5-year Variable Mortgage Rates- All you need to Know


5-year variable mortgage rates fluctuate with short-term interest rates. They have a good reputation in the market for saving borrowers money over time. These mortgages come in two forms: closed and open. A closed 5-year variable is meant to bind you to the terms of your mortgage for the duration of 5 years while with an open 5-year variable; you get the flexibility to pay off your mortgage in full at any time.



How can you calculate your payments with Variable Mortgage Products?
There are two ways in which you can calculate your payments with variable mortgage rates.

·         Pay a set amount each month
The proportion of interest to be paid changes as per the interest rate at the time. This means you can take advantage of today’s falling rate environment and while maintaining a constant payment, pay down more of your principal.

·         Pay a certain amount of principal and interest
The amount you pay each month goes up or down with the interest rates change.

Why must you choose a Variable Rate over Fixed Rate?
·         When compared, variable rate mortgages are less popular than the fixed rate mortgages. Only 31% of borrowers choose these mortgages.
·         But history is on the side of variable mortgage rates.
·         The variable rate mortgage rates were cheaper than fixed rates of more than 90% in the post-war period.
·         A variable mortgage rate lets borrowers pay less interest and can discharge their mortgage faster with a variable rate.

Where to Compare and get the Best 5-year Variable Mortgage Rates?
RateShop.ca is the best online platform you that gives you the opportunity to compare and get the best 5-year variable mortgage rates without any hassle. You just have to put your figures and we will narrow down your search by showing you the best options for you.
Location: Ontario, Canada

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