Amortization period: The actual number of years it will take to pay back your mortgage loan.

Appraisal: The process of determining the lending value of a property.

Assumability: Allows the buyer to take over the seller's mortgage on the property.

Closed mortgage: Locks you into a specific payment schedule. A penalty usually applies if you repay the loan in full before the end of a closed term.

Condominium fee: A fee paid by the condo owner that is allocated to pay building expenses.

Conventional mortgage: A loan issued for up to 75% of the property's appraised value or purchase price, whichever is less.

Down payment: The buyer's cash payment toward the property; the difference between the
purchase price and the mortgage loan.

Equity: The difference between your home's value and the money you owe against it.

High-ratio mortgage: A mortgage that exceeds 75% of the home's appraised value.
(These mortgages must be insured for payment.)

Interest rate: The value charged by the lender for the use of the lender's money,
expressed as a percentage.

Land transfer tax, deed tax, or property purchase tax: A fee paid to the municipal and/or provincial government for the transferring of property from seller to buyer.

Maturity date: The end of the term of the loan, at which time you can pay off the mortgage
or renew it.

Mortgagee: The lender.

Mortgagor: The borrower.

Open mortgage: Allows partial or full payment of the principal at any time, without penalty.

Portability: A mortgage option that enables borrowers to take their current mortgage
with them to another property without penalty.

Pre-approved mortgage: Qualifies you for a mortgage amount before you start shopping.

Prepayments: Voluntary payments in addition to regular mortgage payments.

Principal: The amount borrowed or still owing on a mortgage loan.

Refinancing: Increasing the amount of your current mortgage (at a new interest rate). The term
of the new mortgage must be equal to or greater than the term remaining on
your current mortgage.

Renewal: Renegotiation of a mortgage loan at the end of a term for a new term.

Second mortgage: Additional financing, which usually has a shorter term and a higher interest rate
than the first mortgage.

Term: The period for which the conditions of the mortgage apply and after which
must be renegotiated.

Title: Legal ownership in a property.

Variable-rate mortgage: A mortgage with an interest rate that changes with the market.

Vendor take-back mortgage: When the seller provides some or all of the mortgage financing in order to sell the property.