Variable-Rate Mortgage in Ottawa
Obtaining a variable-rate mortgage is made simple and affordable with Borrowing Made Simple. As Ottawa’s leading team of mortgage brokers, we work with a range of lending institutions to find you the best mortgage rate available. Offering professional guidance, industry expertise, and smart bargaining tactics, we’re here to help you get the most out of your mortgage.
To discover what we can do for you, don’t hesitate to call us at (343) 763-2019 to book a consultation.
What Is a Variable Mortgage Rate?
With a variable mortgage rate, the interest you pay will fluctuate based on changes to the prime lending rate in Canada. If prime decreases, your interest rate will too. If, however, the prime rate increases, then you will have to pay a larger amount of interest on your mortgage.
The amount of interest you pay may fluctuate with a variable-rate mortgage, but your monthly payments do not. They remain constant, meaning you’ll be asked to pay the same amount each month, regardless of changes to your interest rate. What will change is how long the loan lasts: If your interest rate goes up, you’ll have a longer borrowing period. But if your interest rate decreases, more of your money will go toward the principal balance, meaning you’ll pay it off sooner.
What’s the Difference Between a Variable-Rate Mortgage vs. a Fixed-Rate Mortgage?
Unlike a variable-rate mortgage, a fixed-rate mortgage is shielded from market fluctuations: the rate will stay the same throughout the term of the loan. That means the borrower knows more precisely how long it will take for them to pay off the mortgage.
Variable-rate mortgages usually come with a five-year length of term, after which the mortgage can be renewed or renegotiated if it has not been paid off. By contrast, fixed-rate mortgages can have a one-year, two-year, five-year, or even ten-year term.
Of the two, fixed-rate mortgages are by far the more popular, accounting for roughly three-quarters all mortgage agreements in Canada. That said, choosing a variable mortgage rate can be beneficial in numerous circumstances, potentially saving the borrower a hefty amount of money.
Why Should I Choose a Variable-Rate Mortgage?
A variable-rate mortgage may be right for you if:
- You don’t mind having a longer mortgage term
- You can handle changes to your borrowing period
- Interest rates are high and expected to drop
A local mortgage broker from Borrowing Made Simple will be happy to help you determine whether a variable-rate mortgage is your best choice. We shop a range of different mortgage packages, so you can be sure we’ll find you a low rate with great terms and conditions.
Interested in a Variable-Rate Mortgage? We’re Here to Help!
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We’re happy to answer any questions you may have about our services and how we can save you money on your mortgage. We’re upfront, and we’ll give you all the information that you need to make an educated decision on one of the most important purchases of your life.
To seek the advice of one of our variable-rate mortgage brokers, don’t hesitate to contact us today. We’re here to help.
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