Variable-rate mortgages follow the prime lending rate, throughout the term of your mortgage. While your principal payment will remain constant throughout the term of your mortgage, your interest rate may change depending on the rates the Bank of Canada sets.
If interest rates lower, more of your mortgage payment will go towards your principal payment. On the other hand, if interest rates rise, more of your payment will go towards your interest payment.
Variable mortgage rates are also displayed as a discount or a premium (+/-) to the prime rate. For instance, if the prime lending rate is 2.5% and a variable mortgage rate is stated as a .5% premium to prime, the effective rate will be 3.0%.
For the best 5-year variable mortgage rates, see our competitive rate chart below!