Defines the time frame required to fully pay off a mortgage. The maximum for insured mortgages is typically 25 years in Canada, extending to 30 years for non-insured ones.

A mortgage type where prepayment, renegotiation, or refinancing before the term ends incurs a penalty. These usually have lower interest rates than open mortgages.

The initial payment made when buying a home, not covered by the mortgage. It varies from 5% to 20% of the purchase price, depending on the home's value.

A mortgage with a constant interest rate throughout its term, ensuring steady monthly payments.

A mortgage with less than 20% down payment, necessitating mortgage loan insurance, often provided by CMHC.

The actual homeowner's interest in the property, calculated as the home's value minus the mortgage balance.

The cost of borrowing, expressed as a percentage of the loan amount. It can be fixed, variable, or adjustable.

A lender’s commitment to offer a mortgage up to a certain amount, which helps buyers know their purchasing capability.

A flexible mortgage that can be partially or fully paid off at any time without penalties, albeit usually at higher interest rates.

A mortgage with an interest rate that varies with market conditions, affecting monthly payments.

The duration a mortgage contract is effective, defining the interest rate and other terms. It requires renewal at its end unless fully paid.

Allows transferring the existing mortgage to a new property, avoiding penalties if moving before the term ends.

The process of replacing the current mortgage with a new one, often to benefit from lower interest rates or tap into home equity.

A financial metric used by lenders to assess a borrower's ability to manage monthly debt payments. It includes all debt payments (mortgage, car loans, credit cards, etc.) relative to income. A TDS ratio of 40% or less is typically required to qualify for a mortgage.

This ratio measures the portion of a borrower's income that covers housing costs (mortgage payments, property taxes, heating, and sometimes condo fees). Lenders prefer a GDS ratio of 35% or less for mortgage approval.