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What are the correct terms for a fixed payment with variable rate mortgage and variable payment with variable rate mortgage? I've read on some articles that a variable rate mortgage and adjustable rate mortgage are different; variable rate mortgage has fixed payment with variable rate and that adjustable rate mortgage has variable payment with variable rate (eg: https://trusterramortgage.com/variable-vs-adjustable-rate-mortgage). While on other articles, they use variable rate mortgage and ARM synonymously. I've also read the term closed variable rate mortgage (for fixed payment) and open variable rate mortgage (for variable payment) (article: https://rates.ca/resources/how-interest-rate-changes-affect-your-variable-rate-mortgage). But when I do search up these closed and open terms, they are about early repayment and seem to have nothing to do with payment amounts. There doesn't seem to be any consensus between articles. What are the right terms then for fixed payment with variable rate vs variable payment with variable rate?

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    How does "fixed payment with variable rate mortgage" even work? (Because The Great White North only has five year mortgages, does this mean that you pay less on the balance when rates increase?)
    – RonJohn
    Jun 10 at 23:00
  • @RonJohn Yes, I presume that's what it means. Here's an article you may find helpful: cibc.com/en/personal-banking/mortgages/resource-centre/… (note how it says "your regular payment will remain constant")
    – piny88
    Jun 10 at 23:06

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