| Amortization |
| The number of months required to repay the loan and pay the interests in full. |
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| Term |
| Duration of the loan during which certain terms and conditions apply (interest rate, payment frequency, etc.). |
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| Initial down payment |
| Amount payable when purchasing property. Typically, this amount comes from your own savings. |
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| Conventional loan |
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Mortgage loan for which an initial down payment of at least 20% is made.
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| Insured loan |
| Mortgage loan for which a down payment of less than 20% is made. The Bank insures the loan through a recognized loan insurer (i.e., Genworth Financial Canada or CMHC). |
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| Canada Mortgage and Housing Corporation (CMHC) |
| National organization responsible for housing and mortgage loan insurance in Canada. |
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| Genworth Financial Canada (Genworth) |
| Accredited private mortgage loan insurer. |
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| Closed term loan |
| Loan which may not be prepaid before the end of the term, unless an indemnity is paid to the Bank. |
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| Open term loan |
| Loan which may be prepaid before the end of the term, without indemnity. |
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| Fixed rate |
| Interest rate which does not fluctuate for the entire duration of the term. |
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| Variable rate |
| Interest rate which fluctuates for the duration of the term according to the standard rate variations. |
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| Capped variable rate |
| An interest rate that can vary but cannot exceed a predetermined maximum rate. |
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| Mortgage line of credit |
| Line of credit that is secured by a mortgage. |
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| Refinancing |
| Renegotiation of a loan to obtain an additional amount with new terms and conditions. |
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| Renewal |
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Agreement determining the terms and conditions of a new term (duration of new term, interest rate, payment frequency, etc.) upon the end of the term.
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