The date on which interest will start to accrue on the mortgage. Often times the interest adjustment date and the first payment date are one in the same but sometimes they differ depending on the payment frequency you choose and the closing date. The interest cost from the interest adjustment date to the first payment date if they differ will accrue on the mortgage and be taken out with your first regularly scheduled payment.

A mortgage in which interest only payments are made for part or all of the term. The full principal remains outstanding until a new term is negotiated that will allow for a principal and interest only payment. With an interest only mortgage the payments are significantly lower, as it is not amortized and therefore no principal is being paid back.

The date on which a purchaser takes possession of the property purchased, the seller delivers the deed or transfers ownership to the buyer and the buyer pays the agreed-upon consideration.

A loan that allows the lender to recall or request full repayment of the loan on short notice.

Is the money a purchaser gives to the seller held in trust by the listing real estate brokerage, lawyer or notary during the offer process to secure a property. If the purchaser does not meet the conditions stipulated in the purchase agreement by the condition of expiry date, then the seller must return the deposit to the purchaser. If the purchaser fails to meet the conditions set out in the purchase agreement after the conditional period has expired, then the purchaser forgoes their deposit and is kept by the seller for compensation due to the breach of contract.

A measure that financial lenders use to assess the proportion of housing debt that a borrower is paying in comparison to their income. This ratio includes the mortgage payments, property taxes, approximate heating costs and maintenance fees if applicable. A lenders measure of affordability as it relates the Gross Debt Service Ratios is 39.00%. This is determined by taking the housing expenses listed above and dividing it by the total gross annual income.

A guarantor is someone who is guaranteeing the borrowers with repay the mortgage and is legally responsible if the borrowers fall behind with their payments. A guarantor has a high degree of credit worthiness and at the very least, a satisfactory income.  

A personal line of credit secured against the home that can be arranged up to 65% of the purchase price or appraised value of the home or a combined 80% of the purchase price or appraised value with a mortgage component(s).

A mortgage is a loan in which property or real estate is used as collateral.  The borrower(s) is obliged to pay back with a predetermined set of payments. Once the debt is paid, the lender discharges the lien on the property.

Principal, interest & tax on a mortgage. Property taxes can be included in the mortgage payment and remitted by the lender on the borrower’s behalf.  

A portable mortgage is a lender mortgage feature that allows a borrower to transfer their mortgage balance along with the same terms and conditions to a new property with the same lender without penalties. This is a great option if your current rate is much lower than the current rates and will allow you to maximize on your total savings. 

With a fixed-rate mortgage, the interest rate is set for the term of the mortgage, so that the monthly payment of principal and interest remains the same throughout the term. The available fixed mortgage terms are 1,2,3,4,5,7 & 10 year. Regardless of whether rates move up or down, you know exactly how much your payments will be and this simplifies your personal budgeting.

A variable rate mortgage is based on the banks prime rate (which is currently 3.95%), in which a bank discount is given from that. A variable rate is adjusted immediately when there is a bank prime rate increase or decrease. With most prime lenders and banks, the ratio between principal and interest will change up or down changing the total amount of the payment. This mortgage is fully convertible at any time without any cost to the borrower. This means that borrower will have the ability to flip this mortgage into a fixed rate at anytime no penalty into a term equal to a greater than the existing term that they’re in. 95% financing is permitted with this product.

A mortgage term is the length of time usually in years over which the parameters of the mortgage have legal effect and the borrower agrees to repay the mortgage. Mortgage terms range for 1 to 5, 7 & 10 years. The mortgage interest rate is set for the term and renegotiated after the term is complete. 

A mortgage renewal is when your current mortgage term comes to end and you’re free to either pay off your mortgage entirely without penalty, renegotiate a new term with your existing mortgage provider or transfer your mortgage to another lender for a better rate and more favourable terms. Mortgage renewal time is a time to negotiate a better rate with your existing mortgage provider but also an opportunity to assess your financial situation to ensure your product is still suitable and you’re maximizing on your interest savings. During this time, you will receive an early renewal agreement from your mortgage provider 1 - 6 months before the renewal date. We will review this renewal offer and provide you with a bottom line rate offer and most suitable mortgage product with the ability to lock this down 120 days before your renewal date.

A second mortgage is a debt on a property that is second to a first mortgage which is considered a typical mortgage. A Home Equity Line of Credit is also considered a second mortgage.