Mortgage payments which are made every 2 weeks for a total of 26 payments per year. Not to be confused with semi-monthly mortgage payments. Read Article for more information.
The actual number of years it will take to pay back your mortgage loan. In Canada the amortization does not generally exceed 25 years.
The first mortgage in the mortgage agreement that is considered to be in first place and will have first claim on assets in the event of default.
A Land Transfer tax is fee paid to the municipal and/or provincial government for the transferring of property from seller to buyer.
Applies to high-ratio mortgages. It protects the lender against loss if the borrower is unable to repay the mortgage. Read more about mortgage insurance.
A portable mortgage option that enables borrowers to take their current mortgage with them to another property, without penalty.
Qualifies you for a mortgage before you start shopping. You know exactly how much you can spend and are free to make a “firm” offer when you find the right home.
Voluntary payments in addition to regular mortgage payments. Read more about mortgage prepayment privileges.
The amount borrowed or still owing on a mortgage loan. Interest is paid on the principal amount.
Refinancing is Paying off the existing mortgage and arranging a new one or re-negotiating the terms and conditions of an existing mortgage.
Re-negotiation of a mortgage loan or renewal of a mortgage at the end of a term for a new term.
Second Mortgage is Additional financing. Usually has a shorter term and higher interest rate than the first mortgage.
Mortgage payments which are made on the 1st and 15th of the month, or twice per month, 24 payments per year. Not to be confused with bi-weekly mortgage payments (26 payments per year).
The percentage of gross annual income required to cover payments associated with housing and all other debts and obligations, such as car loans and credit cards.
The length of time the interest rate is fixed. It also indicates when the principal balance becomes due and payable to the lender.
Legal ownership in a property.
A mortgage with fixed payments, but fluctuates with interest rates. The changing interest rate determines how much of the payment goes towards the principal.