An organization that collects payment data relating to the credit ratings of individuals and makes it available to credit card companies, financial institutions, etc.

A fixed rate mortgage is a mortgage that has the rate set for a specific period of time. Generally known as the mortgage term, these terms can range from 6 months up to 10 years. Whether you should lock in for a long term or stay short depends on the interest rate trend in the market, as well as your financial situation and degree of risk tolerance. Most fixed-term mortgages allow you to make partial prepayments towards the principal balance during the term; however these privileges vary from Lender to Lender. We will assist you in making the best decision and can set you up on an accelerated payment plan that can save you thousands of dollars in interest.

A variable-rate mortgage often allows you to take advantage of the lowest rates available. The variable rate is usually tied to a mortgage Lender's prime rate. These rates are often quoted as prime minus 0.5% or prime plus 1%, etc. Variable-rate mortgages have been attractive when market experts feel that rates will drop or stay level for a period of time. Variable rate mortgages have the downside of offering little security in a rising-rate environment and payments and interest expense can rise when rates rise.

Renegotiating your existing mortgage agreement. You may be increasing the principal or paying out the mortgage in full and arranging a new mortgage.

At the end of a mortgage term, a mortgage can be renewed if the terms and conditions acceptable to both the lender and the borrower. Otherwise, the lender will be repaid in full, and the borrower will arrange financing elsewhere. It is never advisable to just renew without having your Mortgage Broker review available options.

Equity Line of Credit or Line of Credit - An Equity Line of Credit gives you access to the equity in your home, usually up to a maximum of 65% of its appraised value. The advantages are that if you need to renovate, travel, pay down other debt, etc., the rate of interest on home equity loans is generally less than other types of personal loans and credit cards. Lines of Credit are generally tied to the prime rate.

This is temporary financing that can be arranged for a variety of purposes, but generally for situations where a new home has been purchased but the old one not yet sold, or where borrows want to stay in their existing home while a new one is being constructed. Borrowers must still be able to service the debt as required by the mortgage Lender.

In some cases, borrower from a private lender can make the most sense. Financial Institutions have fixed policy guidelines that work for most people, but not all cases. Where a borrower's situation falls outside the box, a private mortgage may be the best solution. Fees apply when we arrange private financing for our clients.

A mortgage which can be prepaid at any time, without penalty. Interest rates are usually higher for open mortgages.

Mortgages of less than 20% of the lesser of the purchase price or appraised value of the property. Contrasted to conventional mortgages - High ratio mortgages require default insurance. Property value must be under one million.

The length of time over which your mortgage is financed. This may be anywhere up to 30 years, with 25 years being the traditional amortization. Note that mortgage amortization is different than "mortgage term" which is the length of your agreement with the mortgage lender.

A closed mortgage means that you must pay a penalty if you wish to payout your mortgage completely during the contractual term of your mortgage. Many closed mortgages allow some prepayment, up to 20% per year. These partial prepayment terms vary among lenders and need to be understood. The benefit of a closed mortgage is that they are often available at the most favourable interest rates. This may suit your needs if you do not anticipate wanting to pay down your mortgage before term expires.

Canada Mortgage and Housing Corporation (CMHC) operates a Mortgage Insurance Fund which protects approved lenders from losses resulting from borrower default. CMHC insurance can insure for loans where the mortgage amount is greater than 80% of the value of the property and insures for a variety of other specialty lending situations. A premium is charged for the insurance. Genworth Canada and Canada Guaranty are other mortgage insurance companies.

Both mortgage life insurance and mortgage disability insurance are available and should be considered by all buyers. Many buyers are qualifying based on two incomes and they should consider how they would pay their mortgage payments if one income ceased due to disability or death. If mortgage insurance is declined, its common practice to have a waiver signed to protect all parties.

The length of the current mortgage agreement. This is different than amortization which is the length of time it will take to pay off the mortgage in full. The term is the length of time that the existing terms and conditions (like interest rate and prepayment privileges) apply.

The length of time the current mortgage agreement applies between mortgagee and mortgagor -usually range from six months to 10 years.

This means that your mortgage MAY be taken over by another party if, for example, you sold your house and the buyer wanted to take over your mortgage payments. This may be of an advantage to a buyer if the rate on your mortgage is lower than current rates. Even though the mortgage is assumable, the borrower MUST qualify to the satisfaction of the mortgage lender.

This means that you can take your mortgage with you to another qualifying property without having to lose your existing interest rate and avoid prepayment penalties.

Lenders generally offer some prepayments without penalty like 20% per year lump sum plus 20% increase in regular payment but vary based on the mortgage agreement.

Taking your existing mortgage and adding to the term and combining the old and new rate into a blended rate on a weighted basis. It can be a good way of avoiding prepayment penalties if you are moving and increasing the size of your mortgage.

Usually refers to a payment that includes principal and interest.

Process where lawyer removes mortgage from title registered at Land Titles.

Money withheld by the lender during the construction or renovation of a house to ensure that construction is satisfactorily completed at every stage.