Variable Mortgage Trigger Rate Calculator
At what interest rate does your fixed payment stop covering interest? See the trigger rate + payment shock.
Your Variable Mortgage
Inputs
Fixed-payment variable
This calc assumes your payment stayed fixed as rates rose (the most common variable structure). If your payment auto-adjusted with rates, you have less to worry about — check with your lender.
Your Trigger Rate
5.47%
At this rate, your payment stops covering the interest
AT / PAST TRIGGER
⚠ Now
Current contract rate: 6.30%
Payment shock to restore normal amortization
If your lender resets your payment
You are at or past trigger
Your options
- Increase your payment to at least cover interest — prevents negative amortization.
- Make a lump-sum principal payment — reduces the balance the trigger is calculated against.
- Switch to a fixed rate — locks your payment at a predictable level. Talk to a broker about the fixed vs stay-variable math.
- Extend amortization — some lenders will re-amortize back to 25/30 years, reducing the payment. Contact your lender.
These numbers are a good estimate. A licensed IndiBrick advisor will tune them against your actual file and current lender rates.
Talk to a broker about your options
Personally reviewed by
Vikas Sharma
Broker · Part of Dream Home + Life
I personally review every complex approvals, declined files, self-employed and respond within 1 business day.
Questions you probably have
What is a trigger rate?+
On a FIXED-payment variable mortgage, your monthly payment stays constant while the rate floats. Your trigger rate is the interest rate at which your fixed payment no longer covers the monthly interest — at which point unpaid interest starts adding to your principal (negative amortization).
What happens if I hit trigger?+
Your lender typically contacts you within 60–90 days after you hit trigger and gives you options: (1) increase your payment, (2) make a lump-sum principal payment, (3) switch to a fixed rate, (4) sometimes extend the amortization back to the original 25/30 years to reduce the required payment.
What is the trigger point vs the trigger rate?+
Trigger RATE = the interest rate at which your payment stops covering interest (this calculator). Trigger POINT = the balance level at which your outstanding balance exceeds a set threshold (often 105% of the original mortgage amount), typically triggering a mandatory payment reset regardless of rate.
Should I switch to fixed?+
It depends on where rates are heading. Fixed locks certainty at a higher rate today; variable keeps the option of paying less if rates drop. Talk to a broker — the switch is usually free, but timing it wrong costs money either way.
Real numbers, real broker.
The math above is a good estimate — a licensed IndiBrick advisor will tune it against your file and current lender rates.
Talk to a broker about your optionsFSRA-licensed · Response within 2 business hours