Variable Rate Mortgages (VRM)
There are two types of mortgages available on the Canadian market, a fixed rate mortgage and a variable rate mortgage. A fixed rate mortgage refers to a mortgage product where the interest rate is fixed on the day of closing, and remains unchanged for the entire term. A variable rate mortgage refers to a mortgage product, whereby the interest rate fluctuates according to Bank of Canada Prime Rate, which is determined on a quarterly basis. MORTGAGE ALLIANCE is now offering THE ULTIMATE VARIABLE MORTGAGE, at PRIME (currently that stands at 2.45%), and this discount off the prime is guaranteed for the entire term.
Are you currently locked into a 5 year Variable mortgage at Prime (2.45%) or Prime plus 0.20% (2.65%)? If so, you must consider that refinancing or switching your mortgage to a lender offering a fixed rate of 2.69% will reduce your mortgage expense by over 1.00% annually for the remainder of your term. Breaking your current mortgage will only carry a one time three months interest penalty of approximately 0.75% of the mortgage amount. The savings in interest over the course of the term will translate to thousands of dollars. Feel free contact us at any time and we will gladly crunch the numbers for you to determine if switching the mortgage at this time would be beneficial.
Variable rate mortgages are mostly based on a five year term. Unlike other mortgage products, a VRM is a highly flexible product which allows you to take advantage of market trends without incurring unnecessary penalties for changing the term prior to the renewal date. Although the variable mortgage is still a great option, in today's volatile market, you might want to consider our limited time offer on a 5 Year Fixed Mortgage at 2.69%! This option will allow you to secure the lowest 5 year fixed rate mortgage to date.