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Difference between Adjustable Rate Mortgage and Variable Rate Mortgage

General Angela Calla 4 Dec

Do you know the difference between an ARM and VRM mortgage?

An ARM (Adjustable Rate Mortgage) changes your payments when the prime rate moves, offering potential cash flow benefits when rates go down. On the other hand, VRM (Variable Rate Mortgage) maintains fixed payments despite changes in the prime rate, keeping your payments stable throughout the term. In our fluctuating interest rate environment, it’s crucial to choose the right one for your financial plan.

In 2023, many Canadians reached a trigger rate when there VRM did not cover the interest of the mortgage and were forced to pay a lump sum down, switch to a fixed rate or take out another loan. Knowing this difference will help in planning moving forward.

With our everchanging interest rate environment you want to ensure you have the right one for your financial mortgage plan! One allows you to take advantage of rates going down with improved cashflow , while the other keeps the same payment. Reach out to us directly to ensure you always have the best mortgage for you 604-802-3983

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Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at or at 604-802-3983.

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