The Mortgage industry in Canada has become increasingly complex in the recent years, as there are different mortgage products, different features and even different technologies coming into play.
 The banks play a significant role in Canadian mortgage market, determining mortgage rates in the country. The Variable-Rate Mortgage is offered at the prime rate less 0.25%* and is adjusted in every months. That’s why one can enjoy a discount on the lowest possible rate on the market. Here generally two payment options are offered: fixed and variable payments. The fixed payment is based on the rate for the minimum 5-year term in effect when the loan is opened.   The variable payment is adjusted monthly in relation to interest rate movements and in keeping with the remaining amortization.
Fixed-Rate Mortgage is a conventional mortgage type, which you can use to finance up to 75% of the value of the mortgaged property. To get higher flexibility, you have a choice of different amortization periods and terms.
The Capped-Rate Mortgage offers a lower and short-term rate along with long-term security. The applicable interest rate is somehow variable and adjusted in every month according to the prime rates. However, if rates are up at the time of the next adjustment, you never pay more than your initial capped rate.
