WHAT IS AN ADJUSTABLE-RATE MORTGAGE – ARM?

When working with a lender that offers an ARM as their product, your payment is NOT static on the day of closing, meaning your ARM payment will change with any adjustments to the Bank of Canada’s overnight policy rate. This means your amortization will remain static and you will pay your mortgage off on time.

Its important to know that every lender will offer either an ARM or a VRM as their variable rate product, but will NOT offer both options. That’s why it's important to speak to your mortgage advisor directly to help you understand the benefits of both.

When the interest rate drops, your amortization drops. When the interest rate pops, your payment pops.