Resource Library
Resource Library
The period of time it takes to completely pay off your mortgage loan (typically 25 or 30 years in Canada), as opposed to the mortgage term which outlines the duration of your current interest rate agreement.
Commonly referred to as the Cap Rate, this metric is used to evaluate an investment property's return. Calculated by dividing net operating income by the property purchase price.
A collection of fees and expenses due upon final completion of a real estate transaction. Includes land transfer taxes, legal fees, title insurance, adjustments, and disbursements.
A percentage comparing your monthly recurring debt payments against your gross monthly income. Lenders evaluate this metric to determine your total borrowing capacity.
The net value of your ownership stake in a property. Calculated as the current market valuation minus any outstanding mortgages or liens secured against the asset.
A provincial tax calculated as a percentage of the purchase price, paid by the buyer upon transfer of title. In Toronto, municipal land transfer tax is also charged.
A ratio comparing the amount of your mortgage loan against the property's appraised value. An LTV higher than 80% requires default mortgage insurance (CMHC).
A lender's commitment to advance a specific loan amount at a guaranteed interest rate for a set period (typically 90 to 120 days), subject to satisfactory property appraisal.