Variable-rate mortgages are constantly in the news; thus, it pays for Canadian homeowners to understand these products thoroughly so that they can follow rate trends and determine whether a product such as the 3-year variable-rate mortgage is right for them. This is the most comprehensive site on 3-year variable mortgage interest rates because we host all the information you need to understand the 3-year variable-rate mortgage. You can also apply for loans by clicking on any of the listed mortgage rates, 3-year variable rates included. Read on to find out more about the 3-year variable-rate mortgage and apply for your loan.
What Should You Know about 3-Year Variable Mortgage Rates?
Understanding the different variable mortgage rates in Canada is not difficult. Every variable mortgage rate product is a loan with an interest rate that may fluctuate from month to month during the loan term. Canadian lenders take the prime rate and then add or subtract a few percentage points or fractions of a percentage point to determine the rate on your variable loan. Because variable rates are linked to the prime rate, they increase and decrease when the prime rate increases and decreases.
Simply put, the 3-year variable mortgage rate is the interest rate the lender charges you on a variable-rate mortgage with a term of 3 years. With such a mortgage, you lock in for three years the number of percentage points that will be added to or subtracted from the prime rate to determine your mortgage rate.
Are Current 3-Year Variable Mortgage Rates for Me?
Since there are many different Canadian mortgage rates, let alone many different Canadian variable mortgage rates, it can be difficult to know if the 3-year variable mortgage rate is right for you. That is why we have put together this list of 3-year variable rate advantages and disadvantages to help you evaluate this interest rate:
ADVANTAGES
• In recent years, variable rates have generally been lower than fixed rates.
• The 3-year variable-rate term allows you to take advantage of other loan products that may be better for you three years from the point at which you close your loan.
• You can change your interest rate quite often on an amortized thirty-year loan when you consistently choose 3-year variable-rate terms, potentially saving you a lot of money over several decades.
DISADVANTAGES
• Drastic changes in the prime rate can lead to drastic mortgage rate changes.
• Getting out of a variable-rate mortgage term early can be costly.
• A 3-year term does not give you as much rate-change flexibility as a 1- or 2-year loan term.
More Facts on 3-Year Variable Interest Rates in Canada
Variable-rate mortgages with 3-year terms have become increasingly popular in Canada over the past decade. These additional facts help explain why:
• 3-year variable mortgage interest rates have averaged around three percentage points lower than 3-year fixed mortgage interest rates over the past five years or so.
• As of July 2012, the average 3-year variable interest rate in Canada was 3 percent.
• Mortgage terms of less than five years are most popular with the youngest adults in Canada (ages 18–34).
• Nearly 30 percent of all Canadians currently choose some kind of variable-rate mortgage product.
Get the Best 3-Year Variable Mortgage Rates Today
You are just a click or two away from the lowest variable interest rates on mortgages with 3-year terms. Select one of the competitive rates on this page to apply for your loan.
