Mortgage terms, in plain English.

A federally regulated bank, credit union, or trust company that issues prime mortgages to borrowers who meet OSFI's stress-test rules.

Bi-weekly or weekly payments calculated as half (or a quarter) of the monthly amount — pays the mortgage off ~3 years early.

A variable-rate mortgage where your payment changes when prime moves — different from a fixed-payment VRM where the payment stays put.

The total length of time it takes to fully pay off your mortgage if you make every scheduled payment without changes.

Fee for a third-party valuation of the property. Typically $300–$500. Required by the lender on most uninsured deals.

A specialty lender that approves borrowers who don't meet A Lender criteria, typically at a higher rate plus a one-time broker fee.

A short-term loan that covers the gap between buying your new home and selling your current one.

One-time fees and taxes payable on closing day, typically 1.5–4% of the purchase price.

Mandatory default insurance when your down payment is under 20%. Protects the lender. Provided by CMHC, Sagen, or Canada Guaranty.

The fee a mortgage agent earns. Paid by the lender on most A Lender deals; sometimes by the borrower on B Lender or private deals.

A mortgage where the borrower has at least 20% down, so no default insurance is required.

An organisation that compiles your credit history and produces your credit report. In Canada: Equifax and TransUnion.

A 300–900 summary of your credit history. Lender minimums vary: B Lenders near 500, A and insured deals near 600, preferring 680+.

The percentage of your gross income that goes to debt payments — the foundation of mortgage qualification math.

The administrative fee a lender charges to remove their mortgage registration from title when you pay off the loan or switch lenders.

The cash portion you pay upfront. Minimum 5% on the first $500,000 and 10% on the portion above. 20%+ avoids CMHC insurance.

A federal savings vehicle for first-time homebuyers: contributions are tax-deductible like RRSP, withdrawals are tax-free like TFSA.

A mortgage where the interest rate stays the same for the entire term, so your payment never changes mid-term.

Two debt-service ratios lenders use to qualify you. GDS = housing costs ÷ income; TDS = housing + all other debts ÷ income.

A down payment funded partially or fully by a gift from immediate family — common in Canada, but the gift letter must follow strict rules.

A federal (and sometimes provincial) rebate of part of the GST/HST paid on a newly built or substantially renovated home.

A mortgage where the down payment is less than 20% of the purchase price. Default insurance is required.

A revolving credit facility secured against your home equity. Interest-only payments, prime-plus rate, drawn and repaid as needed.

The few-day gap between funding day and your first regular mortgage payment — interest is prorated by days.

A penalty calculation used when you break a fixed-rate mortgage early. Often much higher than three months' interest.

A provincial (and sometimes municipal) tax paid at closing on the purchase price. Tiered; first-time-buyer rebates apply in many provinces.

Lawyer or notary fees for closing the purchase. Typically $1,000–$2,500 including disbursements.

A licensed professional who shops your mortgage application across multiple lenders and presents you with options.

A fee the borrower pays the mortgage agent on B Lender, private, or specialty deals. Always disclosed in writing before signing.

The day the lender wires the mortgage to your lawyer, who completes the purchase and transfers ownership to your name.

Re-signing your mortgage at the end of the term, either with the same lender at their offered rate or by switching to a different lender.

Your contract length with one lender at one rate — typically 1 to 5 years. Different from amortization (total payoff window).

On a fixed-payment variable mortgage, the rate at which the regular payment no longer covers monthly interest. Lender then requires action.

A federal qualification rule: borrowers must qualify at the higher of the contract rate plus 2% or the federal benchmark.

A feature that lets you move your existing mortgage rate and term to a new property when you sell and buy at the same time.

A lender's conditional commitment to lend you up to a specific amount at a specific rate, typically valid for 90–120 days.

The fee charged when you pay off, refinance, or break your mortgage before the term ends.

Your right to pay extra principal each year without penalty — typically 10–20% of the original balance plus a payment-amount increase.

The base interest rate that banks lend to their best customers — the Bank of Canada's policy rate plus a markup.

A mortgage from an individual or private lending pool, used when banks and B Lenders decline. Always carries a broker fee.

A pre-approval feature that locks the lender's current rate for typically 90 to 120 days, protecting you from rate increases while you shop.

A federal program letting first-time buyers withdraw up to $60,000 tax-free from RRSP, repayable over 15 years.

A one-time premium that protects you (and the lender) against title defects, fraud, and survey errors discovered after closing.

The lender's review process — credit, income, property, and risk — that decides whether to approve your mortgage and at what rate.

A mortgage with at least 20% down — no CMHC insurance required. Also called a conventional mortgage.

A mortgage whose rate moves with the lender's prime rate, which tracks the Bank of Canada's overnight target.