Interest calculated on both the principal and the accrued interest is known as compound interest. This means that interest is added to the initial principal, and future interest calculations are based on this new total. Over time, this can significantly increase the amount of interest earned or owed, as it compounds both the original amount and the accumulated interest.

*The information provided is for educational purposes only and should not be considered legal advice. For specific legal concerns or questions related to your mortgage, it is always best to consult with a qualified legal professional.*

Mortgage Education

  • Total Debt Service Ratio (TDS)

    The percentage of gross income allocated for payments of principal, interest, taxes, and heat (P.I.T.H.), along with other debt obligations, [...]

  • Title Insurance

    Title insurance protects property owners and lenders from financial loss due to defects in the title of real property. These [...]

  • Breaking Your Mortgage Contract in Canada

    Breaking a mortgage contract in Canada is a significant decision that can have various financial implications. Whether you're considering this [...]

  • Variable or Fixed Mortgage Rates

    Fixed vs. Variable Mortgage Rates: Which is Right for You? Choosing between a fixed or variable mortgage rate is a [...]

  • What Are the Different Mortgage Types

    Different Mortgage Types in Canada: A Quick Guide When buying a home in Canada, understanding the various mortgage types available [...]