Variable Rate Mortgages

In most cases, variable rate mortgages come with the best flexibilities. The no-frills mortgage will charge you much higher penalty, restrict your pre-payment privileges and prevent you from porting or blending your rate
Usually banks follow the overnight rate posted by Bank of Canada in a few days. In some cases the lenders won’t immediately follow, will follow partially (e.g. overnight rate went 0.25% down while lenders dropped their prime only by 0.15%), or will put a cap with a ceiling on how high your rate can go.
Yes you can. However, you’ll be limited to the rate your bank offers you at that point in time, which is usually not the best they can offer or the best in the market. If you are considering converting into a fixed rate: consult with us, sometimes you’ll save more with a new fixed rate mortgage.
With some lenders the payment is fixed regardless of the prime fluctuation. You can also do it manually by increasing your payment when prime drops. We encourage you to consult with us whenever you wish to increase your payment, as it has impact on your future plans.