Glossary

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There are 2 names in this directory beginning with the letter P.
Posted Mortgage Rates
The mortgage rates that some lenders typically, publicly advertise. Oftentimes posted rates are higher than what a lender is willing to offer a negotiating borrower. The posted rate is typically not the mortgage contract interest rate, but it is nevertheless of paramount importance since lenders typically use posted rates to determine mortgage pre-payment penalties. Posted rates are used for mortgage penalty calculations because they could be substantially higher than the contract rate and thus they elevate the rate differential between the posted rate and contract rate. The larger rate differential, in turn, elevate the penalties payable to the lender by the borrower if a mortgage is broken mid-term, which serves as a bigger deterrent to borrowers to break their mortgages and leave that lender.

Private Mortgage Lenders
These are non-traditional mortgage lenders that are not governed by Federal or Provincial Government Rules that lend money to borrowers that cannot and/or don’t want to meet the Covenant requirements of regulated mortgage lenders. Private lenders can be individuals or companies and charge up-front lending fees together with substantially higher interest rates to reflect their perceived lending risks.