|
Buyer Resources
Calculators
Understanding Market Conditions
Obtaining a Pre-Approved Mortgage
The Elements of an Offer
How to Make an Offer
Hire a Legal Professional
Have The Home Inspected
Mortgage Insurance
Glossary of Terms
Residential Costs
Land Transfer Tax
Plan Your Move
|
Glossary of Terms AMORTIZATION PERIOD:
The actual number of years it will take to pay back your mortgage loan.APPRAISED VALUE:
An estimate of the value of the property. Conducted for the purpose of mortgage lending by a certified appraiser. This appraisal is not to be confused with a building inspection.ASSUMABILITY:
Allows the buyer to take over the seller's mortgage on the property.CLOSED MORTGAGE:
A mortgage that locks you into a specific payment schedule. A penalty usually applies if you repay the loan in full before the end of a closed term.CONDOMINIUM FEE:
A common payment among owners which is allocated to pay expenses.CONVENTIONAL MORTGAGE:
A mortgage loan issued for up to 75% of the property's appraised value or purchase price, whichever is less.DOWN PAYMENT:
The buyer's cash payment toward the property. The difference between the purchase price and the amount of the mortgage loan.EQUITY:
The difference between the home's selling value and the debts against it.HIGH-RATIO MORTGAGE:
A mortgage that exceeds 75% of the home's appraised value. These mortgages must be insured for payment.INTEREST RATE:
The value charged by the lender for the use of the lender's money. Expressed as a percentage.LAND TRANSFER TAX, DEED TAX OR PROPERTY PURCHASE TAX:
A fee paid to the municipal and /or provincial government for the transferring of property from seller to buyer.MATURITY DATE:
The end of the term, at which time you can pay off the mortgage or renew it.MORTGAGEE:
The person of the financial institution that lends the money.MORTGAGE INSURANCE:
Applies to high-ratio mortgages. It protects the lender against loss if the borrower is unable to repay the mortgage.MORTGAGE LIFE INSURANCE:
Pays off the mortgage if the borrower dies.MORTGAGOR:
The borrower.OPEN MORTGAGE:
Allows partial or full payment of the principal at any time, without penalty.PORTABILITY:
A mortgage option that enables borrowers to take their current mortgage with them to another property, without penalty.PRE-APPROVED MORTGAGE:
Qualifies you for a mortgage before you start shopping. You know exactly how much you can spend and are free to make a "firm" offer when you find the right home.PREPAYMENT PRIVILEGES:
Voluntary payments in addition to regular mortgage payments.PRINCIPAL:
The amount borrowed or still owing on a mortgage loan. Interest is paid on the principal amount.REFINANCING:
Paying off the existing mortgage and arranging a new one or re-negotiating the terms and conditions of an existing mortgage.RENEWAL:
Re-negotiation of a mortgage loan at the end of a term for a new term.SECOND MORTGAGE:
Additional financing. Usually has a shorter term and higher interest rate than the first mortgage.TERM:
The length of time the interest rate is fixed. It also indicates when the principal balance becomes due and payable to the lender.TITLE:
Legal ownership in a property.VARIABLE-RATE MORTGAGE:
A mortgage with fixed payments, but fluctuates with interest rates. The changing interest rate determines how much of the payment goes towards the principal.VENDOR TAKE-BACK MORTGAGE:
When the seller provides some or all of the mortgage financing in order to sell their property.
|