ARM (Adjustable Rate Mortgage:
·Payments automatically change and go up/down with the Prime Rate to ensure you maintain the original amortization schedule of the mortgage
·Lender sends out a monthly reminder when payments change
·8 Bank of Canada rate announcements per year
VRM (Variable Rate Mortgage):
·Payments remain fixed for the duration of the term
·Prime down = more of the payment is applied to the principal
·Prime up = more to interest portion
·Amortization period may vary and be longer if rates have risen or be shorter if rates have fallen since the start of the term
·*Every lender hasa different VRM structure
At Lang Financial, we service customers across Canada. Primarily, we offer Financial Advice in Southern Manitoba and Northwestern Ontario areas.
I work with Castle Insurance Group Inc.