- Amortization period
- The total time scheduled to repay a mortgage in full, often longer than the term, which is the length of the current rate agreement. Read the answer ›
- Blended payment
- A single regular payment combining principal and interest, disclosed under the Interest Act so the split between them can be calculated.
- Charge
- The formal term in Ontario's land registration system for what is commonly called a mortgage: a registered interest securing a debt against the property.
- Co-borrower
- A person registered as an owner on title who is jointly and individually responsible for the mortgage alongside the other owner or owners.
- Commitment letter
- A lender's written offer setting out the amount, rate, term and conditions of a mortgage. It is not final until its conditions are met. Read the answer ›
- Discharge
- The document a lender registers once a mortgage is paid in full, removing it as a charge against the property in the land registration system.
- Guarantor
- A person who is not on title but signs a mortgage promising to pay if the primary borrower does not; distinct from a co-borrower. Read the answer ›
- Home equity line of credit
- A revolving line of credit secured against a property, which must generally be closed, not just paid to zero, before a related mortgage can be discharged. Read the answer ›
- Interest rate differential
- A common way to calculate the charge for breaking a fixed mortgage early, comparing your rate to the lender's current rate for the time remaining. Read the answer ›
- Mortgage default insurance
- Insurance that lets a buyer with a smaller down payment obtain financing, generally limited to owner-occupied homes and unavailable for most refinances. Read the answer ›
- Notice of Sale
- The formal notice a lender must give before exercising a power of sale, stating what is owed and starting a minimum wait before any sale.
- Payout statement
- A lender's written statement of the balance, interest, any early payout charge and discharge fee needed to pay off a mortgage in full.
- Porting
- Carrying an existing mortgage's rate and term to a new property with the same lender, instead of breaking it and paying an early payout charge.
- Power of sale
- A lender's right, after default and Ontario's required notice periods, to sell a mortgaged property and apply the proceeds to what is owed. Read the answer ›
- Prepayment privilege
- A right built into most closed mortgages to make extra lump-sum payments, usually up to a yearly limit, without triggering an early payout charge.
- Private mortgage
- A mortgage funded by an individual, syndicate or company outside the banking system, generally shorter-term and at a higher cost. Read the answer ›
- Redemption
- Paying what is owed, including any costs, to stop a power of sale at any point before a sale to a buyer actually closes. Read the answer ›
- Renewal
- The point at which a mortgage's term ends and the lender offers a new rate and term on the same outstanding balance.
- Second mortgage
- A mortgage registered behind an existing first mortgage on the same property, paid out after the first if the property is later sold. Read the answer ›
- Stress test
- A requirement for federally regulated lenders to qualify borrowers at a rate higher than the one actually charged, set under OSFI's underwriting guideline. Read the answer ›
- Switching
- Moving a mortgage to a different lender, most often at renewal, without the full requalification a new purchase mortgage requires.
- Title insurance
- A private insurance policy that can compensate for certain losses from title defects, including some fraud, subject to the specific policy's terms. Read the answer ›
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