Mortgage Terms
Get a Better Understanding of Mortgages!
Mortgage Term: Pre-Approval Letter
Discover what a pre-approval letter is and what it is based upon. Learn about what it really means and how it is used.
Lenders Don’t Like Condotels
Condotels, or condo/hotel hybrids, have piqued the interest of many Canadians, particularly those seeking a flexible investment opportunity. Learn what they are, their key features, and if they are an investment right for you!
Basis Points: Key to Smarter Mortgage Decisions
Learn what basis points are, why they are used and their impact on the mortgage application process.
Mortgage Term: Segregated Fund Annuity Contract
In Canada, a Segregated Fund Annuity Contract is a type of investment product offered by insurance companies that combines the growth potential of mutual funds with the security of an insurance policy. Segregated funds are similar to mutual funds but come with...
Mortgage Term: Assistance Holdback Amount
Discover the implications of the assistance holdback amount, how it relates to government programs and how it relates to construction loans and mortgages.
Using a Cash-Back Realtor
In today’s real estate market, many Canadian homebuyers don’t know about the benefits of a cash-back realtor. Imagine getting a part of the agent’s commission for every property deal. This is what cash-back home buying offers, making homes more affordable in Canada.
Mortgage Term: Graduated Rate Estate
Discover the implications of graduated rate estate, how it allows an estate to benefit from graduated income tax rates and the management of an estate’s assets.
Mortgage Commitment: What You Must Know Before Waiving Financing
Discover what a mortgage commitment is and its importance in regards to waiving conditions on your offer to buy a home. Learn what you need to know before waiving financing.
Mortgage Discharge Statement
Learn why the mortgage discharge statement is an important document that ensures transparency and accuracy when calculating the total payout for a mortgage transfer.
What’s Your Best Rate?
Rate is important, but going for the lowest rate mortgage could cost you far, far more. Learn about the ‘hidden’ risks of low-rate mortgages and discover your best rate.
There’s a Mortgage for Everyone
. The current reality for many Canadians is a complex financial profile, uncertain employment, and varied income streams, all of which make qualifying for a mortgage more challenging. However, the good news is that a wide variety of mortgage programs exist to cater to different borrower needs, making homeownership an attainable goal for many.
Avoid Blacklisted Condos
A blacklisted condo is a condominium that certain mortgage lenders have categorized as high-risk and are unwilling to finance. Learn the reasons why a condo is blacklisted and what to do about it.
Mortgage Term: Accumulated Income Payments
Discover the implications of accumulated income payments and how they indirectly related to mortgages.
Mortgage Term: RDSP Qualified Investment
Discover the implications of an RDSP qualified investment, how it can grow in a tax-deferred manner leading to building wealth and providing a secure home for a disabled Canadian.
Mortgage Term: Recourse Loan
Discover what a recourse loan is, it’s key characteristics, and how it applies to mortgages, particularly in Ontario (as opposed to Alberta).
‘Consent to Second Mortgage’
Consent to Second Mortgage: Understanding the document that enables you to get a second mortgage.
Second Mortgage Hard No!
Second Mortgage Hard No! Discover when getting a second mortgage is either a bad idea or completely not allowed.
Mortgage Term: IRS W-8BEN
Discover the importance of the IRS Form W-8BEN, its full, proper name, and its indirect impact for Canadian residents involved in cross-border real estate transactions.
Your House? Better Get Title Insurance
While most homebuyers are aware of closing costs, mortgage insurance, and property inspections, many overlook the critical role that title insurance plays in protecting their property ownership rights.
Mortgage Term: Balloon Payment
A large, lump-sum payment due at the end of a mortgage’s term. You make a balloon payment when you pay out your mortgage, renew, refinance, or transfer your mortgage to another lender for better rates and terms. A balloon payment is often part of loans that have lower...
Mortgage Term: Blend and Extend
Discover blend and extend, and see what it is such an important refinancing option that could save you tens of thousands of dollars.
Understanding Market Rent
Understanding Market Rent: More homebuyers today rely on rental income to qualify for mortgages. If you’re one of them, you’ll often need a market rent report or rent letter to “prove” that income to the lender.
Featured Publications
Articles
- Extended Amortizations and Hypothetical Calculations
Office of the Superintendent of Financial Institutions (OSFI) - Minimum Qualifying Rate for Uninsured Mortgages
Office of the Superintendent of Financial Institutions (OSFI) - Residential Mortgage Underwriting Practices and Procedures
Office of the Superintendent of Financial Institutions (OSFI) - Guideline on Existing Consumer Mortgage Loans in Exceptional Circumstances Financial Consumer Agency of Canada
Book: “The Program”
- Part 1 – Building Your Down Payment
- Part 2 – Mortgage Payoff Strategies
- Part 3 – Building Wealth Through Real Estate