Fixed Interest Rate Mortgage
The interest rate remains constant until the term of the mortgage matures.
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Installment Payment (P&I)
The regular blended payment of principal and interest (P&I) required to repay a mortgage over the amortization period. This payment does not include property tax […]
Read moreInterest Adjustment Date (IAD)
The date your lender first starts calculating the normal ongoing interest that you’ll pay. Interest adjustment dates commonly begin on the date of your first […]
Read moreInterest Adjustment Payment
A one-time payment made to the bank to cover the interest owed on the mortgage from the possession date, up to the interest adjustment date […]
Read moreInterest Rate Differential (IRD)
The bank’s loss in interest earnings on the outstanding balance of a fixed rate closed term, over the remaining term of the mortgage when a […]
Read moreLoan To Value (LTV) Ratio
The amount of a loan as a percentage of the value of the mortgaged property. For example, if a bank mortgages $140,000 of a property […]
Read moreLow Ratio Mortgage
A mortgage where the loan to value ratio is 80% or less.
Read moreMaturity Date
The expiry date of the mortgage term. The balance of the loan and interest on the loan must be repaid in full or renewed for […]
Read moreMortgage Commitment
A Preliminary Mortgage Approval by the lender confirming the approval of a mortgage and where all terms and conditions of the approval have been provided […]
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