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.

Product Options

  1. Payments are based on PRIME - minus 1.10 , currently at 2.85%, for the entire five year term.
  2. Payments are based on the going 3 year fixed rate, with all payments made above the going rate being put towards the principle to lower amortization. This is a five year term product. You may chose to lock in the mortgage at any time without any penalties and fees.


Both VRM options allow you to have the flexibility of monitoring market trends, and adjusting your mortgage product to better equip you for future rate increases. As mortgage rates drop, the VRM option is obviously the best one, since you are always getting the lowest possible rate. However, when rates are on the rise, you would want to lock into a fixed rate mortgage, so as to take advantage of current low interest rates, and protect yourself against future rate hikes. With a variable rate mortgage, you may lock your interest rate at any time throughout the term, for a minimum of the remaining time on your initial mortgage. The interest rate which you will be presented with, will reflect the MOST DISCOUNTED rate on the market at the time.

Our Commitment

This product requires a continuous monitoring of market trends throughout the term. Our commitment to servicing your mortgage through the term means that we will do the monitoring on your behalf. Should a situation arise, whereby we feel that you ought to be locking in your mortgage rate, we will inform you accordingly. Let us do the legwork on your behalf.

For more information on the advantages of obtaining a VRM, please contact us at any time, or simply fill out our online contact form, and one of our representatives will be in touch with you shortly.

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