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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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Rate


Synonyms:interest rate, mortgage rate
Filed Under: financial-banking, investments, mortgages
Tags: banking, investment, mortgage
 

Definition of rate

rate
1. An amount of a charge, either expressed as a percentage of, or a fee relative to some basis.
2. In relation to mortgage, it is the percentage paid by a borrower for the use of money which is generally expressed as an annual percentage.

Related Terms and Acronyms:

  • amortization table   A mathematical formula used to calculate monthly mortgage payments based on the borrowed loan amount, the interest rate, and the loan term.
  • bank spread   The difference between the interest rate a bank charges a borrower and the interest rate a bank pays a depositor.
  • capitalization rate   An estimated percentage rate of return that a property will produce on the owner's investment.
  • interest rate (IR)   The rate a lender charges an individual to borrow money.
  • monthly periodic rate   The interest rate factor used to calculate the interest charges on a monthly basis. The factor equals the yearly rate divided by 12.
  • mortgage rate   The interest rate on a mortgage loan.
      ➥  You can compare mortgage rates using this website by clicking 'Rates' above.
  • note rate   The percentage paid by a borrower for the use of money, usually expressed as an annual percentage on a promissory note.
  • point   A point equals 1 percent of a mortgage loan. Some lenders charge "origination points" to cover expenses of making a loan. Some borrowers pay "discount points" to reduce the loan's interest rate.
  • rate lock-in   A written agreement in which the lender guarantees the borrower a specified interest rate, provided the loan closes within a set period of time.
  • variable rate mortgage (VRM)   Home loan in which the interest rate is changed periodically based on a standard financial index. Also called an "Adjustable-rate Mortgage."
      ➥  A type of mortgage loan offered by brokers and lenders.

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