GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
^
50% - Moderately

Level Payment


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

Definition of level payment

level payment
1. The method of repayment where periodical payments of principal and interest are made in such a way that the payments remain constant in amount.

Related Terms and Acronyms:

  • fixed annuity   An annuity that makes fixed payments to the annuitant with guarantees for earnings and principal.
  • fixed instalment   Periodic (usually monthly) payment on a loan whose sum does not vary.
  • fixed premium   Insurance or annuity premiums that stay level for a specific period of time.
  • 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.
  • flat fee   A fixed charge that a broker requests instead of a commission.
  • interest only payments   A payment plan where only the interest is paid off.
  • level-premium insurance   Insurance where the premiums the policyholder pays are guaranteed to remain the same for an agreed upon period of time.
  • simple interest (SI)   Interest computed only on the principal balance, without compounding.
  • simple interest loan   A method of allocating the monthly payment between interest and principal. The interest charged is determined by the unpaid principal balance on the loan, the interest rate, and the number of days since the last payment. The rest of the payment goes to the principal. Making early payments or additional payments reduces the loan's principal and cuts the total interest paid over the life of the loan.
  • variable rate   A floating percentage value that fluctuates based on certain conditions.

More Related Terms and Acronyms

Search the Glossary

Best Brokers, Lowest Mortgage Rates, Period.
Our savvy brokers make it their mission to offer the lowest rate on the best mortgage products available in Canada. See the advantage we offer for yourself.
Find the Best Rates
 
Calculate Mortgage Payments
Our new mortgage calculator automatically generates a number of useful charts and graphs including one that displays a breakdown of how your mortgage payments are split between paying interest and paying down the principal on a year by year basis. Try it out for yourself.
Calculate Mortgage Payments
 
Mortgage Brokers
We feel that we're in the business of making your dreams come true. Our brokers genuinely want to help you get that dream house, and we will do whatever it takes to find you the best mortgage to suit your needs.
Mortgage Brokers Make Dreams Happen