Variable-Rate Mortgage in Mt. Pearl
Mortgage Alliance - Shoreline Mortgages, Inc. is here to help property buyers find the best variable-rate mortgages. We are Mt. Pearl’s top team of local mortgage brokers, combining industry expertise with quality customer care. We shop the most competitive deals on the market, ensuring that consumers find a fair mortgage at a fair rate.
To discover your options for variable-rate mortgages, give us a call at (709) 699-5727 today.
Variable-Rate Mortgages: What Are They?
A variable-rate mortgage has a floating interest rate: The interest that you pay will fluctuate based on changes to the prime lending rate in Canada.
If the prime rate increases, you will pay more interest on your mortgage. But if it decreases, you’ll pay less.
Normally, having a variable rate will not affect the amount you pay each month. Instead, it affects the length of time it’ll take to pay off the loan. If your mortgage rate goes up, more of your money will go toward paying off the interest rather than the principal balance. As such, it will take you longer to pay the loan off. However, the opposite is also true: If your mortgage rate decreases, more of your money will go toward paying off the principal, and you’ll finish paying off the loan sooner.
Key Features of a Variable-Rate Mortgage
- Fixed five-year term (in most cases)
- Floating interest rate, based on prime
- Fixed monthly payments
- Varying borrowing period
Why Choose a Variable-Rate Mortgage Over a Fixed-Rate Mortgage?
Fixed-rate mortgages are far more common, accounting for about three-quarters of all mortgages in Canada. Nevertheless, there are many reasons why a consumer may prefer to go with a variable-rate mortgage.
Compared to fixed-rate mortgages, variable-rate mortgages typically feature lower interest rates. Factor in that interest rates can drop, and you have a chance at considerable money savings with a variable rate. Plus, a variable-rate mortgage still shields you from the worst effects of interest rate fluctuations. You won’t have to worry about your month-to-month payments changing, only the length of time it takes to pay off the loan. A variable-rate mortgage may be right for you if:
- Interest rates are high and predicted to drop
- You can handle the possibility of a longer borrowing period
- You want stable monthly payments
How Can a Mortgage Broker Help Me Find the Best Rate for My Mortgage?
A mortgage broker from Mortgage Alliance - Shoreline Mortgages, Inc. uses their industry connections to find you a vast array of mortgage options. We help you compare prices and rates, as well as terms and conditions, so that you can get the best deal possible on your mortgage.
We work with a variety of lending institutions that offer low variable mortgage rates. Put your trust in our team, and we’re sure to find you the best variable-rate mortgage available. See for yourself.
Find the Best Mortgage Rate with Mortgage Alliance - Shoreline Mortgages, Inc.
Get in Touch Today
Our team of brokers is ready to help you find a mortgage that works for you. All it takes? Getting in touch with us: We’ll be happy to show you what we can do to save you time and money on your mortgage.
To schedule a consultation with one of our variable-rate mortgage brokers, don’t hesitate to contact us today.
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