Understanding the terminology

Glossary of terms

Whether you’re buying a home or simply refinancing, here is some information to help you gain more understanding of mortgages.

Mortgage Calculator

Find what works for you.

Mortgage Application

It’s fast, simple, and secure!

Complete definitions

Terms & terminology

The financial world has it’s own language that can seem daunting to those not familiar with it, so Mid Island Mortgage has put together a complete lexicon of terms and terminology to help you.

For complete definitions, mouse over the terms below.

First Time Buyer

  • Pre-approval – Sit down with a Mortgage Professional before you start looking for a home.  It’s important to know what you can afford, and what the buying process entails
  • Down Payment – The minimum required down payment is 5% on the first $500,000 and 10% on the remaining balance.  If you have 20% or more you will avoid paying additional insurance costs to CMHC, Sagen or Canada Guaranty
  • Closing Costs – On top of your down payment, you’ll need money for items like Property Transfer Tax, Legal Fees, Title Insurance and an Appraisal
  • House Insurance – Before a lender will fund your mortgage, you need to have house insurance in place

Mortgage Renewals

  • Approximately 4-6 months before the maturity date of your mortgage, your lender will contact you about your renewal.  They’ll discuss what options are available for you at renewal
  • Past clients of Mid Island Mortgage & Savings will be contacted 4-6 months prior to renewal to start looking at options as well.  New to Mid Island Mortgage?  Call us to go over your renewal options
  • Renewal time can be a great time to look at refinance options.  Consider your five year goals and any upcoming expenses.  Are there any renovations, vacations or investment opportunities coming up? 

Equity Mortgages

  • Have a strong net worth and a lot of equity in your property? An Equity Mortgage might be a fit for you.
  • There are equity programs that offer lower income requirements than traditional mortgage lending
  • This is gaining popularity for helping children with buying homes or early inheritances

Mobile Homes

  • Buying a mobile home is very different than buying a more traditional property
  • The length of time you can amortize a mobile home loan is based upon the remaining economic life of the mobile home.  This is determined by an appraiser
  • For the most part all Mobile Homes in parks require CMHC (Canadian Mortgage & Housing Corporation) insurance, regardless of the down payment amount
  • For those who don’t qualify through major lenders, private mortgages are available
  • Our Brokers are well versed in Mobile Home lending and are happy to discuss your options

Second Home Purchase

  • Programs are available to purchase a second home for a family member to reside in with a minimum down payment – 5% on the first $500,000 and 10% on the balance
  • Suitable for those with a child attending university in a new town. Buy a condo or home rather than paying rent or dorm fees.  
  • Ageing family members at risk either financially or with health concerns can be assisted with options that can be discussed with your Mortgage Broker.

Rental Home Purchase

  • Minimum required down payment is 20%
  • If you own your principal residence we can help you refinance to get equity out for a down payment 
  • The rental income from rental property can be included in your income to help you qualify for a mortgage