50 Types of Mortgages – and growing…

This is the consolidated list of various residential mortgage offered in Canada. If possible we shall continue adding more to this list.

Hopefully we can keep that promise in future. If you think that you can add more or there are repetitions then please leave us a comment and we shall take care of it.

List of Mortgages

1. All-In-One Mortgage

Often called One Charge Mortgage and it can also have many names. The basic concept is that all the loans are consolidated in one single pool. As an example, Credit Line, Mortgage, Car Loan and salary Deposit all are put together in one single account.

2. Adjustable Rate (A.R.M.) Mortgage

In this type of mortgage – payment changes with the interest rate. It can have option to change the payment to cover the change in the interest rate only or it can be set to change both – interest and principle – to keep the original amortization.

3. ALT. A Mortgage

Alternative Mortgage. This type of mortgage is for borrower who would not fit into the normal mortgage programs but they are not in a situation where they have to look for a sub-prime loan.

4. ALT. B Mortgage

This is often known as Sub-prime mortgage. Where a borrower has credit issues, bankruptcy, proposal etc and no primary lenders would qualify the borrower for a mortgage. There are sub-prime lenders who provide mortgage to Alt-B borrowers if their conditions are satisfied.

5. Assumable Mortgage

In this type the mortgage can be transferred to the buyer by the owner.

6. Blended Mortgage

This happens when the original mortgage term is changed. As an example when you move to a new home of higher price with your existing mortgage then to take care of the extra amount the old interest rate and mortgage term are blended with the new rate and term.

7. Bridge Financing

If you have a temporary time gap between buying (first) a home and selling (second) your own then you need to carry two mortgages for some time. Normally the debt service ratios in this case would be too high. Some lenders allow that to happen and that financing is called Bridge Financing.

8. Buy Down Mortgage

If a buyer is not happy with the interest rate of an assumable mortgage then the rate can be bought down by the owner. (Not to confuse it with brokers buy down)

9. Canadian Military Mortgage

Canadian Forces members enjoy some special types of privileges in their mortgages. Lenders allow that as a recognition of their service towards the country.

10. Capped Variable Rate Mortgage

These are variable rate mortgages with a cap on the interest rate. The rate would not go up above the capped rate during the contract term.

11. Cash Back Mortgage

These mortgages have higher interest rates. A borrower can get certain percentage of the principle back – in terms of cash – from the lender, upon closing. This cash in some cases can be used as a source of down-payment.

12. Closed Mortgage

This type of mortgages can not be prepaid before the expiry of the term.

13. Construction Mortgage

If you want to build your own home then this mortgage allows you to get a mortgage paid in stages during the construction period.

14. Conventional Mortgage

In general it is a mortgage with more than 20% down payment or less than 80% Loan To Value (LTV) ratio.

15. Conventional Charge Mortgage

Common way of registering the charge on the asset.

16. Convertible Mortgage

Can be converted to a longer closed term at any time without any cost.

17. Collateral Charge Mortgage

This is a special way of registering the loan (lien) on the real asset. By using this, lender can register a higher than 100% loan to values on an asset without actually giving all the money to the borrower at the same time. TD was first to come up with the idea of giving more than the value of the asset but many other lenders were registering Collateral Charge prior to TD.

18. Cottage Mortgage

Mortgage allowing to purchase a cottage as a second / recreational home.

19. Equity Mortgage

Mortgage used to draw on equity of a property.

20. First Mortgage

The mortgage that is registered first time.

21. Fixed-Term Mortgage

In this loan the interest rate does not change during the term of the mortgage.

22. Flexible Mortgage

If a borrower has prepaid portion of the principle using various options like Accelerated bi-weekly, lump-sum, double up then they can have some payment reduction if required. For non-prepaid situations there are options like payment skipping, payment vacation etc.

23. High-Ratio Mortgage

Mortgage with less than 20% down payment or higher than 80% loan to value ratio.

24. Insured Business For Self (BFS) Mortgage

For borrowers who are business owners there are different options as the conditions are different. These mortgages can also be insured by default insurers.

25. Insured Mortgage

Mortgage that is insured against payment default or standard charge term default by borrower.

26. Insured New to Canada Mortgage

Insured mortgage for new landed immigrants.

27. Interest Only Mortgage

Mortgage where only the interest is paid. Principle payment is non mandatory.

28. Long Term Mortgage

Mortgage with higher than 2 years terms are generally referred as long term mortgage. I can go above 15years in Canada.

29. Mortgage Transfer

Taking the mortgage to another institution.

30. Multiple Term Mortgage

A mortgage with many terms and amortization. Generally these are possible with single charge.

31. Multi-Unit Residential Mortgage

As the name says, this is for residential multiple units rental properties.

32. New Immigrants Mortgage

Mortgage for new immigrants who does not have proper established credit history.

33. Non-Permanent Resident Mortgage

Mortgage for persons who are not permanent residents.

34. Non-Resident Mortgage

Mortgage for persons who does not live in Canada (working outside).

35. Open Mortgage

It can be paid anytime without any penalty.

36. Partially Closed Mortgage

This type of mortgages are closed but lenders allow it to be prepaid after a specified time period.

37. Portable Mortgage

Mortgage that can be moved from one property to another.

38. Pre-Approved Mortgage

Pre approved mortgages have rate certainty if rates go up in future.

39. Private Mortgage

Mortgage loan from a private lender. Generally when a borrower does not qualify for a sub-prime loan then they look for alternative with high interest rates

40. Readvanceable Mortgage

These are associated with HELOCs. When part of the principle is paid then it is advanced to the HELOC.

41. Rental Properties Mortgage

Mortgage for rental property. These can be insured too.

42. Replacement Mortgage

These are same as portable mortgage.

43. Reverse Mortgage

It is a way of selling your home back to a lender in exchange of regular payments.

44. Second Mortgage

Mortgage which is registered second on the property. Regardless of the amount.

45. Short Term Mortgage

Mortgages with less than two years terms are generally referred as short term mortgages.

46. Sub Prime Mortgage

Similar to Alt-B mortgage.

47. Variable Rate (VRM) Mortgage

This type of mortgage has a constant payment (For a limited time) with a changing interest rate. If in case the payment is not enough to cover the original amortization then generally a trigger resets the payment amount.

48. Work Permit Mortgage

Mortgages for persons working with a valid work permit in Canada.

49. Zero Down Mortgage

Mortgage with no down-payment.

50. ??

Now it is your turn to complete this one.