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Variable Rate Mortgages

Save Hundreds of Dollars a Month

Members with a greater tolerance for the risk of rising interest rates can choose a Variable Rate Mortgage from FirstOntario, where the rate will float up or down with changes in the marketplace.  Since variable rates are usually well below the fixed rate for a comparable term, this strategy has produced savings for homebuyers of several hundred dollars a month on a typical mortgage amount during the low interest rate environment of the past decade.

Variable Rate Mortgages are priced in accordance with FirstOntario’s base rate, which fluctuates.  You can choose either a five-year Open or five-year Closed mortgage.  Under federal government guidelines, qualification for a Variable Rate Mortgage is based on the five-year benchmark fixed interest rate to ensure you can still afford your home if interest rates should increase.  Payments are calculated at current rate and change as the rate changes.

Open Variable Rate Mortgages at FirstOntario are convertible to another mortgage type at any time.  If interest rates begin to increase beyond your risk appetite, a Closed Variable Rate Mortgage can be converted to a Fixed Rate Mortgage provided the term is longer than the remaining term of the original Variable Rate Mortgage.

Other Great Features

► High-Ratio Mortgage Option

For Members with less than 20% available as a down payment, the Cash Back Mortgage is also available as a high-ratio loan.  An insurance premium is added to the loan amount and financed over the term of the mortgage.  Insurance can be provided either by Canada Mortgage and Housing Corporation, an agency of the federal government, or Genworth Financial Canada, a private insurer.

► 90-Day Rate Guarantee

FirstOntario lets you shop for the right home with confidence, knowing your pre-approval guarantees your interest rate for 90 days from your application.  If rates increase during that period, you’re protected; if they fall, you get the full advantage of the lower rate.

► Payment Flexibility

Select a weekly, bi-weekly or monthly payment option. To retire your mortgage earlier and save thousands of dollars in interest over the life of the loan, choose an accelerated payment option.

► Prepayment Options

On a closed mortgage you can benefit from generous prepayment privileges up to 20% (15% on a 7 Year mortgage) of the original principal amount annually by either topping up regular payments and or a lump sum deposit. Open mortgages have unlimited prepayment privileges.

► Skip-a-Payment

If unforeseen financial circumstances pinch your cash flow, you can skip a mortgage payment once a year (not applicable on High-Ratio mortgages).

► Mortgage Protection Insurance

Life, disability, critical illness insurance and loss of employment are available to make sure you and your family are protected in the event of illness or death.

Let’s chat about your home-buying plans. Call us at 1 800 616 8878 or visit your local branch to book your Service Chat today.


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Fixed Mortgage Rates

1 year closed3.79%
4 year closed3.79%
5 year closed3.89%