Pros & Cons of Variable rate mortgages

Posted On Jan 08, 2026

Did you know? What are the pros and cons of a Variable rate #mortgage?

#Variable #rate #mortgages can be a great #option for #home #ownership and #cost #efficiency, however its important to make an informed decision by looking at the other side of the coin.

#Pros

- Variable rate mortgages #adjust #immediately in response to the Bank of Canada's rate #cuts

- Generally during an #economic downturn or for a weaker economy variable rates can stay #low to induce stimulus

-Most lenders give the option of #converting to fixed or #locking in the rate for their variable rate mortgage products

- #Penalties for variable rate mortgages are almost #capped at 3 months #interest

#Cons

- Variable rates can #rise without #warning; #honeymoon can be over #unexpectedly before the morning coffee

- #Fixed rates offered for #conversion can be #higher than what lenders might #offer to #new #business

-#Discounts can #reset on variable rate mortgages while #porting the mortgage to another #property

For more details and personalised mortgage advise, call me at 250 883 7069.

Achieve with Abhi, #Happy to #Help 😊

#Vancouver #Victoria #Nanaimo #Campbellriver #Vernon #Kelowna #Colwood #Langford #westshore #Britishcolumbia #Canada #mortgage #broker #bestrates #bestdeals #realestate #RE