Fixed rates
A fixed rate is set for the term, providing payment predictability. Breaking a fixed mortgage can involve an interest rate differential or other penalty; the calculation varies by lender.
Variable rates
A variable rate changes with the lender’s prime rate. Some products adjust payments while others keep payments fixed until certain thresholds are reached. Understand which kind you are considering.
Think beyond the headline rate
Consider the term, expected time in the property, prepayment options, portability, and possible penalties. The trigger-rate calculator illustrates one risk of fixed-payment variable products, but your lender’s contract governs.
General education only. Lender criteria and applicable rules can change. Discuss your circumstances with Lorika and obtain legal or tax advice where needed.
Back to the resource library