Terminology Tuesday: Amortization

If you’ve ever looked at a mortgage breakdown and wondered why most of your early payments seem to go toward interest rather than the loan itself, you’re already brushing up against the concept of amortization.

Amortization refers to the total length of time it takes to pay off your mortgage in full, assuming regular payments and a consistent interest rate. In Canada, the most common amortization period is 25 years, though longer or shorter options may be available.

Here’s how it works: your mortgage payment is structured so that you pay both principal (the amount you borrowed) and interest (the cost of borrowing) with each payment. However, in the early years of the mortgage, a larger portion of your payment goes toward interest. Over time, that balance gradually shifts, and more of each payment starts reducing the principal.

Think of amortization as the timeline of your debt payoff. A longer amortization period (like 30 years) typically means lower monthly payments, but you’ll pay more interest overall. A shorter amortization (like 20 years) increases your monthly payment but helps you save significantly on interest and become mortgage-free sooner.

It’s also important not to confuse amortization with your mortgage term. The term is the length of your contract with a lender (often 3–5 years), while amortization is the full schedule to pay off the loan.

Understanding amortization helps you make smarter decisions about your mortgage—whether you’re buying your first home or planning how to pay it off faster.

Market Media Monday - March 16, 2026

A curated list of recent headlines relevant to real estate in Canada or locally, with short excerpts. Click each headline link to read the full article on the source site.

[ CMHC reports February housing starts up 4.5 per cent from January ]
"Canada Mortgage and Housing Corp. says the annual pace of housing starts rose 4.5 per cent in February. The national housing agency said the seasonally adjusted annual rate of housing starts was 250,900 units in February compared with 240,148 units in January."

[ Canada inflation cools as Iran war clouds next BoC move ]
"Canada’s inflation downshift in February landed at exactly the moment policymakers least wanted a surprise. Annual CPI eased to 1.8%, undercutting economist expectations of 1.9% and moving below the Bank of Canada’s 2% target just as the Iran war pushed global oil prices sharply higher."

[ Homeowners with stronger credit scores are increasingly defaulting on mortgage payments ]
"Homeowners with stronger credit scores are increasingly defaulting on their mortgage payments, an alarming trend that reveals the impact of higher mortgage rates on traditionally lower-risk borrowers."

When will I actually get the keys?

You've bought your next house and you're excited because the big day is coming.  But now you have to plan and coordinate the move.  And of course, one of the most usual questions is: when will I actually get the keys for the new place?

This can vary a bit, depending on a number of factors.  In my experience, the transaction often closes by noon and you can get your keys.  The lawyers typically have everything all set to go a couple days before closing, so it's usually a relatively smooth process.  Of course, surprises do sometimes pop up that need to be dealt with on the fly, but these are usually addressed by the title search date.

And even if there are no problems, the closing is dependent on the lawyer receiving the money from your mortgage company.  Some lenders are better at being prompt than others.  Or if you're selling as well as buying, and you require the proceeds of the sale toward the purchase, then the lawyer could be held up waiting for your sale to close before closing your purchase.  Which also could be held up by the other buyer's mortgage lender, among other things.

The standard wording in the Ontario Real Estate Association's Agreement of Purchase and Sale requires the deal to close "no later than 6:00pm".  So, while you will often have the keys earlier in the day, it's safest to be prepared to wait until the end of the business day, around 4:30 or 5:00pm.  I have occasionally seen them squeak through that late.  You just hope it doesn't get held over to the next day... It doesn't happen often, but it's not impossible.

Terminology Tuesday: FINTRAC

FINTRAC stands for the Financial Transactions and Reports Analysis Centre of Canada. It is Canada’s financial intelligence unit, responsible for detecting, preventing, and deterring money laundering and terrorist financing. In the real estate world, FINTRAC regulations require brokerages and real estate professionals to verify client identities, keep specific records, and report certain types of transactions.

If you’ve bought or sold property in Canada, you’ve likely been asked to provide identification and answer questions about the source of your funds. That process isn’t random — it’s part of the federal anti-money laundering and terrorist financing regulations overseen by FINTRAC.

For buyers and sellers, this often means:

• Providing valid government-issued photo ID
• Confirming whether you’re acting on your own behalf or for someone else
• Disclosing beneficial ownership information (in certain cases)
• Answering questions about large cash transactions or unusual payment structures
  
• Confirming whether you are a Politically Exposed Person or a Head of International Organization

While it can sometimes feel like extra paperwork, these requirements help protect the integrity of Canada’s housing market. Real estate has historically been a target for money laundering, and FINTRAC’s oversight is designed to increase transparency and accountability across the industry.

In short, when your REALTOR® asks for identification or additional documentation, it’s not about inconvenience — it’s about compliance with federal law and protecting both clients and the broader real estate market.

Market Media Monday - March 2, 2026

A curated list of recent headlines relevant to real estate in Canada or locally, with short excerpts. Click each headline link to read the full article on the source site.

[ Canada's housing market suffers largest price decline among major economies, says BIS ]
"Canada’s residential housing market has experienced the largest decline in housing prices among similar advanced economies, according to the Bank for International Settlements (BIS)."

[ TD sees muted housing rebound as BoC pauses ]
"TD Economics’ latest outlook painted a cooler picture for Canada’s housing market, even as it argued the Bank of Canada is likely to sit tight at a 2.25% policy rate. Chief economist Beata Caranci said the mortgage “renewal cliff” has turned into “looking like a hill,” but warned that softer demand and regional imbalances still weighs on any recovery."

[ ‘We need market certainty’: Just 269 new homes sold in Toronto region last month ]
"Only 269 new homes sold in the Toronto area last month despite record high levels of inventory, a new report states. The data, compiled by the Building Industry and Land Development Association (BILD)’s Altus Group, indicates that new home sales in January were down 36 per cent from last January and are 80 per cent below the 10-year average."

[ Canada's industrial real estate markets on different trajectories ]
"Canada’s industrial real estate markets are advancing at an uneven pace, with some regions more acutely affected by ongoing trade disruptions and others showing greater resilience, according to Royal LePage’s 2026 Commercial Real Estate Report."

The Importance of a Mortgage Pre-Approval

Before you start house hunting, one of the smartest first steps you can take is securing a mortgage pre-approval. While it’s not a guarantee of final financing, a pre-approval gives you a clear picture of what you can afford and positions you as a more confident, prepared buyer in a competitive market.

A proper mortgage pre-approval involves a lender reviewing your income, credit history, debts, and down payment to determine the price range they’re willing to lend — often locking in an interest rate for a set period of time. This helps protect you from rate increases while you search and ensures you’re shopping within realistic financial boundaries, avoiding disappointment or overextension.

The pre-approval process may identify missing paperwork so you can take care of getting that ahead of time instead of rushing at the last minute. And if there are any surprise issues with your credit history, you may need to address them first.

From another practical standpoint, pre-approved buyers are also taken more seriously by sellers. When receiving an offer on behalf of a seller client, I certainly always ask the buyer agent where their buyer is with that, making sure they are working with a bank or broker and have got a pre-approval. In multiple-offer situations, a strong pre-approval may strengthen your offer and reduce concerns about financing risk. When paired with guidance from an experienced REALTOR®, it allows you to act quickly and decisively when the right home comes along — a major advantage in any real estate market.

In short, a mortgage pre-approval isn’t just a formality — it’s a powerful planning tool that brings clarity, confidence, and credibility to your home-buying journey.

If you're thinking about buying a home, I can refer you to a great mortgage broker who will look after your best interests. Call or email, and let's get you moving!

Terminology Tuesday: Deposit

When buying a home, one of the first financial steps a buyer makes is providing a deposit — but many people misunderstand what it actually means.

Simply put, a deposit is money the buyer submits when an offer is accepted to show they are serious about purchasing the property. Think of it as a good-faith commitment to move forward with the transaction. In that spirit, in some areas a deposit is called "earnest money" or even "good faith deposit".

The deposit doesn’t go directly into the seller’s pocket, though. Instead, it’s typically held in trust in the listing brokerage's trust account, or by a lawyer if no brokerage is involved, until closing. 

A deposit serves a few important purposes. First, it shows commitment, affirming to the seller that the buyer intends to complete the purchase. Second, this commitment makes the seller more comfortable taking their home off the market as sold. And finally, it's a bit of protection for the seller - if the buyer fails to meet the terms of the agreement without a valid reason, the deposit may be forfeited to the seller as compensation.

One point of terminology confusion is 'deposit' versus 'down payment'. The deposit is paid shortly after the offer is accepted to secure the deal. The down payment is the amount of the purchase price that a buyer is paying on their own, above whatever mortgage they are getting, and is paid on closing. The deposit is simply credited toward the down payment later. 

As for how much a deposit needs to be, there’s no universal number — it varies depending on the market, location, and price of the home. It's often around 5% but can ultimately be whatever is agreed to in the offer negotiation process. In competitive markets, stronger deposits may make an offer more appealing, but the right amount should always fit the buyer’s comfort level and financial plan. A listing also typically includes a requested deposit amount and if the buyer is able to meet that request that is one less point of consideration or potential objection for the seller.

The bottom line is that a deposit is more than just money — it’s a statement of intent. Understanding how it works helps buyers feel more confident and helps sellers feel secure when moving forward with a sale. 

If you’re buying or selling and have questions about deposits or offer terms, always speak with a qualified real estate professional who can explain how it applies in your specific situation.