A conveyance of a property to a creditor, as security for payment of a debt. This security is redeemable on payment in full of the debt.

The Lender.

The Borrower.

Principal, interest and taxes.

A survey done by an accredited surveyor is required on new construction and some existing homes. This determines whether the building is located within the property lines and complies with setbacks and local building bylaws.

Set by you and the lender, the term, usually 5 years, spells the end of the mortgage at which time the mortgage must be renewed or refinanced. Lenders usually renew at the end of the term but rates can be changed.

The am or amortization period is the time over which equal payments would totally pay off your mortgage. This statement assumes that the interest rate stays constant. The normal am period is 25 years. Lower the am period and your payments increase, but you will save money by paying your mortgage off faster.

An opinion as to the market value of your home.

Canada Mortgage and Housing Company. They provide default insurance for the lenders benefit, where the down payment is less than 25% of the purchase price.

is one of the yardsticks a lender uses to measure the risk involved in lending you money. For example: Your home is worth $100,000, you owe $50,000, the loan to value is 50%. If you want to borrow another $15,000 on a 2nd mortgage, the 2nd mortgage lenders loan to value will be 65% ($50,000 1st, $15,000 2nd = Total $65,000).

This is the amount owing when the term of your mortgage is due.

Equity is the difference between what your asset (in this case your home) is worth on to days market and what you owe on that asset. The amount owing will include the 1st mortgage, any other (2nd) mortgages, and any liens or judgments that may be registered.

an insurance policy written by a title insurance company that protects the property owner against loss in case the title is imperfect.

A definite agreement by a lender to make a loan to a particular borrower on a particular property. Basically this will authorize all terms and conditions of the loan. This commitment will have an expiry date. The lender must hold the funds at the rate promised until the borrower decides to proceed or cancel or until the expiry date passes.

Gross Debt Service Ratio, is the total of any mortgage payments, property taxes and heating cost divided by the gross income of the borrower(s).

Total Debt Service Ratio, is gross debt service, (G.D.S.), plus payments on other debts such as bank loans, finance company loans, credit card payments, alimony, etc. divided by the gross income of the borrower(s).

A form of reducing term insurance recommended for the borrower. In the event of the death of the borrower or one of the co-borrowers, the insurance pays the balance owing on the mortgage. The intent is to protect survivors from losing their home.

Mortgage loans in excess of 75% of the loan amount divided by the lower of the sales price or appraised value.

A sum of money paid to a lender for the privilege of prepaying a mortgage in part or in full, outside the privileges set out in the terms of the mortgage.

Upon the consent of the lender, the mortgagor may transfer the balance of their existing mortgage to a new property being mortgaged.