Canadian Maple Leaf Licensing Info: Alberta Mortgage #MW-0511205,
FSCO (Ontario) #10315,
Saskatchewan Mortgage #315872, and all other provinces.
Division of

The Mortgage Group®


Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
50% - Moderately

Interest Adjustment Date

Filed Under: financial-banking, mortgages
Tags: banking, mortgage

Definition of interest adjustment date

interest adjustment date
1. The date one month prior to commencement of amortization - when accrued interest computed on the monies advanced becomes due.

Related Terms and Acronyms:

  • amortization   Amortization refers to the process of gradually paying down the principal of a loan. Each payment toward the principal reduces your loan by that amount. This is different than an interest-only loan payment where the principal balance is never reduced. Amortization for a mortgage loan in Canada is normally 25 years, but can be as few as 5 years.
  • amortization schedule   A detailed table showing the amortization of a loan which includes the beginning principal amount, period payments, the interest portion of each payment, the principal reduction portion each payment, and the ending balance. The Canadian Equity Group has developed a mortgage rate calculator which will generate a perfect example of an amortization schedule.
  • annual percentage rate (APR)   A yearly rate of interest that includes fees and costs paid to acquire the loan. Lenders are required by law to disclose the APR. The rate is calculated in a standard way, taking the average compound interest rate over the term of the loan, so borrowers can compare loans. In mortgages, it is the interest rate of a mortgage when taking into account the interest, mortgage insurance, and certain closing costs including points paid at closing. There is no APR in an automobile lease; instead, the cost of money is expressed as the money factor.
      ➥  A number used to compare costs associated with mortgage loans and other forms of financing.
  • interest factor   The decimal equivalent for an interest rate on a unit amount for a period of time. Computed by interest rate divided by number of days in a basic year times the number of days accrued.
  • interest rate (IR)   The rate a lender charges an individual to borrow money.
  • loan   Letting another party use something of value temporarily.
  • maturity   The date when the principal balance of a loan is due and payable to the lender. Also, the date when a bond pays off its principal.
  • mortgage (mtg)   A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
  • pre-computed loan   With a pre-computed loan, the interest owed over the life of the loan is calculated using a standard amortization table. After signing for this type of vehicle loan, the borrower is obligated to pay back principal plus the full amount of interest that will accrue over the entire term of the loan.
  • principal   The original balance of money lent on an outstanding loan and fees, excluding interest. Also the remaining balance of a loan, excluding interest.

More Related Terms and Acronyms

Search the Glossary

Mortgage Rates
Just a small difference in rates can save you tens of thousands of dollars on your mortgage, so now just imagine what an even bigger difference will do. Take advantage of our very low mortgage rates and apply today.
Mortgage Rates
Important Tip on Credit Card Debt
Credit card interest rates average at around 18.9 per cent. You, like many other Canadians, may have over ten thousand dollars charged to your credit card, but, if you only make the minimum required monthly payment of 2 per cent ($200 the first month) that $10,000 in credit card debt will ultimately take more than 57 years and cost around 40,000 dollars to fully pay off.

Using a home equity loan will allow you to eliminate the high interest credit card (and by eliminate we mean cut up) and consolidate the debt to a low interest rate mortgage payment.
Mortgage Brokers Work for You
A mortgage broker works for you, and not the bank. Unlike bank employees, brokers are not obligated to give you a mortgage product from any one lender or source, which means that you can count on a broker to find many great mortgage products with lots of options and low rates, all suited with your best interests in mind.
Mortgage Brokers Work For You