Name: LendCity Mortgages
Address: 4769 Wyandotte St E, Windsor, Ontario, N8W 5M8, CA
Telephone: +1-519-960-0370
Price range: $
Rating: 5.0

A

Amortization: The period over which a mortgage is scheduled to be fully paid off through regular payments of principal and interest. In Canada, common amortization periods are 25 or 30 years, though the mortgage term (when you renegotiate) is typically 1-5 years.
Appraisal: A professional assessment of a property's market value, required by lenders to ensure the property is worth the loan amount.
Appreciation: The increase in a property's value over time, which builds equity and wealth for the owner through market growth or forced improvements.
Assumable Mortgage: A mortgage that can be transferred to a new buyer along with the property, keeping the original terms and rate. Can be valuable when rates are higher.

B

B Lender: Alternative lenders that serve borrowers who don't qualify with major banks, offering slightly higher rates with more flexible criteria.
Bank of Canada: Canada's central bank that sets the overnight lending rate, which influences prime rates and mortgage costs across the country. Rate decisions directly impact variable mortgage rates and overall borrowing costs for real estate investors.
Blanket Mortgage: A single mortgage that covers multiple properties, often used by investors to simplify financing for a portfolio. Allows release of individual properties as they're sold.
Bridge Financing: Short-term financing (90 days to 1 year) that covers the gap between purchasing a new property and selling or refinancing another. Investors use bridge loans to act quickly on deals or fund renovations before long-term financing is in place.
BRRRR: Buy, Rehab, Rent, Refinance, Repeat - a real estate investment strategy where you purchase a property below market value, renovate it to increase value, rent it out, refinance to pull out your initial investment, and repeat the process with the recovered capital.
Business Acquisition Financing: Loans used to purchase an existing business, typically qualified based on the business's net operating income and historical financials. Some programs can cover up to 100% of the purchase price for qualified buyers.

C

Cap Rate: Capitalization Rate - the ratio of a property's net operating income (NOI) to its current market value or purchase price. A 6% cap rate means the property generates $60,000 NOI annually on a $1,000,000 value. Used to compare investment properties regardless of financing.
Cash Flow: The money left over after collecting rent and paying all expenses including mortgage, taxes, insurance, maintenance, and property management.
Cash-on-Cash Return: A metric that measures the annual pre-tax cash flow relative to the total cash invested in a property. Calculated as annual cash flow divided by total cash invested, expressed as a percentage. A 10% cash-on-cash return means you earn $10,000 annually on a $100,000 investment.
Cash-Out Refinance: Refinancing for more than you owe to pull out equity as cash, often used to fund down payments on additional investment properties.
Closing Costs: Fees paid when completing a real estate transaction, including legal fees, land transfer tax, title insurance, appraisals, and adjustments.
CMHC Insurance: Mortgage default insurance from Canada Mortgage and Housing Corporation. For 1-4 unit investment properties, investors must put 20%+ down (no insurance available). However, CMHC offers MLI Select for 5+ unit multifamily properties, and house hackers can access insured mortgages with 5-10% down.
CMHC MLI Select: A CMHC program offering reduced mortgage insurance premiums and extended amortization (up to 50 years) for multifamily properties with 5+ units that meet energy efficiency or accessibility standards. Popular among investors scaling into larger apartment buildings.
Commercial Lending: Financing for commercial real estate or business purposes, typically qualified based on property income (NOI) rather than personal income. Includes mortgages for multifamily buildings (5+ units), retail, office, and industrial properties.
Commercial Mortgage: Financing for commercial properties like retail, office, or multifamily buildings with 5+ units, with different qualification criteria than residential mortgages.
Conventional Mortgage: A mortgage with 20% or more down payment, not requiring default insurance. This is the standard financing type for investment properties in Canada, as high-ratio (insured) mortgages aren't available for pure rentals.
Coverage Ratio: A measure of a property's ability to cover its debt payments, typically referring to DSCR. Commercial lenders often require a minimum of 1.2, meaning the property's net operating income exceeds debt payments by at least 20%.
Credit Score: A numerical rating (300-900 in Canada) that represents your creditworthiness, affecting mortgage rates and approval. 680+ is typically needed for best rates.
Credit Utilization: The percentage of your available credit that you're using. Keeping this under 30% helps maintain a healthy credit score.

D

Debt Consolidation: Combining multiple debts into a single loan, often through refinancing your mortgage. Can lower overall interest costs and simplify monthly payments.
Down Payment: The upfront cash payment when purchasing a property. For 1-4 unit investment properties, minimum 20% down is required. 5+ unit multifamily can use CMHC MLI Select with lower down payments, and house hackers can put as little as 5% down on owner-occupied 2-4 plexes.
DSCR: Debt Service Coverage Ratio - a metric that compares a property's net operating income to its mortgage payments. A DSCR of 1.25 means the property generates 25% more income than needed to cover the debt. Lenders typically require a minimum DSCR of 1.0 to 1.25 for investment property loans.
DSCR Loan: A loan qualified based on the property's Debt Service Coverage Ratio rather than the borrower's personal income, popular for US investment properties.
Due Diligence: The comprehensive investigation and analysis of a property before purchase, including financial review, physical inspection, title search, and market analysis.

E

Equity: The difference between a property's current market value and the remaining mortgage balance. If your home is worth $500,000 and you owe $300,000, you have $200,000 in equity. Equity builds through mortgage payments, appreciation, and property improvements.
Equity Takeout: Accessing the equity in your property through refinancing or a HELOC to use for other investments, renovations, or purposes.

F

FIRPTA: Foreign Investment in Real Property Tax Act - a US tax law requiring buyers to withhold taxes when purchasing real estate from foreign sellers. Important for Canadians selling US properties.
Fixed Rate Mortgage: A mortgage where the interest rate stays the same for the entire term, providing predictable monthly payments regardless of market changes.
Fixer-Upper: A property that needs repairs or renovations, typically priced below market value. Often targeted by investors using BRRRR or fix-and-flip strategies.
Foreign National Loan: Mortgage programs designed for non-US citizens investing in American real estate, with specific documentation and down payment requirements.

G

GDS: Gross Debt Service ratio - the percentage of gross income needed to cover housing costs (mortgage, taxes, heating). Maximum typically 39%. For investors, rental income from the property can offset these costs through rental offset calculations.

H

HELOC: Home Equity Line of Credit - a revolving credit line secured against your home's equity, allowing you to borrow as needed up to a set limit.
High-Ratio Mortgage: A mortgage with less than 20% down, requiring default insurance. Not available for 1-4 unit investment properties in Canada. However, 5+ unit multifamily can access CMHC MLI Select, and house hackers in owner-occupied 2-4 plexes can use insured financing.
House Hacking: Living in one unit of a multi-unit property while renting out the others to offset your mortgage payments and living expenses.

I

Interest Rate: The cost of borrowing money, expressed as a percentage. It determines how much you pay on top of the principal borrowed.
IRD: Interest Rate Differential - a mortgage penalty calculation based on the difference between your rate and current rates for the remaining term.
ITIN: Individual Taxpayer Identification Number - a US tax ID for foreign nationals, required for Canadians to invest in US real estate and file US taxes.

J

Joint Venture: A partnership between two or more parties to invest in real estate, combining capital, expertise, or credit to complete a deal.

L

Land Transfer Tax: A provincial tax paid when purchasing property, calculated as a percentage of the purchase price. Some cities like Toronto add additional municipal tax.
Lease Option: An agreement giving a tenant the right (but not obligation) to purchase the property at a predetermined price within a specified timeframe while renting.
Leverage: Using borrowed money (mortgage) to control a larger asset, amplifying both potential returns and risks on your investment.
LLC: Limited Liability Company - a US business structure commonly used to hold investment properties, providing liability protection and tax flexibility.
LTV: Loan-to-Value ratio - the mortgage amount expressed as a percentage of the property's appraised value or purchase price (whichever is lower). An 80% LTV means you're borrowing 80% and putting 20% down. Lower LTV generally means better rates and terms.

M

Market Value: The estimated price a property would sell for on the open market under normal conditions. Determined by comparable sales, location, condition, and market demand.
Mortgage Broker: A licensed professional who shops multiple lenders to find the best mortgage rates and terms for borrowers. Unlike banks, brokers have access to dozens of lending options.
Mortgage Penalty: A fee charged for breaking your mortgage early, calculated as either 3 months' interest or the Interest Rate Differential (IRD), whichever is greater.
Mortgage Stress Test: A federal requirement to qualify at the higher of your contract rate +2% or the benchmark rate (around 5.25%). For investors, rental income can be used to offset this calculation, though lenders typically only count 50-80% of expected rent.
Mortgage Term: The length of time your mortgage contract and interest rate are in effect. Typically ranges from 1 to 5 years in Canada, after which you renew or refinance.
Multifamily: Properties with multiple dwelling units, from duplexes to large apartment buildings. Often offer better cash flow and economies of scale.

N

NOI: Net Operating Income - the total income a property generates minus all operating expenses, but before mortgage payments and income taxes. Calculated as gross rental income minus vacancies, property taxes, insurance, maintenance, and property management fees.

P

Passive Income: Earnings from rental properties or investments that require minimal day-to-day involvement. The goal of most real estate investors seeking financial freedom.
Porting: Transferring your existing mortgage to a new property without penalty, keeping your current rate and terms. Useful when moving before your term ends.
Pre-Approval: A conditional commitment from a lender stating your borrowing capacity, valid for 90-120 days. For investors, getting pre-approved helps you move quickly on deals and shows sellers you're a serious buyer with financing in place.
Prepayment Privileges: Terms in your mortgage that allow extra payments without penalty, typically 10-20% of the original balance annually. Helps pay off your mortgage faster.
Prime Rate: The benchmark interest rate set by banks, which influences variable mortgage rates. It typically follows the Bank of Canada's overnight rate.
Principal: The original amount of money borrowed on a mortgage, not including interest. Each mortgage payment includes both principal (paying down what you owe) and interest (the cost of borrowing). Over time, more of each payment goes toward principal as the loan balance decreases.
Private Mortgage: A mortgage from a private lender rather than a traditional bank, typically with higher rates but more flexible qualification requirements.
Property Management: The operation, control, and oversight of real estate by a third party. Property managers handle tenant screening, rent collection, maintenance, and day-to-day operations.
Purchase Plus Improvements: A Canadian mortgage program that combines the purchase price with renovation costs into a single mortgage, based on the property's after-improvement value.

R

Refinance: Replacing an existing mortgage with a new one, typically to access equity, get a better rate, or change terms. Investors commonly refinance to pull out capital for purchasing additional properties (cash-out refinance) while retaining ownership of the original property.
Rent Roll: A document listing all rental units in a property, including tenant names, lease terms, and rent amounts. Essential for verifying income during due diligence.
Rental Offset: Using a percentage of rental income (typically 50-80%) to help qualify for a mortgage by offsetting property carrying costs.
ROI: Return on Investment - a measure of profitability calculated by dividing net profit by total investment. Used to compare the efficiency of different investments.

S

Seller Financing: A financing arrangement where the property seller acts as the lender, allowing the buyer to make payments directly to them instead of obtaining a traditional mortgage.
Single Family: A detached home designed for one household, the most common property type for beginner real estate investors.
Smith Manoeuvre: A Canadian tax strategy that converts non-deductible mortgage interest into tax-deductible investment loan interest over time.
Stated Income: A mortgage program where income is stated rather than fully documented, designed for self-employed borrowers with complex income situations.
Subject-To: A creative acquisition strategy where you take ownership of a property while the seller's existing mortgage stays in place. You make the payments, but the loan remains in the seller's name.
Syndication: Pooling capital from multiple investors to purchase larger properties, typically structured with general partners (operators) and limited partners (investors).

T

TDS: Total Debt Service ratio - the percentage of gross income needed to cover all debt payments. Maximum typically 44%. Investors can use rental income (50-80% offset) to help qualify, making it possible to scale a portfolio despite existing debts.
Title Insurance: Insurance that protects against losses from defects in title to a property, such as liens, encumbrances, or ownership disputes.
Turnkey Property: An investment property that's fully renovated and often already tenanted, ready to generate income immediately after purchase.

U

Underwriting: The process lenders use to evaluate the risk of a mortgage application, including reviewing credit, income, assets, and property value to determine loan approval.

V

Vacancy Rate: The percentage of rental units that are unoccupied over a given period. A critical factor in cash flow analysis, typically estimated at 4-8% for conservative projections.
Value-Add Property: A property with potential to increase value through renovations, better management, rent increases, or adding units.
Variable Rate Mortgage: A mortgage where the interest rate fluctuates with the prime rate, meaning your payments or amortization can change over time.
Vendor Take-Back: A Canadian term for seller financing where the vendor (seller) provides a mortgage to the buyer for part of the purchase price, often used to bridge financing gaps.

Glossary

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