Variable-Rate Mortgage

A mortgage where the interest rate the Borrower pays will change over time. The mortgage rate will be benchmarked against an underlying rate, most commonly the Prime Rate. The lender will set the variable mortgage rate at the Prime Rate plus or minus a margin. The margin to the Prime Rate will be fixed, but if the Prime Rate moves up or down the variable mortgage rate will likewise move up or down. The payment generally stays the same unless rates increase so much that your current payment is not covering all of the interest.

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About The Author

Don Scott

Don Scott is the founder of a challenger mortgage brokerage that is focused on improving access to mortgages. We can eliminate traditional biases and market restrictions through the use of technology to deliver a mortgage experience focused on the customer. Frankly, getting a mortgage doesn't have to be stressful.

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Managing Uncertainty in Today’s Mortgage Market

By Don Scott • May 27, 2025

Feeling hesitant about entering the housing market today due to political or economic uncertainty is understandable. The landscape can seem unpredictable—interest rates shift, housing supply fluctuates, tariff news hits the headlines and policies change. As a mortgage broker, we see this uncertainty every day. But here’s the truth: while there is much beyond your control, mastering the factors that you can control is what will make the biggest difference in your journey to homeownership.