286 mortgage terms explained

Rates and pricing

Posted rate

Catalog rate published by a financial institution before negotiation. Used as marketing anchor, rarely the rate actually granted.

Rates and pricing

Negotiated rate

Rate actually granted to a borrower after negotiation, generally 0.40 to 0.70% below the posted rate. Often obtained through a mortgage broker.

Rates and pricing

Prime rate

Reference rate set by each chartered bank, used as the basis for variable mortgage rates (e.g. prime minus 0.75%).

Rates and pricing

Policy rate (overnight rate)

Target overnight rate set by the Bank of Canada. Directly influences the prime rate and variable mortgage rates.

Rates and pricing

Fixed rate

Mortgage interest rate guaranteed for the entire term. Stable payments, maximum predictability, but breakage penalties are often steeper.

Rates and pricing

Variable rate

Rate indexed to the bank prime rate (prime ± spread). Moves with Bank of Canada decisions; breakage penalty capped at 3 months interest.

Rates and pricing

Hybrid rate (combination mortgage)

Mortgage combining a fixed-rate portion and a variable-rate portion in negotiable proportions (e.g. 50/50 or 70/30).

Rates and pricing

Capped rate

Variable rate with a contractual ceiling above which the rate cannot rise, even if prime climbs. Offered by some Québec lenders.

Rates and pricing

Interest Rate Differential (IRD)

Penalty for breaking a fixed-rate mortgage before term. Calculated on the spread between your rate and a reference rate; can reach several thousand dollars.

Rates and pricing

Three months interest penalty

Minimum penalty for breaking a variable-rate mortgage before term. Calculated as 3 months of interest on the balance at the contractual rate.

Rates and pricing

Loan-to-Value (LTV) ratio

Percentage that the mortgage represents of the property value. Determines whether CMHC mortgage insurance is required.

Rates and pricing

Negotiated spread

Difference in basis points between the posted rate and the rate granted to the borrower. Measures the actual negotiation margin in a mortgage transaction.

Rates and pricing

Loyalty premium

Surcharge paid at renewal by borrowers who accept the first offer from the outgoing lender without shopping. Often 20 to 50 bps above market.

Types of mortgages

Amortization

Total scheduled duration to fully repay your mortgage. Maximum 25 years for insured loans, up to 30 years for conventional ones.

Types of mortgages

Down payment

Cash paid up front by the buyer at signing, expressed as a percentage of the purchase price. Minimum 5% in Canada, 20% to avoid CMHC insurance.

Types of mortgages

Insured mortgage

Mortgage with LTV > 80% covered by mortgage default insurance (CMHC, Sagen, Canada Guaranty). The lender recovers the premium via the contract.

Types of mortgages

Conventional mortgage

Mortgage with LTV ≤ 80% (down payment ≥ 20%). No mandatory mortgage insurance; amortization up to 30 years possible.

Types of mortgages

CMHC (Canada Mortgage and Housing Corporation)

Federal Crown corporation that insures mortgages with LTV > 80%. Canada's largest mortgage insurer, supervised by OSFI.

Types of mortgages

Sagen

Private Canadian mortgage default insurer (formerly Genworth MI Canada). Alternative to CMHC for mortgages with LTV > 80%.

Types of mortgages

Canada Guaranty

Third Canadian mortgage default insurer, fully private. Owned by OTPP and Ontario Pension Board. Alternative to CMHC and Sagen.

Types of mortgages

B lender mortgage (alternative lender)

Mortgage granted by a non-bank lender to borrowers whose file does not pass A-lender criteria (atypical income, imperfect credit). Higher rates, origination fees.

Types of mortgages

Private lender

Individual or company lending against mortgage security outside the banking system. High rates and fees; used for files refused at A and B levels.

Types of mortgages

Mortgage pre-authorization

Preliminary lender assessment of the maximum amount and conditional rate offered to the borrower. Locks in a rate for 90-120 days; does not guarantee final approval.

Types of mortgages

Home Equity Line of Credit (HELOC)

Line of credit secured by a mortgage on your property. Variable rate based on prime + spread, flexible access to funds up to 65% of value (B-20).

Types of mortgages

Mortgage refinancing

Modification of an existing mortgage to change amount, term, rate, or lender. LTV capped at 80% since B-20 (2016).

Types of mortgages

Mortgage renewal

Continuation of your mortgage at the end of the term, with a new rate and terms. Shopping is recommended 4-6 months ahead.

Types of mortgages

Mortgage transfer (switch)

Move of the mortgage to a new lender at maturity, without changing the balance or amortization. Costs are often absorbed by the new lender.

Types of mortgages

Bridge loan

Short-term loan (typically 30-120 days) bridging the purchase of a new property and the sale of the old one. High rate, interest only.

Types of mortgages

Reverse mortgage

Mortgage for homeowners aged 55+ allowing them to withdraw up to 55% of home value with no mandatory monthly payments. Balance due at sale or death.

Types of mortgages

Mortgage portability

Option allowing you to transfer an existing mortgage to a new property, keeping the rate and term, when moving.

Regulation and legal framework

AMF (Autorité des marchés financiers)

Québec's single financial-sector regulator. Issues mortgage broker licences and supervises the practice in Québec since 2020.

Regulation and legal framework

OSFI (Office of the Superintendent of Financial Institutions)

Federal regulator of Canadian chartered banks. Publishes Guideline B-20 framing mortgage underwriting (stress test, LTV).

Regulation and legal framework

Guideline B-20 (OSFI)

Federal mortgage underwriting framework. Imposes the stress test, LTV caps, and income documentation rules.

Regulation and legal framework

Mortgage stress test

Mortgage qualification calculation at a stressed theoretical rate (contractual + 2% or 5.25%, whichever is higher). Aims to ensure payment capacity under rising rates.

Regulation and legal framework

Law 25 (Québec personal information protection)

Québec law modernizing personal information protection in the private sector. Applies to mortgage brokers since September 22, 2023.

Regulation and legal framework

Privacy Officer (RPRP)

Person designated within an organization to ensure Law 25 compliance. Public contact details mandatory on the website and in the brokerage mandate.

Regulation and legal framework

FICAM (Central housing insurance file)

Database shared among Canadian P&C insurers, used to verify a borrower's claims history during mortgage underwriting.

Regulation and legal framework

Certificate of location

Legal document prepared by a land surveyor describing a property's situation regarding cadastre, easements, and municipal regulations. Required by the lender and notary.

Regulation and legal framework

AMF brokerage mandate

Mandatory written agreement between client and mortgage broker, framed by the AMF. Specifies mission, compensation, conflicts of interest, and client rights.

Borrower profile and programs

TDSR (Total Debt Service Ratio)

Percentage of gross income devoted to all debt payments (mortgage + cards + autos + other). OSFI cap 44% for standard qualification.

Borrower profile and programs

GDSR (Gross Debt Service Ratio)

Percentage of gross income devoted to housing costs (mortgage + taxes + heating + condo). OSFI cap 39% for standard qualification.

Borrower profile and programs

Credit score (Beacon score)

Numerical score between 300 and 900 summarizing borrower risk. Calculated by Equifax (Beacon) and TransUnion. Threshold 680 for standard A, 720+ for best rates.

Borrower profile and programs

Credit file

Detailed history of your credit accounts (cards, lines, loans, mortgages), maintained by Equifax and TransUnion. Source of your credit score.

Borrower profile and programs

Beacon (Equifax score model)

Equifax proprietary model for calculating credit scores. Several versions coexist (Beacon 9, Beacon 10). It is the score most Canadian lenders see.

Borrower profile and programs

Notice of Assessment (T1 / NOA)

Document issued by the Canada Revenue Agency after filing your tax return. Standard income proof for mortgage qualification.

Borrower profile and programs

T4 (annual employment slip)

Federal annual tax slip issued by the employer. Shows compensation, CPP/EI contributions, tax withheld. Complementary to the NOA for qualification.

Borrower profile and programs

Self-employed

Person carrying on an economic activity without a salaried employment relationship. Mortgage qualification based on the NOA, sometimes with a dedicated program (BFS, Stated Income).

Borrower profile and programs

First-time buyer

Person purchasing a principal residence for the first time (or who has not owned in the last 4 years). Unlocks the HBP, FHSA, and 30-year insured amortization.

Borrower profile and programs

HBP (Home Buyers' Plan)

Federal program letting a first-time buyer withdraw up to CA$60,000 from their RRSP tax-free for a purchase. Repayable over 15 years.

Borrower profile and programs

FHSA (First Home Savings Account)

Federal savings account combining RRSP benefits (deduction) and TFSA benefits (tax-free withdrawals) for first-time buyers. CA$40,000 lifetime cap.

Actors and process

Mortgage broker

AMF-licensed professional who shops and negotiates a mortgage at 30+ lenders on behalf of the borrower. Paid by the lender, free for the client on standard A files.

Actors and process

Mortgage lender

Financial institution (chartered bank, credit union, alternative lender) granting a loan secured by a mortgage on a property. Classified A, B, or private in Canada.

Actors and process

Notary (Québec)

Public officer member of the Chambre des notaires du Québec, mandatory to draft and register the mortgage deed at the Land Registry. Fees CA$1,200-2,500 for a standard purchase.

Actors and process

Appraiser

Professional member of the OEAQ, tasked with producing an independent appraisal report of the property's market value. Required by the lender, costs CA$300-500.

Actors and process

Pre-purchase home inspection

Non-destructive visual examination of a property by a building inspector to identify apparent defects and risks before purchase. Costs CA$500-900 in Québec.

Actors and process

Funds disbursement (funding)

Final step where the lender transfers the principal to the notary on the day of deed signing. Conditional on prior mortgage registration at the Land Registry.

Actors and process

Collateral mortgage charge

Mortgage deed registered for an amount higher than the initial loan, allowing future advances without new notarial registration. Reduces portability.

Types of mortgages

Home equity

Difference between a property's market value and the remaining mortgage balance. Represents the share of the property truly owned by the homeowner.

Types of mortgages

Open mortgage

Mortgage allowing full prepayment at any time without penalty. Typically carries a higher rate than a closed mortgage in exchange for this flexibility.

Types of mortgages

Closed mortgage

Mortgage where full prepayment before maturity triggers a penalty. Offers a lower rate than an open mortgage. The vast majority of residential mortgages are closed.

Types of mortgages

Prepayment privileges

Contractual rights allowing partial capital repayment or increased payments without penalty, typically capped at 10-20% of the original balance per year.

Types of mortgages

Mortgage term

Duration during which the rate and conditions of a mortgage are fixed. Not to be confused with the amortization period. In Canada, the most common terms are 1, 2, 3, and 5 years.

Types of mortgages

Rate hold

Lender contractual guarantee that locks a specific mortgage rate for 60 to 130 days, protecting the borrower from a rate increase before purchase completion.

Borrower profile and programs

Co-borrower

Person who shares legal responsibility for a mortgage with the primary borrower. Their income is included in ratio calculations and their credit score is also analyzed.

Actors and process

Land transfer tax (welcome tax)

Municipal tax collected on every real estate transfer in Quebec. Calculated on the deed value according to a progressive bracket. Commonly called 'taxe de bienvenue' (welcome tax).

Actors and process

Title insurance

Insurance policy protecting the buyer and lender against hidden title defects, encroachments, and pre-purchase legal errors. Single premium, no renewal.

Types of mortgages

Mortgage break

Act of terminating a closed mortgage before the term ends, triggering a penalty. Often motivated by a move, separation, advantageous refinancing, or property sale.

Types of mortgages

Divided co-ownership (condominium)

Ownership structure where each co-owner holds an individual title on their unit (e.g., condo) plus a share of common areas. Governed by the declaration of co-ownership.

Borrower profile and programs

Gift letter

Document signed by the donor confirming that a sum given to the buyer is a gift with no repayment condition. Required by lenders when part of the down payment comes from a third party.

Borrower profile and programs

Credit inquiry

Review of a consumer's credit file. A 'hard' inquiry (by a lender) can temporarily lower the credit score; a 'soft' inquiry (by the consumer) has no impact.

Actors and process

Property tax

Annual tax collected by the municipality based on the property's municipal assessment. Included in lenders' GDS ratio calculation. Primary source of municipal services funding.

Types of mortgages

Accelerated payment

Bi-weekly or weekly mortgage payment option designed to reduce the effective amortization period. The acceleration comes from an implicit 13th month of payments per year.

Types of mortgages

Second mortgage

Additional mortgage on a property already encumbered by a first-ranking mortgage. Lower rank implies a higher rate. Often used to avoid breaking the first mortgage.

Actors and process

Financing condition

Clause in a purchase offer allowing the buyer to withdraw without penalty if their mortgage financing is not approved within the stipulated timeframe. Essential buyer protection.

Actors and process

Mortgage discharge

Legal procedure to remove a mortgage from the Land Registry once the loan is fully repaid. Performed by a notary. Required to obtain a title free of any encumbrance.

Actors and process

Purchase agreement

Legally binding contract by which a buyer commits to purchasing a property at a defined price and conditions. Typically includes suspensive conditions (inspection, financing).

Types of mortgages

Pre-construction purchase

Purchase of a property before it is built or delivered. Requires deferred financing ('closing financing') at the actual delivery date, with interest rate variation risk over the interval.

Types of mortgages

Negative amortization

Situation where the mortgage payment does not cover the interest due, causing the balance to increase rather than decrease. Can occur on variable-rate mortgages with fixed payments during rate hikes.

Actors and process

Municipal assessment

Value assigned to a property by the municipality for tax purposes. Revised every 3 years in Quebec. Used as basis for property tax calculation, but doesn't necessarily reflect market value.

Borrower profile and programs

Mortgage life insurance

Insurance that pays off the mortgage balance in case of the borrower's death. Offered by lenders (creditor insurance) or independent insurers (term life insurance). Independent coverage is generally.

Types of mortgages

Rental property mortgage

Financing for an income property (duplex, triplex, plex). Minimum 20% down payment (not SCHL-insurable beyond 4 units). Rental income counted in ratios according to specific rules.

Rates and pricing

Discounted rate

Rate actually offered to a borrower after a discount off the posted rate. Results from direct negotiation with the bank or an AMF broker presenting multiple simultaneous offers.

Actors and process

Mortgage simulation

Estimated calculation of borrowing capacity, monthly payment, and total mortgage cost. Planning tool prior to official pre-authorization.

Rates and pricing

Annual percentage rate (APR)

Rate that includes not only interest but also certain mandatory fees, expressed on an annual basis. Enables apples-to-apples comparison between different lender offers.

Rates and pricing

Overnight rate

Policy rate set by the Bank of Canada, at 8 dates per year. Directly influences bank prime rates and indirectly affects variable and fixed mortgage rates.

Rates and pricing

5-year Government of Canada bond yield

Primary leading indicator of 5-year fixed mortgage rates in Canada. When bond yields rise, fixed mortgage rates generally follow with a lag of a few weeks.

Regulation and legal framework

Act Respecting the Distribution of Financial Products and Services

Quebec law governing mortgage brokers and other financial product distributors. Administered by the AMF. Defines disclosure, training, and ethics obligations.

Regulation and legal framework

Deposit insurance (CDIC)

Federal protection offered by CDIC covering eligible deposits up to $100,000 per category in case of a member bank failure. Does not cover mortgage investments.

Regulation and legal framework

Hypothec under the Civil Code of Quebec

In Quebec, the legal term for a mortgage is 'hypothèque' (not 'mortgage'). The Civil Code governs rights and obligations between the hypothecary debtor and creditor.

Borrower profile and programs

RRSP (Registered Retirement Savings Plan)

Tax-deferred retirement savings vehicle. Relevant in the mortgage context via the HBP (Home Buyers' Plan), which allows withdrawal up to $60,000 for a first home purchase.

Borrower profile and programs

Variable income

Income that fluctuates from period to period: commissions, tips, bonuses, overtime. Lenders require a 2-year average (T4s + pay stubs) to count them.

Borrower profile and programs

Retirement income and pensions

Admissible income for a mortgage application in retirement: QPP, OAS, employer pension, RRSP/RRIF, investment income. Age is not a legal grounds for refusal in Canada.

Borrower profile and programs

Employment insurance (EI) as mortgage income

EI benefits (including parental leave) may be accepted as income by some lenders, with conditions. Regular EI is rarely admitted alone; parental EI is better perceived.

Borrower profile and programs

Accès Famille Program (City of Montreal)

City of Montreal program offering an interest-free loan to help families reach the minimum down payment. Income and property price criteria apply.

Actors and process

Possession date

Date on which the keys are handed to the buyer, generally the day of deed signing at the notary. Coincides with the first mortgage payment.

Actors and process

Closing costs

All expenses to budget for when buying a property beyond the down payment: land transfer tax, notary fees, title insurance, inspection fees, tax and fuel adjustments.

Actors and process

Real estate broker

OACIQ-licensed professional who represents buyers or sellers in real estate transactions. Distinct from the AMF mortgage broker, who handles purchase financing.

Actors and process

Mortgage commitment letter

Official document issued by the lender confirming approved loan conditions: amount, rate, term, amortization, and pre-funding conditions. Formal step between pre-authorization and funding.

Actors and process

Home insurance

Mandatory insurance required by every mortgage lender, covering the property structure against risks (fire, water damage, vandalism). Must be in force at possession.

Actors and process

Mortgage foreclosure (taking in payment)

Procedure by which a lender repossesses the property in case of prolonged default. In Quebec, called 'prise en paiement' (Civil Code), it is more regulated and slower than under common law.

Actors and process

Fiduciary deposit

Amount paid by the buyer at purchase offer signing, held by a trusted third party (notary, real estate broker). Applied toward the down payment at closing.

Borrower profile and programs

Employment letter

Official employer document confirming employment status, tenure, salary, and position type (permanent, contract, full-time). Required by lenders to validate declared income.

Borrower profile and programs

Guarantor (co-signer)

Person who guarantees repayment of a mortgage in case of primary borrower default, without necessarily appearing on the property title. Distinct from a co-borrower.

Actors and process

Closing adjustments

Reimbursements calculated at closing to balance prepaid charges by the seller (taxes, fuel) and those owed by the buyer from the possession date.

Types of mortgages

Interest-only period

Period during which the borrower repays only interest without reducing the principal. Offered on some home equity lines of credit and select B-lender products.

Types of mortgages

Mortgage debt consolidation

Mortgage refinancing that consolidates high-interest debts (credit cards, personal loans) into a single lower-rate mortgage. Reduces monthly payments but extends total repayment duration.

Types of mortgages

Construction loan

Specialized financing to build a new property, released in draws based on construction progress. Converts to a traditional mortgage upon construction completion.

Borrower profile and programs

Borrowing capacity

Maximum amount a borrower can obtain from a lender, determined by the stress test, GDS/TDS debt ratios, gross income, and available down payment.

Regulation and legal framework

Quebec Land Registry

Quebec's public registry that lists all published real rights on immovable property (mortgages, easements, restrictions). Publication is mandatory to make a right enforceable against third parties.

Regulation and legal framework

FINTRAC — Identity verification

Financial Transactions and Reports Analysis Centre of Canada. Mortgage brokers are reporting entities: they must verify client identity and report suspicious transactions.

Regulation and legal framework

Bill 16 — Condominium Reform

Quebec 2020 law amending the Civil Code to strengthen condo corporation management: mandatory contingency fund, reserve fund study, maintenance log, and increased administrator accountability.

Borrower profile and programs

Net rental income (mortgage calculation)

Method of calculating rental property income accepted by lenders for GDS/TDS ratios. A-lenders generally recognize 50-80% of gross rental income as qualifying net income.

Actors and process

Appraisal report

Document produced by a certified appraiser estimating the market value of a property at a specific date. Lenders use it to determine the value on which to calculate the loan-to-value ratio.

Actors and process

Mortgage origination / processing fee

Administrative fees charged by some lenders or brokers to process and submit a mortgage application. More common with B-lenders and private lenders than A-lenders.

Rates and pricing

Blended rate

Interest rate resulting from merging an existing mortgage and an additional borrowed amount, calculated as a weighted average of the two rates. Avoids a full break penalty.

Types of mortgages

Reserve fund (condominium)

Mandatory financial reserve of the condo corporation for future major work (roof, windows, elevator). An underfunded reserve signals a risk of special assessment for condo owners.

Actors and process

Separation, divorce and mortgage

Upon separation or divorce, the two main options for shared property are selling (and sharing proceeds) or buying out the ex-spouse's share through refinancing.

Actors and process

Conditional offer

Purchase offer containing one or more suspensive conditions (financing, inspection, sale of current property) that must be fulfilled within a set deadline for the sale to be binding.

Types of mortgages

Income property (plex)

Property with 2 to 4 units where at least one is rented. Financing is residential mortgage up to 4 units, commercial beyond that. Rental income is partially counted in ratios.

Types of mortgages

Collateral mortgage charge

Type of mortgage registration (often at 100-125% of value) tied to a specific lender. Unlike a conventional mortgage, it cannot be transferred to another lender without discharge fees.

Regulation and legal framework

Easement / servitude

Real property right allowing a dominant tenement to use part of a servient tenement (e.g., right of way, view easement). Registered in the Land Registry and transferred with the property.

Actors and process

Mortgage discharge fees

Notarial and administrative fees to discharge a mortgage from the Land Registry once the loan is repaid or when changing lenders. Vary between $300 and $1,500 depending on complexity.

Actors and process

Renovation programs (federal and provincial)

Government financial assistance for residential renovations: CMHC Eco+ mortgage, Rénoclimat program (Quebec), TFSA, and federal home renovation tax credit.

Actors and process

Mortgage assignment

Operation by which a mortgage creditor (lender) transfers their mortgage rights to a third party (another lender, investor). The borrower continues paying, but to a new beneficiary.

Borrower profile and programs

Incorporation (self-employed mortgage)

Incorporated self-employed workers are assessed differently depending on whether income comes from salary (T4), dividends, or a combination. Tax optimization may reduce qualifying income.

Rates and pricing

Yield curve

Graph showing government bond interest rates by maturity. A normal (upward) curve shows long rates above short rates. An inversion often precedes a recession.

Rates and pricing

Bank of Canada monetary policy

Set of Bank of Canada decisions to achieve its 2% inflation target. The main tool is the policy rate, which influences all interest rates in the country.

Rates and pricing

2% inflation target

Official Bank of Canada objective: maintain CPI between 1% and 3%, targeting 2%. Directly determines monetary policy direction and thus mortgage rates.

Rates and pricing

Consumer Price Index (CPI)

Statistical measure of cost changes in a representative basket of goods and services for Canadian households. Primary inflation indicator guiding Bank of Canada rate decisions.

Rates and pricing

Provincial bond (mortgage impact)

Debt security issued by a Canadian province. Quebec borrows via Quebec government bonds (QGB). Provincial bond rates influence fixed rates of lenders operating in Quebec.

Rates and pricing

Canada Mortgage Bond (CMB)

Government-guaranteed security issued by CMHC to finance insured mortgages. CMBs allow lenders to refinance their mortgages at reduced cost, lowering rates for borrowers.

Rates and pricing

Mortgage securitization

Process by which mortgages are pooled and transformed into financial securities sold to investors. Allows lenders to free up capital and grant new loans.

Rates and pricing

Term premium

Additional compensation demanded by investors for locking up capital over a long period rather than a short one. Explains why long-term rates are normally higher than short-term rates.

Rates and pricing

Teaser rate / introductory rate

Temporarily reduced interest rate offered as an introduction to attract borrowers, before reverting to a normal rate after a set period. Common on lines of credit and some variable mortgage products.

Rates and pricing

Credit risk premium

Interest rate markup that lenders require to compensate for borrower default risk. Varies by credit profile, loan-to-value ratio, and property type.

Rates and pricing

Variable rate cap

Contractual clause limiting the maximum increase of a variable rate over a period. Rare on traditional Canadian mortgages, but present on some HELOC and B-lender products.

Types of mortgages

Insurable mortgage

Mortgage meeting CMHC/Sagen/Canada Guaranty insurance criteria but with premium absorbed by the lender. Allows the lender to access securitization rates, often offering better rates to the borrower.

Types of mortgages

Uninsurable mortgage

Mortgage that can be neither insured nor insurable. Applies to $1M+ properties, refinancing, and amortizations > 25 years. Generally higher rates as not securitizable via CMHC.

Types of mortgages

Cottage / vacation property mortgage

Financing for a secondary residence (cottage, ski condo, lakefront property). Different rules from primary residence: minimum 5-20% down depending on use, more restricted CMHC insurance access.

Types of mortgages

Land loan

Financing for purchasing land without a building. Considered high risk by lenders: usual 25-50% down, not CMHC insurable, mainly offered by B and private lenders.

Types of mortgages

Shared equity mortgage

Arrangement in which a third party (government, investor, family) contributes part of the purchase capital in exchange for a share of future equity. Reduces down payment and monthly payments.

Types of mortgages

CHIP reverse mortgage (HomEquity Bank)

Leading reverse mortgage brand in Canada, offered by HomEquity Bank. Allows those 55+ to access up to 55% of their home value with no monthly payments.

Types of mortgages

Real estate flip

Investment strategy of buying a property, renovating it quickly, and reselling at a profit. In Canada, flip gains are taxable at 100% as ordinary income (not as capital gain).

Types of mortgages

CMHC Eco+ Mortgage Loan Insurance

25% refund on CMHC insurance premium for energy-efficient properties (NRCan score 80+). Accessible when purchasing a certified new home or refinancing for green renovations.

Types of mortgages

Borrowed down payment (prohibited)

Using a loan (personal loan, credit card, line of credit) to fund the down payment is prohibited for CMHC-insured loans. Lenders verify fund sources via bank statements.

Borrower profile and programs

Alimony / support — qualifying income

Received alimony can be recognized as qualifying income for a mortgage if documented by a judgment or written agreement, and demonstrates at least 1-2 years of stability.

Borrower profile and programs

Probationary employment

New job whose permanence is not yet confirmed. A-lenders generally require confirmation of permanence or at least 3-6 months of pay stubs before accepting this income.

Borrower profile and programs

Multiple job income

A borrower with two or more jobs can combine incomes for mortgage qualification, subject to each job's stability (generally 2 years history required for the second job).

Borrower profile and programs

Commission-only income

Income entirely from commissions with no base salary (real estate agents, sales representatives). Treated as variable income: 2 years of T1/T4 required, 2-year average used for qualification.

Borrower profile and programs

Seasonal income

Income from a worker whose employment is concentrated in part of the year (construction, tourism, agriculture). Accepted if 2-year history is stable and often supplemented by employment insurance.

Borrower profile and programs

Discharged bankruptcy — mortgage impact

A discharged bankruptcy stays on the credit file for 6-7 years in Quebec. A-lenders generally require 2 years post-discharge with a rebuilt credit file to approve a mortgage.

Borrower profile and programs

Consumer proposal (mortgage impact)

Alternative to bankruptcy allowing repayment of part of debts over max 5 years. Less severe than bankruptcy on credit: remains 3 years after final payment at Equifax, 6 years at TransUnion.

Borrower profile and programs

Credit rehabilitation

Process of rebuilding a credit file after financial problems (late payments, collections, bankruptcy). Involves opening new secured credit lines and timely payment over 12-24 months.

Borrower profile and programs

Thin / new credit file

Credit file with little or no history: newcomers, young adults, people who have never used credit. A-lenders may require alternative credit sources to compensate.

Borrower profile and programs

New to Canada mortgage

Mortgage program adapted to recent immigrants (permanent residents, temporary foreign workers) who have no Canadian credit history. CMHC, Sagen and several A-lenders have dedicated programs.

Borrower profile and programs

Mortgage with work permit

Temporary foreign workers can obtain a mortgage in Canada, but conditions vary by permit type (closed vs. open) and remaining permit duration.

Borrower profile and programs

Mortgage in retirement

Obtaining or renewing a mortgage at age 65+. Lenders cannot legally refuse a loan due to age (Charter of Rights), but retirement income and amortization duration are key factors.

Borrower profile and programs

90-day bank statements

Lenders generally require 3 months of bank statements to validate the down payment, income, and absence of recent borrowings. Any unexplained large deposit triggers a justification request.

Borrower profile and programs

Liquid assets (verification)

Lenders verify that the borrower has sufficient liquid assets to cover the down payment, closing costs, and sometimes 1-3 months of mortgage payments in reserve.

Borrower profile and programs

Gift vs. family loan

For the down payment, a family 'gift' requires no repayment (gift letter required). A family loan, even interest-free, is treated as a debt and included in TDS.

Borrower profile and programs

Investment income (mortgage qualification)

Dividends, interest and capital gains from an investment portfolio. Accepted by lenders if stable and documented over 2 years, generally at 70-100% depending on the lender.

Borrower profile and programs

Government pension (QPP / CPP)

Quebec Pension Plan (QPP) and Old Age Security (OAS) are state-guaranteed income, accepted at 100% by all lenders as qualifying income.

Borrower profile and programs

Minimum credit score by lender type

Minimum credit score required varies by lender type: 680 for CMHC-insured loans, 600-620 for uninsured A-lenders, 500-580 for B-lenders, and no fixed minimum for private lenders.

Borrower profile and programs

Joint credit file

When two borrowers co-sign a mortgage, each maintains their individual credit file. Shared joint accounts appear in both files.

Actors and process

Steps to buying property in Quebec

The 9 steps of a real estate purchase in Quebec: budget and pre-authorization → search → conditional purchase offer → inspection → lifting conditions → notary → closing → possession.

Actors and process

Counter-offer

Seller's response to a purchase offer modifying certain conditions (price, possession date, inclusions). The initial offer is automatically void once a counter-offer is presented.

Actors and process

Hidden defect (latent defect)

Serious defect, not apparent during ordinary inspection, that existed before the sale and of which the buyer was not informed. The seller may be held liable even after closing under the Quebec Civil.

Actors and process

Seller's declaration

Mandatory document (OACIQ) that the seller completes to disclose the known condition of the property: work history, damage, infiltrations, neighbourhood issues. Complements — but does not replace —.

Actors and process

Legal quality warranty

Legal obligation of the seller (Civil Code of Quebec) to guarantee the property is free of hidden defects. Can be excluded in the deed of sale for estate sales or between sophisticated parties.

Actors and process

New residential construction warranty (GCR)

Mandatory warranty in Quebec for new residential buildings. Administered by GCR (Garantie de construction résidentielle), it covers construction defects, water infiltration and major structural.

Actors and process

Deed of sale

Official notarial deed transferring ownership from seller to buyer. Signed before the notary on closing date, then published in the Quebec Land Registry.

Actors and process

Declaration of co-ownership

Constitutive document of a divided co-ownership corporation. Defines private and common portions, voting rights, rules of conduct, common charges, and use restrictions.

Actors and process

Special assessment (condo)

Exceptional call for funds voted by the condo corporation to finance urgent work not covered by the reserve fund. Can represent thousands of dollars per unit without notice.

Actors and process

Centris (Quebec MLS system)

Proprietary database of real estate brokers who are members of the Quebec Chamber of Real Estate. Centralizes all MLS listings in Quebec. Non-brokers access it via centris.ca in public version.

Actors and process

Multiple offer situation (bidding war)

Situation where multiple buyers submit simultaneous offers on the same property. The seller may choose the best offer or invite all buyers to present their best and final offer.

Actors and process

Escalation clause

Provision in a purchase offer by which the buyer commits to automatically outbid any other offer by a fixed amount, up to a maximum ceiling. Used in bidding war situations.

Actors and process

Private sale (without broker)

Real estate sale without an OACIQ real estate broker. The seller saves the commission, but assumes document drafting, negotiation, and legal obligations themselves.

Actors and process

Real estate selling costs

All costs incurred by the seller in a transaction: broker commission (3-7%), seller notarial fees, survey certificate, and mortgage break penalty if applicable.

Actors and process

Real estate capital gain

Profit realized on the sale of a property (sale price - adjusted cost base). Taxable federally and provincially, except for the principal residence. Inclusion rate: 50% (individual) or 2/3.

Actors and process

Principal residence exemption

Allows exemption from capital gains tax on the sale of a principal residence. Each Canadian family can designate only one property as principal residence per year.

Actors and process

Power of attorney for real estate purchase

Notarial deed giving a trusted person the power to sign purchase documents on behalf of an absent buyer. Used by non-resident buyers or those traveling at closing.

Actors and process

Release / Discharge

Act by which a creditor confirms their debt has been paid in full, releasing the debtor. In mortgage, the lender's release enables discharge of the mortgage in the Land Registry.

Actors and process

Visible defect

Defect visible during an ordinary property examination (peeling paint, broken window, missing gutter). The seller is not responsible for visible defects — the buyer accepts them as-is.

Actors and process

GST/QST rebate — new housing

Partial refund of GST (federal) and QST (provincial) paid on a new home or condo purchase. Maximum refund is $6,300 (GST) + $9,975 (QST) for homes ≤ $450,000.

Actors and process

Welcome tax (transfer duties) — details

Detailed calculation of transfer duties in Quebec, based on the higher of sale price and municipal assessment. Progressive rates from 0.5% to 3%+. Paid once at the notary.

Actors and process

Exemptions — transfer duties

Certain property transfers are exempt from transfer duties in Quebec: transfers between spouses, between direct ascendants/descendants, or as part of a corporate reorganization.

Actors and process

Capital gains tax on real estate

The taxable portion of the capital gain (50% for individuals up to $250,000, 2/3 beyond) is added to taxable income in the year of sale, unless the principal residence exemption applies.

Actors and process

Interest deduction — rental property

Mortgage interest on a rental property is 100% deductible from rental income, reducing taxable income. This deduction does not apply to the principal residence.

Actors and process

Capital Cost Allowance (CCA) — rental property

Tax deduction allowing capitalization of a rental property depreciation over its useful life. Class 1 (4% rate) for residential buildings. CCA can create a rental loss, but with recapture risk on.

Actors and process

Deductible rental loss

When a rental property's expenses exceed income, the loss can be deducted from the taxpayer's other income, reducing total tax paid. CCA cannot create a rental loss.

Types of mortgages

Non-resident / foreign buyer mortgage

Mortgage financing for non-Canadian residents. Down payment of 35-50%, not CMHC insurable, higher rates. Subject to foreign buyer tax in certain provinces.

Regulation and legal framework

Mortgage fraud

Criminal offence involving false statements to a lender to obtain mortgage financing. Main types: income misrepresentation, inflated price, straw buyer, and title/value fraud.

Regulation and legal framework

Real estate money laundering

Use of real estate transactions to legitimize illicit proceeds. Real estate is a preferred target due to high-value transactions. FINTRAC monitors suspicious transactions.

Regulation and legal framework

Straw buyer / nominee

Person who purchases property in their own name on behalf of a third party (the real buyer) who cannot or does not want to appear in the transaction. May constitute mortgage fraud depending on.

Regulation and legal framework

CDIC — Deposit insurance

Canada Deposit Insurance Corporation (CDIC) guarantees deposits up to $100,000 per deposit category at member institutions (federal banks). The AMF protects deposits at Quebec credit unions.

Regulation and legal framework

Equifax Canada

One of two main credit bureaus in Canada. Compiles credit files and calculates the Beacon score. Consumers can view their file free once yearly or pay for instant access.

Regulation and legal framework

TransUnion Canada

The second credit bureau in Canada. Calculates the CreditVision score. Some lenders check TransUnion in addition to or instead of Equifax. Both files can differ slightly.

Regulation and legal framework

Credit freeze (identity theft protection)

Security measure allowing a consumer to block access to their credit file. Prevents new credit accounts from being opened in their name without their explicit authorization.

Borrower profile and programs

Letter of explanation (credit file)

Letter signed by the borrower explaining a negative event in their credit file (late payment, collection, bankruptcy). Helps the underwriter understand context and can unlock approval.

Borrower profile and programs

Irregular income (gig economy)

Income from platform workers (Uber, DoorDash, freelance, Fiverr). Treated as business income: 2 years of T1, absence of excessive deductions, and demonstrated stability.

Regulation and legal framework

Banking ombudsman (OBSI)

The Ombudsman for Banking Services and Investments (OBSI) is the financial industry complaint resolution service. Last resort before courts for disputes with a federal bank.

Regulation and legal framework

AMF complaint (mortgage broker)

Any consumer can file a complaint with the Autorité des marchés financiers (AMF) against a mortgage broker or financial institution licensed in Quebec. The AMF investigates conduct breaches.

Regulation and legal framework

Consumer Protection Act (CPA)

Quebec law governing consumer credit contracts. Imposes disclosure obligations, a maximum interest rate, and a right of rescission. Complements federal banking regulation.

Regulation and legal framework

Interest Act (Canada)

Federal law governing Canadian mortgage interest rates. Requires expression of effective annual rate, prohibits non-annual compound interest, and limits penalties after 5 years.

Regulation and legal framework

Usurious rate (Canadian law)

In Canada, an effective annual interest rate exceeding 60% is criminally usurious (Criminal Code, s. 347). Very short-term private lenders must ensure compliance to avoid prosecution.

Actors and process

Land surveying and boundary marking

Legal operation by which a land surveyor determines and establishes property boundaries. The survey certificate (documenting existing boundaries) is required in every Quebec real estate transaction.

Actors and process

Mortgage assumption

The buyer takes over the seller's existing mortgage at its original terms (rate, remaining term). Advantageous when the existing rate is below market rates. Requires lender approval.

Actors and process

Estate and inheriting a mortgaged property

Upon the owner's death, the estate inherits both the property and the mortgage. Heirs can keep the loan (by assuming it), sell the property, or refinance.

Actors and process

Legal fees at purchase

Fees of the notary mandated for purchase: drafting deed of sale, mortgage deed, and title searches. Between $1,500 and $3,000 for a typical residential transaction.

Actors and process

Existing lease when purchasing a rental

Buying a tenant-occupied building means taking over their current leases. In Quebec, the Tribunal administratif du logement (TAL) strongly protects tenants — the buyer generally cannot evict them.

Types of mortgages

Rental property cash flow analysis

Calculation of a rental property's monthly net cash flow: rental income minus all expenses (mortgage, taxes, insurance, vacancy, maintenance, management). Positive flow means the property.

Types of mortgages

Real estate leverage

Use of mortgage financing to amplify the return on personal investment. A property that appreciates 5% generates a return on down payment well above 5% thanks to leverage.

Types of mortgages

Real estate appreciation

Increase in market value of a property over time. Historical average in Canada is 5-7% annually over 20 years, but with strong regional volatility and pronounced cycles.

Types of mortgages

Capitalization rate (cap rate)

Ratio used to value an income property: NOI ÷ Property value. A 5% cap rate means the property generates $5 of net income per $100 of value. Inversely: Value = NOI ÷ Cap rate.

Actors and process

Pre-purchase inspection: elements checked

Quebec residential pre-purchase inspection (certified by AIBQ or InterNACHI) covers structure, roof, mechanical systems, electrical, and insulation. Results in a written report.

Types of mortgages

Mortgage debenture

Debt security secured by a real estate mortgage. Used in private and institutional financing structures. Allows a borrower to access investor capital without going through a bank.

Types of mortgages

Financing 5+ unit multiplex

From 5 units, financing is commercial. CMHC offers the APH Select program for 5+ unit buildings. Debt coverage ratio (DCR) and cap rate replace GDS/TDS ratios.

Actors and process

Short-term rental income (Airbnb)

Airbnb or VRBO income is considered business income in Canada and must be declared to CRA. Very difficult to have recognized by A-lenders for mortgage qualification.

Regulation and legal framework

Credit inquiry consent

The lender or broker must obtain the borrower's written consent before accessing their credit file. A hard pull is recorded and can slightly lower the score.

Actors and process

Municipal zoning

Municipal regulation that defines permitted uses for each property: residential, commercial, industrial, agricultural. Non-conforming property use can complicate or block mortgage financing.

Types of mortgages

Provincial homeownership program (Quebec)

Quebec's Société d'habitation du Québec (SHQ) offers several homeownership assistance programs: AccèsLogis, Abri-Plus for moderate-income individuals, and contributions to community housing.

Actors and process

Final walkthrough before closing

Property visit by the buyer within 24-48 hours before closing to verify property condition matches purchase offer conditions and agreed inclusions are present.

Types of mortgages

Mortgage disability insurance

Insurance that covers mortgage payments in case of borrower disability. Offered by banks (group product) or independent insurers. Individual insurance is generally more advantageous.

Types of mortgages

Mortgage job loss insurance

Covers mortgage payments for 12-24 months if the borrower involuntarily loses their job. Offered by banks and some insurers. Numerous exclusions and waiting periods to check.

Actors and process

Withholding tax — non-resident seller

When a Canadian non-resident sells a property, the buyer must withhold 25-50% of the purchase price and remit to CRA, unless the seller obtains a compliance certificate (Form T2062).

Rates and pricing

Monetary tightening

Policy by which a central bank raises its key rates to curb inflation, driving up variable mortgage and bond rates.

Rates and pricing

Quantitative easing

Unconventional measure where a central bank buys bonds on the secondary market to inject liquidity and lower long-term rates.

Rates and pricing

Swap spread

Difference between an interest rate swap rate and the government bond yield of the same maturity — indicator of bank credit risk embedded in fixed mortgage rates.

Rates and pricing

Risk-free rate

Return on a theoretically default-free asset (Canadian Treasury bills). Serves as the reference floor for evaluating all other interest rates.

Borrower profile and programs

Foreign income — mortgage qualification

Income earned abroad (in foreign currency) that may be recognized by Canadian lenders under specific conversion and documentation rules.

Borrower profile and programs

Gig economy income

Income from digital platforms (Uber, Airbnb, Etsy, Fiverr, etc.) treated as self-employment income — documented via T4A and T2125 declaration.

Borrower profile and programs

T776 form (rental income)

Federal form for declaring real estate rental income. The T776 net income is the basis for calculating qualifying mortgage income for investors.

Borrower profile and programs

Real Estate Investment Trust (REIT)

Collective investment vehicle that owns and manages income-producing properties and distributes income to unitholders. Listed REITs are liquid (stock exchange).

Regulation and legal framework

CMHC insurance purchase price ceiling

Maximum purchase price eligible for CMHC mortgage loan insurance. Since December 2024: $1.5M (raised from $1M).

Types of mortgages

Accelerated amortization

Strategy of increasing the amount or frequency of mortgage payments to repay principal faster and reduce total interest paid.

Actors and process

Down payment assistance

Government or family programs allowing buyers to obtain additional funds to build their down payment: parental gifts, RRSP HBP, First Home Incentive, municipal grants.

Regulation and legal framework

Conflict of interest disclosure

Mortgage broker's legal obligation (Real Estate Brokerage Act, OACIQ) to declare any personal interest or relationship with a lender that could influence their recommendations.

Regulation and legal framework

Code of ethics — mortgage broker

Set of professional conduct rules imposed on mortgage brokers by the OACIQ in Quebec, covering competence, loyalty, confidentiality and transparency.

Regulation and legal framework

Credit file correction right

Legal right of every Canadian consumer to request correction of inaccurate, incomplete or outdated information in their credit file (Equifax/TransUnion).

Actors and process

Lawyer vs. notary — real estate transaction

In Quebec, it is the notary (not the lawyer) who executes mortgage and sale deeds. The notary acts as an impartial public officer; the lawyer represents one party.

Actors and process

Right of first refusal

Contractual clause giving a third party (tenant, co-owner, neighbour) the right to buy a property on the same terms as a third-party offer before the seller accepts it.

Actors and process

Undivided co-ownership

Form of ownership where multiple people hold shares of a property without it being physically divided into separate registered units.

Types of mortgages

Construction interim financing

Temporary financing covering construction costs of a new property between the start of work and permanent mortgage financing at delivery.

Regulation and legal framework

Affordable housing programs (QC)

Federal and provincial programs (CMHC, SHQ, AccèsLogis) aimed at subsidizing the construction or purchase of housing for low- or middle-income households.

Types of mortgages

Green mortgage / eco-mortgage

Mortgage product offering a reduced rate or improved conditions for certified energy-efficient properties (LEED, R-2000, ENERGY STAR) or energy-efficient renovations.

Types of mortgages

Private syndicated mortgage

Mortgage funded by a group of private investors through a syndicate, providing capital to borrowers ineligible for institutional bank financing.

Actors and process

Property listing / marketing

Set of preparation and advertising steps for a property for sale: price evaluation, home staging, professional photos, listing on platforms.

Actors and process

Notary disbursement / closing funds

Funds remitted to the notary by the buyer and mortgage lender before closing, which the notary distributes to the appropriate parties (seller, existing lenders, municipality, government) upon signing.

Actors and process

Welcome tax and transfer duties (detail)

Property transfer duties (commonly called 'welcome tax') collected by Quebec municipalities on every property transfer. Calculated on the highest of the purchase price and municipal assessment.

Types of mortgages

Mortgage creditor protection

Legal and contractual mechanisms protecting the rights of the mortgage lender in case of borrower default: legal hypothec, seizure, taking in payment, remedies.

Rates and pricing

Inflation target (Bank of Canada)

Target of 2% annual inflation that the Bank of Canada seeks to maintain through its policy rate, within a tolerance band of 1 to 3%.

Borrower profile and programs

Total Debt Service ratio (TDS)

Ratio comparing the borrower's total repayment obligations (mortgage + all debts) to gross income. CMHC ceiling: 44%.

Types of mortgages

Secondary mortgage market

Market where mortgage lenders sell their loan receivables to institutional investors (securitization), freeing up capital for new loans.

Types of mortgages

Mortgage securitization

Process by which a lender pools mortgages and sells them as securities to investors, transforming illiquid assets into tradable instruments.

Actors and process

Mortgage brokerage mandate

Written agreement binding the borrower to the mortgage broker, authorizing the broker to seek and negotiate mortgage financing on their behalf with lenders in their network.

Actors and process

Mortgage broker compensation

Commission paid by the lender to the mortgage broker for each placed mortgage (finder's fee / origination commission). Generally 0.5-1.2% of the borrowed amount.

Actors and process

Conditional purchase offer

Purchase offer including suspensive conditions (financing, inspection, sale of current residence) that must be waived within a given period for the transaction to close.

Regulation and legal framework

Bank Act (Canada)

Federal law governing the incorporation, activities and oversight of Canadian chartered banks, including their mortgage, deposit and lending activities.

Types of mortgages

Mortgage assignment clause

Contractual provision allowing the lender to assign (sell or transfer) the mortgage receivable to another creditor without requiring the borrower's consent.

Types of mortgages

Open vs. closed mortgage

Open mortgage: repayable at any time without penalty but at a higher rate. Closed mortgage: lower rate but penalty if repaid before maturity.

Types of mortgages

Commercial mortgage

Mortgage loan secured by commercial-use property (office, retail, industrial, hotel). Different qualification and pricing conditions from residential.

Borrower profile and programs

Capital Cost Allowance (CCA)

Tax deduction for depreciation of an income property. Reduces taxable income but creates a recapture obligation upon sale (depreciation recapture).

Rates and pricing

Annual Percentage Rate (APR)

Total cost of credit expressed as an annual percentage, including fees (insurance, origination fees) in addition to interest. Allows comparing credit offers at equivalent real cost.

Actors and process

Value-add renovations (ROI)

Renovation work offering the best return on investment at resale: kitchen, bathrooms, basement development, energy efficiency.

Rates and pricing

Rate hold

Guarantee offered by a lender at pre-authorization: the granted rate is reserved for 90-120 days, protecting the borrower against a rate increase during property search.

Types of mortgages

First mortgage lien (first charge)

Mortgage registered first at the Land Registry, holding repayment priority over all other hypothecary claims in case of default or forced sale.

Types of mortgages

Home Equity Line of Credit (HELOC)

Line of credit secured by home equity. Variable rate (prime + margin), flexible access to funds, limit up to 65% of property value.

Actors and process

Offer conditional on sale of current home

Condition in a purchase offer allowing the buyer to withdraw if their current property does not sell within the agreed period. The seller may include a right of continuation clause (kick-out).

Rates and pricing

Prime rate

Reference rate published by major Canadian banks, which fluctuates with the Bank of Canada policy rate. Base for calculating variable mortgage rates (prime ± margin).

Actors and process

For Sale By Owner (FSBO)

Real estate transaction where the seller markets their property without a real estate broker intermediary (DuProprio, Kijiji). The buyer can still use a mortgage broker.

Types of mortgages

Early mortgage renewal

Option to renew one's mortgage before the current term expires (generally 120-180 days in advance), often to take advantage of a rate drop without paying a penalty.

Rates and pricing

Mortgage risk premium

Rate increase applied to borrowers presenting a high-risk profile (poor credit, non-traditional income, high LTV). Added on top of the lender's base rate.

Types of mortgages

Investment property (rental investment)

Property purchased for rental income purposes rather than as a primary residence. Different down payment, insurance and qualification criteria from a primary residence.

Regulation and legal framework

Taking in payment (délaissement)

Quebec mortgage remedy (civil law) by which the lender takes possession of the property in settlement of the debt. Extinguishes the debt and transfers ownership to the creditor.

Actors and process

Property taxes

Annual tax levied by the municipality based on property value. Included in the GDS ratio calculation for mortgage qualification.

Regulation and legal framework

Power of sale / forced sale

Procedure by which a mortgage creditor sells a property to recover their claim upon default. Distinct from 'taking in payment' in Quebec.

Types of mortgages

Debt consolidation refinancing

Strategy of increasing one's mortgage to pay off high-rate debts (credit cards, auto loans, unsecured lines), reducing the overall monthly payment.

Types of mortgages

Mortgage porting vs. refinancing

Portability transfers the existing mortgage to a new property without penalty. Refinancing breaks the current term and incurs a penalty but offers more flexibility.

Types of mortgages

CMHC rental housing loan insurance

CMHC mortgage loan insurance program specifically designed for rental buildings of 5+ units, offering preferential financing conditions (LTV up to 85%).

Actors and process

Mortgage broker vs. bank direct

Comparison of the two mortgage financing access channels: the independent broker (multi-lender access) vs. the bank mortgage advisor (single institution products).

Regulation and legal framework

Law 25 — Personal information protection (QC)

Quebec law modernizing the protection of personal data (L.Q. 2021, c. 25). Applies to any organization collecting data from Quebec residents, including mortgage brokers and platforms like Courteo.

Regulation and legal framework

OSFI Guideline B-20

Office of the Superintendent of Financial Institutions directive governing mortgage underwriting practices of Canadian banks: stress test, LTV limits, qualification criteria.

Types of mortgages

Land loan / raw land mortgage

Financing for the acquisition of bare land (no building). More restrictive conditions than for built property: lower LTV, higher rate, few institutional lenders.

Regulation and legal framework

Mortgage default

Situation where a borrower no longer meets their mortgage obligations (missed payments, covenant breach). Triggers mortgage creditor remedies.

Regulation and legal framework

Real estate seizure

Judicial procedure allowing a creditor (mortgage or other) to seize and have sold a property to recover their claim. Distinct from taking in payment in Quebec.

Types of mortgages

Mortgage portability

Clause allowing transfer of the existing mortgage to a new property upon moving, retaining current rate and conditions without paying a penalty.