All You Need to Know About 3 Year Variable Rate in Canada
A variable mortgage rate, also known as a floating rate mortgage is a mortgage option where the interest rate can fluctuate at any time. In a 3-year variable mortgage rate, your interest rate defined for 3 years in-lieu. That means- your mortgage option will absorb the changes in the interest rates for the full 3 years – whether the prices go up or down. Borrowers need to make the mortgage payments as per the fluctuations in the prime rate and other contractual provisions with the lender.
When can people choose the 3-year variable rate in Canada Province?
- When the mortgage term has overall lower rates than 5-year variable rates.
- Because most of the users are looking for the flexibility to refinance earlier with no penalty.
- When people somewhere don’t plan to own the home for 3 years.
- When the users want a mortgage with a cheaper penalty if they break the contract early.
When you have made up your mind of applying for a 3-year variable rate in Canada, make sure that you compare and then, use for the needful mortgage dealings relating to property buying. For all such needful information to access the variable rates, look no further and visit the official website of RateShop.ca. Theirs is the online platform to avail of the information on mortgage comparison and estimations.