Mortgage Lingo for Calgary Home Buyers
Length of time over which the mortgage will be repaid.
Length of time that the mortgage contract conditions, and interest rate is fixed.
Costs in addition to the purchase price of the home that are payable on closing day. See the Process & Costs worksheets for more details.
The portion of the home price that is not financed by the mortgage loan. It must come from the buyer’s own funds or other eligible sources before securing a mortgage.
The difference between the price for which a home could be sold and the total debts registered against it.
Fixed / Variable Mortgage Interest Rate:
A fixed-rate is a locked-in rate that will not increase for the term of the mortgage. A variable mortgage interest rate can fluctuate based on changes to the prime rate at the lending institution.
High-ratio mortgage / Conventional Mortgage:
A high ratio mortgage is a mortgage loan higher than 80% of the lending value of the property. A conventional mortgage is a mortgage loan up to a maximum of 80% of the lending value of the property.
Open / Closed Mortgage:
An open mortgage is a flexible mortgage that allows you to pay off your mortgage in part or in full before the end of the term. A closed mortgage, in some cases, cannot be paid off in whole or in part before the end of the term. In other cases, the lender may allow for partial prepayment of a closed mortgage in the form of an increased mortgage payment or a lump repayment.