Glossary
Term
GeneralThe length of time a financial agreement lasts. A mortgage term is the period your interest rate is locked in (often 5 years). A GIC term is how long your money is locked up. Longer terms often offer better rates.
Related terms
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Fixed rate
An interest rate that stays the same for the entire term of the loan or mortgage. Fixed rates provide certainty — your payment amount will not change — but may start higher than variable rates.
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Mortgage
A loan specifically for buying property, where the property itself serves as collateral. In Canada, mortgages typically have 5-year terms within a longer 25-year amortization. On-reserve, Ministerial Loan Guarantees may be required.