Variable Interest Mortgage

Definition

  • A mortgage product where the interest rate can change or vary during the loan term. The variance in the interest rate usually depends on a specific factor such as prime bank rate or the guaranteed investment certificate rate for a designated lender.

Synonyms
non-fixed, adjustable interest, floating, shifting

Related Terms and Acronyms

  • Guaranteed Investment Certificate (GIC) Acronym, Important,
    • An investment that pays a set rate of interest over a fixed period of time.
  • Lock-in Definition,
    • A lender's guarantee that the mortgage rate quoted will not change for a specific period. The borrower wants the lock to stay in effect until closing.
  • Mortgage (mtg) Abbreviation, Important,
    • 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.
  • Payment Cap Definition,
    • A contractual limit on the size of the monthly payment of an adjustable-rate mortgage or other variable rate loan.
  • Prime Rate Definition,
    • The rate suggested by the Bank of Canada on which most banks base their prime mortgage lending rate.
  • Variable Interest Rate Definition,
    • Percentage that a borrower pays for the use of money, and which moves up or down periodically based on changes in other interest rates.
  • Variable Rate Mortgage (VRM) Acronym, Very Important,
    • Home loan in which the interest rate is changed periodically based on a standard financial index. Also called an "Adjustable-rate Mortgage."
    A type of mortgage loan offered by brokers and lenders.
Compare. Calculate. Apply today.
Compare Mortgage RatesMortgage CalculatorsApply for a Mortgage