Wednesday Nov 15th, 2017


When speaking or hearing about mortgage terms, it can be a little overwhelming. Here is some helpful information to help you get familiarized with terms and new rules as of Jan. 1 2018. Remember to always speak with a professional before you get started. Doing so will help you get organized and guide you with your next steps!

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Insured Mortgage/High-Ratio Mortgage = mortgage insurance is mandatory with less than 20% down payment

Uninsured Mortgage/Conventional Mortgage = 20% or greater down payment/equity

Contract Rate = the interest rate offered by the lender to the consumer

Benchmark Rate/Qualifying Rate =  Stress Test: five-year benchmark rate published by the Bank of Canada (currently 4.89%) OR Contract Rate +2%, whichever is greater

LTV (Loan-To-Value) = the size of a mortgage compared to the value of the property securing the loan


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