Variable rate means your interest rate changes according to market conditions. When rates are low, your interest rate is lower, when rates are high, it’s higher.
Variable-rate mortgages have a fixed period of time when payments stay at a constant level. Variable rate loans generally reset every month or year depending on the type of mortgage you choose. Unless otherwise stated in your loan agreement, most variable rate loans adjust to current market rates every month.
Getting a variable rate mortgage in BC, it gives you the ability to take advantage of fluctuations in interest rates. This type of loan offers a lower initial rate, which can save you money up front but has the potential to adjust over time.