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Mortgage terms

Amortization Period - The time over which all regular payments would pay off the mortgage. This is usually 25 years for a new mortgage, however can be greater, up to a maximum of 30 years.

CMHC or GEMICO Insurance Premium - Mortgage insurance insures the lender against loss in case of default by the borrower. Mortgage insurance is provided to the lender by CMHC or GEMICO and the premium is paid by the borrower.

Closing Date - The date on which the sale of a property becomes final and the new owner usually takes possession.

Fixed-Rate Mortgage -  A mortgage for which the rate of interest is fixed for a specific period of time (the term).

Home Equity - The difference between the price for which a home could be sold (market value) and the total debts registered against it.

Maturity Date - Last day of the term of the mortgage agreement.

Open Mortgage - A mortgage which can be prepaid at any time, without requiring the payment of additional fees.

Principal - The amount of money borrowed for a new mortgage.

Status Certificate If you're moving into a condominium (complex not necessarily a high-rise) this certificate outlines the condominium corporation's financial and legal state. It will cost you up to $100, usually paid for by the seller if agreed to in the Offer to Purchase.