✅  TOP 25 MORTGAGE TERMS 

 

1. 50–50 Mortgage (Hybrid Mortgage)
   A mortgage split between fixed and variable rates, offering both stability and potential savings.

2. Accelerated Bi-Weekly Payments
   A strategy that results in one extra payment a year, reducing overall interest and mortgage term.

3. Amortization Period
   The total length of time to fully pay off your mortgage, usually 25 years.

4. Bridge Loan
   Temporary financing that “bridges” the time between buying a new home and selling your old one.

5. Closed Mortgage
   Limits repayment flexibility but usually offers a lower interest rate.

6. Conventional Mortgage
   A mortgage with 20% or more down — no mortgage default insurance is required.

7. Credit Score
   A rating (300–900) showing how well you manage debt. Essential for mortgage approval.

8. Down Payment
   The initial upfront amount paid toward a home purchase.

9. Fixed Rate Mortgage
   Keeps the same interest rate for the entire term, making budgeting predictable.
   In Canada, fixed mortgage rates are closely tied to the yields of Government of Canada bonds — particularly the 5-year bond. As bond yields rise or fall, fixed mortgage rates typically follow.

10. GDS Ratio (Gross Debt Service)
    Compares your housing costs to your income.

11. HELOC (Home Equity Line of Credit)
    A flexible credit line based on your home's equity — you borrow only what you need.

12. High-Ratio Mortgage
    A mortgage with less than 20% down payment, requiring mortgage default insurance.

13. Loan-to-Value Ratio (LTV)
    The percentage of the home’s price that’s financed by a mortgage. Higher LTVs often mean more risk to the lender.

14. Mortgage Affordability
    How much you can realistically borrow based on your financial profile and current interest rates.

15. Mortgage Refinancing
    Getting a new mortgage to replace the old one — often to lower the rate or access equity.

16. Mortgage Renewal
    Extending your mortgage at the end of its term, often with new terms or rates.

17. Mortgage Statement
    An official summary from your lender showing your mortgage balance, payment history, interest rate, and term details.

18. Mortgage Term
    The length of time your mortgage rate and conditions are locked in (e.g., 5 years).

19. Open Mortgage
    Allows you to repay the mortgage in full anytime without penalty.

20. Pre-Approved Mortgage
    An advance approval from a lender showing how much you can borrow.
    This is not a final mortgage approval. It’s a conditional commitment that still requires verification of documents and property details during the full approval process.

21. Prepayment Penalty
    A fee for paying off a closed mortgage early or exceeding allowed lump sum payments.

22. Prepayment Privilege
    Lets you pay more than required toward your mortgage principal without penalty.

23. TDS Ratio (Total Debt Service)
    Compares your total monthly debts (including mortgage) to your gross income.

24. Title Insurance
    Protects against title defects, unpaid liens, or fraud related to your home’s legal ownership.

25. Variable Rate Mortgage
    Tied to the prime rate, this mortgage’s interest rate can rise or fall during the term.
    In Canada, variable rates are directly influenced by the Bank of Canada’s overnight rate, which affects each lender’s prime lending rate. When the Bank of Canada changes its rate, lenders usually adjust their prime rate — and variable mortgage rates follow.