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How does RateSupermarket.ca work?
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RateSupermarket.ca will instantly search and display rates from Canada's top mortgage lenders and brokers, allowing you to easily compare them
Choose the best mortgage rate for you
You can then speak to the mortgage lender instantly through RateSupermarket.ca on your home or work phone for FREE!
Still have questions?
If so, check out our FAQ section for the most frequently asked questions about mortgages and the RateSupermarket.ca comparison tool.
Helpful terms
For help with or mortgage jargon or industry specific terms you may come across, see our helpful terms or glossary sections.
Helpful terms
You may come across the following terms on RateSupermarket.ca and there are some explanations below.
The period of time it takes to pay off the entire mortgage. This is assuming that the mortgage rate stays same for the entire period and that no pre or over-payments are made. Typically, longer amortization periods mean lower mortgage payments but the catch is that you'll pay much more interest over the total life of the mortgage.
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Allows the purchaser of your home to take over your mortgage. This is beneficial to the house buyer if your mortgage offers a lower interest rate than the current available mortgage rates.
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Speak to a rep from the mortgage supplier through the RateSupermarket.ca site - for FREE!
RateSupermarket.ca offers a unique Connect for Free option, where we connect you through our systems to speak to a live sales rep from the mortgage lender or broker for free! Simply click on the "Continue" link, follow the instructions and speak to someone straight away. RateSupermarket.ca is currently the only comparison site offering this service, so take advantage of it.
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A mortgage that does not exceed 80% of the purchase price of the home. Mortgages that exceed this limit must be insured against default, and are referred to as high-ratio mortgages.
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A deposit is amount you put down that shows your seriousness and willingness to purchase a property, and is usually shown as a % of the house or property value. Therefore, a 5% deposit, means 5% of the total house or property value. Many mortgage lenders ask for at least a 5-10% deposit before they will offer you a mortgage.
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A mortgage where the borrower has less than 20% of the property or house value. The mortgage must then be be insured against payment default by a Mortgage Insurer, such as CMHC, or Genworth Financial.
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Also known as a prepayment. This is the amount over and above the regular mortgage payment (ie. bi-weekly or monthly) that the mortgage lender allows you to over-pay or re-pay, without penalty. For example, many mortgage lenders allow 20/20 pre-payments which mean you can pre pay a lumpsum amount equal to 20% of principal amount each year, and increase your regular mortgage payments 20% without penalty or charges.
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Also known as prepayment. This is the lump sum amount that the mortgage lender allows you to repay once each year, without penalty, typically on the the mortgage principal balance. For example, many mortgage lenders allow 20/20 pre-payments which mean you can pre pay a lumpsum amount equal to 20% of principal amount each year, and increase your regular mortgage payments 20% without penalty or charges.
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Some mortgage lenders will only offer mortgages of a minimum amount, such as $100,000 or more.
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The installment amount you must pay back for your mortgage. Typically these payments are made monthly, bi-weekly or weekly.
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The interest rate that the mortgage lender or broker is offering on the mortgage loan for the specified rate.
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This is your house or property value less your deposit. For example, if you were looking to purchase a $200,000 house and put down a 10% deposit = $20,000, your Mortgage value would be equal to:
$200,000 (house value) - $20,000 (deposit) = $180,000 (mortgage value)
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A mortgage which allows the borrower to make no mortgage payments a certain number of times.
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Many mortgage lenders offer different methods to pay back the mortgage including: weekly, bi-weekly, weekly, bi-weekly rapid and weekly rapid. These methods can affect the amount of interest you have to pay back on the mortgage and could save you money in the long term. See the RateSupermarket.ca glossary for more information.
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Also known as a locked in rate, many lending institutions will guarantee you an interest rate as soon as you are pre-qualified for your application. This means that you are guaranteed the mortgage rate at that time for a set period (ie. 90 days) from the date approval. As a result, if mortgage rates go up, you still receive the lower rate.
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The length of time that the mortgage agreement is set for. It could be anywhere from 6 months - 20 years, and the rate could be fixed or variable over this period.
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Rate type refers to the type of mortgage rate you'd like to take out. RateSupermarket.ca compares the following mortgage rates:
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The total amount of interest you would pay over the life of the mortgage. This assumes the mortgage rate is the same over the whole mortgage, which it is not in most cases, and that no pre or over-payments are made. This is just for information purposes.
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The total amount you would end up paying back for your mortgage including the principal and interest. This is also assuming the mortgage rate is the same over the whole mortgage, which it is not in most cases, and that no pre or over-payments are made. This is just for information purposes.
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This means that a mortgage lender allows a borrower to transfer the mortgage from the current property to another home of equal or greater value. For example, if you buy a new house worth the same or more than your current property, a transferable mortgage, means you can take the terms with you to the new house.
