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Adjustable Rate Mortgage (ARM)

Is a mortgage in which the interest rate is adjusted periodically based on a pre-selected index. Also sometimes known as the re negotiable rate mortgage, the variable rate mortgage or the Canadian rollover mortgage.
1-year ARM: An adjustable-rate mortgage that has an initial interest rate for one year, and thereafter has an adjustment interval of one year. The adjustment is based on a comparison of interest caps and the indexed rate.

3/1 ARM: An adjustable-rate mortgage that has an initial interest rate for three years, and thereafter has an adjustment interval of one year. The adjustment is based on a comparison of interest caps and the indexed rate.

5/1 ARM: An adjustable-rate mortgage that has an initial interest rate for five years, and thereafter has an adjustment interval of one year. The adjustment is based on a comparison of interest caps and the indexed rate.

7/1 ARM: An adjustable-rate mortgage that has an initial interest rate for seven years, and thereafter has an adjustment interval of one year. The adjustment is based on a comparison of interest caps and the indexed rate.

10/1 ARM: An adjustable-rate mortgage that has an initial interest rate for ten years, and thereafter has an adjustment interval of one year. The adjustment is based on a comparison of interest caps and the indexed rate.

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