Glossary


Term Description
Accelerated Payments An optional payment feature that allows you to pay off the mortgage faster by increasing the amount of your regular mortgage payments made. This results in paying less interest over the life of the mortgage. Accelerated payment plans may be weekly (52) or bi-weekly (26).
Amortization Typically expressed in years & months; amortization is how long payments are spread out for to pay off the mortgage balance in full. See also: Remaining Amortization.
Anniversary Date Once per year, a mortgage has an anniversary date primarily used for calculating available privilege payment options and amounts.
If the anniversary date is based on the calendar year, the anniversary year is from January 1st to December 31st of each year.
If the anniversary date is based on the date of first advance or renewal date, then the anniversary year is the 12-month period between your most recent renewal effective date, or the advance date.
Available credit Total amount available for withdrawal today. This amount does not include any funds currently in holdback.
Bank Hold If you have deposited a cheque at the bank recently, or through automated teller, your bank may place a hold on those funds for 3-5 business days before releasing them.
Bi-weekly Payments Payments occur on a day from Monday to Friday; payment is every 14 days on the same day of the week.
Committed Amount The original amount of mortgage funds lent.
Daily Interest The amount of interest charged on the mortgage, expressed as a daily amount.
Daily Withdrawal Limit The amount of funds available for withdrawal on your Home Equity Line of Credit on a daily basis is $10,000 subject to your available credit. To exceed this daily limit, please contact our Mortgage Solutions Centre at 1-800-265-2624. Please be prepared to confirm the name of your financial institution and your bank account number to ensure funds are deposited into the correct account.
Disability Insurance You have plenty to worry about in your day-to-day life. Home Mortgage Protection from MCAP helps alleviate the stress of "what if" when it comes to your mortgage. What if you, or a loved one dies, or is no longer able to work due to disability? How will your mortgage get paid? It's a big burden to shoulder for your family who rely on your income. Home Mortgage Protection takes the worry away. It's insurance - life and disability - that pays off your mortgage balance up to $750,000 in case of death, and up to $4,000/month for up to two years. It's just one less thing you need to worry about in Life.
Export to CSV This option will export the information displayed to you into an excel file. Once exported, you will be able to review and format the information provided for your needs.
Home Mortgage Protection You have plenty to worry about in your day-to-day life. Home Mortgage Protection from MCAP helps alleviate the stress of "what if" when it comes to your mortgage. What if you, or a loved one dies, or is no longer able to work due to disability? How will your mortgage get paid? It's a big burden to shoulder for your family who rely on your income. Home Mortgage Protection takes the worry away. It's insurance - life and disability - that pays off your mortgage balance up to $750,000 in case of death, and up to $4,000/month for up to two years. It's just one less thing you need to worry about in Life.
Home System Service Plan When a home system is not working within a residential home protected with a home system service plan, service will be arranged by MCAP to send a Qualified Repair Technician (“QRT”) to your Home to assess and examine any components in your primary heating and air conditioning systems (as defined under the Terms and Conditions under the heading, What Services Are Provided?) effected. If the QRT determines that a particular home system affected cannot be fixed, or is uneconomical to repair, it will be replaced in accordance with the Terms and Conditions of your Plan. This plan coverage includes the home central heating and air conditioning system, electrical system, water heater, emergency plumbing, and ancillary repairs. Home system coverage is only available for homeowners who have purchased this plan and have a home in British Columbia, Manitoba, Ontario, Quebec, Nova Scotia or Prince Edward Island.

Refer to the Terms and Conditions for a full list of detailed terms, conditions, limitations and exclusions. For the complete list of services please refer to the “What Services Are Provided?” section.
Home Appliance Service Plan When a home appliance is not working within a residential home protected with a home appliance service plan, service will be arranged by MCAP to send a Qualified Repair Technician (“QRT”) to your Home to assess and examine any appliance (as defined under the Terms and Conditions under the heading , What Services Are Provided?) affected. If the QRT determines the unit in need of service cannot be fixed, or is uneconomical to repair, it will be replaced in accordance with the Terms and Conditions of your Plan. This plan coverage includes the home range, oven and cook top (gas or electric), clothes washer and dryer, kitchen refrigerator and freezer, and dishwasher. Home appliance coverage is only available for homeowners who have purchased this plan and have a home in Alberta.

Refer to the Terms and Conditions for a full list of detailed terms, conditions, limitations and exclusions. For the complete list of services please refer to the “What Services Are Provided?” section.
Holdback Any principal payments made to your Home Equity Line of Credit are not immediately available for withdrawal, and can take up to 10 days to become available. During this time, these funds are considered on “hold” while we ensure the principal payment clears with your Financial Institution.
Interest Adjustment Amount (IAA) When changing a payment date or payment frequency, it can create a gap in time where there is no regular mortgage payment to cover certain days that mortgage funds were still lent. There is still interest due for these days that are not covered by a mortgage payment, so a separate interest-only payment (referred to as an interest adjustment amount) is collected. An important concept to remember is that mortgage payments pay backwards, so an interest adjustment amount is a collection of daily interest due for days in the past that were not covered by a regular mortgage payment.
Interest Adjustment Date (IAD) A payment date of interest only, typically before the first regular payment date, if the date your mortgage starts (or next payment date) does not correspond with the requested payment due dates.
The interest adjustment date is the date the interest adjustment amount is due and will be debited from your account.
For example:
• You currently make your mortgage payments monthly on the 1st and want to change the payments to the 10th of the month.
• Your next monthly payment is due on January 1st.
• Your new payment would be on February 10th and the Interest Adjustment Date would be January 10th.
• You would have to make an Interest Adjustment payment for the interest owing from January 1st to January 9th.
• To determine the number of days of interest adjustment count the number of days starting on the 1st and up to and including the 9th.
Loan change fee This fee applies if a change is made to your mortgage such as a frequency or due date change in the middle of a mortgage term. This does not apply for changes being made during the renewal of a mortgage. All fees are indicated on your mortgage commitment documents. Please contact customer service to determine the fees in effect at any particular time.
Lump Sum An additional amount of money applied towards the principal balance, usually restricted to a maximum amount per anniversary year, based on the mortgage agreement. These payments can be made on any payment due date, provided there is a minimum payment amount of $100.00. Making a lump sum payment results in a decrease to the outstanding principal balance and remaining amortization on the mortgage. The regular payment amount remains the same. Lump sum payments can be made once or on-going, meaning they happen on every regular payment date.
Maturity Date The date on which the term of the mortgage expires; the mortgage must be either paid out in full or renegotiated for another term.
Monthly Payments Payments occur once a month, on the same specific date each month.
Next Payment Date When making a change to the payment schedule, the first payment date after the change takes effect.
Non-Accelerated Payments Non-Accelerated payments means you may have a slightly lower payment, but the mortgage will be amortized over a longer period, taking longer to pay off. Monthly (12) and semi-monthly (24) payment plans are always non-accelerated, while bi-weekly (26) and weekly (52) can be either accelerated or non-accelerated.
Other Amount Any amount reported under Other Amount consists of fees, adjustments and pending mortgage payments.
P&I Principal and interest portion of a mortgage payment.
Payment Date Change A request to change the due date of the mortgage payments. Not to be confused with a payment frequency change, a payment date change entails keeping the payment frequency and payment amount the same, but just changing the date that the mortgage payment is due on. For example, if your mortgage payment is due monthly on the 1st of each month, but your employer does not pay you until the 10th of the month, you may benefit from a payment date change. When you make a payment date change, an interest adjustment amount will be due to cover the span of time between the last payment collected and the new payment date.
Payment Decrease Reducing the principal and interest portion of a mortgage payment. This would cause the remaining amortization to increase, which results in an increase to the number of years to pay off the mortgage.
Payment Due Date The specific date the regular mortgage payments are due.
Payment Frequency How often regular mortgage payments are withdrawn to repay the mortgage. The available options are typically monthly, semi-monthly, bi-weekly, and weekly.
Payment Frequency Change A request to change how often the mortgage payments are withdrawn. A payment frequency change entails switching between two of the available payment frequencies, typically resulting in the payment amount changing as well. If the last payment in the old frequency and first payment in the new frequency don’t line up based on the new frequency, an interest adjustment amount is typically due in between.
Payment Increase Increasing the principal portion of a mortgage payment. This would cause the remaining amortization to decrease, lower the amount of interest paid overall, and decrease the number of years it will take to pay off the mortgage. The increased portion of the payment goes directly towards the principal balance of the mortgage.
Principal & Interest Principal is the money used to pay down the balance of the mortgage. Interest is the charge you pay for borrowing money.
Principal Balance Actual amount of the mortgage loan balance still owing.
Privilege Payment Depending on your mortgage product you may have some prepayment options available to you. These include making lump sum payments towards the balance of the mortgage and/or increasing your regular payments. Any prepayments made will not affect your regularly scheduled payments but will shorten your Amortization Period and will change the amount of your regular payment that goes towards principal vs interest.
Property Tax Service With each mortgage payment, MCAP will collect an additional portion of money for your estimated property taxes and place it in a Tax Savings Account, separate from your mortgage account. When the tax bill arrives, MCAP ensures it’s fully paid on time on your behalf. MCAP’s property tax service is complimentary.
Remaining Amortization Represents the actual time it will take to pay off the mortgage in full, based on the current principal balance, interest rate, payment amount and payment frequency.
Semi-Monthly Payments Payments occur on two specific days each month, with 15 days in between the dates. Available dates:
1st and 16th
2nd and 17th
3rd and 18th
4th and 19th
5th and 20th
6th and 21st
7th and 22nd
8th and 23rd
9th and 24th
10th and 25th
11th and 26th
12th and 27th
13th and 28th
14th and 29th or last of the month
15th and last day of the month
Source Of Funds Before your privilege payment can be processed, you are required to declare the origin of the funds being used for this transaction. Example of this may include, "savings from income earned", "liquidation of investments", "sale of other property", etc. MCAP is required to collect this information in order to comply with Canada's anti-money laundering and anti-terrorist financing legislation – Proceeds of Crime (Money Laundering) and Terrorist Financing Act of Canada and its associated regulations.
Tax Account Balance The amount of funds currently available in your tax account to be used to pay upcoming tax bills from your municipality. A negative number indicates a credit balance, meaning there are available funds in your tax account to be applied to the next property tax installment due. A positive number indicates a shortfall, meaning that you are in the process of paying us back for property taxes paid on your behalf.
Tax Estimate Expected amount of annual property taxes to be due for the upcoming tax year. This estimate is an approximate calculation based on several factors including previous bill payments and estimates, as well as information provided by your municipality. It is common for this figure to be 2-5% higher than the actual amount paid last year to account for increases on future taxes charged by your municipality.
Tax Portion The amount collected with each principal & interest mortgage payment to cover the annual property taxes.
Term The length of time the mortgage agreement lasts, regarding interest rates and repayment terms. At the end of the term, the entire balance may be paid off or the mortgage renewed for another term.
Total Payment Amount The entire payment amount to be withdrawn: including principal, interest, property taxes (if applicable), and any other ancillary products (if applicable).
Weekly Payments Payments occur on a day from Monday to Friday, payment is every 7 days.
Weekly Withdrawal Limit The amount of funds available for withdrawal on your Home Equity Line of Credit on a weekly basis is $25,000 subject to your available credit. To exceed this weekly limit, please contact our Mortgage Solutions Centre at 1-800-265-2624. Please be prepared to confirm the name of your financial institution and your bank account number to ensure funds are deposited into the correct account.