facebook
Loading...
Call Us: 416-827-2626
Get your credit score.

Best 3-Year Variable Mortgage Rates

Last Updated: 12 Dec, 2018
Sort by:
Lender Rate Term Amortization Monthly Payment
NPX

NPX

Best overall savings
6.45% 3 Year, Variable Uninsured 25 years
Don't see your products yet? List your offers with us today! List Offers

What is a 3 year variable rate?

The term “3 year variable rate” is made up of two parts: the length of time and the type of mortgage.



The length of term is how long you agree to a certain set of conditions for your mortgage, and the type of mortgage dictates the interest rate you’ll pay. A variable rate mortgage means that the interest rate can change throughout the duration of the term (in this case, three years.)

Variable rates are usually priced as prime - %, where prime is the bank’s best lending rate, and the percentage is a discount on that rate. This allows the rate to change as prime does without affecting the calculations every time it does. A rate that is shown as prime – 0.8% would still be prime – 0.8% if prime went up or down.

Variable rates can go up or down, translating into higher or lower monthly payments, respectively.

When the term ends, your mortgage isn’t paid off. The end of a term means you’ll have to get a new term, with new conditions and interest rates.

How popular is a 5 year fixed term?

In Canada, most homebuyers do not choose a variable rate mortgage.

Mortgage Type

Purchase During 2016

Renewal or Refinance During 2016

Did not purchase, renew or refinance in 2016

All mortgages

Fixed rate

80%

74%

66%

68%

Variable (adjustable) rate

17%

21%

27%

25%

Combination

3%

6%

6%

6%

 

With interest rates on the rise, many people may be scared of accepting a variable rate because they will probably end up paying more throughout the term. If the idea of rising rates fills you with dread, then a variable rate is not for you. You should never lose sleep over the idea of your mortgage payments.

Posted at: 2018-12-13

A statement from the Canadian Mortgage and Housing Corporation today, December 13, shows that the demand for new mortgages was down in the 2nd quarter of 2018. It’s been a tough year for real estat...

Posted at: 2018-12-07

First Time Home Buyer Programs First-Time Home Buyers Tax Credit The First-Time Home Buyers Tax Credit (FTHC) is a non-refundable tax credit worth $750. A tax credit reduces the amount of tax you o...

Posted at: 2018-12-05

In the latest Bank of Canada interest rate announcement at 10 am Wednesday, December 05, 2018, they announced that interest rates wouldn’t be changed from 1.75%. Most experts agreed that the rates w...

Testimonials

Popular Content
Sitemap Updated On December 13, 2018. Copyright 2018. All Rights Reserved. RateShop.ca

x