Quote:
Originally Posted by greyshep
We are in a variable and I can definitely tell you our payment is NOT fixed. We get whacked everytime the interest rate goes up.
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Quote:
Originally Posted by ChuckieNZ
That's technically an adjustable rate mortgage; strictly speaking in a variable rate mortgage the payment doesn't change unless you hit a trigger rate where interest calculations are higher than your fixed payments.
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Yes, lenders are really poor at explaining which type of mortgage they offer (this includes the dreaded collateral mortgage). Some lenders provide adjustable terms and others are variable terms.
I had an adjustable rate and a variable rate mortgage at the same time from 2 different lenders...which is where it confused me when one went up with rate hikes while the other one did not. The lender calls the adjustable rate mortgage as a variable mortgage in their emails. I had no idea variable (which does not increase payments) was a thing since I always had adjustable (termed as variable) before.
It shouldn't be a thing. Tons of Canadians will be in for a nasty surprise come renewal, especially as a number of lenders did not force payment adjustments on trigger rates being hit.