Variable rate mortgage

A mortgage with an interest rate that changes with the market. The rate changes each month, so the portion of your monthly payment that goes towards interest may go up or down each month. But your total monthly payment will probably stay the same.

Service charges

The extra costs payable for hooking up hydro, gas, phone, etc. to a new address.

Sales taxes

For those people looking to purchase a new home, the HST will be applied to any amount over $525,000. (Increased from its original $400,000 threshold)

HST does not apply to the price of used homes.

HST is also applied to any other services connected with real estate including: home inspectors, appraisers, legal fees, closing costs, and processing fees associated with buying a home.

The maximum Ontario new housing rebate amount that
is available is $24,000.

The maximum British Columbia new housing rebate
amount that is available is $26,250.

Information may vary province to province. Always ask before signing an offer.

Renewal/renewing

Once the original term of your mortgage expires, you have the option of renewing it with the original lender or paying off all of the outstanding balance.

Refinancing

Increasing the amount of your current mortgage, at a new interest rate. The term of the new mortgage must be equal to or greater than the term remaining on your current mortgage.

Property survey

A legal description of your property and its location and dimensions. An up-to-date survey is usually required by your mortgage lender. If not available from the vendor, your lawyer can obtain the property survey for a fee.

Pre-payment

Repaying part of your mortgage ahead of schedule. Depending on your mortgage agreement, there may be a penalty for pre-paying.

Pre-paid property tax and utility adjustments

The amount you will owe if the person selling you the home has pre-paid any property taxes or utility bills. The amount to reimburse them will be calculated based on the closing date.

Pre-approved mortgage certificate

A written agreement that you will get a mortgage for a set amount of money at a set interest rate. Getting a pre-approved mortgage lets you shop for a home without worrying how you’ll pay for it.