Mortgages

Mortgages:

Welcome to our Mortgage Information Hub—your go-to resource for everything you need to know about mortgages. Whether you’re a first-time homebuyer, looking to refinance, or interested in using the equity in your home to access low-interest funds, we’ve got you covered. Here, you’ll find easy-to-understand explanations of mortgage terms, guidance tailored to your situation, and tips to help you make informed financial decisions with confidence.
If you have any questions or need personalized assistance, don’t hesitate to contact us—we’re here to help every step of the way.

Understand the Lingo, Gain Confidence
Here are some common mortgage terms you’ll come across during your home financing journey. Understanding this terminology can be a big advantage—it helps you speak confidently and knowledgeably when dealing with lenders, brokers, or financial institutions.

Mortgage: 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.
Mortgagee: The financial institution or person (lender) who is lending the money using a mortgage.
Mortgagor: The person who borrows the money using a mortgage.
Agreement of Purchase and Sales: 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.
Variable Rate Mortgage: A mortgage for which the interest rate fluctuates based on changes in prime.
Term: 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.
Amortization Period (not to be confused with Term): The number of years it takes to repay the entire amount of the financing based on a set of fixed payments.
Appraisal: The process of determining the market value of a property.
Blended Payments: 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.
Conventional Mortgage: 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.
High-Ratio Mortgage: A mortgage that exceeds 80% of the purchase price or appraised value of the property. This type of mortgage must be insured. To avoid the cost of the insurance, a 1st mortgage up to 80% is arranged and a 2nd mortgage for the balance (up to 90% of the purchase price).
Canada Mortgage and Housing Corporation (CMHC): 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.
Closed Mortgage: A mortgage that cannot be prepaid or renegotiated for a set period of time without penalties.
Closing Date: The date on which the new owner takes possession of the property and the sale becomes final.
First Mortgage: A debt registered against a property that has first call on that property.
Principal: The original amount of a loan, before interest.
Prime: The lowest rate a financial institution charges its best customers.
Credit Scoring: A system that assesses a borrower on a number of items, assigning points that are used to determine the borrower’s credit worthiness.
Rate Commitment: 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.
Fixed-Rate Mortgage: A mortgage for which the interest is set for the term of the mortgage.
Open Mortgage: 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. *some conditions may apply
Interest-Only Mortgage: 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
Portable Mortgage: 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.
Prepayment Penalty: 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.
Switch: To transfer an existing mortgage from one financial institution to another. We can have this arranged for you at no cost to you.
Renewal: 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).
When renewing your mortgage, the banks often only offer the posted rates. You have to push a little harder for them to give you a break. They know that most homeowners don’t want to have to shop around, so, they offer you a higher rate and hope that you will take it.

Equifax: Equifax is a leading credit bureau that collects and tracks your credit history. You can view your credit report and score online to stay informed, protect yourself from identity theft, and understand what lenders see before you apply for a mortgage or loan.

Appraisal Institute of Canada: The Appraisal Institute of Canada is the leading real estate appraisal organization, dedicated to protecting the public by upholding the highest standards and professionalism in property appraisals.

Sagen: Sagen, formerly Genworth Canada, is a leading provider of mortgage default insurance. They help Canadians achieve homeownership by working with lenders to make it easier for families to qualify for mortgages and protect their financial future.

CMHC: CMHC is Canada’s national housing agency. With over 60 years of experience, they work with governments, non-profits, and the private sector to create housing solutions, support affordable homes, and improve quality of life for Canadians.

Trans Union Canada: TransUnion Canada is a major credit bureau that provides credit reports and scores to help Canadians understand and manage their credit. It’s also a valuable source of credit-related tools and information.

The Bank of Canada: The Bank of Canada is the country’s central bank, responsible for monetary policy, issuing bank notes, overseeing the financial system, and managing public funds. It also influences the prime interest rate, which affects borrowing costs across Canada.

Discover How Much Home You Can Afford: Getting pre-approved for a mortgage is a key first step in the home-buying journey—and I’m here to guide you through it. I’ll work with you to develop a sound financial strategy by helping you understand your potential mortgage amount, down payment, and purchase price, so you have a clear picture of what’s affordable for you.

I’ll also walk you through the necessary documents you’ll need, such as proof of income and down payment verification, which are required once your mortgage is conditionally approved. Keep in mind, pre-approvals depend on maintaining good credit and typically remain valid for 60 to 120 days, depending on the lender.

Tired of handing over your hard-earned money in rent? If you’ve managed to save for a down payment and are ready to invest in your own property, I’m here to make the process easy. No matter your situation, I’ll take care of the financing details so you can focus on finding the perfect home as quickly as possible. My goal is to help you secure the best deal—even better than the banks.

Get pre-approved and lock in your rate!

Every mortgage application is unique. I’ll help you understand the numbers, so you can shop with confidence, knowing exactly what price range fits your budget. With a pre-approval, you and your agent will know what you can comfortably afford, with the added peace of mind of a locked-in rate—all at no cost to you.

Many homeowners stick with their current lender at renewal simply because it feels easier—and they assume getting a better rate would be too time consuming. But if your mortgage renewal is approaching, now is the perfect time to explore your options and take advantage of today’s competitive rates.

Lenders often send renewal forms to homeowners with good payment histories just before the renewal date—and about 70% of people sign and return them without asking any questions. While it may seem like the simplest choice in a busy world, it’s worth pausing to consider: is this the best deal for you? This is a key opportunity to review your mortgage, and that’s where I can help. As an independent mortgage professional, I can provide advice and options that could put you ahead.

Your needs may have changed. Do you want to consolidate high-interest debt? Access your home equity for renovations? Or perhaps you’re thinking about buying a cottage or vacation property? Now’s the time to decide—and to ensure you’re getting the best possible rate at renewal.

By having multiple lenders compete for your business—including major banks, credit unions, trust companies, and other regional and national lenders—I can help negotiate the best mortgage solution tailored to your situation.

Use Your Home’s Equity to Eliminate High-Interest Debt and Reach Mortgage Freedom Sooner

If high-interest debts—like credit cards or unsecured loans—are straining your cash flow, refinancing your mortgage could be the smart solution you’ve been looking for. You can access up to 80% of your home’s value through a refinance and use those funds to pay off expensive debt quickly and efficiently.

Many homeowners worry about penalties or assume refinancing won’t make much of a difference—but in reality, the savings can be significant. By consolidating your high-interest debts into your mortgage, you can reduce your overall interest costs, lower your monthly payments, and simplify your finances with just one manageable payment.

Best of all, the money you save each month can go towards paying down your mortgage faster, helping you build equity and achieve mortgage freedom sooner than you might have thought possible. I can help you review the numbers, explore your options, and create a plan that works for your unique situation—so you can regain control of your finances with confidence.

Are high-interest debts holding you back? Take control of your finances by using your home equity to consolidate those debts into one simple, lower-interest payment. It’s a smart way to get debt-free sooner and free up your monthly cash flow.

Why continue paying steep rates on your credit cards when you can fold that debt into your mortgage at a much lower rate? A key part of a strong financial plan is understanding the difference between “good debt” and “bad debt.” With a well-structured mortgage, you can turn bad debt into good debt—and clear it out faster.

Here’s how refinancing can help:
1. Combine your high-interest debts into one lower-rate payment.
2. Save money each month and improve your cash flow.
3. Enjoy peace of mind knowing your finances are under control.

If you’re ready to reduce debt and start saving, reach out today—I’ll help you review your options and build a plan that works for you.

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