What is the difference between an “Adjustable Rate” mortgage and a “Variable Rate” Mortgage?

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 mortgages in the Winnipeg, Manitoba area.

I work with Castle Mortgage, Castle Insurance and TMG The Mortgage Group – an award-winning Canadian mortgage brokerage with a national team of over 800 qualified and accredited mortgage brokers, agents and associates providing residential and commercial mortgage services. Since 1990, TMG has helped over a quarter million Canadians get the best financing solutions and mortgage rates through Canadian mortgage lenders from coast to coast.