GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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Fixed Instalment


Synonyms:fixed instalment, fixed payment, static instalment, static payment
Filed Under: financial-banking, mortgages
Tags: banking, mortgage
 

Definition of fixed instalment

fixed instalment
1. A set payment that is made towards the balance of a loan. Fixed instalments are set amounts that do not change and are typically made once a month.

Related Terms and Acronyms:

  • balloon payment   A loan instalment that is larger than the other, periodic payments and pays off the remaining principal.
  • fixed expenses (FE)   Fixed business costs that do not change regardless of business volume, such as property rental, insurance payments, utilities, etc.
  • fixed rate mortgage (FRM)   A loan in which the interest rate and payments remain the same for the entire life of the loan. The interest rate and payment amounts are set at the time of loan origination.
  • instalment   The regular periodic payment that a borrower agrees to make the lender.
  • level payment   A method of repayment where periodical payments of principal and interest are made in a certain way so the payment amount remains constant.
  • level-premium insurance   Insurance where the premiums the policyholder pays are guaranteed to remain the same for an agreed upon period of time.
  • loan   Letting another party use something of value temporarily.
  • mortgage (mtg)   A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
  • step-rate mortgage   A fixed-rate home loan on which payments are lower at the beginning, typically for two years, and which then rise.
  • term   The length of time you commit to repay a lender or bank at an agreed upon interest rate and payment schedule. The interest rate usually remains constant during this term unless the commitment states otherwise. For example, a five year fixed rate mortgage has a term of five years.

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