|
A - B | C - D
| E - K | L - N | O - R
| S - Z
AMORTIZATION --
The number of years it takes to repay the entire
amount of a mortgage.
APPRAISAL --
An estimate of a property's market value, used by lenders
in determining the amount of the mortgage.
APPRECIATION --
The increase of a property's value over time.
ASSESSMENT --
The value of a property, set by the local municipality, for
the purposes of calculating property tax.
ASSUMABLE MORTGAGE --
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.
BLENDED MORTGAGE --
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 PAYMENTS --
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: see Variable-Rate
Mortgages)
BUY-DOWN --
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.
CLOSED MORTGAGE --
A mortgage that cannot be prepaid, renegotiated or refinanced
during its term.
CLOSING --
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 COSTS --
Expenses in addition to the purchase price for buying and
selling a property.
CLOSING DATE --
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 ELEMENTS --
The portions of a condominium development owned in common
(shared) by the unit owners.
CONDOMINIUM --
Shared ownership in property. Owners have title (ownership)
to individual units and a proportionate share in the common elements.
CONVENTIONAL MORTGAGE -- A first mortgage issued for up to 75% of the property's appraised
value or purchase price, whichever is lower.
COUNTEROFFER -- One party's written response to the other party's offer during
negotiation of a real estate purchase between buyer and seller.DEBT SERVICE
RATIO -- 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 PAYMENT -- The part of the purchase price of a property that the buyer
pays in cash and does not finance with a mortgage.EASEMENT -- 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.ENCROACHMENT -- 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.EQUITY -- A homeowner's financial interest in a property. The difference
between the value of the property and the amount owing (if any) on the mortgage.ESTOPPEL CERTIFICATE -- A written statement of a condominium unit's current financial
and legal status.FIRST MORTGAGE -- The first security registered on a property. Additional mortgages
secured against the property are "secondary" to the first mortgage.FORECLOSURE -- 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.HIGH-RATIO
MORTGAGE -- A mortgage for more than 75% of a property's appraised value
or purchase price.INTEREST -- The cost of borrowing money.JOINT TENANCY -- 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.LEVERAGE -- Controlling a large asset with a relatively small amount
of cash. In real estate, $25,000 down payment (or less) can be used to purchase
(control) a $100,000 home, for example.LIEN -- Any legal claim against a property, filed to ensure payment
of a debt.LISTING AGREEMENT -- The contract between the listing broker and an owner, authorizing
the REALTOR to facilitate the sale or lease of a property.LISTING BROKER -- The REALTOR who signs a contract with an owner to sell the
property.MAINTENANCE
FEE -- A monthly fee paid by condominium owners for maintaining
the development's common areas.
MORTGAGE -- A contract between a borrower and a lender. The borrower
pledges a property as security to guarantee repayment of the mortgage debt.MORTGAGE BROKER -- A licensed individual who, for a fee, brings together a borrower
in search of a mortgage and a lender willing to issue that mortgage.MORTGAGEE -- The lender.MORTGAGE INSURANCE -- Government-backed or privately-backed insurance protecting
the lender against the borrower's default on high-ratio (and other types
of) mortgages.MORTGAGE LIFE INSURANCE -- Insurance that pays off the mortgage debt, should the insured
borrower die.MORTGAGE PAYMENT -- The regular installments made towards paying back the principal
and interest on a mortgage.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.MORTGAGOR -- The borrower.MULTIPLE LISTING SERVICE®
(MLS®) -- A system for relaying information to REALTORS about properties
for sale.OPEN
MORTGAGE -- A mortgage that can be prepaid or renegotiated at any time
and in any amount without penalty.PARTIALLY OPEN
MORTGAGE -- (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.PORTABILITY -- A mortgage feature that allows borrowers to take their mortgage
with them without penalty, when they sell their present home and buy another
one.PREPAYMENT PRIVILEGE -- 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.PRINCIPAL -- The mortgage amount initially borrowed, or the portion still
owing on the mortgage. Interest is calculated on the principal amount.RATE
(Interest) -- The return the lender receives for advancing the mortgage
funds required by the borrower to purchase a property.REALTORS -- 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.REFINANCING -- The process of obtaining a new mortgage, usually at a lower
interest rate, to replace the existing mortgage.RESERVE FUND -- The portion of a condominium maintenance fee that is set
aside to cover major repair and replacement costs.SECOND MORTGAGE -- 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 FINANCING -- Second, third, fourth, etc. mortgages, secured by a property
"behind" the first mortgage.TAKE-BACK MORTGAGE -- See Vendor-Take-Back MortgageTERM -- See Mortgage TermTITLE -- The legal evidence of ownership of a property.TITLE SEARCH -- 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.UNIT -- Term used to describe the individual home or apartment held
by the owner within a condominium development.VARIABLE-RATE
MORTGAGE -- 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 MORTGAGE -- When sellers use their equity in a property to provide some
or all of the mortgage financing in order to sell the property.WEEKLY PAYMENTS -- Mortgage payments made weekly or 52 times per year.ZONING
REGULATIONS -- Strict guidelines set and enforced by municipal governments
regulating how a property may or may not be used.
|
|
|
Consult with a REALTOR to define your wants and
needs before you buy
|
|
