Variable Rate

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Variable Rate

Mortgage in West-Island of Montreal – Calculating a Variable Rate

A lot of people want to know how you can calculate the variable rate in the West-Island and many other parts of the world. We are going to talk about the documents required, the terms that need to be found, and many other things.

Documents and Variable Rate

Gather these documents of your mortgage paperwork: adjustable-rate rider, mortgage note with adjustable rate and mortgage note. These documents are needed so that anyone can figure out the new mortgage rate. If you cannot find all these documents, use at least either the adjustable-rate mortgage note or the mortgage note.

Variable Rate


Floor, ceiling, index and margins are the terms that you need to find right away. Each one of them but the third will be written as numbers. Add the margin, a fix rate specific to the loan, to your index. The floor is the lowest rate and the ceiling is the highest rate that you have to pay. The index can be considered as a market rate such as the LIBOR or the prime rate.


Look for the current value of your index so that anyone can figure it out. La Presse Journal will help you to find this information, and the list of indexes of Bank of Canada is also useful as indexes tend to change every single month. Add the index to the margin. The new variable rate must be an amount between the ceiling and the floor. A mortgage rate that is variable can fluctuate each month, so a recalculation is needed as this rate changes.

A mortgage with a variable rate has to be calculated with at least one document such as the adjustable-rate mortgage note or the mortgage note. However, things must be easier if you can use these three documents: adjustable-rate rider, mortgage note that is adjustable, and mortgage note. In addition, make sure you understand each term of your mortgage contract.