Is a variable rate mortgage right for you?  Richard Batke, mortgage broker with Invis explains the variable rate mortgage to help you find out! 

The interest rate on a variable rate mortgage is tied to the lender's prime rate either by a premium or discount.

VRMs are available in 3 and 5 year terms.

How Does It Work?

Payments can be either a fixed constant amount, or the payment can change with the interest rate, depending on the mortgage lender and your preference.

You have the option to lock in your rate in to the current fixed rate for the remaining term, should you choose to do so. Individual lenders have slightly different lock in policies, so be sure to understand the terms of your contract, which your mortgage broker can explain to you.

Lower interest rates.  I have clients that have been enjoying a mortgage interest rate of 1.5% for the last year. They have gained tremendous equity in their homes since a good portion of their payment is paying down the principal, instead of interest.

What are the Risks?

When you go to lock in your variable rate, you run the risk that fixed rates may be higher than you had anticipated.

Is a Variable Rate Mortgage Right for Me?

When variable rate mortgages may not be a good choice:

2.  If your income is likely to remain constant and you want to have a constant mortgage payment.

When variable rate mortgages may be a good choice:

1.  If you are comfortable with changing interest rates and want to be involved in managing your mortgage, or

2.  If you are considering a short term mortgage, for example 2 year term, a VRM would also make sense.  Prime rate would have to increase by over 1% in 2 years to negate the savings enjoyed with the VRM.  This is not likely to occur, and if it was occurring, you could still lock in at a current fixed rate.

Richard Batke - Mortgage Broker

2004 Main St.
Penticton, BC
V2A 5H4

Direct:  250-809-0285
email:   richardbatke@invis.ca
web:www.thehomefinancecentre.com
map:   2004 Main St., Penticton, BC 

Richard Batke
Mortgage Broker

* Purchase * Refinance * Renew * Debt Consolidation *
* Business Equipment Leasing *

Mortgages and Leasing in the South Okanagan, including:

Summerland BC | Penticton BC | Naramata BC | Okanagan Falls BC
Oliver BC | Osooyoos BC | Keremeos BC | Princeton BC

Richard Batke is a Mobile Mortgage Specialist in Penticton, BC serving the South Okanagan. Book your appointment now: 250-809-0285 or visit www.thehomefinancecentre.com.

I represent you!  I do not work for, or represent any lender, my only goal is to connect you with the mortgage product and lender that fits you best, at the lowest rate available.

I work for you and negotiate in your best interests only!

• Chartered Banks
• Credit Unions
• Regional Lenders
• "Mortgage Broker Only" Lenders
• Private Lenders

• Home Equity Line of Credit:
  
  I have several lenders offering HELOC's, each with different qualification criteria and options. You can protect yourself from rising interest rates by segmenting your mortgage balance into any combination of variable or fixed rates and have access to the equity in your home through a revolving line of credit!
  
  
• 50/50 Variable / Fixed Rate Mortgage:
  
  Not sure if you want a variable or fixed rate? You can have both. This allows you to take advantage of today's historically low fixed interest rates and have the other half in a variable rate that can be locked in at any time. It is a great option to take advantage of today's low interest rates and minimize the risk associated with a variable rate mortgage!
  
  
• 3 year term variable rate mortgages:
  
  Variable rate mortgages are typically offered with 5 year term, however I have lenders offering exceptionally low rates for 3 year terms!
  
  
• Rate specials and Quick Close offers.

• I save you time:
  by sourcing mortgage for you
  
  
• I save you money:
  by negotiating your mortgage for you
  
  
• Convenience:
  I can meet with you at a time and place that fits your schedule
  
  
• I give you more options:
  a very wide variety of lenders
  
  
• I preserve your credit score:
  I need only one copy of your credit report to shop all available lenders

Richard Batke - Mortgage Broker

2004 Main St.
Penticton, BC
V2A 5H4

Direct:  250-809-0285
email:   richardbatke@invis.ca
web:   www.thehomefinancecentre.com
map:   2004 Main St., Penticton, BC 

Richard Batke
Mortgage Broker

* Purchase * Refinance * Renew * Debt Consolidation *
* Business Equipment Leasing *

Mortgages and Leasing in the South Okanagan, including:

Summerland BC | Penticton BC | Naramata BC | Okanagan Falls BC
Oliver BC | Osooyoos BC | Keremeos BC | Princeton BC