Mortgage
Explore how mortgages work in Canadian real estate, what terms they include, and how buyers qualify, repay, and manage home loans.
May 22, 2025
What is a Mortgage?
A mortgage is a loan used to finance the purchase of real estate, where the property serves as collateral for the debt.
Why Mortgages Matter in Real Estate
In Canadian real estate, mortgages allow buyers to purchase homes without paying the full price upfront. The buyer repays the loan over time, with interest, according to the mortgage’s terms.Key mortgage components include:
- Principal: the loan amount
- Interest: cost of borrowing
- Term: the length of the contract (e.g., 5 years)
- Amortization: the full repayment timeline (e.g., 25 years)
- Payment frequency and type (fixed or variable rate)
Understanding mortgages helps buyers navigate borrowing decisions, budgeting, and repayment planning.
Example of a Mortgage in Action
A buyer borrows $450,000 at a fixed rate of 4.9% for a 25-year amortization, with a 5-year term and monthly payments.
Key Takeaways
- Primary loan for purchasing property.
- Repaid with interest over time.
- Includes term, amortization, and rate type.
- Must meet lender criteria.
- Registered on property title.
Related Terms
- Interest Rate
- Mortgage Term
- Amortization
- Mortgage Pre-Approval
- Refinance


Mattamy WideLot™ design
'The Cline' at Cityscape
'The Monarch' at Yorkville






15284-15296 Fleetwood Drive in Surrey. (Flat Architecture, 1098261 BC Ltd.)
Renderings of the tower proposed for 15284-15296 Fleetwood Drive in Surrey. (Flat Architecture, 1098261 BC Ltd.)

Goldberg Group 
10-storey apartment building currently occupying 525 Eglinton Avenue East/WND Associates
Rendering of 525 Eglinton Avenue East/Wallman Architects

The Mayfair West site and its surrounding context. (Grosvenor, Arcadis, Hariri Pontarini Architects)
Renderings of Mayfair West. (Grosvenor, Arcadis, Hariri Pontarini Architects)