Same as an adjustable-rate mortgage in which interest rates fluctuate with the market and according to a schedule set out in the loan agreement.

A mortgage where payments are fixed, but the interest rate moves in response to trends (it could change from month to month depending on market conditions. If interest rates go up, a larger portion of your payment goes to the interest; if rates go down, more goes to cover the principal.

A mortgage for which the interest rate fluctuates based on changes in the prime rate. If interest rates go down, the monthly principal is reduced; if rates go up, the monthly payments might not cover the interest owing and payments may be increased for the next term. Most variable rate mortgages allow prepayment of any amount (with certain minimums) on any monthly payment date and usually without penalty.

Another name for an adjustable-rate mortgage (ARM).

See Adjustable-Rate Mortgage.

A mortgage with an interest rate that changes with the market.

A type of mortgage with fixed payments but fluctuating interest rates. The change in current interest rates doesn t alter the amount of the mortgage payment, but determines how much of each payment is applied against the principal amount and how much goes to pay interest to the lender.

Home loan in which the interest rate is changed periodically based on a standard financial index. Also called an adjustable-rate mortgage.

also called Floating-Rate Mortgage. A mortgage for which the rate of interest fluctuates as money market rates change. Payments on a variable-rate mortgage generally do not rise and fall. If interest rates go down, more of the monthly payment goes to pay off the principal; if rates go up, more money goes towards paying the interest charges.

A mortgage with fixed payments, but fluctuates with interest rates. The changing interest rate determines how much of the payment goes towards the principal.

A mortgage where installment amounts remain constant, but interest rates fluctuate. If interest rates are low, more money goes towards payment of principal, or the opposite if interest rates are high.

(also known as Adjustable Rate Mortgage (ARM) - On this type of mortgage the interest rate is tied to an index, or published interest rate, which is not controlled by the mortgage lender. The interest rate and its connecting index may fluctuate.

Interest rates can be adjusted periodically, subject to certain limitations and caps.

A mortgage with a fixed payment schedule, but one where repayment of the principal fluctuates, up or down, as interest rates change over time. The changing interest rate determines how much of the payment goes toward repayment of the principal.

A type of mortgage with fixed payments, but fluctuating interest rates. The fluctuating interest rates do not alter your mortgage payment, but determines how much of each payment is applied against the principal opposed to how much is applied to pay the interest.

A mortgage in which payments are fixed for a period of one to two years although interest rates may fluctuate from month to month depending on market conditions. If interest rates go down, more of the payment goes towards reducing the principal; if rates go up, a larger portion of the monthly payment goes towards covering the interest. Most variable-rate mortgages allow prepayment of any amount (with certain minimums) on any monthly payment date and usually without breakage costs. RateCapper is a variable-rate mortgage with a built-in safety net. It's designed to offer you the flexibility of a variable-rate mortgage plus security and protection from increased rates for a five-year term.

A long-term mortgage loan applied to residences, under which the interest rate may be adjusted on a 6- month basis over the term of the loan. Rate increases are restricted to no more than X point per year and 2X points over the term.

A mortgage with fixed payments, but a fluctuating interest rate (usually following the movements of the Bank of Canada "Prime" rate). The changing interest rate determines how much of the payment goes towards the principal.

A mortgage for which payments are fixed, but whose interest rate changes in relationship to fluctuating market interest rates. If market rates go up, a larger portion of the payment goes to interest. If rates go down, a larger portion of the payment is applied to the principal.

A long-term mortgage loan in which the interest rate may vary or float periodically throughout the term of the loan. The fluctuations are generally based on an interest rate index and are restricted under the terms of the mortgage.