Last Is a sum of money that a buyer pays in the early stages of purchasing an expensive good or service. The down payment represents a portion of the total purchase price, and the buyer will often take out a loan to finance the remainder.

The amount of money borrowed for a new mortgage.

The process of determining the value of property, usually for mortgage lending purposes. This value may or may not be the same as the purchase price of the home. A qualified appraiser physically inspects the property making note of condition, special features and then assesses the value including assessment of comparable properties.

A sum of money paid by the purchaser when making an offer to be held in trust by the vendor's agent, broker, lawyer, or notary until the closing of the transaction.

These make up the regular payment on a mortgage if the lender is including property taxes in your mortgage payments

The percentage of the borrower's gross income that will be used for monthly payments of principal, interest, taxes, heating costs and any strata fees.

The percentage of gross income required to cover monthly payments associated with housing costs. Most lenders recommend that the GDS ratio be no more than 32% of your gross (before tax) monthly income.

Ratio -Is the percentage of gross annual income required to cover all other debts and loans in addition to the cost of servicing the property and the mortgage (principal, interest, taxes, heat etc.).

Is a date from which interest is calculated when mortgage funds are advanced before a regular payment cycle. For example, if a mortgage is advanced March 29th and regular monthly payments commence May 1st, there will be an interest adjustment for 3 extra days. Text

Is a common prepayment penalty method where the difference between current interest rates and the mortgage interest rate is charged for the remainder of the term. IRD is generally only applicable if current interest rates are lower than that of the original mortgage and are intended to compensate the lender for the difference in interest income it will receive.

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.

When Buying a House in Ontario. A guideline on Average Closing Costs in Ontario ranges between 2% to 3% of the Purchase Price, for instance, the closing cost for a property purchase price at $500,000 would vary between $10,000 to $15,000.

Provincial Tax when property changes hands. Tax is calculated at 1% of the first $200,000 and 2% thereafter.

A process undertaken by lawyers where the lender obtains ownership of the property after the borrower has not made regular payments per the loan agreement.

If you are building a home, we can arrange a construction mortgage for you. Typically, there are three or more disbursements made by the mortgage Lender as construction of the building progresses. The mortgage lender will conduct appraisals during the course of construction and will advance funds in accordance with the appraised value of the partially completed building. Course of Construction Mortgages are often at a slightly higher rate than a standard mortgage, but the advantage is that the borrower is not paying interest on the whole amount of the mortgage at the beginning of construction. Instead, the advancing of funds as the project moves along saves interest costs, particularly where construction takes an extended period of time.

Insurable mortgages have the same requirements as an insured mortgage, but they are for mortgages with a down payment of 20% or more. Only mortgages with a down payment of less than 20% are required to be insured, which will then be called insured mortgages. Property value must be under one million.