Borrow Better
This is a type of loan that allows you to borrow up to a pre-set limit. You can use as little or as much as you like up to the predetermined borrowing limit.
This is a loan that is not secured by any of your assets. Common examples include personal lines of credit and student lines of credit.
These typically have lower interest rates than a credit card and are typically less expensive over the long term.
This type of mortgage can be transferred from one property to another.
This type of mortgage cannot be prepaid, negotiated or refinanced through the term. Any attempt will be met with a significant penalty.
This refers to how often you make your mortgage payments.
This is a hypothetical scenario, administered in Canada by the government and regulators, forcing Borrowers to qualify at a higher than current interest rate designed to ensure that Borrowers are able to qualify if and when rates do rise.
On a purchase up to $1,000,000 buyers can purchase with less than 20% down payment. The insurance incurred, paid by the Borrower to protect the Lender in the event of default, is added to the mortgage and paid off over the life of that mortgage.
This is the length of time it takes to pay the mortgage to zero.
With access to over 30 Lenders, and a multitude of mortgage products, the options are far greater than going direct to a bank. Plus it is a Free service!
If you qualify, then yes they do.
If the buyer of your property can qualify they can take over the existing mortgage on the property with Lender approval.
This is a valuation by a third party on the estimated worth of the property.
Also known as principal balance, it is the amount outstanding on the loan.
This is proof that you own the property and is usually administered by the Lawyer acting on your behalf.
An inspection is designed to explain possible deficiencies in the property.
Title insurance helps protect you, and the Lender, against outside claims on the property.
The Bank of Canada announces eight times per year the decision on the setting of its key policy interest rate.
If you are paying more than the minimum required, the payment is commonly known as being accelerated.
This is the amount of interest charged for the period of time that has elapsed since the last interest date.
The first anniversary is exactly one year after the mortgage closes.
These are past due mortgage payments.
Immediately reach out to the Lender to discuss the situation.
The blending refers to the combination of the interest payment and the principal payment.
This is a loan that is provided to Borrowers that allows them to close on a purchase prior to their existing property closing.
This is a loan designed for projects that are under construction and are normally managed differently with funds being made available at different stages of the project.
This unique mortgage product is offered by a few Lenders that allows the Home Equity Line of Credit availability to increase as the mortgage amount is gradually paid down.
This is an individual who promises to pay a Borrower’s debt in the event the Borrower is unable to make their payments.
It is a mortgage held by two people.
This happens when one mortgage term ends and you begin a new one.
Sellers want to ensure that they are entering into a Sale agreement without financing as a concern.
A Financing Condition is a term on the Offer to Purchase that allows the Buyer a specified period to arrange their purchase financing.
The Deposit is an indication of Commitment for the prospective Buyer on the new, subject property.
If a Borrower has an acceptable credit application, the Lender will pay the Mortgage Broker for their service.
To pay-off consumer debts (credit cards), to secure a lower interest rate and to improve cash-flow are the most common reasons.
The Home Inspection Condition is a term on the Offer to Purchase that allows the Buyer a specified period to arrange for an acceptable inspection of the property.
This is a legal description of the property details, most notably, the exact location, dimensions and applicable variances (eg. Rights of Way, etc.).
This style mortgage product is not usually serviced on a monthly basis, like traditional mortgages. They are paid off, and debt-serviced, after the property is sold and the mortgage is discharged.
This term became popular at the onset of Covid where Lenders allowed Borrowers to defer, or put off, their mortgage payment.
What is an investment property mortgage and how is it different from the mortgage on a typical home?
This is a mortgage product, usually priced at a premium, to offset the risks associated without “pride of ownership” in the eyes of the Lender. That is, Lenders charge higher interest rates when a property is rented.
This is defined as the property valuation less the amount owing on the mortgage.
This is the portion of the home price that is not covered by the mortgage advance.
This is the value that the local government (eg. Municipality) uses to determine annual property taxes.
This is the interest on a mortgage based upon both the initial principal and the accumulated interest from previous periods.
This is the process a Lender uses to assess a mortgage application and the factors considered are income, assets and credit.
This document is prepared by a lawyer for both the Buyer and Seller to show all expenses in the transaction.
This document summarizes the property taxes, condo fees and other items used to determine the final amount the Buyer owes the Vendor to complete a Purchase.
If a Buyer has not seen a property and place an Offer then this is known as a Blind Offer.
This is an Offer to buy a property before the date the Vendor has indicated they will accept offers.
Most often associated with Alternative Lenders, the Lender charges the Borrower a fee for the funds.
These are the co-owners of a property.
Most often used by credit card companies, these lower rates are usually offered for a short period of time to encourage Borrowers to move their debt.
This is often the term used to determine how much a Buyer will have to pay in annual taxes based upon the closing date and how much of the annual cost has been incurred.
Someone who has Power of Attorney is allowed to execute legal documents on someone’s behalf.
This term is used to refer to the time when the new Buyer has signed paperwork and receives the new home keys.
A home that is in near perfect condition as possible is said to be in “Mint Condition”.
These refer to the common items of the condo corporation and may include such things as fitness centres, games rooms, swimming pools, etc.
This is a valuation by a professional third party, to determine a property value. Lenders usually reserve the right to lend based upon the lower of the Purchase Price or the Appraised Value.
This refers to the competition that can take place when you have two or more possible Buyers placing an Offer on a property.
New building construction always requires a permit, or, formal permission from the local jurisdiction to move ahead.
This occurs when Buyers have exceptional power over Vendors. Areas that have many properties available for sale, for instance, are often referred to as a Buyer’s Market.
This occurs when Vendors have exceptional power over Buyers. Areas that have very few properties for sale, for instance, are often referred to as a Seller’s Market.