WORDS TO KNOW WHEN BUYING A HOUSE

Rita Cousins • March 15, 2019

The mortgage process can be overwhelming. Knowing key mortgage and home buying terms can help reduce confusion and assist you in better understanding the process of buying a home.

DOWNPAYMENT
The money that you pay up front for a house.

TYPES OF INTEREST RATES
• Fixed rate - The rate doesn’t change for the term of the mortgage.
• Variable rate - The interest rate fluctuates with market rates.
• Protected (or capped) variable rate - The rate fluctuates but will not rise over a preset maximum rate.

OPEN AND CLOSED MORTGAGES
• Open mortgage - Lets you pay off your mortgage in full or in part at any time without any penalties.
• Closed mortgage - Offers limited (or no) options to pay off your mortgage early in full or in part, but it usually has a lower interest rate.

CONVENTIONAL AND HIGH-RATIO MORTGAGES
• Conventional mortgage - A loan that is equal to or less than 80% of the lending value of a home. This requires a down payment of at least 20%.
• High-ratio mortgage - A loan that is over 80% of the lending value of a home. This means the down payment is less than 20% and will likely require mortgage loan insurance.

AMORTIZATION PERIOD
 The length of time you agree to take to pay off your mortgage (usually 25 years).

PAYMENT SCHEDULE
How often you make your mortgage payments. It can be weekly, every two weeks or once a month.

PRE-APPROVED MORTGAGE CERTIFICATE
A written agreement that you will get a mortgage for a set amount of money at a set interest rate. Getting a pre-approved mortgage allows you to shop for a home without worrying how you’ll pay for it.

PRE-PAYMENT OPTIONS
The ability to make extra payments, increase your payments or pay off your mortgage early without incurring a penalty.

PORTABILITY
An option that lets you transfer or switch your mortgage to another home with little or no penalty when you sell your existing home. Mortgage loan insurance can also be transferred to the new home.

REFINANCING
The process of paying out the existing mortgage for purposes of establishing a new mortgage on the same property under new terms and conditions. This is usually done when a client requires additional funds. The client may be subject to a pre-payment cost.

RENEWAL/RENEWING
Once the original term of your mortgage expires, you have the option of renewing it with the original lender or paying off all of the balance outstanding.

MORTGAGE TERM
The length of time that the options and interest rate you choose are in effect. When the term is up, you can renegotiate your mortgage and choose the same or different options.

WHAT TO KNOW MORE, CALL ME TODAY!

Rita Cousins Senior Mortgage Advisor

C 604 230 9206 F 1 877 282 0857

[email protected]

http://www.ritacousins.com

Live Traffic Views in Langley

By Andy Schildhorn • July 17, 2025
The Township of Langley Traffic Cameras for up to date traffic information. Click here

Rooted in Tradition, Growing for Tomorrow

By Andrew Seale | The Globe and Mail • July 16, 2025
As the urban sprawl of Vancouver, B.C., and nearby Langley pushes land prices higher, Aldor Acres Family Farm’s decision to keep the farm in the family for another generation makes it an anomaly. However, the next generation to run the popular agri-tourist destination inherits the challenge of preserving the farm’s values while their way of life declines around them. “When I grew up in this area, 2 per cent of my high school class was non-agricultural,” says Albert Anderson, 82, who bought the Glen Valley farmland alongside his wife, Dorothy, 81, in 1977. “Now it’s the other way around; maybe 2 per cent of the people in this area are connected with agriculture.” Over the years, the Andersons have turned those 80 acres of land near Fort Langley into a destination with a pumpkin patch, seasonal market, wagon rides, and farm animals, emphasizing an educational experience for visitors. During the October high season, Aldor Acres can have 4,000 visitors in a day. The Andersons are in the process of transferring the farm business to their granddaughter, Melissa Anderson, 37. Across Canada, family farms are facing a similar transition. Data from RBC found that by 2033, 40 per cent of farm operators will retire, one of the biggest labour and leadership transitions in Canada’s history. The next generation to take over the farm will face the allure of rising land values. For many multi-generational farms, the strategy is to wait for the city’s expansion, says Elaine Froese, a Manitoba-based family farm transition expert. “I’ve worked all over Canada, (some family farms) are sitting on $20-million worth of land, and they’re very clear that they’re keeping the hog line going until that little village or town encroaches on them and then they’re selling out to developers,” she says. “That’s the reality.” Read More

G.S.T. Explained for First-Time Buyers

By Andy Schildhorn • July 15, 2025
On May 27, 2025, the Federal Government issued a press release that provides for a Goods and Services Tax (“GST”) rebate for first time home buyers (FTHB) of new homes (and co-ops). Read More
More Posts