CanadaMortgage.com

Our glossary has some 400 terms commonly (and not so commonly) used words and terms in the industry. Choose a LETTER below for terms beginning with the letter.

Mortgage Tools Glossary
A description of terms and details of parameters used with the Canada Mortgage calculators.
Condo Fees		How utilized in calculating required incomes
Down Payments		Parameters used for Canada Mortgage conventional financing calculator.
DS Ratios		Understanding Debt Service Ratios
Insurance Fees		for High Ratio Mortgages
Household Income		Determining qualifying income levels
% Interest		The default mortgage interest rates for our calculators
Investment		Investment Mortgages
Loan / Value		Loan to Value Ratio
Property Tax		Property Tax usage in Canada Mortgage Calculators
Rate Survey		Canada Mortgage's interest rate survey

Investment Calculator

The LVR defaults to 65% for the Investment Option. Input your own Loan to Value Ratio and recalc to bypass.

Most financial institutions set conventional LVRs for revenue properties at between 60% and 70%.

The Asian and offshore-investor mortgage divisions of most financial institutions usually limit LVR to 65% or less.

The Expense Coverage Ratio (ECR) indicates the extent to which the monthly rent covers expenses. An ECR of 1 indicates that total expenses are equal to total revenue - a break even.

An expense ratio of .75 indicates that there is negative cash flow - revenue only covers 75% of expenses.

Monthly Rental Income
	= Expense Coverage Ratio
Sum of Monthly Expenses

The calculator defaults to the 3 year term interest rate from the Canada Mortgage Interest Rates Survey

Foreign Exchange Investment Option

The foreign exchange investment option relies on the same underwriting parameters as the Canadian Investment Option. The exchange rates are updated daily courtesy of Canada Mortgage and Citizens Trust Foreign Exchange Department.

COMPARE RATES
TERM	OURS	BANKS
6.mo 1yr. 3yr. 5yr.	6.10% 4.85% 5.50% 5.44%	6.20% 6.65% 6.70% 6.85%