An Alternative Mortgage Instrument (AMI) is any mortgage other than a fixed-interest-rate, level-payment amortizing loan. These instruments are often used to accommodate varying financial circumstances and offer different terms compared to traditional loans.
A type of mortgage commonly used in Canada in which the amortization of the principal is based on a long term, but the interest rate is established for a much shorter term. The loan may be extended, or rolled over, at the end of the shorter term at the current market interest rate.
