What’s the difference? Fixed vs. variable mortgage rates.
With a fixed rate mortgage, your payments and interest rate stay the same for the term of your mortgage. Every time you make a payment, the same amount goes towards your principal. Unless you make extra payments, you know exactly how much principal will be left at the end of your term.
With a variable rate mortgage, your payments stay the same for the term of your mortgage, but the interest rate changes. When interest rates drop, more of your payment goes towards your principal. When interest rates rise, less of your payment goes towards your principal. A variable rate mortgage can save you a lot of money in interest, but you won’t know exactly how much principal will be left at the end of your term until you get there.
Residential Mortgage calculator
Use the mortgage calculator to help you get an estimate of monthly payments and to compare affordability of various interest rates and terms.