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Variable rate mortgage is another term for adjustable rate loan. Variable rate mortgage is a type of mortgage where the initial payments are lower.

After a fixed schedule, the interest rates of variable rate mortages change on a regular basis. These changes on variable rate mortages are affected by several factors, like changes in investor markets.

Because of the low initial payment, a lot of people like to try a variable rate mortages. Financial reports suggest that the risks you assume in taking a variable rate mortages are considerable but the gains are even more so. This is because variable rate mortages can turn out to be cheaper than fixed rate mortages in the long run.

Several mortgage companies offer variable rate mortages in their product lines. Some of these lenders are listed below, along with a brief overview on their variable rate mortages program.

> Variable Rate mortages by ING Direct Mortgages

The ING Direct line of variable rate mortages offers one of the lowest rates available in the market today. With a variable rate mortages interest rates of less than 0.60% for a full five-year term, ING Direct variable rate mortages are among the most popular around.

In addition, consumers who get their variable rate mortages from ING Direct have the choice to convert their variable rate mortages into a fixed rate mortages of three years or more. This conversion from a variable rate mortages to fixed rate product can be done any time without penalty.

Every three months, ING Direct variable rate mortages interest rate will be adjusted to reflect the current prime rate.

> Variable Rate Mortgage by CanEquity Mortgage Canada

The variable rate mortages of CanEquity is based on a five year term. In this variable rate mortages, only the first three years are closed, leaving years four and five open. This means that the two remainder years leave you absolutely free from any variable rate mortages pre-payment penalty .

CanEquity’s initial interest rate for their variable rate mortages is very attractive. After this initial rate, payments for your variable rate mortages will be based on the Prime rate of less than 0.40%.

> Variable Rate Mortgage by National Mortgage

National Mortgage has three variable rate mortages programs on its product lists. All three variable rate mortages have initial payment rates based on current Prime rate. These variable rate mortgage programs have varying terms from 3 months, six months, to five years.

The 5-year variable rate mortgage has an initial payment rate for five years. The same goes for the 6-month variable rate mortgage. Prime is less for 6 months followed by prime less 0.40% for the remainder of the term. The 3-month variable rate mortgage on the other hand has prime less 2.25% for 3 moths followed by Canadian Bank Prime less 0.375% with 1% cash back and airmiles.

> Variable Rate Mortgage by Scotiabank

The Scotia Ultimate Variable Rate Mortgage offers their consumers a Cap rate guarantee. Consumers are given the choice of buying the variable rate mortages for a rate discount of 0.50% off the Prime rate for the full three-year term.

They can also opt to pay upfront cash back of 1.50% of the variable rate mortage loan amount for the full 3-year term.