What Is A Variable Mortgage Rate?
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.
variable rate mortgage BC
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.
Integrum Mortgage, Mortgage brokers can help borrowers find the best mortgage product for their needs. We have access to several lenders including credit unions, so we can compare different products and advise you on which is the most suitable one. Integrum mortgage, Mortgage brokers can also negotiate terms with lenders to get better rates and more favorable repayment options. Some of our mortgage brokers even assist with paperwork and other aspects of the home loan process.
Pros And Cons Of A Variable Rate Mortgage
Usually at the beginning of your mortgage for a specified time, the interest rate is lower. After the initial specified time, the rate will fluctuate according to the terms of the mortgage.
First time home buyers can more easily qualify for a variable rate mortgage. because the initial monthly payments are generally lower than a fixed rate mortgage.
Disadvantages of a variable rate mortgage is that it does not offer as many protections as a fixed rate. Variable rates can go up as well as down, which means it’s more difficult to budget your monthly payments and interest rate.