Mortgage Glossary – U to Z

Variable Rate Mortgage – A mortgage strategy where interest rate is based on the prime rate. Payments may fluctuate when prime changes unless they are set at a specified amount that is higher than the minimum payment required. Rates are usually lower than that of the fixed rates, with greater flexibility within the mortgage.

Vendor Take Back Mortgage – Mortgage financing arranged between the seller of the property and the buyer. The title is transferred to the buyer. Often this type of loan is a second mortgage which the seller is willing to arrange at below market rates to ensure the buyer can purchase the house. Most of these arrangements are not renewable or transferable to the next owner of the house.

Zoning Bylaws – Municipal or regional laws that specify or restrict land use.