A Variable Rate Mortgage allows you to take full advantage of changing interest rates. It allows you to convert to a fixed rate mortgage with a term of 3 years or longer, without penalty.

Features

• Variable Rate Mortgage rate is based on Prime.
• Payments can be fixed for up to 2 years. However, the interest may change from month to month depending on the market conditions.
• Flexibility to convert, at any time, to a fixed rate mortgage with a term 3 years or longer, without penalty.
• Interest is compounded "not in advance" which means interest is charged each month. It is charged each month instead of adding the total cost of interest to the mortgage, in the beginning. As a result, the owner will pay less interest.
• Owners with existing mortgages up for renewal can have the option to convert to a Variable Rate Mortgage.
• If you pay off your mortgage or renew early there is a 3-month interest penalty or $1000 whichever is greater.