The mortgage portability option allows you to transfer or “port” the remainder of your existing mortgage term, outstanding principal balance and interest rate to a new property if you are selling your current home and buying a new one.
You must apply in writing to port your mortgage. Both you and the new property must meet CIBC’s mortgage approval criteria. Note that there are a number of other conditions and restrictions on porting your mortgage, so call us for details.
The interest rate advertised or shown by a lender as the interest rate it charges for a mortgage product. A borrower may be able to negotiate with the lender for a lower interest rate.
Pre-approved mortgage certificate (or mortgage pre-approval certificate)
A letter from a lender stating that you are pre-approved for a mortgage on certain terms. The pre-approval certificate will also list requirements that you must satisfy to obtain final approval for the mortgage.
Pre-payment (sometimes called a lump sum payment)
Early repayment of all or part of a mortgage.
When a closed mortgage is prepaid, the lender may charge a prepayment charge.
The amount charged by a lender when the borrower pays all or part of the mortgage before it is due during the mortgage term. However most closed mortgages allow the borrower to pay a certain amount of the mortgage early without paying a prepayment charge.
Prepaid property tax and utility adjustments
These are amounts a home buyer must pay to the seller on closing if the seller has prepaid property taxes or utility bills.
For example, if your purchase closed on June 1 and the seller prepaid taxes and utilities to June 30, you will be required to pay the seller the amount of this overpayment. The adjustment amount is calculated by the lawyer, paralegal or notary closing the transaction.
Prime rate (or prime interest rate)
The prime rate is the interest rate that a lender publicly announces as its reference rate for certain variable interest rate loans. The prime rate can change at any time.
For most CIBC variable interest rate mortgages, the interest rate is based on CIBC's prime rate. For example, if the interest rate for a variable rate mortgage is CIBC prime rate plus 1%, the interest rate charged is one percent per year above the CIBC prime rate in effect from time to time. For most variable rate mortgages, the interest rate changes when the prime rate changes.
Refinancing or renegotiating
Changing the conditions of your mortgage before its maturity date. Often a mortgage is refinanced to obtain a lower interest rate.
Renewal or renewing
Extending your mortgage when it matures. Often the interest rate and other terms of the mortgage offered by the lender for the renewal are different from the interest rate and terms of your original mortgage.
If you do not renew your mortgage, it must be paid off at maturity.
Survey (or and survey or property survey)
A survey is a drawing prepared by a professional land surveyor that shows certain information about a property, usually including the dimensions of the property and the location of its boundaries.
Your mortgage lender may require an up-to-date survey of the property, which may be available from the seller of your property. You or your lawyer, paralegal or notary can also arrange for a land surveyor to perform a property survey for a fee.
The period of time your mortgage agreement with the lender is in effect. A mortgage term is usually between 6 months and 5 years long.
Not to be confused with amortization period. For example, a mortgage could have a term of 5 years and an amortization period of 25 years.
Insurance that pays for losses caused by certain title defects.
For example, a homeowner may buy an owner's title insurance policy to protect the homeowner against losses caused by title fraud, municipal work orders, zoning violations, encroachments and other defects. A lender may buy a lender's title insurance policy to protect the lender against the same types of losses, plus losses caused by certain types of defects in the mortgage.
Not to be confused with (such as mortgage life insurance or mortgage disability insurance), property insurance or mortgage default insurance.