Variable Rate Mortgage
A Variable Rate Mortgage offers a unique approach to mortgage payments, where payments remain consistent throughout the term despite potential fluctuations in interest rates. If interest rates decrease, a larger portion of the payment is allocated to reducing the principal amount owed. Conversely, if rates rise, a greater portion is directed towards interest payments. This type of mortgage can be either open or closed, providing borrowers with flexibility in managing their finances.
Fixed Rate Mortgages
Fixed Rate Mortgages provide borrowers with a sense of stability by locking in an interest rate for the entire term. This ensures predictability in payments, offering security and consistency throughout the loan period. Fixed-rate mortgages are available in both open and closed options, with the former allowing for early payment without breakage costs, while the latter may incur such costs if paid off before the term ends.
Transitioning between these mortgage types is possible, providing borrowers with the flexibility to adapt to changing financial circumstances or market conditions. Ready to explore your mortgage options? Apply now to begin your journey towards homeownership.