The Variable Interest Rate Mortgage

This higher-risk mortgage floats with the bank's prime interest rate, affecting your payments on the outstanding mortgage balance.

Many banks will offer a constant monthly payment, but as the prime rate increases, the payment will comprise less principal than when the prime rate is lower.

In surveys done (from 1985- 2004), comparing variable rate mortgages and fixed term mortgages, purchasers who had variable rate mortgages paid down their mortgage faster 89.3% of the time. Furthermore, over 33% of high-income homeowners choose Variable Iinterest Rate Mortgages compared to 20% of lower-income homeowners.

There are currently many Variable Interest Rate products to choose from, and Grant would be happy to give you more information.