A mortgage is a legally binding agreement that states a certain party (mortgagor) lends money to another party (mortgagee). The mortgagee agrees to pay back the money at a certain rate, plus interest, over a certain time period.
When you are considering a mortgage, you have many options to consider such as type of mortgage (closed, open, high ratio, vendor take back, convertible), payment schedule (weekly, bi-weekly, monthly) amortization period.
To qualify for a conventional mortgage, you need a down payment of 25% of the purchase price. The mortgage cannot exceed 75% of the appraised value. If you have less than the 25%, you may qualify for a high ratio mortgage. If you qualify, you can purchase a home with a minimum 5% down payment through CMHC (Canada Mortgage and Housing Corporation). Insurance, for an additional 0.5% to 2.75% of the mortgage amount, is mandatory with a high ratio mortgage.
For additional information and for competitve mortgage rates, contact your local financial institution.