Mortgage Glossary
Plain-language definitions of common mortgage terms you'll come across while buying, refinancing, or renewing in Nova Scotia.
- Amortization
- The total length of time it will take to pay off your mortgage in full, typically 25–30 years.
- CMHC Insurance
- Mortgage default insurance required when your down payment is less than 20% of the purchase price.
- Fixed Rate
- An interest rate that stays the same for your entire mortgage term.
- Variable Rate
- An interest rate that moves with the lender's prime rate, so your rate (and sometimes payment) can change during your term.
- Pre-Approval
- A lender's estimate of how much you can borrow and at what rate, based on your finances, before you make an offer.
- Rate Hold
- A guarantee that a specific rate will be available to you for a set period, even if market rates rise.
- Stress Test
- A federal requirement to qualify at a higher rate than your actual contract rate, to ensure you can handle payment increases.
- Term
- The length of your current mortgage agreement with a lender, typically 1–5 years, within a longer amortization.
- Renewal
- Signing a new term with your lender (or a new lender) once your current term ends.
- Debt Service Ratio
- A calculation lenders use to measure your housing and total debt costs against your income.
Come Across a Term You Don't See Here?
Book a free call and I'll explain it in plain language.