A variable-rate mortgage on Vancouver Island will fluctuate throughout the mortgage term. While your regular payment will remain constant, your interest rate may change based on market conditions. This impacts the amount of principal you pay off each month. When rates on variable interest rate mortgages decrease, more of your regular payment is applied to your principal. Additionally, if rates increase, more of your payment will go toward the interest.
A variable rate mortgage typically offers more flexible terms than a fixed-rate mortgage.