Amortization
The length of time it takes to repay a mortgage loan in full with interest at a given interest rate.
Read moreFAQ Category: Glossary
Assumption
The taking over of the mortgage debt and obligations from the owner of the mortgaged property.
Read moreBinding Purchase & Sale Agreement
An agreement is considered binding when both parties have signed and agreed to all of the terms of the contract. This would include a signed […]
Read moreCanada Guaranty
A private residential mortgage insurer that helps Canadians access a variety of affordable housing options by insuring mortgages against default for lenders. Like CMHC, Canada […]
Read moreCanada Mortgage & Housing Corporation (CMHC)
A division of the Government of Canada that acts as Canada’s national housing agency. CMHC’s mandate is to help Canadians access a variety of affordable […]
Read moreClosed Mortgage
A mortgage where prepayments may be restricted. Prepayments maybe subject to a prepayment charge if outside of the mortgage prepayment rules.
Read moreCollateral
The security for the loan, the property being mortgaged.
Read moreConventional Mortgage
A mortgage that covers up to 80% of the property value and where the bank is not insured against borrower default.
Read moreDebt Service Ratios
The ratios used to measure an applicant’s capacity to meet the mortgage requirements.
Read moreDown Payment
The cash contribution that must be made by a borrower towards the purchase of a property to qualify for a mortgage.
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