With a Variable Rate Mortgage, your interest rate can change based on market conditions, which means your mortgage payment can vary. There are two main types:

1. Variable Rate - Fixed Payment: Your total payment remains constant, but the portion applied to interest and principal changes as market rates fluctuate. When rates go down, more of your payment goes toward reducing the principal. Conversely, when rates rise, a larger portion of your payment goes toward interest.
2. Variable Rate - Variable Payment: Here, the amount you pay toward your principal remains fixed, but your total payment varies with changes in market interest rates. This means your mortgage bill will increase or decrease with rate changes, but the principal repayment stays consistent.

To explore which type might be right for you, book a call with me for a personalized discussion.

There are several strategies to consider:

1. Fully Open Mortgage: This type allows you to pay off your mortgage in full or in part at any time without incurring a penalty.
2. Partially Open Mortgage: You can make extra payments or repay the mortgage in full, but there will be a penalty fee for doing so.
3. Accelerated Payments: Instead of making monthly or semi-monthly payments, you can choose to make payments every two weeks. This slight adjustment results in more payments each year, which can significantly reduce the total interest paid and help you pay off your mortgage faster.

For more information on which option best suits your needs, book a call with me to discuss your goals.