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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

Words categorized under Mortgages

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joint liabilityDefinition (Mortgages, Financial-banking, Legal-contracts)
The responsibility of two or more people to repay a debt
junior mortgageDefinition (Mortgages)
A loan that is subsequent to the claims of the holder of a prior (senior) mortgage.
kickerDefinition (Mortgages, Taxation, Financial-banking)
Any benefit to a lender above ordinary fixed-interest payments such as an equity position in a property or a percentage participation in the income stream.
ladderingDefinition (Investments, Mortgages, Financial-banking)
Staggering deposits into investments such as CDs in order to vary and better the rate of return.
land drawDefinition (Mortgages)
A construction loan backed by the value of the land.
land transfer tax (LTT)Definition (Mortgages, Real-estate, Taxation)
A provincial tax payable on any property that changes hands. First time buyers may be eligible for a rebate.
late chargeDefinition (Mortgages, Financial-banking)
A fee imposed on a borrower for not paying on time
late paymentDefinition (Mortgages, Financial-banking)
A sum a borrower sends to a lender that is received past the date when it was due.
lead lenderDefinition (Mortgages, Financial-banking)
A financial institution which heads up a financial consortium or syndicate to provide funds for a mortgage.
leasehold mortgageDefinition (Mortgages)
A mortgage given by a lessee on the security of his leasehold interests in the land.
legal fees and disbursementsDefinition (Mortgages, Real-estate, Financial-banking)
Charges paid on your behalf by a solicitor that are in addition to professional costs.
legal mortgageDefinition (Mortgages, Legal-contracts)
The written geographical description of a property as described in the land register.
lenderDefinition (Mortgages, Financial-banking)
The bank or mortgage company offering the loan.
lending valueDefinition (Mortgages)
The property value for mortgage purposes. Usually the lesser of appraised value or sale price.
level paymentDefinition (Mortgages, Financial-banking)
A method of repayment where periodical payments of principal and interest are made in a certain way so the payment amount remains constant.
leveraged propertyDefinition (Mortgages, Financial-banking)
A property financed with mortgage debt.
lien holdbackDefinition (Mortgages, Real-estate, Legal-contracts)
The practice of mortgagees withholding up to 15% of mortgage monies advanced on new construction.
loanDefinition (Investments, Mortgages, Financial-banking, Legal-contracts)
Letting another party use something of value temporarily.
loan applicationDefinition (Mortgages, Financial-banking)
A document in which a prospective borrower details his or her financial situation to qualify for a loan.
loan application feeDefinition (Mortgages, Financial-banking)
A cost charged by a lender for processing loan application documents that are submitted by prospective borrowers.
loan commitmentDefinition (Mortgages, Financial-banking)
A lender's promise to advance a specific sum on specific terms.
loan originationDefinition (Mortgages, Financial-banking)
The process of applying for a loan and the handling of that application by a lender.
loan processingDefinition (Mortgages, Financial-banking)
The steps taken by a lender to convert a loan application into an approved loan for the potential borrower. These steps include processing the application, conducting a credit investigation, evaluating the loan, etc.
loan servicingDefinition (Mortgages, Financial-banking)
Supervising a loan after it has been made. This could involve collecting payments, keeping accounting records, computing interest and principal, etc.
loan termDefinition (Mortgages, Financial-banking, Legal-contracts)
The period specified in the promissory note for a borrower to pay a loan, such as a mortgage. Most conventional mortgages have a loan term of 5 or 10 years.
loan-to-value (LTV)Definition (Mortgages, Financial-banking)
The ratio of the principal amount of the loan to the lesser of the purchase price of the property or the property's appraised value. This can be expressed as an 80% loan, or 80% LTV.
  ➥  A widely used term in the mortgage brokerage and lending industry, especially by mortgage underwriters.
local taxesDefinition (Mortgages, Real-estate, Taxation, Financial-banking)
Taxes imposed by local governments (municipalities) to pay for its services. These taxes are in addition to Federal and Provincial taxation.
lock-inDefinition (Mortgages, Financial-banking)
A lender's guarantee that the mortgage rate quoted will not change for a specific period. The borrower wants the lock to stay in effect until closing.
low-documentation loanDefinition (Mortgages, Financial-banking, Legal-contracts)
A mortgage that requires less income or asset verification than conventional loans. Low-documentation loans are designed for the entrepreneur or self-employed, for recent immigrants, or for borrowers who cannot or choose not to reveal their financial information. A substantial down payment and excellent credit history are generally required. This type of loan will also yield a higher interest rate.
low-down mortgagesDefinition (Mortgages)
Mortgages with a low down payment, usually less than 10 percent.
low-down-payment loanDefinition (Mortgages, Financial-banking)
A mortgage where the borrower puts down a small amount and borrows a high percentage of the purchase price.
lpq amountDefinition (Mortgages, Financial-banking)
A term used by CanEquity which is short for Loan, Purchase or Qualification amount.
lump sum paymentDefinition (Investments, Mortgages, Annuities, Financial-banking)
One-time single-sum payment or payout.
marginDefinition (Investments, Mortgages, Financial-banking)
The difference between the cost and the selling price.
maturityDefinition (Investments, Mortgages, Financial-banking)
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.
maximum financingDefinition (Mortgages)
A loan given for a property where the buyer puts down the lowest allowable down payment possible.
merged credit reportDefinition (Mortgages, Financial-banking)
A summary of one's credit history from the big two credit bureaus: Equifax and Trans Union.
mis-sellingDefinition (Investments, Mortgages, Real-estate, Insurance, Financial-banking, Legal-contracts)
The act of misleading a client into buying a product or service by deliberately misrepresenting the aforementioned product or service.
modificationDefinition (Mortgages, Financial-banking)
A change in terms of the loan agreement.
monetary policyDefinition (Investments, Mortgages, Financial-banking, Legal-contracts)
The Bank of Canada's ability to influence the economy through changes in short-term interest rates and the money supply.
monthly periodic rateDefinition (Mortgages, Financial-banking)
The interest rate factor used to calculate the interest charges on a monthly basis. The factor equals the yearly rate divided by 12.
mortgage (mtg)Definition (Mortgages, Abbreviation)
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.
mortgage acceleration clauseDefinition (Mortgages, Legal-contracts)
A provision of a loan agreement that lets a lender demand payment of the full balance under specified circumstances, such as sale of the property, default or refinancing. Not commonly used in Canada and/or Canadian lenders.
mortgage applicationDefinition (Mortgages, Financial-banking, Legal-contracts)
A document in which a prospective borrower details his or her financial situation to qualify for a loan.
mortgage assumptionDefinition (Mortgages, Real-estate)
Taking over the payment and responsibility for an existing property loan.
mortgage bankerDefinition (Mortgages, Financial-banking)
An employee of a large bank who finds financing for the general public.
Mortgage Broker (MB)Definition (Designation, Mortgages)
One who finds clients perspective lenders at generally no cost. Mortgage Brokers have a special relationship with lenders and can offer their clients the best rates and service. CanEquity goes through great lengths to ensure you are serviced by the best Mortgage Brokers in Canada.
mortgage brokerageDefinition (Mortgages, Financial-banking)
An individual or group who brokers deals between their clients and lenders.
  ➥  CanEquity is a mortgage brokerage.
mortgage calculatorDefinition (Mortgages)
A program that calculates the costs involved in a mortgage or determines what kind of mortgage a person can qualify for.
  ➥  CanEquity's mortgage calculator has been rated number one by the Globe and Mail.
mortgage disability insuranceDefinition (Mortgages, Insurance)
Insurance that covers mortgage payments if a policyholder becomes disabled.
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Escrow AgentJoint Credit
 
Currently Displayed — Page 5
Joint Liability — Mortgage Disability...
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Mortgage InsurancePrime Rate

Search the Glossary

Index of Mortgages Terms

Page 1: Abandonment
Bank
Page 2: Bank of Canada
Conditional Commitment
Page 3: Conforming Loan
Escrow Account
Page 4: Escrow Agent
Joint Credit
Page 5: Joint Liability
Mortgage Disability...
Page 6: Mortgage Insurance
Prime Rate
Page 7: Principal
Spread
Page 8: Standby Commitment
Zero Down Mortgage

Notable Terms

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Best Rates on Home Mortgages
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