Variable Rate Mortgage
A Variable Rate Mortgage is a mortgage loan where the rate of interest varies according to the base rate.Usually a variable rate mortgage is offset from the base rate by 1-3%, if the base rate changes so does your mortgage payments.
This mortgage is popular with people who want to take advantage of perceived drops in the base rate.
However, they are considered volatile in nature since changes can result in large increases in mortgage payments, as opposed to the more stable fixed rate mortgage.