Mortgage Brokers’ Glossary

Mortgage Brokers’ Glossary

At Champion Mortgage in Guelph, Milton & Mississauga, we believe in educating you on all your mortgage options – that’s how we help you achieve a mortgage worth celebrating.

Mortgage broker glossary

Here are some mortgage terms and definitions commonly used by our mortgage brokers in Guelph, Milton & Mississauga.

Still have mortgage questions? Ask a Champion mortgage broker in Guelph, Milton or Mississauga. Ask any question, anytime.

Credit Unions

Cooperatively owned businesses offering mortgage loans and other financial services.

Debt Consolidation

This consists of taking out a loan to pay off or combine many smaller outstanding debts.  This is often done to secure a lower interest rate or to have the simplicity of only paying down a single debt.

Fixed-Rate Mortgages

A mortgage loan where the interest rate remains the same throughout the term of the mortgage.

Fixed/Variable Mixed Rate Mortgages

A mortgage loan where the interest rate on the mortgage is a blend of the posted fixed and variable rates.

Home Purchases

This occurs when you take out a mortgage or finance a property thereby transferring ownership into your name.

Mortgage Renewals

At the end of your mortgage term (ie. 5 years) in order to secure financing for another term you must renew your mortgage.  This can be with the same mortgage lender, or a different one.If you switch to a different mortgage lender then you must re-qualify for the mortgage based on the current lending rates.

Mortgage Specialist (or Mobile Mortgage Specialist)

Work for a specific lender and are only allowed to use their mortgage products in assisting clients with financing.

Private Lenders

These lenders offer loans from their own sources and as a result often have their own guidelines in terms of repayment and interest charged on the loan.


An option where you restructure the mortgage in order to secure a lower interest rate, free up some equity in the home, or consolidate some debts.

Secured Lines of Credit

A line of credit is similar to a bank account where you are advanced a certain amount of funds to use at your own discretion.  This money however still needs to be repaid as interest is often charged on the balance.  The line of credit is considered “secured” when collateral, such as your home, is put in place in the event of a default.

Specialized Mortgage Lenders

A specialized mortgage lender generally only deals with Mortgage Brokers, and not directly to end borrowers. This type of lender often has basic and unique products offering direct competition to the traditional banks. These specialized lenders are funded by a variety of sources such as Banks, Insurance Companies, Private Investment Corporations, etc.


Companies involved in managing investments, assets, and estates.

Variable (Adjustable) Rate Mortgages

A mortgage loan where the interest rate is periodically adjusted based on an index or the prime rate.


Still have mortgage questions? Ask a Champion mortgage broker in Guelph, Milton or Mississauga. Ask any question, anytime.