no further than our team. We’ve helped countless homebuyers become homeowners without living beyond their means. And we’re confident we can do the same for you.

Contact us to speak to a broker today.

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