Posted on: 25th Oct, 2008 09:23 am
There's a lot of info on web how US variable rate mortgages work, but nothing about Canadian. Are they attached to some kind of Index? How often do they adjust?
Was wondering if you guys know.
Was wondering if you guys know.
Hi Guest!
The Variable-Rate Mortgage in Canada is offered at the prime rate and can be adjusted in every month. This is the main reason why a person can enjoy a discount on the lowest rate on the market. You can get two payment options--fixed and variable payments.
The fixed payment is normally for a minimum of 5-year term in effect when the loan is opened whereas the variable payment can be adjusted monthly in respect to interest rate movements and also maintaining the remaining amortization.
Thanks.
The Variable-Rate Mortgage in Canada is offered at the prime rate and can be adjusted in every month. This is the main reason why a person can enjoy a discount on the lowest rate on the market. You can get two payment options--fixed and variable payments.
The fixed payment is normally for a minimum of 5-year term in effect when the loan is opened whereas the variable payment can be adjusted monthly in respect to interest rate movements and also maintaining the remaining amortization.
Thanks.
Hi Guest!
Presently, the variable mortgage rate in Canada is 5.00%. The previous one was 5.25%. You can also find a new plan which is known as Introductory Variable Rate Mortgage. This plan is generally found when prime rates are low. This mortgage is based on a 5 year term and only the first three years are closed. The 4th and 5th years are completely open and have no pre-payment penalty.
Thanks.
Presently, the variable mortgage rate in Canada is 5.00%. The previous one was 5.25%. You can also find a new plan which is known as Introductory Variable Rate Mortgage. This plan is generally found when prime rates are low. This mortgage is based on a 5 year term and only the first three years are closed. The 4th and 5th years are completely open and have no pre-payment penalty.
Thanks.