Top 3 Variable Mortgage Rates

The top variable rates are highly competitive as lenders vie for well-qualified clients. The small differences you see often come down to a lender's specific funding costs and their short-term strategy for attracting new business. Even a 0.05% difference can result in significant savings over your term.

Not always. The mortgage with the absolute lowest rate might have less favorable terms. For variable rates, the key is the discount from prime. A rate of 'Prime - 1.00%' is better long-term than 'Prime - 0.75%', even if the prime rate changes. Also, consider prepayment privileges and portability options.

This is the most important part of a variable rate. It's the percentage that is subtracted from the lender's prime rate to determine your actual interest rate. For example, if prime is 6.95% and your discount is 1.00%, your rate is 5.95%. This discount is locked in for your entire term, so a bigger discount is always better.

The top variable rate offers can change very quickly, sometimes daily, based on a lender's funding needs and market competition. However, once you are approved and have a rate hold, your specific discount from prime is secured for the rate-hold period (typically 90-120 days).

These top-tier rates are typically reserved for applicants with strong credit and financials. If you don't qualify, don't worry. There are many excellent alternative lenders who are more flexible. A mortgage broker is an expert at matching your financial profile to the right lender, ensuring you still get a very competitive rate.