Demystifying mortgages, one term at a time
Welcome to the JMACmortgage glossary, your comprehensive resource for understanding the language of mortgages. Whether you're a first-time homebuyer or an experienced investor, we're here to explain complex terms clearly and simply, helping you navigate the world of real estate with confidence.
Understanding amortization
Amortization Period: This refers to the total number of years it will take to pay off your mortgage completely. In Canada, typical amortization periods can range from 20 to 30 years, though shorter or longer periods may be available depending on the mortgage type and down payment.
Decoding down payments
Down Payment: The initial lump sum of money you pay upfront when purchasing a property. In Canada, the minimum down payment for a home under $500,000 is 5%, while homes between $500,000 and $999,999 require 5% on the first $500,000 and 10% on the remaining amount. Properties over $1 million typically require a 20% down payment.
Exploring interest rates
Interest Rate: The cost of borrowing money for your mortgage, expressed as a percentage. This can be either fixed (stays the same for the term) or variable (fluctuates with market rates). Understanding your interest rate is crucial as it directly impacts your monthly payments and the total cost of your mortgage.
More terms to know
Have questions about other mortgage terms? Our team at JMACmortgage is always here to help.
Contact us at [403-801-2651] or email [joanne.macdonald@mtgarc.ca] for personalized advice.