Variable Rate Mortgage

A variable rate mortgage is a mortgage in which the rate of interest fluctuates in response to changes in the prime rate.

This type of product allows you to take advantage of low interest rate periods. When interest rates fall, you are paying down more on your principal with each payment, and less interest. When interest rates rise with a variable rate mortgage, the amount of interest increases and your principal payment decreases.
 

If during the term of your mortgage you become uncomfortable with rising interest rates, Community First gives you the option of converting your variable rate mortgage into a fixed rate mortgage equal to at least the balance of your term - with no penalty.

Community First offers closed variable rate mortgages.
 

Closed Mortgage

With a closed mortgage, the mortgage cannot be repaid before maturity without penalty. However, members can make annual prepayments of up to 20% of their original mortgage balance and / or double up on payments on any regular payment date.