RateSupermarket Glossary

Qualifying Rate

admin — Thu, 12 Apr 2012 16:35:21 +0000

When you are looking for a variable rate mortgage or a fixed mortgage with a term less than 5 years, you will likely need to qualify at a rate higher than the actual rate you are applying for. This helps the lender ensure that if rates go up, you will still be able to afford your mortgage payments. All variable and 1 to 5 year fixed mortgages with a down payment of less than 20% will be qualified using the Bank of Canada posted 5-year fixed rate.
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Whole life insurance

admin — Thu, 09 Feb 2012 17:10:19 +0000

Permanent life insurance that is payable when the insured person passes away, whenever that event may occur. Whole life insurance premiums are usually fixed under the contract and can be paid out until the insured person passes away or for …
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Term to 100 life insurance

admin — Thu, 09 Feb 2012 17:06:36 +0000

Term to 100 life insurance, also known as Term to 100.

This is a permanent life insurance policy where normal cash value and benefits that are paid are reduced or eliminated when the policy is terminated prior to death.

May also be referred to as “permaterm” life insurance.

Universal life insurance

admin — Thu, 09 Feb 2012 14:58:14 +0000

Also known as universal life. This is permanent life insurance coverage where the premiums (less expense or administrative charges) are credited to an investment account.

Periodic charges for life insurance coverage are then deducted from the investment account and income is added. The policyholder can usually have some control and alter the amount and timing of premium payments.

Term life insurance

admin — Thu, 09 Feb 2012 14:53:43 +0000

Temporary life insurance that is payable when the insured passes away, provided that the death occurs within a specified period of time. Typically referred to T-10, T-20, T-30, etc which stands for length of the term (ie. 10 years, 20 years, 30 years, etc).

Monetary Policy Report

admin — Tue, 25 Oct 2011 14:48:21 +0000

The Bank of Canada has a scheduled rate announcement schedule where they release their decision to increase, decrease or maintain their target for the overnight rate, their key interest rate. They typically have an announcement every 6 weeks. You can view the latest Bank of Canada rate announcement schedule here.

Every other announcement includes the publishing of the Monetary Policy Report. This is a “quarterly report of the Bank of Canada’s Governing Council, presenting the Bank’s base-case projection for inflation and growth in the Canadian economy, and its assessment of risks.”

Amortization Term

Wed, 17 Aug 2011 19:57:40 +0000

The period of time that is required and agreed upon to repay (amortize) an entire mortgage loan.
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Zero Down Mortgage

Thu, 11 Aug 2011 10:37:33 +0000

A Zero Down Mortgage is a type of mortgage where you can borrow 100% of the value of the property. This type of mortgage used to be available in Canada until October 2008 when the government stopped insuring $0 down payment mortgages in an effort to avoid a US style housing crisis and stop the so-called “sub-prime” mortgages from becoming a problem.

Zero balance

Thu, 11 Aug 2011 10:36:13 +0000

When the outstanding balance on a credit card is paid and no new charges are incurred during the billing cycle, the card holder’s monthly statement shows a zero balance. This means nothing is left owing to the credit card company.

X

Thu, 11 Aug 2011 10:34:58 +0000

A symbol used in contracts or other legal documents to indicate or mark where the signature or signatures of the parties involved must be written.