Rollover Mortgage

Mortgage in which the finance charge periodically is adjusted. A rollover rate mortgage is a short-term loan that must be renewed periodically, say every three to five years, and the interest rate adjusted to reflect market rates at renewal. The best known example is the Canadian Rollover mortgage, where the loan is renegotiated at a new rate every five years. This is the predominant type of residential mortgage in Canada. Also known as a renegotiable rate mortgage. See also Alternative Mortgage Instrument.

A loan whose interest rate is revised at preset intervals but is not pegged to an index.
Example: Rate adjustments on a renegotiated-rate mortgage might be scheduled every year, every three years, or every five years.