Resources
Mortgage Types
This type of mortgage must usually remain unchanged for whatever term you agree to. Prepayment costs will apply if you payout, renegotiate, or refinance before the end of term.
The mortgage you obtain when you have less than 20% of the total purchase price to put down as your downpayment. This type of mortgage must be insured (through sources such as CMHC, Genworth Canada or Canada Guaranty.)
The mortgage you obtain when you have less than 20% for a down payment.
Rate Types
Fixed rate mortgage
An interest rate that does not change during the entire mortgage term.
An interest rate that will fluctuate in accordance with the prevailing market prime rate during the mortgage term.
Closing Costs
The process of determining the lending value of a property. There is usually a fee to have an appraisal done.
The amount of interest due between the date your mortgage starts and the date the first mortgage payment is calculated from. Sometimes there is a gap between the closing date of your home purchase and the first payment date of your mortgage. Let’s say that the closing date on your new house is August 10th – but your mortgage payments are on the 15th of each month (so your first payment is calculated from August 15th and paid on September 15th). That leaves five days (August 10th to 14th) that aren’t accounted for in your first mortgage payment. You have to make an extra payment to make up for these five days; the payment is generally due on your closing date. You can avoid all this by arranging to make your first mortgage payment exactly one payment period (e.g., one month) after your closing date.
General Mortgage Terms
Canada Guaranty
A private mortgage insurance company. One potential source of mortgage insurance for high-ratio mortgages.
Canada Mortgage and Housing Corporation (CMHC)
A Crown corporation that administers the National Housing Act for the federal government and encourages the improvement of housing and living conditions for all Canadians. One potential source of mortgage insurance for high-ratio mortgages.
Genworth Financial Canada
A private mortgage insurance company. One potential source of mortgage insurance for high-ratio mortgages.
Useful Tools
Compare different mortgage scenarios and sort through the monthly payments, fees and other costs associated with getting a mortgage.
Quickly see how much interest you will pay, and your principal balances. Determine the impact of any principal prepayments!
Examine your principal balances by payment, total of all payments made, and total interest paid.
This calculator steps you through the process of finding out how much you can borrow.
This calculator helps you weed through the fees, taxes, and monthly payments to help you make a good financial decision
How much interest can you save by increasing your mortgage payment? This financial calculator helps you find out.