Mortgage payments reduce the interest owing on your loan while they reduce the principal amount that you owe. In the first term of your first mortgage, most of your payment will be allocated to interest charges. By your final term, the opposite will happen.
With a fixed rate mortgage, your interest rate will not change throughout the term of your mortgage.
With a variable rate, your payment amount stays fixed for the term; however, the interest rate will fluctuate with any changes in our prime interest rate.
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