A mortgage term is the length of time (usually in years) in which the parameters of a mortgage have legal effect. For example, if you select a 5 Year Fixed rate Mortgage, you (the borrower) will be legally obligated to this product for 5 years. At the end of that term you can look for a new product, with the same lender or you have the option to shop around to find a new provider.
Mortgage Rate Type
JustCompare offers two types of mortgage rates: Fixed Rate & Variable Rate
- A fixed rate mortgage has a rate that is determined and locked in for the full term of the mortgage product (i.e., 5 Year fixed rate).
- A variable rate mortgage has a rate that may be change during the term of the mortgage (i.e., 3 year variable rate). In most cases the variable rate is benchmarked against the Bank of Canada rate, if that changes the borrower rate will move up or down with the rate. The terms and benchmark rate will differ depending on the lender and the product.
Mortgage Payment Frequency
How often borrower will make mortgage payments to the lender (i.e., Monthly, Bi-weekly, etc.). The more offer the borrower pays their mortgage, the faster the principal is paid down.
Estimated Purchase Price
If you have not found your dream home as of yet, but you are actively looking, JustCompare requires a estimated purchase price to support our payment calculations. This is why the word estimated is used. However, if you have already purchased your home and know the exact purchase price please enter that value.