Did you know with a variable rate mortgage you can pay down MORE principal, pay LESS interest, and enjoy LOWER payments?
Check out this first 5 year cost comparison for a $250,000 mortgage amortized over 25 years.
| TERM | Monthly Payments (Principal & Interest) | Total Payments (5 years) | Principal Paid Down | Interest Paid |
|---|---|---|---|---|
| 5 year Variable 2.20% | $1,082.92 | $64,975.20 | $39,698.02 | $25,277.18 |
| 5 year Fixed 2.99% | $1,181.84 | $70,910.40 | $36,355.11 | $34,555.29 |
| Difference in Payments | $98.92 LESS! | $5,935.20 LESS! | $3,342.91 MORE! | $9.278.11 LESS! |
And if you top up your variable rate payments to match what the fixed rate payments would have been, there’s little or no impact to your budget if prime goes up.
In the meantime, your regular top up payments turbo-charge your fast track to being mortgage free!
You can find more about Variable Rate mortgages in this video (watch now).
Got questions? Let’s chat! 250-550-8272