a b c d e f g h i j k l m n o p q r s t u v w x y z 0 1 2 3 4 5 6 7 8 9
2
2011search for term
Detailed definition of 2011
a
Amortizationsearch for term
The number of years it takes to repay the entire amount of a mortgage.
Appraisalsearch for term
An estimate of a property's market value, used by lenders in determining the amount of the mortgage.
Appreciationsearch for term
The increase of a property's value over time.
Assessmentsearch for term
The value of a property, set by the local municipality, for the purposes of calculating property tax.
Assumable Mortgagesearch for term
A mortgage held on a property by the seller that can be taken over by the buyer, who then accepts responsibility for making the mortgage payments.
b
Benchmark propertysearch for term
A property against which other properties can be evaluated.
Blended Mortgagesearch for term
A combination of two mortgages, one with a higher interest rate than the other, to create a new mortgage with an interest rate somewhere between the two original rates.
Blended Mortgage Paymentssearch for term
Equal or regular mortgage payments, consisting of both a principal and an interest component. With each successive payment, the amount applied to interest decreases and the amount applied to the principal increases, although the total payment doesn't change. (Exception
Buy-Downsearch for term
When the seller reduces the interest rate on a mortgage by paying the difference between the reduced rate and market rate directly to the lender, or to the purchaser, in one lump sum or monthly installments.
c
Closed Mortgagesearch for term
A mortgage that cannot be prepaid, renegotiated or refinanced during its term.
Closingsearch for term
The real estate transaction's completion, when the parties involved agree that all legal and financial obligations have been met, and the deed to the property is transferred from the seller to the buyer.
Closing Costssearch for term
Expenses in addition to the purchase price for buying and selling a property.
Closing Datesearch for term
The date on which the title and keys to the property are transferred from the seller to the buyer, and the money is paid.
Common Elementssearch for term
The portions of a condominium development owned in common (shared) by the unit owners.
Common questions about buying and selling a homesearch for term
Detailed definition of Common questions about buying and selling a home
Condominiumsearch for term
Shared ownership in property. Owners have title (ownership) to individual units and a proportionate share in the common elements.
Conventional Mortgagesearch for term
A mortgage loan that does not exceed 80 % of the lending value of the property..
Counteroffersearch for term
One party's written response to the other party's offer during negotiation of a real estate purchase between buyer and seller.
d
Debt Service Ratiosearch for term
The percentage of a borrower's gross income that can be used for housing costs, including mortgage payment and taxes. (and condominium fees, when applicable)
Down Paymentsearch for term
The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.
e
Easementsearch for term
A legal right to use or cross (right-of-way) another person's land for limited purposes. A common example is a utility company's right to run wires or lay pipe across a property.
Encroachmentsearch for term
An intrusion onto an adjoining property. A neighbour's fence, storage shed, or overhanging roof line that partially (or even fully) intrude onto your property are examples of encroachments.
Equitysearch for term
The difference between the price for which a property can be sold and the mortgage(s) on the property. Equity is the owner's stake in the property.
Estoppel Certificatesearch for term
A written statement of a condominium unit's current financial and legal status.
f
First Mortgagesearch for term
The first security registered on a property. Additional mortgages secured against the property are "secondary" to the first mortgage.
First Mortgagesearch for term
The first security registered on a property. Additional mortgages secured against the property are "secondary" to the first mortgage.
Foreclosuresearch for term
A legal process by which the lender takes possession and ownership of a property when the borrower doesn't meet (defaults on) the mortgage obligations.
g
Gross Debt Service Ratiosearch for term
A general rule is that your housing costs (mortgage payments, taxes, heating costs, and 50% of condominium fees, if applicable) should not be more than 32% of your gross monthly income.
Grow opsearch for term
A marijuana-growing operation, usually located in a house.
h
High-ratio Mortgagesearch for term
A mortgage that exceeds 80% of the loan-to-value ratio; must be insured by either the Canada Mortgage and Housing Corporation or a private insurer to protect the lender against default by the borrower who has less equity invested in the property.
HST referendum deadline extended to August 5search for term
Detailed definition of HST referendum deadline extended to August 5
i
Interestsearch for term
The cost of borrowing money.
j
Joint Tenancysearch for term
A form of ownership in which two or more individuals (often spouses) have an equal share in the ownership of a property. In the event of one owner's death, his or her share is automatically transferred to the surviving owner(s), apart from the deceased's will.
l
Leveragesearch for term
Controlling a large asset with a relatively small amount of cash. In real estate, $20,000 down payment (or less) can be used to purchase (control) a $100,000 home, for example.
Liensearch for term
Any legal claim against a property, filed to ensure payment of a debt.
Listing Agreementsearch for term
The contract between the listing broker and an owner, authorizing the REALTOR® to facilitate the sale or lease of a property.
Listing Brokersearch for term
The REALTOR® who signs a contract with an owner to sell the property.
m
Maintenance Feesearch for term
A monthly fee paid by condominium owners for maintaining the development's common areas.
Mortgagesearch for term
A contract between a borrower and a lender. The borrower pledges a property as security to guarantee repayment of the mortgage debt. Lenders consider both the property (security) and the financial worth of the borrower (covenant) in deciding on a mortgage loan.
Mortgage Brokersearch for term
A person or company having contacts with financial institutions or individuals wishing to invest in mortgages.
Mortgage Insurancesearch for term
Government-backed or privately-backed insurance protecting the lender against the borrower's default on high-ratio (and other types of) mortgages.
Mortgage Insurersearch for term
In Canada, high-ratio mortgages (those representing greater than 80% of the property value) must be insured against default by either CMHC or private insurers. The borrower must arrange and pay for the insurance, which protects the lender against default.
Mortgage Life Insurancesearch for term
Insurance that pays off the mortgage debt, should the insured borrower die.
Mortgage Paymentsearch for term
The regular installments made towards paying back the principal and interest on a mortgage.
Mortgage Prepayment Penaltysearch for term
Is a fee paid by the borrower to the lender in exchange for being permitted to break a contract (a mortgage agreement); usually three months' interest, but it can be a higher or it can be the equivalent of the loss of interest to the lender.
Mortgage Termsearch for term
The length of time a lender will loan mortgage funds to a borrower. Most mortgage terms run from six months to five years, after which the borrower can either repay the balance (remaining principal) of the mortgage, or renegotiate the mortgage for another term.
Mortgageesearch for term
The lender.
Mortgagorsearch for term
The borrower.
Multiple Listing Service® (MLS®)search for term
A system for relaying information to REALTORS® about properties for sale.
o
Open Mortgagesearch for term
A mortgage that can be prepaid or renegotiated at any time and in any amount without penalty.
p
Partially Open Mortgagesearch for term
(Also called a "partially closed" mortgage.) Allows the borrower to prepay a specific portion of the mortgage principal at certain times with or without penalty.
Portabilitysearch for term
A mortgage feature that allows borrowers to take their mortgage with them without penalty, when they sell their present home and buy another one.
Pre-Approved Mortgagesearch for term
Tentatively approved by a financial institution for a specified amount, interest rate and monthly payment.
Prepayment Privilegesearch for term
A mortgage feature that allows the borrower to prepay a portion or all of the principal balance with or without penalty. This privilege is frequently restricted to specific amounts and times.
Principalsearch for term
The mortgage amount initially borrowed, or the portion still owing on the mortgage. Interest is calculated on the principal amount.
r
Rate (Interest)search for term
The return the lender receives for advancing the mortgage funds required by the borrower to purchase a property.
REALTORS®search for term
Real estate professionals who are members of a local real estate board and the Canadian Real Estate Association. Only these professionals can call themselves REALTORS®.
Refinancingsearch for term
The process of obtaining a new mortgage, usually at a lower interest rate, to replace the existing mortgage.
Reserve Fundsearch for term
The portion of a condominium maintenance fee that is set aside to cover major repair and replacement costs.
s
Second Mortgagesearch for term
A second financing arrangement, in addition to the first mortgage, also secured by the property. Second mortgages are usually issued at a higher interest rate and for a shorter term than the first mortgage.
Secondary Financingsearch for term
Second, third, fourth, etc. mortgages, secured by a property "behind" the first mortgage.
t
Take-Back Mortgagesearch for term
(also referred to as Vendor-Take-Back Mortgage) When sellers use their equity in a property to provide some or all of the mortgage financing in order to sell the property.
Termsearch for term
(also referred to as Mortgage Term) The length of time a lender will loan mortgage funds to a borrower. Most mortgage terms run from six months to five years, after which the borrower can either repay the balance (remaining principal) of the mortgage, or renegotiate the mortgage for another term.
Term Mortgagesearch for term
A non-amortizing mortgage under which the principal is paid in its entirety upon the maturity date. Sometimes called a straight loan.
Titlesearch for term
The legal evidence of ownership of a property.
Title Searchsearch for term
A detailed examination of the ownership documents to ensure there are no liens or other encumbrances on the property, and no questions regarding the seller's ownership claim.
Total Debt Service Ratiosearch for term
The maximum percentage of a borrower's income that a lender will consider for all debt repayment (other loans and credit cards, etc.) including a mortgage.
u
Unitsearch for term
Term used to describe the individual home or apartment held by the owner within a condominium development.
v
Variable-rate Mortgagesearch for term
A mortgage for which payments are fixed, but whose interest rate changes in relationship to fluctuating market interest rates. If market rates go up, a larger portion of the payment goes to interest. If rates go down, a large portion of the payment is applied to the principal.
Vendor Take-Back Mortgagesearch for term
When sellers use their equity in a property to provide some or all of the mortgage financing in order to sell the property.
w
Weekly Paymentssearch for term
Mortgage payments made weekly or 52 times per year.
z
Zoning Regulationssearch for term
Strict guidelines set and enforced by municipal governments regulating how a property may or may not be used.