The more you know, the better your decisions and the more satisfied you’ll be with your home loan and with our services. So we put numerous tools and resources at your fingertips.
We have developed a range of tools and other resources to help you make informed decisions about buying a home, obtaining a mortgage, and managing a mortgage. Our calculators will help you find out when you are ready to buy a home, what you can afford to buy, and the best way for you to pay down your mortgage.
The Mortgage Centre brokers primary expertise is locating funding for mortgage financing. We know where the best rates can be found because we have the benefit of dealing with multiple lenders at one time. What's more, we have the knowledge required to present a proposal for financing to lenders in the best way possible to successfully obtain mortgage financing.
At The Mortgage Centre, we take great pride in the service we provide. We have a vested interest in satisfying your needs, since we rely on referrals and your repeat business.
Because The Mortgage Centre brokers are not employees of a lending institution, we are not limited in the products we can offer you. As your Broker, we seek out the best lender package to suit your specific situation, whether it’s with a Chartered Bank, Trust or Insurance Company.
With the wide assortment of options and features available to homebuyers today shopping around takes a lot of time and effort. The mortgage process within today's very competitive marketplace intimidates many Canadian homebuyers, so it pays to work with a The Mortgage Centre mortgage professional who will represent you and ensure that the mortgage you get is the one best suited to your needs. The Mortgage Centre mortgage brokers have access to the latest information from over 40 mortgage lending institutions and the negotiating power of Canada’s most influential mortgage brokerage. Let us help you find the best mortgage.
The Mortgage Centre mortgage professionals are fairly compensated for arranging mortgage financing on your behalf. In most cases, their fee is paid by the lender.*
In order to attract your business, lending institutions must allocate a portion of their income to marketing and sales, but representatives working for these institutions have only one financial product to sell – their own. Lenders know you won’t do business with them unless you have had ample opportunity to shop and compare. Therefore, it is in their best interest to compensate mortgage brokers for helping you do exactly that.
*Situations exist where specific clients or properties do not meet conventional lender expectations. In these cases, a mortgage broker may attempt to find suitable financing through alternate sources. A fee, agreed upon in advance, may be charged directly to the client by a mortgage broker.
A
Agreement of Purchase and Sales The legal contract a purchaser and a seller go into. We recommend that you have your offer prepared by a professional realtor that has the knowledge and experience to satisfactorily protect you with the most suitable clauses and conditions.
Amortization Period The number of years it takes to repay the entire amount of the financing based on a set of fixed payments.
Appraisal The process of determining the market value of a property.
Assets What you own or can call upon. Often used in determining net worth or in securing financing.
Assumtion Agreement A legal document signed by a buyer that requires the buyer assume responsibility for the obligations of an existing mortgage. If someone assumes your mortgage, make sure that you get a release from the mortgage company to ensure that you are no longer liable for the debt.
back to top
B
Blended Payments Equal payments consisting of both an interest and a principal component. Typically, while the payment amount does not change, the principal portion increases, while the interest portion decreases.
back to top
C
Canada Mortgage and Housing Corporation (CMHC) CMHC is a federal Crown corporation that administers the National Housing Act (NHA). Among other services, they also insure mortgages for lenders that are greater than 80% of the purchase price or value of the home. The cost of that insurance is paid for by the borrower and is generally added to the mortgage amount. These mortgages are often referred to as "Hi-Ratio" mortgages.
Closed Mortgage A mortgage that cannot be prepaid or renegotiated for a set period of time without penalties.
Closing Date The date on which the new owner takes possession of the property and the sale becomes final.
Collateral An asset, such as term deposit, Canada Savings Bond, or automobile, that you offer as security for a loan.
Conventional Mortgage A mortgage up to 80% of the purchase price or the value of the property. A mortgage exceeding 80% is referred to as a "Hi-Ratio" mortgage and the lender will require insurance for that mortgage.
Credit Scoring A system that assesses a borrower on a number of items, assigning points that are used to determine the borrower's credit worthiness.
back to top
D
Demand Loan A loan where the balance must be repaid upon request.
Deposit A sum of money deposited in trust by the purchaser on making an offer to purchase. When the offer is accepted by the vendor (seller), the deposit is held in trust by the listing real estate broker, lawyer, or notary until the closing of the sale, at which point it is given to the vendor. If a house does not close because of the purchaser's failure to comply with the terms set out in the offer, the purchaser forgoes the deposit, and it is given to the vendor as compensation for the breaking of the contract (the offer).
back to top
E
Equity The difference between the market value of the property and any outstanding mortgages registered against the property. This difference belongs to the owner of that property.
back to top
F
First Mortgage A debt registered against a property that has first call on that property.
Fixed-Rate Mortgage A mortgage for which the interest is set for the term of the mortgage.
back to top
G
Gross Debt Service Ratio (GDS) It is one of the mathematical calculations used by lenders to determine a borrower's capacity to repay a mortgage. It takes into account the mortgage payments, property taxes, approximate heating costs, and 50% of any maintenance fees, and this sum is then divided by the gross income of the applicants. Ratios up to 32 % are acceptable.
Guarantor A person with an established credit rating and sufficient earnings who guarantees to repay the loan for the borrower if the borrower does not.
back to top
H
High-Ratio Mortgage A mortgage that exceeds 80% of the purchase price or appraised value of the property. This type of mortgage must be insured. To avoid the cost of the insurance, a 1'st mortgage up to 80% is arranged and a 2'nd mortgage for the balance (up to 90% of the purchase price).
Home Equity Line of Credit A personal line of credit secured against the borrower's property. Generally, up to 75% of the purchase price or appraised value of the property is allowed to be borrowed with this product.
back to top
I
Interest Adjustment Date (IAD) The date on which the mortgage term will begin. This date is usually the first day of the month following the closing. The interest cost for those days from the closing date to the first of the month are usually paid at closing. That is why it is always better to close your deal towards the end of the month.
Interest-Only Mortgage A mortgage on which only the monthly interest cost is paid each month. The full principal remains outstanding. The payment is lower than an amortized mortgage since once is not paying any principal
back to top
J
No Items
back to top
K
No Items
back to top
L
No Items
back to top
M
Mortgage A mortgage is a loan that uses a piece of real estate as a security. Once that loan is paid-off, the lender provides a discharge for that mortgage.
Mortgagee The financial institution or person (lender) who is lending the money using a mortgage.
Mortgagor The person who borrows the money using a mortgage.
back to top
N
No Items
back to top
O
Open Mortgage A mortgage that can be repaid at any time during the term without any penalty. For this convenience, the interest rate is between 0.75-1.00% higher than a closed mortgage. A good option if you are planning to sell your property or pay-off the mortgage entirely.
back to top
P
P.I.T. Principal, interest, and property tax due on a mortgage. If your down payment is greater than 25% of the purchase price or appraised value, the lender will allow you to make your own property tax payments.
Portable Mortgage An existing mortgage that can be transferred to a new property. One would want to port their mortgage in order to avoid any penalties, or if the interest rate is much lower than the current rates.
Prepayment Penalty A fee charged a borrower by the lender when the borrower prepays all or part of a mortgage over and above the amount agreed upon. Although there is no law as to how a lender can charge you the penalty, a usual charge is the greater of the Interest Rate Differential (IRD) or 3 months interest.
Prime The lowest rate a financial institution charges its best customers.
Principal The original amount of a loan, before interest.
back to top
Q
No Items
back to top
R
Rate Commitment The number of days the lender will guarantee the mortgage rate on a mortgage approval. This can vary from lender to lender anywhere from 30 to 120 days.
Renewal When the mortgage term has concluded, your mortgage is up for renewal. It is open at this time for prepayment in part or in full, then renew with same lender or transfer to another lender at no cost (we can arrange).
back to top
S
Second Mortgage A debt registered against a property that is secured by a second charge on the property.
Switch To transfer an existing mortgage from one financial institution to another. We can have this arranged for you at no cost to you.
back to top
T
Term The period of time the financing agreement covers. The terms available are: 6 month, 1,2,3,4,5,6,7,10 year terms, and the interest rates will be fixed for whatever term once chooses.
Total Debt Service (TDS) Ratio It is the other mathematical calculations used by lenders to determine a borrower's capacity to repay a mortgage. It takes into account the mortgage payments, property taxes, approximate heating costs, and 50% of any maintenance fees, and any other monthly obligations (i.e. personal loans, car payments, lines of credit, credit card debts, other mortgages, etc.), and this sum is then divided by the gross income of the applicants. Ratios up to 40 % are acceptable.
back to top
U
No Items
back to top
V
Variable Rate Mortgage A mortgage for which the interest rate fluctuates based on changes in prime.
Vendor Take Back (VTB) Mortgage A mortgage provided by the vendor (seller) to the buyer.
back to top
W
No Items
back to top
X
No Items
back to top
Y
No Items
back to top
Z
No Items
back to top
Helen MacDougall, BBA, (Senior Mortgage Advisor)
Marlene Gallant, (Senior Mortgage Broker)
Tools
Resources
