A
17 terms
- A-Lender — An A-Lender is a prime mortgage lender, such as a bank, credit union, or monoline, that qualifies borrowers using standard documented rules.
- Accelerated Payments — Accelerated payments are a mortgage schedule that raises the annual total above the standard monthly equivalent, so the loan is repaid faster.
- Adjustable-Rate Variable Mortgage — An adjustable-rate variable mortgage ties the interest rate to a lender's prime rate, so the periodic payment rises or falls as prime moves.
- Adjustment — A pro-rated credit or debit between buyer and seller at closing for prepaid or outstanding items such as property tax.
- Adjustment Date — The adjustment date is the day from which ownership costs such as property tax and condo fees are divided between the buyer and the seller.
- Agreement of Purchase and Sale — The written contract between buyer and seller that sets the price, deposit, closing dates, and conditions of a real estate transaction.
- Agricultural Mortgage — An agricultural mortgage is financing secured by farmland or ranch land, typically arranged through a dedicated farm lending program rather than a standard residential channel.
- Alt-Doc Mortgage — An alt-doc mortgage is a mortgage qualified using alternative income documentation, such as bank statements or business records, instead of standard CRA tax filings.
- Alternative Lending — Alternative lending is mortgage financing outside the prime market, for borrowers who do not meet standard bank qualifying criteria.
- Amortization Period — The amortization period is the total length of time scheduled to pay off a mortgage in full, assuming every payment is made as agreed.
- Amortization Recast — An amortization recast recalculates your mortgage payment over the remaining amortization after a lump-sum prepayment lowers the principal balance.
- Amortization Schedule — An amortization schedule is a table showing how each mortgage payment splits between interest and principal over the life of the loan.
- Annual Percentage Rate (APR) — The Annual Percentage Rate (APR) expresses the yearly cost of borrowing including certain fees, not just the interest rate, for easier comparison.
- Appraisal Fee — An appraisal fee is the cost of a professional, independent valuation of the property a lender is financing, ordered to confirm the home's market value.
- Arrears — Arrears means mortgage payments that are past due — amounts the borrower should have paid by the scheduled due date but has not yet paid.
- Assignment — The transfer of a right or an obligation, such as a mortgage or a purchase contract, from one party to another.
- Assumable Mortgage — An assumable mortgage is an existing mortgage that a buyer takes over from the seller, keeping the remaining balance, rate and term, subject to the lender's approval.
B
7 terms
- B-Lender — A B-Lender is an alternative Canadian mortgage lender that accepts weaker credit, irregular income, or unusual properties at a higher interest rate.
- Bank Rate — The Bank of Canada's rate for overnight loans to financial institutions, set above the policy rate and at the top of the operating band.
- Benchmark Rate — A published reference rate — such as the Bank of Canada's policy rate or prime rate — that other interest rates are quoted against.
- Blanket Mortgage — A blanket mortgage is one mortgage secured by more than one property at the same time, with a single charge registered against each property.
- Blend and Extend — Combining your existing mortgage rate with a current market rate to extend your term early, usually before maturity and often with a penalty.
- Bridge Financing — Short-term financing that covers the gap when you buy a new home before your current one sells, repaid from the sale proceeds.
- Bridge Loan — A bridge loan is short-term financing that covers the gap between buying a new home and selling your existing one.
C
29 terms
- Canada Guaranty — Canada Guaranty is a private company approved to provide mortgage default insurance in Canada, backing high-ratio mortgages alongside CMHC and Sagen.
- Canada Mortgage and Housing Corporation (CMHC) — CMHC is the federal Crown corporation that insures Canadian mortgages against borrower default and publishes national housing data and research.
- Capital Gains — The profit on selling a property that is not your principal residence, part of which is included in your taxable income.
- Capitalization Rate — A property's net operating income divided by its value or purchase price, expressed as a percentage, used to compare income-producing real estate.
- Cash Flow — Cash flow is the money left from a rental property's rent after the mortgage payment and operating costs are paid each month.
- Caveat — A caveat is a notice registered on title claiming an interest in a property, which can block a sale or refinance until removed.
- Charge — A charge is the registration of a mortgage against a property's title, giving the lender a recorded claim on the home.
- Chattel Loan — A chattel loan finances a movable asset, such as a manufactured home, and is secured by the asset itself rather than by land.
- Closed Mortgage — A closed mortgage limits how much you can prepay and charges a penalty if you break the contract before the term ends.
- Closing Costs — Closing costs are the one-time fees, taxes, and charges paid on top of a home's purchase price, separate from the down payment.
- Closing Day — Closing day is the date a Canadian home purchase completes, when funds are paid out, the mortgage is advanced, and title transfers to the buyer.
- Co-Borrower — A co-borrower is a second person named on a mortgage who is also on title to the property and equally liable for repaying the debt.
- Co-Signer — A co-signer is a person who takes equal legal responsibility for a mortgage and is listed on title alongside the other owners.
- Collateral Mortgage — A mortgage registered as a collateral charge that can secure other borrowing and may make switching lenders more complicated.
- Commitment Fee — A commitment fee is a charge a lender applies for formally agreeing to fund a mortgage on set terms.
- Commitment Letter — A commitment letter is a lender's formal written offer stating the mortgage amount, rate, term, and conditions you must meet before funding.
- Completion — Completion is the legal transfer of a property's title and the payout of purchase funds in a Canadian real estate transaction.
- Completion Date — The date on which a real estate sale legally closes, the mortgage funds are advanced, and ownership of the property transfers to the buyer.
- Conditional Offer — A conditional offer is an offer to buy a home that only becomes binding once stated conditions, such as financing or inspection, are met or waived.
- Condominium Corporation — A condominium corporation is the legal entity created on registration of a condo plan that owns and manages the building's common elements.
- Construction Mortgage — A construction mortgage, also called a draw mortgage, advances funds in stages as a build progresses rather than in one lump sum at closing.
- Conventional Mortgage — A conventional mortgage is a home loan at 80% or less of the property's value, so mortgage default insurance is not required.
- Convertible Mortgage — A convertible mortgage lets you switch from a variable rate to a fixed rate partway through the term, usually without paying a prepayment penalty.
- CORRA — CORRA, the Canadian Overnight Repo Rate Average, is a benchmark interest rate published by the Bank of Canada from overnight secured repo transactions.
- Cost of Borrowing — The total cost of credit disclosed to a borrower, including interest and certain required fees, often expressed as an annual percentage rate.
- Credit Score — A credit score is a number, typically from 300 to 900 in Canada, that summarizes your credit history for lenders considering your application.
- Credit Spread — A credit spread is the difference in yield between two debt instruments of different credit quality, reflecting how much extra return lenders demand for added risk.
- Credit Union — A member-owned financial institution that lends within a region and is regulated provincially rather than under the federal Bank Act.
- Creditor Insurance — Optional insurance sold with a loan that pays the lender if the borrower dies, becomes disabled, or in some cases loses a job.
D
14 terms
- Debt Consolidation — Debt consolidation means combining several debts, such as credit cards and loans, into one loan or payment, often to lower the total interest cost.
- Debt Service Coverage — Debt service coverage is a lender's measure of whether a property's income is enough to cover its mortgage payments, used mainly in rental and commercial lending.
- Debt Service Ratio — A measure comparing your housing and other debt payments with your income, used by Canadian lenders when deciding whether you qualify for a mortgage.
- Debt Service Ratio Exception — A lender's discretionary allowance to approve a mortgage even when the borrower's GDS or TDS ratio exceeds the lender's standard limit.
- Debt-to-Income Ratio — Your total debt compared with your total income — a broader measure than the debt service ratios Canadian lenders use at approval.
- Deed — A deed is the legal document that transfers ownership of a property from a seller to a buyer and is registered in the provincial land registry.
- Default — Default means failing to meet your mortgage terms, most commonly by missing a scheduled payment, which can trigger lender enforcement.
- Demand Facility — A demand facility is a loan the lender can require you to repay in full at any time; most Canadian HELOCs are structured this way.
- Deposit — A deposit is money paid with an offer to purchase a home, held in trust and applied to the purchase price on closing.
- Disability Insurance — Coverage that replaces part of your income when illness or injury stops you from working, sold either as an individual policy or as lender-offered creditor insurance on a mortgage.
- Discharge Fee — A discharge fee is a lender charge for removing a paid-off mortgage from the property's title and confirming the loan is cleared.
- Disclosure Statement — A document a lender or mortgage broker must give you that sets out the true cost of a mortgage, including the interest rate, APR, payments, fees, and key terms.
- Discounted Rate — The discounted rate is the actual mortgage interest rate a lender offers a borrower after negotiation or promotion, sitting below that lender's published posted rate.
- Down Payment — A down payment is the portion of a home's purchase price a buyer pays upfront, reducing the amount borrowed through a mortgage.
E
5 terms
- Easement — An easement is a legal right that lets someone else use a specific part of your land for a specific purpose while you keep ownership.
- Effective Interest Rate — The rate you actually pay once compounding is applied — always equal to or higher than the quoted nominal rate.
- Encumbrance — An encumbrance is a registered claim or right affecting a property — such as an easement, lien, caveat, or mortgage charge — that binds the land itself.
- Estoppel Certificate — A document from a condominium or strata corporation confirming its financial and legal standing for a specific unit.
- Exception — An exception is a lender’s case-by-case allowance for a strong applicant to exceed a standard mortgage qualification rule.
F
7 terms
- Firm Offer — An offer to buy a home with no conditions attached, which the buyer cannot withdraw once the seller accepts it.
- First Home Savings Account (FHSA) — A First Home Savings Account (FHSA) is a registered federal account that lets a first-time buyer save for a home with deductible contributions and tax-free qualifying withdrawals.
- First-Time Home Buyer Incentive — A federal shared-equity program that reduced the mortgage a first-time buyer needed by contributing part of the down payment in exchange for an equity share in the home.
- Fixed-Rate Mortgage — A fixed-rate mortgage keeps the same interest rate and the same scheduled payment for the entire mortgage term, so each payment is known in advance.
- Floor Rate — A floor rate is the minimum interest rate that can apply to a variable-rate mortgage, below which the borrower's rate will not fall.
- Foreclosure — Foreclosure is the court-supervised process a lender uses to take possession of a home when a mortgage is not repaid.
- Freehold — Freehold means owning the land and the buildings on it outright, with no expiry date and no landlord holding the underlying land.
G
5 terms
- Graduated Payment Mortgage — A graduated payment mortgage starts with lower payments that rise on a fixed schedule set in the contract, then level off for the rest of the amortization period.
- Gross Debt Service Ratio (GDS) — The share of gross household income that goes to housing costs — mortgage principal and interest, property taxes, heating, and half of condo fees — commonly capped at 39%.
- Gross Rent Multiplier — The gross rent multiplier is a property's price divided by its gross annual rent, giving a fast screen for comparing income properties.
- GST/HST New Housing Rebate — A federal rebate that returns part of the GST or HST paid on certain new or substantially renovated homes used as a primary residence.
- Guarantor — A guarantor promises to cover your mortgage payments if you default, but is not listed on the property's title.
H
8 terms
- High-Ratio Mortgage — A high-ratio mortgage exceeds 80% of a property's value or purchase price, meaning the down payment is under 20%, and it must be insured against default.
- Holdback — A holdback is money withheld from a construction advance until the work it covers is verified as complete.
- Home Buyers' Amount — A federal non-refundable tax credit claimed by eligible first-time home buyers on their personal tax return for the year they acquire a qualifying home.
- Home Buyers' Plan (HBP) — A federal program that lets a first-time home buyer withdraw money from an RRSP to put toward a down payment on a qualifying home in Canada.
- Home Equity — Home equity is the portion of your home you actually own: the property's current market value minus everything still owed against it.
- Home Equity Line of Credit (HELOC) — A revolving credit line secured by your home, usually capped at 65% loan-to-value and typically priced off the lender's prime rate.
- Home Equity Loan — A lump-sum loan secured by the equity in your home, repaid on a fixed schedule with set payments.
- Hybrid Mortgage — Also called a blended or part-and-part mortgage, a hybrid mortgage splits your mortgage balance between a fixed rate and a variable rate.
I
4 terms
- Income Verification — The process a lender uses to confirm the income stated on a mortgage application, using documents such as pay stubs, tax slips, and CRA notices.
- Interest Rate Cap — An interest rate cap is a contractual limit on how high a variable mortgage rate can rise over a set period.
- Interest Rate Differential (IRD) — A penalty formula some Canadian lenders use when a fixed-rate mortgage is paid off early, based on the interest the lender loses.
- Interest-Only Mortgage — A mortgage where the borrower pays only interest for a set period, so the principal balance does not fall until the period ends.
L
7 terms
- Land Loan — Financing to buy a vacant lot, usually at a higher rate and lower loan-to-value than a mortgage on an existing home.
- Land Transfer Tax — A provincial tax on transferring property title, paid by the buyer at closing and calculated as a percentage of the purchase price.
- Leasehold — Leasehold is ownership of a building or unit for a fixed term on land that someone else owns.
- Lender Fee — A lender fee is a charge levied by the mortgage lender itself for arranging or administering the mortgage, separate from brokerage and third-party costs.
- Lien — A registered claim against a property that secures a debt, giving a creditor a legal interest in the property until the debt is repaid.
- Loan-to-Value Ratio (LTV) — The loan-to-value ratio (LTV) is the size of your mortgage expressed as a percentage of the property's appraised value or purchase price.
- Lump-Sum Payment — A lump-sum payment is a one-time extra payment applied directly to your mortgage principal, on top of your regular scheduled payment.
M
22 terms
- Manufactured Home — A factory-built home that may be financed as a chattel loan rather than a mortgage, depending on land ownership and affixing.
- Maturity Date — The maturity date is the day your mortgage term ends, when the remaining balance must be renewed, refinanced, or repaid in full.
- Mixed-Use Property — A property that combines residential and commercial space under one title, typically financed with commercial-style underwriting rather than a standard home mortgage.
- Monoline Lender — A monoline lender is a Canadian mortgage lender that only makes mortgage loans and does not accept customer deposits.
- Mortgage Commitment — A mortgage commitment is a lender's formal written offer to advance funds on specified terms once the borrower satisfies the stated conditions.
- Mortgage Default Insurance — Insurance that protects the lender, not the borrower, when a high-ratio mortgage goes into default and the home sale does not repay the debt.
- Mortgage Discharge — A mortgage discharge is the legal removal of a lender's registered charge from a property's title once the mortgage debt has been repaid in full.
- Mortgage Fraud — Mortgage fraud is obtaining mortgage funds through false information, forged documents, or a fraudulently transferred title, and it is a criminal offence in Canada.
- Mortgage Insurance vs Life Insurance — The difference between mortgage default insurance, which protects the lender on a high-ratio loan, and optional mortgage life insurance, which protects the borrower's household.
- Mortgage Interest — Mortgage interest is the cost a lender charges for borrowing mortgage money, expressed as an annual percentage rate applied to your outstanding balance.
- Mortgage Life Insurance — Mortgage life insurance pays off a mortgage if the borrower dies, with the lender named as the beneficiary of the policy.
- Mortgage Portability — Mortgage portability lets you move your existing mortgage to a new property without breaking the contract or paying a prepayment penalty.
- Mortgage Pre-Approval — A mortgage pre-approval is a lender's conditional commitment to lend a set amount at a held rate, subject to verifying your income, debts and the property.
- Mortgage Pre-Qualification — An early, non-binding estimate of how much a lender or broker thinks you might borrow, typically prepared without a credit check or verified documents.
- Mortgage Principal — The mortgage principal is the amount of money actually borrowed, separate from the interest charged on that balance over time.
- Mortgage Refinance — Replacing an existing mortgage with a new one, often to change the rate, term, or amortization, or to access home equity.
- Mortgage Renewal — The point at which a mortgage term ends and the borrower negotiates a new term, rate, and conditions with a lender.
- Mortgage Stress Test — The federal mortgage stress test is a qualification rule that makes lenders check whether you could afford your mortgage if rates were higher than your contract rate.
- Mortgage Switch — A mortgage switch moves your existing mortgage to a new lender at renewal while keeping the same balance, amortization, and payment structure.
- Mortgage Term — A mortgage term is the length of your current contract with a lender, during which your rate and conditions stay in force — always shorter than the amortization period.
- Mortgage Underwriting — The lender's review of your income, credit, down payment, and the property's value before it approves or declines your mortgage.
- Multigenerational Home Renovation Tax Credit — A federal non-refundable tax credit that offsets part of the cost of renovating a home to create a secondary unit for a qualifying family member.
N
5 terms
- Negative Amortization — Negative amortization happens when a mortgage payment does not cover the interest owed, so unpaid interest is added to the balance and the debt grows.
- Net Worth — Net worth is the total value of what you own minus what you owe — a snapshot sometimes reviewed during a Canadian mortgage application.
- Net Worth Program — A mortgage qualification route where a lender approves a borrower based on net worth and liquid assets instead of verifiable employment income.
- Net Worth Qualification — A mortgage approval approach that relies on a borrower's assets and overall net worth instead of documented employment or business income.
- Non-Resident Speculation Tax — A provincial tax charged on certain residential property purchases in Ontario by foreign nationals, foreign corporations, and taxable trustees.
O
4 terms
- Open Mortgage — An open mortgage lets you prepay or pay off the balance at any time without a penalty, usually at a higher interest rate than a closed mortgage.
- Open Term — An open term is a short window, usually near the end of a mortgage term, during which a borrower can prepay or pay off the balance without a prepayment penalty.
- Origination Fee — A lender's charge for arranging a mortgage, often calculated as a percentage of the loan amount and separate from third-party closing costs.
- Overnight Rate — The rate at which large financial institutions lend each other funds for one day, guided in Canada by the Bank of Canada's target for the overnight rate.
P
21 terms
- Payment Frequency — Payment frequency is how often you make mortgage payments — commonly monthly, semi-monthly, bi-weekly, or weekly — and it affects payment size and how fast the balance falls.
- Payment Shock — Payment shock is a sharp rise in a mortgage payment, usually at renewal or when a variable rate tracks a higher prime rate.
- Policy Interest Rate — The Bank of Canada's target for the overnight rate, which anchors short-term borrowing costs and influences Canadian mortgage pricing.
- Possession — Possession is the day a buyer may take physical occupancy of a property, which can differ from the completion or closing date.
- Possession Date — The date set in a purchase agreement when the buyer receives the keys and may take physical occupancy of the home.
- Posted Rate — A posted rate is the headline mortgage rate a lender publishes publicly, and it is usually higher than the discounted rate most borrowers actually receive.
- Power of Attorney Mortgage — A mortgage signed by an attorney on a borrower's behalf under a valid power of attorney, with the borrower remaining liable.
- Power of Sale — A lender's contractual right to sell a defaulted property to recover an unpaid mortgage, used in some provinces instead of court-ordered foreclosure.
- Prepayment Charge — A prepayment charge, also called a prepayment penalty, is a fee a lender may charge when a closed mortgage is repaid ahead of schedule.
- Prepayment Penalty — A prepayment penalty is the charge a lender applies when you break a mortgage early or prepay more than your contract's prepayment privileges allow.
- Prepayment Privilege — A prepayment privilege is the contract right to pay extra on your mortgage, up to a set cap, without triggering a penalty.
- Prime Rate — The prime rate is the interest rate Canadian banks charge their most creditworthy borrowers, and it is the benchmark used to price variable-rate mortgages and lines of credit.
- Principal Residence — The home you ordinarily live in, which can be designated for the principal residence exemption on capital gains when you sell it.
- Principal Residence Exemption — A CRA tax rule that lets you exclude all or part of the capital gain on the sale of your main home from taxable income.
- Private Mortgage Lending — Private mortgage lending is mortgage financing funded by private investors or mortgage investment corporations rather than banks, usually for short terms at higher rates and fees.
- Progress Draw — A progress draw is a staged release of construction mortgage funds, advanced only after each stage of a home build is completed and inspected.
- Property Insurance — Insurance that covers the home itself against perils such as fire, wind, water damage, and theft, required by every Canadian mortgage lender.
- Property Survey — A property survey is a land surveyor's plan showing a property's boundaries, lot dimensions, building locations, and any encroachments or easements.
- Property Tax — A property tax is a municipal levy on property ownership, based on assessed value and the local rate, often collected with your mortgage payment.
- Property Transfer Tax — Property Transfer Tax is British Columbia's name for its land transfer tax, charged to buyers when property title changes hands.
- Purchase Plus Improvements — A purchase plus improvements mortgage finances both the home purchase and planned renovations in a single mortgage, with the renovation funds held back until the work is done.
R
12 terms
- Rate Buydown — A rate buydown is an upfront payment to a lender that lowers a mortgage's interest rate, either permanently for the term or temporarily for an initial period.
- Rate Collateral — Security, such as a deposit or a charge on title, that a lender may require in exchange for holding a mortgage rate.
- Rate Hold — A rate hold is a lender's commitment to reserve a quoted mortgage rate for a set period, often until a purchase closes.
- Rate Lock — A rate lock fixes your mortgage interest rate for a set period, protecting you if rates rise before your mortgage funds.
- Readvanceable Mortgage — A mortgage paired with a line of credit whose limit increases as you repay mortgage principal, keeping total available borrowing roughly steady.
- Recreational Property — A recreational property is a cottage, cabin, or vacation home used seasonally, which Canadian lenders underwrite differently from a principal residence.
- Reinvestment Fee — A reinvestment fee is a charge some lenders apply when a borrower pays off a mortgage early, recovering interest the lender loses when funds are reinvested at lower rates.
- Renewal Notice — The lender's written offer of the interest rate, term, and payment terms for renewing your mortgage before it matures.
- Rental Income Qualification — Rental income qualification is the share of rent a lender will actually count as income when assessing your Canadian mortgage application.
- Rental Offset — Rental offset is the rental income from a suite or second unit that a lender counts toward a borrower's income when qualifying for a mortgage.
- Reverse Mortgage — A loan for homeowners typically 55 and older that converts home equity into cash without requiring regular monthly payments.
- Rooming House — A rooming house is a dwelling with individually rented bedrooms and shared kitchen or bathroom facilities, which lenders treat as a specialised property needing non-standard financing.
S
13 terms
- Sagen — Sagen is a private Canadian mortgage default insurance provider, formerly known as Genworth Canada, that insures high-ratio mortgages alongside CMHC and Canada Guaranty.
- Second Mortgage — A second mortgage is an additional loan registered behind an existing first mortgage, usually at a higher interest rate because it ranks second on title.
- Secured Line of Credit — A line of credit backed by an asset, such as a home, that typically charges a lower interest rate than an unsecured line of credit.
- Semi-Annual Compounding — Semi-annual compounding is the Canadian convention in which a mortgage rate quoted as an annual percentage is compounded twice a year rather than monthly or daily.
- Stated Income Mortgage — A stated income mortgage is one where the borrower declares income without full documentary proof, now rare and tightly restricted in Canada.
- Statement of Adjustments — A Statement of Adjustments is the closing document that lists the amounts each party to a property transaction owes or is owed, fixing the final cash balance.
- Static-Rate Variable Mortgage — A variable-rate mortgage whose payment stays fixed while the interest and principal split shifts as the lender's prime rate moves.
- Status Certificate Fee — A status certificate fee is the charge a condominium corporation levies for a document confirming its financial and legal standing.
- Strata — A strata is a legal ownership structure where each owner holds title to an individual unit and shares ownership of common property with the other owners.
- Strata Fee — A strata fee is a monthly payment owners make to a strata or condominium corporation to cover shared building costs and common expenses.
- Strata Insurance — Strata insurance is the building policy a strata or condominium corporation carries for the shared structure and common property, separate from an owner's own contents coverage.
- Subject Removal — The point in a home purchase when the buyer waives all remaining conditions, making the agreement legally binding on both parties.
- Subordination — Subordination is an agreement that lets another charge, such as a new mortgage, rank ahead of an existing one on title.
T
10 terms
- Take-Out Mortgage — A take-out mortgage is the permanent, long-term mortgage that repays short-term construction financing once a new build is finished and ready for occupancy.
- Tenancy in Common — A form of co-ownership in which each owner holds a separate, defined share that can be left to someone else in a will.
- Term Premium — The extra yield investors demand for lending money over a longer period instead of rolling over short-term investments, reflecting added uncertainty.
- Three Months' Interest — Three months' interest is the prepayment charge most Canadian lenders apply when a borrower breaks a variable-rate mortgage before the term ends.
- Title — Title is the legal ownership of a property, recorded in the provincial land registry that identifies the owner and any registered claims against the land.
- Title Fraud — A fraud where someone uses a forged title document to mortgage or sell a property they do not own, often after stealing the owner's identity.
- Title Insurance — Title insurance protects a homeowner or lender against losses from defects in a property's legal title that a records search may not reveal.
- Title Search — A title search is a review of the public land registry that confirms property ownership and reveals registered claims such as liens, charges, and easements.
- Total Debt Service — Total Debt Service is the share of gross monthly income that goes to housing costs plus all other debt payments.
- Total Debt Service Ratio (TDS) — The Total Debt Service Ratio (TDS) is the share of gross income that goes toward all debt payments, capped at 44% by most Canadian lenders.
V
3 terms
- Vacant Home Tax — A municipal tax on homes left unoccupied for part of the year, declared annually by the property owner.
- Variable-Rate Mortgage — A mortgage whose interest rate rises and falls with the lender's prime rate during the term instead of staying fixed.
- Vendor Take-Back Mortgage — A vendor take-back mortgage is a mortgage where the seller of a property lends the buyer part of the purchase price instead of a bank.
W
3 terms
- Waiver — A waiver is a buyer's written notice dropping a condition in an offer, which makes the purchase contract firm and legally binding.
- Welcome Tax — Quebec's municipal transfer duty, commonly called the welcome tax, is charged to the buyer when ownership of a property changes hands.
- Wraparound Mortgage — A wraparound mortgage is a second mortgage that wraps an existing first mortgage into one blended payment collected by a single lender.