Prime rate is the benchmark rate that lending institutions use to determine lines of credit, mortgages, and personal loans.
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What is the Bank of Canada?
Like the United States’ federal reserve, the Bank of Canada (BoC), is Canada’s central bank and is responsible for directing…
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How Often Does the Bank of Canada Make Changes to Their Rate?
The BoC meets eight times each calendar year to analyze the Canadian economy and to decide on whether they should…
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What Is an Adjustable-Rate Mortgage – ARM?
When working with a lender that offers an ARM product, your payment is NOT static on the day of closing,…
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What Is a Variable Rate Mortgage – VRM?
When working with a lender that offers a VRM product, your payment will remain static on the day of closing,…
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What is a Trigger Rate?
As interest rates on variable rate mortgage products increase, the payments do not change. There will be a point where…
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What is a Trigger Point?
For a conventional VRM product, meaning a mortgage product with 20% or more in equity, the Trigger Point is when…
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Is a Variable Rate Mortgage Similar to a Home Equity Line of Credit?
Somewhat! There is an initial approved total mortgage amount, the money is advanced, and there is an agreed upon monthly…
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How Much Will My Variable Rate Payment Fluctuate?
If you currently have a mortgage, your payment will change approximately $12 - $13 for every $100,000 that you owe…