3-Year Variable Mortgage Rates
3-Year variable mortgages give homeowners the opportunity to take advantage of the lower rates that typically accompany variable mortgages without a long-term commitment. In a 3-year variable mortgage, borrowers have the opportunity to lock-in their rate if they see fit.
Compare 3-Year Variable Mortgage Rates
3-year variable mortgages feature rates that are generally one to two percent below standard fixed mortgage rates. These rates fluctuate based on the Bank of Canada's prime lending rate and as such, mortgage payments may vary from month to month.
Pros Of a 3-Year Variable Mortgage
- Mortgage payments typically cost less than with fixed-rate mortgages
- Borrowers aren't committed to a lengthy mortgage term
Downside of a 3-Year Variable Mortgage
- Payments can increase with interest rate fluctuations
The Difference Between Fixed and Variable Rate Mortgages
The biggest difference between a fixed-rate mortgage and a variable-rate mortgage is the monthly payment you'll make on your mortgage. While a fixed-rate mortgage means that your interest and monthly or bi-weekly mortgage payments stay the same for the duration of your mortgage term, variable-rate mortgages change over time. Payments may change every few months to reflect current Bank of Canada interest rates. With a variable rate mortgage, interest rates are lower than fixed mortgage rates; however, in the event that rates increase drastically due to changes in the economy, homeowners may find themselves eventually paying more than they would have if they'd locked in their rate on a fixed term.
What is a Rate Hold?
Rate holds can be applied to variable or adjustable-rate mortgages for a short period of time. Using rate holds, homeowners can lock-in their mortgage rate temporarily to avoid an increase in their mortgage payments. Typically, rate holds can be applied for a period of 30 to 60 days; however, some lenders may allow rate holds of up to 120 days.
Why Compare 3-Year Variable Mortgage Rates with My Rate Compass?
My Rate Compass is an impartial, unbiased hub of information with current, up-to-date mortgage rates from brokers and major banks across Canada. To find reliable information about mortgages, including accurate posted rates, use My Rate Compass to research your options before selecting a mortgage lender.