Resources
Plain-language mortgage glossary
The terms that come up in every conversation, explained the way we'd explain them to a friend.
AmortizationThe total length of time to pay off your mortgage in full, e.g. 25 years — different from your term.
TermThe length of your current rate agreement (often 1–5 years) before you renew or renegotiate.
Stress TestA federal rule requiring you to qualify at a higher rate than you’ll actually pay, to prove you can handle rate increases.
GDS / TDSGross/Total Debt Service ratios — the share of your income lenders allow toward housing costs (GDS) and all debts (TDS).
CMHC InsuranceMortgage default insurance required when your down payment is under 20%, protecting the lender if you default.
Fixed vs. VariableFixed rates stay the same for your term; variable rates move with the lender’s prime rate, changing your payment or amortization.
PortingTransferring your existing mortgage rate and terms to a new property when you move.
Prepayment PrivilegesHow much extra you can pay toward your mortgage each year without penalty — varies significantly by lender.
Bridge FinancingShort-term financing that covers the gap when your purchase closes before your current home sells.
Rate HoldA guarantee that a quoted rate is protected for a set period (often 90–120 days) while you shop for a home.
New to Canada?
Getting a mortgage as a newcomer
You don't need years of Canadian credit history or permanent residency to buy a home here — you need the right lender and the right paperwork. Four things that matter most:
1
Start building Canadian credit immediatelyA secured credit card and phone plan in your name start your credit file — lenders want 12+ months of history, so day one matters.
2
Know the newcomer programsCMHC and major lenders have newcomer programs that accept alternative credit proof (rent, utilities) if you've been in Canada under 5 years.
3
Document foreign income and assets properlyDown payment funds from abroad are fine — but lenders need a clear 90-day paper trail, so move funds early.
4
Permanent residency isn't requiredWork permit holders can qualify with as little as 10% down at many lenders. Non-residents have options too, with larger down payments.