"We greatly appreciate your help & guidance during this process. Once again you have exceeded our expectations. We look forward to continuing to benefit from your expertise and advice in the years to come."
~ Elias & Dany
"Coming from a woman who most times clashes with other women, you are damn good at what you do, you have a very easy going personality which is sooo welcomed these days and you get the job done. Definitely a jewel in your field :) Thank you again."
"You not only got us into our home when we'd lost all hope but you also took the time to explain why we were having so many problems and how to go about fixing the issues. You spent more time explaining, comforting and helping us than anyone EVER before, for that we thank you, you really are the salt of the earth!"
~ Brian & Karen
"Thank you for being a part of our home buying process, you made the whole thing sail along smoothly, what we thought would take a week to get done, you managed to wrap up the day after we met with you. My cousin was right, you really are the best!"
~ Craig & Allison
"Once again you show me why it is I come back to you over and over. You are a wealth of information when it comes to mortgages (or anything financial for that matter). Keep up the good work Jaime, I will be back again!"
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.
The number of years it takes to repay the entire amount of the financing based on a set of fixed payments.
The process of determining the market value of a property.
What you own or can call upon. Often used in determining net worth or in securing financing.
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.
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.
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.
A mortgage that cannot be prepaid or renegotiated for a set period of time without penalties.
The date on which the new owner takes possession of the property and the sale becomes final.
An asset, such as term deposit, Canada Savings Bond, or automobile, that you offer as security for a loan.
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.
A system that assesses a borrower on a number of items, assigning points that are used to determine the borrower's credit worthiness.
A loan where the balance must be repaid upon request.
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).
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.
A debt registered against a property that has first call on that property.
A mortgage for which the interest is set for the term of the mortgage.
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.
A person with an established credit rating and sufficient earnings who guarantees to repay the loan for the borrower if the borrower does not.
A mortgage that exceeds 80% of the purchase price or appraised value of the property. This type of mortgage must be insured (up to 95 % of the purchase price on a new purchase or 85% of appraised vale on a refinance).
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.
The date on which the mortgage term will begin. This is the interest cost for those days from the closing date to the first payment date and are usually paid at closing.
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
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.
The financial institution or person (lender) who is lending the money using a mortgage.
The person who borrows the money using a mortgage.
back to top
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.
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.
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.
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.
The lowest rate a financial institution charges its best customers.
The original amount of a loan, before interest.
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.
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).
A debt registered against a property that is secured by a second charge on the property.
To transfer an existing mortgage from one financial institution to another. We can have this arranged for you at no cost to you.
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.
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.
A mortgage for which the interest rate fluctuates based on changes in prime.
A mortgage provided by the vendor (seller) to the buyer.