Allows the lender to speed up the rate at which your loan comes due or to demand immediate payment of the entire outstanding loan balance should you default on your loan.

A mortgage in which the interest rate is adjusted periodically based on a pre-selected index. It is also sometimes referred to as the renegotiable-rate mortgage, variable-rate mortgage, or Canadian-rollover mortgage.

On an adjustable-rate mortgage, it is the time between changes in the interest rate and/or monthly payment — typically one, three or five years, depending on the index.

Loan payment of equal periodic payments calculated to pay off the debt, as well as the accrued interest on the outstanding balance, at the end of a fixed period.

An interest rate reflecting the cost of a mortgage as a yearly rate. This rate is likely to be higher than the stated note rate or advertised rate on the mortgage because it takes into account points and other credit costs. The APR allows homebuyers to compare different types of mortgages based on the annual cost for each loan.

An estimate of the value of property made by a licensed professional called an appraiser.

Agreement between buyer and seller, where the buyer takes over (assumes) the payments on an existing mortgage from the seller. Assuming a loan usually saves the buyer money because an existing mortgage debt does not require closing costs or new, potentially higher, market-rate interest charges.

Usually a short-term, fixed-rate loan that involves small payments for a determined period of time and one large payment for the remaining amount of the principal at a time specified in the contract.

An individual licensed to assist in arranging funding or negotiating contracts for a client who does not personally loan the money. Brokers usually charge a fee or receive a commission for their services.

Occurs when the lender, the homebuilder, or both subsidize your mortgage thereby lowering the interest rate during the first few years of the loan. While the payments are initially low, they increase when the subsidy expires.