Canadian Maple Leaf Licensing Info: Alberta Mortgage #MW-0511205,
FSCO (Ontario) #10315,
Saskatchewan Mortgage #315872, and all other provinces.
 
Division of

The Mortgage Group®


GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
^
50% - Moderately

Variable Interest Rate


Synonyms:adjustable interest, floating, non-fixed, shifting
Filed Under: financial-banking, mortgages
Tags: banking, mortgage, rates
 

Definition of variable interest rate

variable interest rate
1. Percentage paid by a borrower for the use of funds. This interest rate moves up or down periodically due to changes in other interest rates.

Related Terms and Acronyms:

  • adjustable-rate mortgage (ARM)   A type of mortgage loan program in which the interest rate and payments may be adjusted as frequently as every month. The principal loan balance or term of the loan may also be adjusted to reflect the rate change. The purpose of the program is to allow mortgage interest rates to fluctuate with market conditions.
      ➥  A type of variable rate mortgage product.
  • prime rate   The rate suggested by the Bank of Canada on which most banks base their prime mortgage lending rate.
  • rate index   A table of yields or interest rates being paid on debt (such as Treasury notes or bank deposits) that is used to determine interest-rate changes for adjustable-rate mortgages and other variable-rate loans.
  • variable interest mortgage   A loan where the interest rate may vary during the term of the mortgage. The variance is usually tied to some specific factor such as prime bank rate or the guaranteed investment certificate rate for a designated lender.
  • variable rate   A floating percentage value that fluctuates based on certain conditions.
  • variable rate mortgage (VRM)   Home loan in which the interest rate is changed periodically based on a standard financial index. Also called an "Adjustable-rate Mortgage."
      ➥  A type of mortgage loan offered by brokers and lenders.

Search the Glossary

Mortgage Rates
When it comes to mortgages, low rates are king. Come check out our greatest mortgage rates and see how much you can save.
Mortgage Rates
 
Current Canadian Rates
For the best rate information in Canada, make use of our up to date interest rate comparison chart. Our brokers are not even remotely afraid of advertising our competitor's rates because we know how we stack up.
Best Current Rate Information
 
Try a Mortgage Super Broker
With the right mortgage broker you're not just a number in a file somewhere, you're a VIP. Here, your satisfaction is our mission. We work tirelessly in order to offer you the best rates and services so that when you eventually need to renew, refinance, or make another home purchase, you'll want to stay with us. Apply today and see what our brokers can do for you.
Try a Mortgage Broker