Variable rate mortgage holders on the hook for thousands in interest: report

As interest rates climb, variable-rate mortgage holders are paying thousands of dollars in added interest compared to people with fixed rates.

As interest rates climb, variable-rate mortgage holders are paying thousands of dollars in added interest compared to people with fixed rates.

A new report from RATESDOTCA found someone taking a five-year insured $500,000 variable-rate mortgage in the low-interest days of 2021 would be paying $23,579 more in cumulative interests by September 2023 compared to a fixed-rate mortgage option.

The figure represents 63 per cent in added interest compared to fixed rates, while mortgage payments in this scenario climbed nearly $1,000 per month.