The Learning Centre

What is an amortization?

Also called an amortization schedule An amortization is the amount of years it will take to pay down your entire mortgage. This is different from a mortgage term. Payments on a mortgage, which consist of principle and interest, depend on the amount of years you have amortized your mortgage for. You will typically see a […]

What is the difference between a fixed and variable interest rate?

A fixed rate is an interest amount that a borrower and a lender have agreed to during a term of the mortgage, typically 5 years. The borrower is guaranteed this rate for the term of the mortgage. The mortgage payments are also fixed unless a borrower takes advantage of their prepayment privileges. A $200,000.00 mortgage […]

What is a mortgage term?

The mortgage term refers to the amount of years a borrower has agreed to an interest rate with a lender. This is different from an amortization. During the term, the borrower is guaranteed the interest rate he or she agreed to with the lender (unless it is a variable interest rate). The mortgage term is […]

What are Standard Charge Terms?

Mortgage lending and the registration of mortgage are governed by certain pieces of legislation, both provincially and federally. However, these legislations do not have sufficient language to cover all that is typically required to govern the relationship between a borrower and a lender. Because of this, lenders can create, and indeed, most lenders have created, […]

What are prepayment privileges?

In a typical closed mortgage term, the borrower is unable to pay back the entire mortgage or increase mortgage payments without incurring penalties. After all, this is how lenders make money (unless a borrower has an open mortgage term). However, most lenders will provide borrowers with the option, or privilege as they call it, to […]