Adjustment Date: Date agreed to by both parties to a real property transaction for the adjustment of property taxes, rent, interest, and other items.

Amortization: The number of years needed to fully repay a loan. Most mortgages are amortized over 35 years. This means that by making set monthly payments - each a blend  of interest costs and repayment of the original principal  - you'll have paid back the original amount and all the interest in 35 years. You can however choose different amortization periods. A shorter   amortization, 15 or 20 years for example, will mean higher monthly payments, but a significantly lower interest cost. Do not confuse amortization with term.

Assumable Mortgage: A Mortgage that allows a purchaser to assume or take over the responsibility and liabilities under the mortgage from a vender.

Closed Mortgages: A mortgage which cannot be fully paid out before expiry of its term.

Compound Interest: Interest which, during the life of the loan is charged or calculated at regular intervals and if not immediately paid will, in   subsequent period, earn interest itself.

Conventional Mortgage: A traditional mortgage for up to 75 per cent of the appraised value of a property.

Convertible Mortgage: A mortgage that gives the borrower the flexibility to change from a short-term to a longer-term mortgage if it seems advantageous to do so. For example, when interest rates appear to have hit bottom.

Credit Check: is a history of how consistently consumers repay their financial obligations.

Down Payment: This is the money that is what you the buyer needs to have in order to complete the purchase of the home. Proof of down payment is required this can be; 3months of bank statements, RRSP statement or a gift letter from a family member.

Fixed-rate Mortgages: With this type of mortgage, the interest rate is set at a specific level for a certain term, ranging from six months to five years or more.

Gross Debt: The percentage of gross income which is the maximum a mortgagor is allowed to pay annually in principal, interest, and property taxes. For example a mortgagor may pay $270 out of $1000.00 gross income as P.I.T. payments. This ratio is usually expressed as a percentage ie P.I.T. payment can be 27% of gross income. Compare to Loan to Value Ratio.

Gross Income: The amount earned through employment or investment before taking taxes or other deductions into consideration. This amount may or may not be the same as gross income for   purpose of mortgage lending.

Interest Rate: The percentage rate that represents the cost of borrowing or the benefit of lending money.

Maturity: The date on which the balance owing on a mortgage becomes due; the final day of the term of a mortgage.

Mortgage: A document evidencing a debt owed by the borrower (mortgagor) to the lender (mortgagee). Registration of the mortgage in the Land Title Office transfers the mortgagor's interest in land to the mortgagee as security for the repayment of the debt.

Mortgagee: The lender.

Mortgagor: The Borrower.

Principal: That portion of the original amount borrowed which still has to be paid back to the lender.

Term: With respect to mortgages, a time period at the end of which the outstanding balance of a mortgage is due and payable.

Total Debt Service Ratio (TDS): The percentage of gross income which is the maximum amount that a mortgagor is allowed to pay annually in principal, interest and property taxes all other debts.

Variable Rate Mortgage: A loan being repaid by payments change as the market interest rate changes.

Vendor Take-Back Mortgage: A mortgage taken back by the vendor from the purchaser to facilitate a sale whereby the vendor becomes the mortgagee and the purchaser becomes mortgagor.