What is…? · Glossary · FR · ES · EN
Mortgage glossary: French, Spanish, English
Documents arrive in French or English; questions are often asked in Spanish. Each term has its official name, a direct answer and what you need to decide.
16 terms
Concepts 4
- AmortizationAmortization is the total number of years to pay off the whole mortgage, usually 25.
- Credit historyYour credit history in Canada starts at zero when you arrive: the two bureaus, Equifax and TransUnion, only record your credit activity in Canada.
- Stress testThe stress test requires the lender to qualify you at a rate higher than your contract rate: the greater of your rate plus 2% and 5.25%.
- Fixed and variable ratesWith a fixed rate the interest and the payment do not change during the term.
Programs 3
- FHSAThe FHSA is a Canadian registered account for buying a first home: contributions are tax-deductible and the withdrawal for the purchase is tax-free.
- Newcomer mortgageA newcomer can buy in Canada with permanent residence or a work permit, even with a short credit history, thanks to specific programs from several lenders and CMHC.
- HBPThe HBP lets you withdraw up to $60,000 from your RRSP, tax-free, to buy a first home.
Institutions and players 3
- Mortgage brokerIn Quebec, a mortgage broker is a professional licensed by the Autorité des marchés financiers (AMF) who compares several lenders' offers and submits your file to the one that fits best.
- B lenderA B lender is an institution that finances files the big banks (A lenders) decline: self-employed borrowers with hard-to-document income, credit being rebuilt, newcomers.
- CMHCCMHC is the federal agency that insures mortgages with less than a 20% down payment.
Buying process 4
- NotaryIn Quebec a property purchase is signed before a notary, not a lawyer: the notary prepares the deed of sale and the deed of hypothec, verifies title and transfers the funds.
- Mortgage pre-approvalA pre-approval is a lender's assessment of your income, debts and credit before you shop for a home.
- RefinancingRefinancing replaces your mortgage with a new, larger one to use the equity in your home: consolidating debt, renovating, investing.
- Mortgage renewalRenewal happens at the end of the term (for example 5 years), when you must sign a new contract for the remaining balance.
Costs 2
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