Amortization
The total scheduled period to repay a mortgage.
Mortgage Resources
Estimate a payment and understand common mortgage terminology.
Mortgage payment calculator
Use this as an estimate only. Qualification also depends on income, credit, debt, down payment, property and lender guidelines.
Monthly payment$0Monthly equivalent: $0
Estimate uses the Canadian convention of nominal annual interest compounded semi-annually. Property taxes, insurance, condo fees and other costs are excluded.
Mortgage terminology in plain English
Definitions are general and can vary by lender and contract.
Appraisal
An independent estimate of a property’s market value.
Closing costs
Expenses in addition to the down payment, such as legal fees and adjustments.
Credit score
A numerical measure based on credit history; lenders also review the full report.
Debt-service ratios
Calculations comparing qualifying income with housing and other debt payments.
Down payment
The buyer’s documented funds contributed toward the purchase price.
Equity
The difference between a property’s value and debts secured against it.
Fixed rate
An interest rate that stays fixed for the mortgage term.
Mortgage commitment
The lender’s written approval outlining terms and conditions.
Mortgage term
The period the mortgage contract and rate remain in effect.
Pre-approval
An initial qualification review; it is not final property approval.
Prepayment penalty
A charge that may apply when a closed mortgage is paid out early.
Prime rate
A reference rate used for certain variable-rate products.
Private mortgage
Short-term financing commonly based on equity, risk and an exit plan.
Refinance
Replacing or increasing a mortgage to access equity or restructure financing.
Renewal
Selecting new mortgage terms when the current term reaches maturity.
Stress test
A qualification requirement using a rate above the contract rate.
Variable rate
A mortgage rate linked to the lender’s prime rate.