{"id":17020,"date":"2023-01-30T17:25:41","date_gmt":"2023-01-30T17:25:41","guid":{"rendered":"https:\/\/hypotheques.ca\/staging\/glossaire\/"},"modified":"2023-07-10T14:51:51","modified_gmt":"2023-07-10T14:51:51","slug":"glossary","status":"publish","type":"page","link":"https:\/\/hypotheques.ca\/staging\/en\/glossary\/","title":{"rendered":"Glossary"},"content":{"rendered":"\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"cm-glossary\"><div class=\"glossary-container \"><input type=\"hidden\" class=\"cmtt-attribute-field\" name=\"glossary_index_style\" value=\"classic\"><div id=\"glossaryList-nav\" class=\"listNav \" role=\"tablist\"><\/div><ul class=\"glossaryList\" role=\"tablist\" id=\"glossaryList\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTermSet\"><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/amortization-period\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;The number of years it will take to pay off your loan in full. Generally, the period is 25 to 30 years if it is a new mortgage.&lt;\/div&gt;\"><span itemprop=\"name\">Amortization period<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/bridge-loan\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Short-term financing to help the buyer meet his obligations when the transfer date of the new property precedes the transfer date of his current property.&lt;\/div&gt;\"><span itemprop=\"name\">Bridge loan<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/canada-guaranty\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Canada Guaranty is a provider of mortgage loan insurance. This insurance protects the mortgage lender when the down payment is less than 20% or when the lender requires that the loan be insured against loss if the borrower defaults. (In addition to Canada Guaranty, there are two other insurers: CMHC and Sagen).&amp;lt;br\/&amp;gt;&lt;\/div&gt;\"><span itemprop=\"name\">Canada Guaranty<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/capital\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;The amount borrowed when taking out a new mortgage.&lt;\/div&gt;\"><span itemprop=\"name\">Capital<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/closed-mortgage\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Closed mortgages allow you to pay off your balance in full at maturity without a prepayment fee. If you choose to pay off your mortgage at any other time, prepayment fees may apply, as each type of mortgage has its own unique features that you should understand.&lt;\/div&gt;\"><span itemprop=\"name\">Closed mortgage<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/cmhc-canada-mortgage-and-housing-corporation\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;CMHC is a provider of mortgage loan insurance. This insurance protects the lender against loss in the event of default. There are two other insurers of the same type: Sagen and Canada Guaranty.&lt;\/div&gt;\"><span itemprop=\"name\">CMHC - Canada Mortgage and Housing Corporation<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/combined-payments\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Payments used to repay the principal (amount borrowed) and interest on a regular basis (weekly, bi-weekly, monthly, etc.). The portion going to principal payments gradually increases while the portion going to interest payments decreases over the life of the loan, but the amount of the regular payment usually does not change.&lt;\/div&gt;\"><span itemprop=\"name\">Combined payments<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/conditional-offer\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Offer to purchase with conditions (e.g., a property inspection, obtaining financing from your bank, selling your current property). Usually, the conditions must be met within a specific time frame (usually 12 days for mortgage financing)&lt;\/div&gt;\"><span itemprop=\"name\">Conditional offer<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/conventional-mortgage\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;A mortgage loan that does not exceed 80% of the value of the property (this corresponds to a minimum down payment of 20%. Loans above this rate must be insured against default and are called insured mortgages.&lt;\/div&gt;\"><span itemprop=\"name\">Conventional mortgage<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/credit-bureau\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;X-ray of the state of your finances. Private organizations (such as Equifax or TransUnion) collect, store and analyze your financial information and payment habits to establish a risk and credit rating that allows the lender to analyze the risk.&lt;\/div&gt;\"><span itemprop=\"name\">Credit Bureau<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/creditor\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;The lender is the mortgagee and the borrower is the mortgagor.&lt;\/div&gt;\"><span itemprop=\"name\">Creditor<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/credit-rating\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;The credit score is the score (between 300 and 900) that will determine your ability to repay your debts. It reflects your payment habits; the higher the score, the higher the probability of obtaining a loan and the better your conditions.&lt;\/div&gt;\"><span itemprop=\"name\">Credit rating<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/date-of-signature\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;The date on which the sale of a property becomes final and the new owner can take possession of the premises&lt;\/div&gt;\"><span itemprop=\"name\">Date of signature<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/date-of-transfer-of-ownership-or-date-of-signature\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;The date on which the sale of a property becomes final and the new owner can take possession of the premises.&lt;\/div&gt;\"><span itemprop=\"name\">Date of transfer of ownership or date of signature<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/debt-to-equity-ratio\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Percentage of your gross income needed to cover monthly payments for principal, interest, taxes, heating and condo fees (if applicable).&lt;\/div&gt;\"><span itemprop=\"name\">Debt to equity ratio<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/deposit\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;The amount of money deposited in trust by the buyer at the time of the offer to purchase. This money will be held in trust by the seller&amp;#039;s agent, broker, lawyer or notary until the sale is completed.&lt;\/div&gt;\"><span itemprop=\"name\">Deposit<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/duration\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;The period of time during which the mortgage agreement is in effect and for which the interest rate has been established.&lt;\/div&gt;\"><span itemprop=\"name\">Duration<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/early-repayment\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Prepayment of mortgage (see penalties).&lt;\/div&gt;\"><span itemprop=\"name\">Early repayment<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/enhanced-subrogation\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;When a mortgage deed is non-subrogated(umbrella mortgage), allows it to be transferred to another financial institution at an advantageous rate and with little or no fees.&lt;\/div&gt;\"><span itemprop=\"name\">Enhanced subrogation<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/evaluation\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;The process of establishing the value of a property, usually for financing purposes.&lt;\/div&gt;\"><span itemprop=\"name\">Evaluation<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/expiry-date\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Last day of the term of a mortgage agreement.&lt;\/div&gt;\"><span itemprop=\"name\">Expiry date<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/firm-offer\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Offer to purchase a property that does not include any conditions&lt;\/div&gt;\"><span itemprop=\"name\">Firm offer<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/fixed-rate-mortgage\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;A loan where the&nbsp;interest rate&nbsp;remains the same for a given period of time (the&nbsp;term)&lt;\/div&gt;\"><span itemprop=\"name\">Fixed rate mortgage<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/foreclosure\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;A legal procedure by which the lender takes ownership of the property when the borrower is unable to meet the debt or other terms of the mortgage.&lt;\/div&gt;\"><span itemprop=\"name\">Foreclosure<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/frequency-of-payments\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;How often you make your mortgage payments: weekly (52 annual payments), accelerated weekly (56 annual payments), bi-weekly (24 annual payments), accelerated bi-weekly (26 annual payments), monthly (12 annual payments) or bi-weekly (26 annual payments).&lt;\/div&gt;\"><span itemprop=\"name\">Frequency of payments<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/gross-debt-service-ratio-gds\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;The GDS ratio measures proposed new housing costs (such as mortgage payments, taxes, heating costs or 50% of condo fees, if applicable) against your income. Normally, the total of these costs should not exceed 39% of your gross monthly income.&lt;\/div&gt;\"><span itemprop=\"name\">Gross debt service ratio (GDS)<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/gross-household-income\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Total salaries, commissions and other income, before deductions, earned by household members who are co-applicants on the mortgage.&lt;\/div&gt;\"><span itemprop=\"name\">Gross household income<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/gross-income\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;This is personal income before taxes and deductions.&lt;\/div&gt;\"><span itemprop=\"name\">Gross Income<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/hbp-homeownership-plan\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;The Home Buyers&amp;#039; Plan (HBP) is a program that allows each borrower, under certain conditions, to withdraw up to $35,000 from their Registered Retirement Savings Plans (RSP) to purchase or build a qualifying home for themselves or a related person with a disability.&lt;\/div&gt;\"><span itemprop=\"name\">HBP - Homeownership Plan<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/holdback\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Amount withheld during the construction or renovation of a home to ensure that contractors are paid.&lt;\/div&gt;\"><span itemprop=\"name\">Holdback<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/home-insurance\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;The lender will require you to purchase home insurance to protect your property from damage due to unforeseen circumstances, such as fire or natural disasters.&lt;\/div&gt;\"><span itemprop=\"name\">Home insurance<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/inspection\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Examination of a property by a home inspector chosen by the buyer.&lt;\/div&gt;\"><span itemprop=\"name\">Inspection<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/insured-mortgage\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;If the buyer&amp;#039;s down payment is less than 20% of the purchase price or the value of the property, whichever is less, the mortgage must be insured against default by a mortgage insurer such as CMHC, SAGEN, or Canada Guaranty&lt;\/div&gt;\"><span itemprop=\"name\">Insured Mortgage<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/interest-rates\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;The percentage that a person will have to pay to the financial institution that lends them money.&lt;\/div&gt;\"><span itemprop=\"name\">Interest rates<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/interests\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Interest is the fee you pay when you borrow money. The interest rate is usually shown as a percentage per year; in Canada, it will be calculated semi-annually for a mortgage.&lt;\/div&gt;\"><span itemprop=\"name\">Interests<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/mortgage\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;A right granted to a creditor in real property as security for a debt, without the owner of the property being dispossessed.&lt;\/div&gt;\"><span itemprop=\"name\">Mortgage<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/mortgage-approval\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Confirmation that you have been granted mortgage financing based on an accepted and valid offer to purchase (not to be confused with pre-approval or pre-qualification)&lt;\/div&gt;\"><span itemprop=\"name\">Mortgage approval<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/mortgage-broker\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;A professional who, in the interest of his or her clients, provides independent and transparent advice in order to offer them the best conditions on the market. The broker will offer you several financing options from among the many lenders he deals with (not to be confused with the mortgage broker, who only offers the products of his financial institution).&lt;\/div&gt;\"><span itemprop=\"name\">Mortgage Broker<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/mortgage-broker-2\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;An advisor who works exclusively for a financial institution and offers the products of his or her employer. By definition, he or she is not able to provide you with proposals from several financial institutions (not to be confused with a mortgage broker).&lt;\/div&gt;\"><span itemprop=\"name\">Mortgage Broker<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/mortgage-insurance\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Mandatory insurance for loans with less than 20% down payment. The insurance companies are: CMHC, Sagen and Canada Guaranty.&lt;\/div&gt;\"><span itemprop=\"name\">Mortgage insurance<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/mortgage-life-insurance\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;If you die, suffer a critical illness or are disabled as a result of an accident, this insurance can be used to pay off your mortgage balance&lt;\/div&gt;\"><span itemprop=\"name\">Mortgage life insurance<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/mortgage-pre-approval-mortgage-pre-qualification\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Allows prospective homebuyers to know their borrowing capacity and the maximum purchase price they can afford. When you are pre-approved, or pre-qualified, you will receive confirmation of your maximum purchase amount and you can receive a mortgage rate guarantee, allowing you to take advantage of and secure the best available rates.&lt;\/div&gt;\"><span itemprop=\"name\">Mortgage pre-approval - Mortgage pre-qualification<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/mortgage-pre-qualification-mortgage-pre-approval\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Allows prospective homebuyers to know their borrowing capacity and the maximum purchase price they can afford. When you are pre-approved, or pre-qualified, you will receive confirmation of your maximum purchase amount and you can receive a mortgage rate guarantee, allowing you to take advantage of and secure the best available rates.&lt;\/div&gt;\"><span itemprop=\"name\">Mortgage pre-qualification - Mortgage pre-approval<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/mortgagor\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;The lender is the mortgagee and the borrower is the mortgagor.&lt;\/div&gt;\"><span itemprop=\"name\">Mortgagor<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/municipal-assessment\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;value for municipal and school tax purposes (revised every 3 years) and which differs from the actual value of the property.&lt;\/div&gt;\"><span itemprop=\"name\">Municipal Assessment<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/net-value\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;The difference between the market price of a home (its actual market value) and the total debt associated with it (loan balance).&lt;\/div&gt;\"><span itemprop=\"name\">Net value<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/newcomers\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Mortgage financing for newcomers (open or closed work permit, PVT, Young Professional Visa, Study Permit, permanent residents...). It is possible to obtain a mortgage loan with 5% or 10% down payment, some specific documents must be provided, the loans must be insured according to the mortgage program for newcomers to Canada.&amp;amp;nbsp;&lt;\/div&gt;\"><span itemprop=\"name\">Newcomers<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/open-mortgage\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Mortgage that can be prepaid at any time without additional fees or penalties (rates are often higher for this type of loan)&lt;\/div&gt;\"><span itemprop=\"name\">Open Mortgage<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/penalties\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Interest Rate Differential Charge (IRC) - This is the amount of the charge that may apply if you pay down the principal before the maturity date or pay down more than the prepayment privilege. The amount of the interest rate differential charge is the difference between the amount of principal remaining to be repaid at the time of prepayment and the amount of principal that would remain to be repaid based on the rate of a similar loan. (It is important to analyze mortgage penalties as they vary by lender and type of loan.)&lt;\/div&gt;\"><span itemprop=\"name\">Penalties<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/policy-rate\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;A rate set by the Bank of Canada, used as a reference for variable rate loans.&lt;\/div&gt;\"><span itemprop=\"name\">Policy rate<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/preferred-rate\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;&amp;lt;!-- wp:paragraph {&amp;quot;translatedWithWPMLTM&amp;quot;:&amp;quot;1&amp;quot;} --&amp;gt;This is the rate generally used to calculate the interest on a variable rate loan. This rate may vary slightly from bank to bank but generally corresponds to the Bank of Canada&amp;#039;s key rate.&amp;lt;br\/&amp;gt;&amp;lt;!-- \/wp:paragraph --&amp;gt;&lt;\/div&gt;\"><span itemprop=\"name\">Preferred rate<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/prepayment-fee\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;A fee you pay to the lender when you prepay all or part of a closed mortgage.&lt;\/div&gt;\"><span itemprop=\"name\">Prepayment fee<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/prepayment-privilege\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;The ability to repay some or all of the principal balance. A prepayment fee may apply when you take advantage of a prepayment option.&lt;\/div&gt;\"><span itemprop=\"name\">Prepayment privilege<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/property-tax\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Tax levied by the municipality on a building&lt;\/div&gt;\"><span itemprop=\"name\">Property tax<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/property-transfer-fees\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Miscellaneous costs associated with the purchase of a property, such as legal or notary fees, land transfer taxes and adjustments forproperty taxes&nbsp;or condominium fees already paid.&lt;\/div&gt;\"><span itemprop=\"name\">Property transfer fees<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/real-estate-broker\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;It is a professional who is there to help you find, buy or sell your property.&lt;\/div&gt;\"><span itemprop=\"name\">Real Estate Broker<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/refinancing\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Allows you to access additional funds or take advantage of a lower interest rate to reduce your other borrowing costs You can use refinancing to consolidate your debts or finance major education or renovation expenses.&lt;\/div&gt;\"><span itemprop=\"name\">Refinancing<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/renewal\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;At the end of its term, the mortgage may be &amp;quot;extended&amp;quot; under new terms (usually relating to term and interest rate) that are agreeable to both the lender and the borrower. This is called a mortgage renewal. Alternatively, the lender may request that the loan be paid off in full.&lt;\/div&gt;\"><span itemprop=\"name\">Renewal<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/right-of-transfer\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;also known as the Welcome Tax, can be defined as a tax that the purchaser(s) are required to pay within weeks of a purchase.&lt;\/div&gt;\"><span itemprop=\"name\">Right of transfer<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/sagen\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Provider of mortgage loan insurance. This insurance protects the lender against loss in the event of default. There are two other insurers of the same type: CMHC and Canada Guaranty.&lt;\/div&gt;\"><span itemprop=\"name\">Sagen<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/seizure-or-foreclosure\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;A legal procedure by which the lender takes ownership of the property when the borrower is unable to meet the debt or other terms of the mortgage.&lt;\/div&gt;\"><span itemprop=\"name\">Seizure or foreclosure<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/subrogation-of-mortgage-deed\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Subrogation consists in transferring themortgage from your bank to another bank while keeping the initial characteristics of the first mortgage (such asmortgage insurance, the balance of the loan, the remaining amortization). This allows you to change banks with reduced fees (notary...) and sometimes to add an amount (+\/- $3000 on top of the balance).&lt;\/div&gt;\"><span itemprop=\"name\">Subrogation of mortgage deed<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/term\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Mortgage term is the number of years or months you pay a given interest rate. Mortgage terms generally range from six months to 10 years.&lt;\/div&gt;\"><span itemprop=\"name\">Term<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/total-debt-service-ratio-tds\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Percentage of gross income needed to cover monthly housing payments and all other debts and financial obligations. The total should generally not exceed 44% of gross monthly income.&lt;\/div&gt;\"><span itemprop=\"name\">Total debt service ratio (TDS)<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/transfer\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;A transfer allows you to keep the balance, term and interest rate of your existing mortgage when you move to another property. This saves you money by avoiding any prepayment penalties.&lt;\/div&gt;\"><span itemprop=\"name\">Transfer<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/umbrella-mortgage\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Allows the lender to retain an interest in the property not only for the amount borrowed to acquire it, but also for other current or future debts incurred with the same lender.&lt;\/div&gt;\"><span itemprop=\"name\">Umbrella mortgage<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/value-according-to-the-evaluation\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;Estimate of the market value of the property following an appraisal by a chartered appraiser.&lt;\/div&gt;\"><span itemprop=\"name\">Value according to the evaluation<\/span><\/a><\/li><li class=\"\"  itemscope itemtype=\"https:\/\/schema.org\/DefinedTerm\" ><a href=\"https:\/\/hypotheques.ca\/staging\/en\/glossary\/variable-rate-mortgage\/\"  role=\"term\" class=\"glossaryLink glossary-link-title \"   style=\"\"   itemprop=\"url\"  aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemBody&gt;A mortgage loan where the interest rate changes when market conditions change(Bank of Canada&amp;#039;skey rate).&lt;\/div&gt;\"><span itemprop=\"name\">Variable rate mortgage<\/span><\/a><\/li><\/ul><\/div><\/div>\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n    <div class=\"xs_social_share_widget xs_share_url after_content \t\tmain_content  wslu-style-1 wslu-share-box-shaped wslu-fill-colored wslu-none wslu-share-horizontal wslu-theme-font-no wslu-main_content\">\n\n\t\t\n        <ul>\n\t\t\t        <\/ul>\n    <\/div> \n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":0,"parent":0,"menu_order":18,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"postBodyCss":"","postBodyMargin":[],"postBodyPadding":[],"postBodyBackground":{"backgroundType":"classic","gradient":""},"footnotes":""},"class_list":["post-17020","page","type-page","status-publish","hentry","description-off"],"acf":[],"_links":{"self":[{"href":"https:\/\/hypotheques.ca\/staging\/en\/wp-json\/wp\/v2\/pages\/17020","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hypotheques.ca\/staging\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/hypotheques.ca\/staging\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/hypotheques.ca\/staging\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/hypotheques.ca\/staging\/en\/wp-json\/wp\/v2\/comments?post=17020"}],"version-history":[{"count":3,"href":"https:\/\/hypotheques.ca\/staging\/en\/wp-json\/wp\/v2\/pages\/17020\/revisions"}],"predecessor-version":[{"id":17098,"href":"https:\/\/hypotheques.ca\/staging\/en\/wp-json\/wp\/v2\/pages\/17020\/revisions\/17098"}],"wp:attachment":[{"href":"https:\/\/hypotheques.ca\/staging\/en\/wp-json\/wp\/v2\/media?parent=17020"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}