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Canadian Financial, Real Estate and Mortgage Glossary
How often this word is used
88% - Very Often
88% - Very Often
|Synonyms:||home loan rate, lending rate, mortgage interest rate|
|Notes:||You can compare mortgage rates using this website by clicking 'Rates' above.|
Definition of mortgage rate
- mortgage rate
- 1. The interest rate on a mortgage loan, or the cost of a property loan expressed as a percentage. For example, the monthly payments of a property loan of $200,000 at a mortgage rate of 7% would consist of a portion of the original loan plus 7% interest.
Related Terms and Acronyms:
annual percentage rate (APR)
A yearly rate of interest that includes fees and costs paid to acquire the loan. Lenders are required by law to disclose the APR. The rate is calculated in a standard way, taking the average compound interest rate over the term of the loan, so borrowers can compare loans. In mortgages, it is the interest rate of a mortgage when taking into account the interest, mortgage insurance, and certain closing costs including points paid at closing. There is no APR in an automobile lease; instead, the cost of money is expressed as the money factor.
➥ A number used to compare costs associated with mortgage loans and other forms of financing.
- 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.
- interest rate (IR) The rate a lender charges an individual to borrow money.
- interest rate differential (IRD) The penalty one pays for breaking a mortgage.
- mortgage application A document in which a prospective borrower details his or her financial situation to qualify for a loan.
An individual or group who brokers deals between their clients and lenders.
➥ CanEquity is a mortgage brokerage.
A program that calculates the costs involved in a mortgage or determines what kind of mortgage a person can qualify for.
➥ CanEquity's mortgage calculator has been rated number one by the Globe and Mail.
mortgage lender (ML)
A lender that offers mortgages, often through a mortgage broker.
➥ Used internally by mortgage brokers and mortgage lenders.
prime lending rate (PLR)
The rate of interest charged on loans by chartered banks to their most creditworthy customers.
➥ Bank of Canada's prime (best) lending rate.
variable rate mortgage (VRM)
Home loan in which the interest rate is changed periodically based on a standard financial index. Also called an "Adjustable-rate Mortgage."
➥ A type of mortgage loan offered by brokers and lenders.
More Related Terms and Acronyms
- alternative mortgage — Definition
- bank rate — Definition
- blended rate mortgage — Definition
- building and loan association — Definition
- Canada Mortgage and Housing Corporation (CMHC) — Company Est.1946, Canada-wide, Acronym
- conventional mortgage — Definition
- interest rate cap — Definition
- mortgage (mtg) — Abbreviation
- no money down mortgage — Definition
- origination date — Definition
- origination fee — Definition
- overnight rate — Definition
- posted rate — Definition
- prime rate — Definition
- private lender — Definition
- qualifying rate — Definition
- rate — Definition
- rate hold — Definition
- rate lock-in — Definition
- variable rate — Definition
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