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Canadian Financial, Real Estate and Mortgage Glossary
How often this word is used
88% - Very Often
88% - Very Often
Variable Rate Mortgage
|Synonyms:||adjustable rate loan, non-fixed, shifting mortgage rate|
|Notes:||A type of mortgage loan offered by brokers and lenders.|
|Tags:||mortgage, mortgage product, mortgage rates, rates|
Definition of variable rate mortgage (VRM)
- variable rate mortgage (VRM)
- 1. A mortgage product where the interest rate is adjusted periodically based on a standard financial index. Also called an "Adjustable-rate Mortgage." Mortgage brokerages, like CanEquity, generally have access to variable interest rates that are well below prime.
Related Terms and Acronyms:
- alternative mortgage A home loan that is not a standard fixed-rate mortgage.
- bridge mortgage A short-term loan used to allow a homebuyer to purchase a replacement property while still trying to sell their existing home.
- conventional mortgage A mortgage that is not insured or guaranteed by CMHC or GE Capital.
- convertible mortgage A mortgage where the borrower has the option at specified times to change the term length.
- fixed rate mortgage (FRM) A loan in which the interest rate and payments remain the same for the entire life of the loan. The interest rate and payment amounts are set at the time of loan origination.
- interest rate (IR) The rate a lender charges an individual to borrow money.
- mortgage (mtg) A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
The interest rate on a mortgage loan.
➥ You can compare mortgage rates using this website by clicking 'Rates' above.
- roll over mortgage A type of loan where the interest rate is set for a specific term. At the end of this term, the mortgage is said to "roll-over" and the borrower and lender may agree to extend the loan. If satisfactory terms cannot be agreed upon, the lender is entitled to be repaid in full. In this case, the borrower may seek alternative financing.
- variable interest mortgage A loan where the interest rate may vary during the term of the mortgage. The variance is usually tied to some specific factor such as prime bank rate or the guaranteed investment certificate rate for a designated lender.
More Related Terms and Acronyms
- adjustment period — Definition
- amortization — Definition
- convertible arm — Definition
- hybrid mortgage — Definition
- initial interest rate — Definition
- interest rate cap — Definition
- lock-in — Definition
- one-year adjustable — Definition
- payment adjustment period — Definition
- payment cap — Definition
- periodic rate cap — Definition
- posted rate — Definition
- prime rate — Definition
- qualifying rate — Definition
- rate — Definition
- rate index — Definition
- rate lock-in — Definition
- variable interest rate — Definition
- variable rate — Definition
- variable rate mortgage backed securities (VRMBS) — Canada, Acronym
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