Adjustable rate mortgage
With an adjustable rate mortgage, your interest rate may change from time to time as a result of changes in the First National prime rate. If the interest rate decreases, your payment amount decreases. If the interest rate rises, your payment amount increases.
Amortization
Amortization is the total duration of time that it takes to repay a mortgage in full. The most common amortization is 25 years. Prepayment privileges can help borrowers pay off their mortgages more quickly. Any prepayment option applies directly to the
principal balance, enabling interest cost savings.
Sagen
This is a private mortgage default insurance provider.
Canada Mortgage and Housing Corporation (CMHC)
The Corporation of the Federal Government that provides mortgage insurance to lenders against borrower default, under the National Housing Act (NHA).
Closed mortgage
With a closed mortgage, paying your balance before the term’s end can result in prepayment charges. However, closed mortgages often offer prepayment privileges that can include: paying up to 15% of your original principal balance each year, increasing
your regular payment by up to 15% or doubling up on payments. Closed mortgage terms can range from six months to 10 years.
Conventional Mortgage
A mortgage with an LTV of 80% or less. Generally, default insurance is not required. However, insurance may be requested if there are other risks associated with the application.
Fixed rate mortgage
With a fixed rate mortgage, your interest rate does not change throughout the mortgage term, enabling you to predict your monthly payments and know how much of your mortgage you will have paid at the end of your term.
Genworth Financial Canada
This is a private mortgage default insurance provider.
Insured Mortgage
A mortgage with borrower paid default insurance. Typically, these loans have a loan to value greater than 80%.
Insurable Mortgage
A mortgage with lender paid default insurance. Insurable mortgages have an LTV of 80% or less but must otherwise meet the same guidelines as an insured mortgage.