Mortgages Made Easy Blog

Our brokers post interesting news, tips, and industry updates every week.

Mortgages Made Easy: A Guide To Understanding Mortgage Terms


Mortgage terms can be confusing, but you don’t have to be an expert to understand! We’ve laid it out plain and simple in our guide:


When a bank or creditor lends you money at interest in exchange for ownership of a property. Having a mortgage allows the lender to take possession of the property if you don't repay the loan on time.


An organization or person that lends money. At Mortgages Made Easy, we compare rates from 30+ lenders, including the big banks, so you always get the best deal.

Escrow Account

A third-party account that receives and disburses money and/or property on behalf of the two principal parties involved in the transaction. Having a neutral third party ensures that neither the buyer nor the seller gets the short end of the stick!

Down Payment

The initial payment when something is bought on credit. You then finish paying for it later, usually by paying a certain amount every month.

Insured Mortgage

You can get mortgage life insurance to protect your family and estate. You can also get mortgage insurance, which protects the lender should you default on your mortgage.

Open Mortgage

You can repay an open mortgage as quickly as you see fit. Open mortgages have no prepayment restrictions and tend to be available for short terms (typically five years or less).

Closed Mortgage

Closed mortgages are more structured than open mortgages. A closed mortgage cannot be paid in full, refinanced or re-negotiated before the end of the term without incurring a penalty. 

Variable Mortgage

With a variable mortgage, your regular payments  remain constant; however, your interest rate may change based on market conditions. This means the amount of principal you pay off each month could increase or decrease depending on the interest rate. 

When rates on variable interest rate mortgages decrease, more of your regular payment is applied to your principal. If rates increase, more of your payment will go toward the interest.

Fixed Mortgage

A fixed-rate mortgage means your interest rate remains unchanged for the duration of the term. Fixed rate mortgages cannot be refinanced or re-negotiated without incurring penalty.

Interest Rate Differential (IRD)

The IRD is a penalty. For example, if you refinance or re-negotiate a fixed mortgage, you’ll be charged an amount equal to 3 months’ interest on what you still owe, or the IRD. You may also be charged if you pay off your mortgage before the end of your mortgage term, or pay the mortgage principal down beyond the amount of your prepayment privileges.

Mortgage Pre-approval

Confirmation of the amount you qualify to borrow and protection from rate increases for up to 120 days. As a mortgage pre-approval also allows you to know your borrowing capacity, you’ll be able to plan your monthly payments and get more credibility as a buyer. 

There’s a lot more where that comes from

Not sure what kind of mortgage for you? Ready to get pre-approved for your mortgage? Still have questions for us? Book a free consultation, and we’ll help you figure it all out.

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First-time Homebuyer? This New Incentive Could Help!


Buying a home can be expensive but fret not! That’s where Canada’s First-Time Home Buyer Incentive comes in. 

This incentive helps qualified first-time homebuyers purchase their first home without increasing the amount they must save for a down payment. 

Starting September 2nd, eligible first-time buyers who have the minimum down payment for an insured mortgage with CMHC, Genworth or Canada Guaranty, can apply to finance a portion of their home purchase through a form of shared equity mortgage with the Government of Canada. 

This means that, for the purchase of an existing home, an incentive amount of 5 percent may be available. For the purchase of a newly constructed home, an incentive amount of 5 percent or 10 percent may be available!

With no required on-going repayments, the incentive isn’t interest bearing, and the borrower can repay the incentive at any time without a prepayment penalty. That being said, the buyer must repay the incentive after 25 years. If the property is sold, the government shares in the upside and downside of the change in the property value.

The incentive will be available to first-time homebuyers with qualified annual household incomes up to $120,000. At the same time, a participant’s insured mortgage and the incentive amount cannot be greater than four times the participant’s qualified annual household income.

Sound interesting? Visit www.placetocallhome.ca or book a free consultation with us for more details. We’d be more than happy to guide you through your whole home-buying process.

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5 Mistakes First-time Homebuyers Make (And How to Avoid Them)


Buying a home comes with a lot of decisions. It can be a pretty intimidating process for first-timers but we believe that buying your first home should be exciting, not stressful. That’s why we want to help. 

These are the top five mistakes first-timers make when buying a home for the first time (and how to avoid making them):

Mistake #1: Getting emotionally attached

You found a place that’s perfect for you? Great! Unfortunately, loving a house doesn’t guarantee that you’ll get it. Buying a home is a negotiation. There’s always a risk that someone could make an offer before you, or your offer could get rejected. You might also pay more than you should or make bad decisions just because you’re attached to the house. Stay strong, stay focused.

Mistake #2: Newer means better

There’s no denying that new homes are nicer. The updated appliances, granite countertops, kitchen island, in-ground pool, and hardwood floors sure are nifty but they come with a hefty price tag. Consider compromising. You end up spending less money if you buy a fixer-upper and do the renovations yourself. Look past the cheetah print wallpaper and shag carpet. Try to recognize the potential in the house.

Mistake #3: Not hiring a real estate agent

Real estate agents make the biggest difference when it comes to house-hunting. Rather than going to dozens of open houses alone, hire a real estate agent. These pros will help you avoid wasting time by showing you places that work for your budget and lifestyle. They’ll also act as your representative and make sure you pay a fair price for your home during negotiations. What’s not to love?

Mistake #4: Skipping the home inspection

Just because your new home looks fine, doesn’t mean it is. Looks can be deceiving, which is why a home inspection is a necessity. A home inspection will let you know whether the property is truly worth the price tag. You’ll also get a heads up about repairs that may need to be done in the future.

Mistake #5: Not getting pre-approved

Getting pre-approved before you even start your house-hunting journey will make your life a whole lot easier. Not only will you know your borrowing capacity, you’ll be able to plan your monthly payments, and get more credibility as a buyer. You’ll save time by only looking at houses that are in your budget. Mortgage brokers make it their mission to find you the best rate on the market. Banks typically only offer their in-house mortgage products.

If you do these five things, buying your first home could go off without a hitch. Especially if we do #5 together. At MortgagesMadeEasy.com, that’s all we do. You can use our secure online form to apply for your mortgage pre-approval. We’ll get back to you on the same day with a mortgage tailored to your specific situation. 

Questions? Book a free consultation. We’ll gladly walk you through the process and explain everything you need to know to buy your dream home.

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Contact Us

  • Ottawa-Carleton Mortgage Inc
    381 Richmond Road Ottawa,
    Ontario K2A 0E7
  • Phone: 613-563-3447
    (24 hours)
  • Fax: 613-563-3195

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