What does the term "not in advance" refer to in Canadian mortgages?

The term "not in advance" in the context of Canadian mortgages specifically refers to the restriction on making prepayments on the mortgage. In this case, it indicates that the borrower cannot make prepayments before the scheduled anniversary date of the mortgage. Instead, prepayments can only be made once that date arrives. This limitation is typically in place to ensure that the lender receives a certain amount of interest over the course of the loan and to maintain the integrity of the original loan terms.

This term is particularly relevant for borrowers who may wish to pay down their mortgage more quickly than originally scheduled, as they would need to adhere to the prepayment schedule stipulated in their mortgage agreement, rather than having the flexibility to make extra payments at any time.

In contrast to other definitions, the other choices propose concepts that do not align with the specific constraints related to timing for prepayments, such as outright disallowance of prepayment options or the treatment of interest calculations, which are not the focus of the term "not in advance."