Products

Term

The length of your current rate and contract — typically 1 to 10 years. Distinct from amortization (total payoff length). 5-year fixed is the Canadian default.

Term is how long your rate and contract are locked; amortization is how long until the mortgage is fully paid. A 25-year amortization is paid across several terms — most commonly a string of 5-year terms, each renewed at the rate of the day.

Choosing a term is really a rate-cycle bet. A 5-year fixed buys certainty; a shorter 1–3 year term keeps you flexible to renew sooner if you expect rates to fall; a variable lets you ride prime up or down. Shorter terms generally mean more frequent renewals (and more chances to shop).

Match the term to your plans: if you might sell, refinance, or expect a financial change, a shorter or more flexible term avoids penalties down the road.

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A lender

A bank or monoline that prices its lowest rates and tightest underwriting against borrowers who fit prime credit, income, and property criteria. The big banks (RBC, TD, Scotia, BMO, CIBC, NB) and major monolines (MCAP, First National, MERIX) are A lenders.

B lender

An alternative lender that prices slightly higher than A lenders but flexes on credit history, income documentation, property condition, or self-employed earnings. Equitable, Home Trust, CMLS, and Manulife Bank are common B lenders.

Bridge financing

Short-term loan that lets you close on a new home before the sale of your existing one funds. Priced at prime + premium, secured against both properties, typically up to 90-120 days.

Closed mortgage

A mortgage that limits how much extra you can prepay each year and charges a penalty if you break the term early. Almost all standard Canadian mortgages are closed because the rates are materially lower than open.

Collateral charge mortgage

A mortgage registered against your property for more than the actual loan amount, letting you increase the limit later without re-registering. Common at TD and Scotia. Makes inter-lender switches harder mid-term.

Conventional mortgage

A mortgage with at least 20% down. No mortgage default insurance required. Pricing is typically higher than insured because the lender carries more of the credit risk.

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