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Mortgage basics, explained simply.
Short guides to the questions clients ask most, plus a plain-English glossary.
Guides
Six quick reads. Tap to open.
How much can you comfortably afford?
Fixed or variable?
Your four-month renewal checklist
Using equity to clear debt
Closing costs in Ontario
How lenders read your credit
Glossary
Twelve terms, in plain English.
Amortization
The total time to pay off your mortgage, usually 25 or 30 years.
Term
The length of your current contract, often five years. You renew at the end of each term.
Down payment
The part of the price you pay yourself.
Default insurance
Required with less than 20% down. It protects the lender; the premium is usually added to your mortgage.
Stress test
Qualifying at a higher rate than your actual rate, to show you could handle an increase.
Pre-approval
A lender’s written estimate of what you can borrow, with a rate held for a set time.
Prime rate
The benchmark lenders use to set variable rates.
Prepayment privilege
How much extra you can pay each year without a penalty.
Interest rate differential
A penalty calculation on fixed mortgages, based on the gap between your rate and current rates.
Loan-to-value
Your mortgage divided by your home’s value.
Title insurance
One-time insurance that protects you and the lender against title problems.
Closing date
The day ownership transfers and you get your keys.
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