WealthONE Variable Rate Mortgages

If you hold a WealthONE Variable Rate Mortgage, part of your regular mortgage payment is applied to your mortgage principal and the other part is applied to accrued interest on the principal.

What happens when rates change:

• When rates increase, your scheduled payment does not increase – rather, more of your payment is allocated to the accrued interest, and less to the principal.
• When rates decrease, more of your payment is allocated towards paying down the principal of your mortgage.
• When less of your payment is applied to your principal, your amortization* will increase, which means it will take longer to pay off your mortgage.
• When it’s time to renew your mortgage, your amortization schedule will be brought back to its original timeline. In the case where a rising prime rate has resulted in less of your payment being applied to your principal balance, your mortgage payment will likely increase at the time of renewal.