ARM (Adjustable Rate Mortgage)
A mortgage in which the interest rate is adjusted periodically according to movements in a pre-selected index.

AMORTIZATION PERIOD
The time period required to completely retire a debt through scheduled payments of principal and interest.

BLANKET MORTGAGE
A single registered document that encumbers more than one property.

CLOSED MORTGAGE
A reference to the absence of the privilege to accelerate repayment during the term of the mortgage either by bulk payment(s) or increase to scheduled remittances.

CONVENTIONAL MORTGAGE
A mortgage loan that does not exceed 75% of the lending value of the property. Mortgages that exceed this limit must be insured by CMHC (or similar insurance provider).

FIXED RATE MORTGAGE
This is the usual form of mortgage where interest rate remains the same during the entire term of the loan.

HIGH RATIO MORTGAGE
A mortgage loan that exceeds 75% of the lending value of the property.

LOAN TO VALUE (LTV)
Loan Amount / Value of property

MORTGAGE
A temporary, conditional pledge of property to a creditor as security for performance of an obligation or repayment of a debt.

OPEN MORTGAGE
A mortgage with privileges of accelerated repayment of principal, usually without repayment penalty.during the term of the loan.

PRIME RATE
The rate charged by banks to their most credit-worthy borrowers.

PRIVATE MORTGAGE
A loan given by an individual or individuals not associated with a lending institution (often used for construction loans and/or recreational property).

REFINANCING
Refers to applying for a secured loan intended to replace an existing loan secured by the same assets.

SECOND MORTGAGE
Additional loan that is subordinate to the primary mortgage.

SYNDICATED MORTGAGE
A private mortgage in which two or more lenders provide the funds.

TERM
The length of time which a mortgage agreement covers. Payments made may not repay the outstanding principal by the end of the term because of a longer amortization period.

VARIABLE RATE MORTGAGE
A loan where the interest rate may vary during the term of the mortgage. The variance is usually tied to some specific factor such as the prime bank rate or the guaranteed investment certificate rate for a designated lender.