What is a variable rate?

  • The interest rate that may change during your term.
  • Based on whatever the lender’s prime rate is. (would range from prime minus a percentage to prime plus a percentage)
  • Typically, if prime goes up, your rate goes up and your payments go up. If prime goes down, your rate goes down and your payments go down.
  • Considered more risky, but has historically been lower interest than a fixed rate mortgage.

About The Author

Sarah is a mortgage broker & happiness builder. Say hi to her: sarah@mintmortgage.me.