Date: June 21, 2022

I’m in a variable rate mortgage and so that means that my payment will increase when the Bank Of Canada increase their rates! Right?


The answer is not a straight forward one.
Let me explain!
There are variable rate mortgages and adjustable rate mortgages and they both are based on prime less a discount, however they operate differently internally.

A variable mortgage and a fixed mortgage work very much the same way as far as payments go. The amount of the monthly payment does not change unless you exceed the trigger rate. The rate itself is based on prime less your discount. If prime moves, your overall rate also moves.

Adjustable mortgages are the true variable mortgage that most people refer to. This is a mortgage where your payment and rate will move when the prime rate moves.

Variable Rate mortgages have a static payment and Adjustable mortgages have a moving payment, however both are based on prime less your discount.

Adjustable mortgages maybe a good option if you are trying to keep your monthly payments steady (remember to put money in your house account regardless).

If you want to discuss these two options, then connect with me and I’m happy to review them with you.

Want to connect?

Ana can be reached at 905.870.0513 or you can email her at

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