Canadian Financial, Real Estate and Mortgage Glossary

Important Mortgage Terms

abstract of title (ab) — Definition (Property Listing, Contract, Legal, Realty, Classifieds) (Mortgages, Real-estate, Abbreviation, Legal-contracts)

A written history of all the transactions that bear on the title to a specific piece of land. An abstract of title covers the time from when the property was first sold to the present.

  ➥  AB is a common abbreviation for Abstract of Title when used in property listings and real estate classifieds.

acceleration clause — Definition (Banking, Contract, Clause, Mortgage Lender, Legal) (Financial-banking, Legal-contracts)

A provision within a document that explains how the lender expects payment for a loan, in due haste.

acceptance — Definition (Contract, Legal, Realty) (Mortgages, Real-estate, Legal-contracts)

A property seller's formal, written approval of a buyer's offer.

Accredited Mortgage Broker (AMB) — Canada

Accredited Mortgage Professional (AMP) — Canada

The Accredited Mortgage Professional (AMP) is the only national proficiency standard created by CAAMP for Canada's mortgage industry.

  ➥  Accreditation offered by Canadian Association of Accredited Mortgage Professionals (CAAMP).

accrue — Definition (Banking, Contract, Legal) (Mortgages, Financial-banking, Legal-contracts)

To gather together an amount often over a period of time.

accrued interest — Definition (Banking, Rates) (Mortgages, Financial-banking)

Interest which has already been earned but has not yet been paid.

acquisition fee — Definition (Banking) (Mortgages, Financial-banking)

A fee charged by some leasing companies for originating the loan, just as mortgage lenders charge points as an origination fee. This fee is often not specified in a contract, but rolled into the capitalized cost when calculating monthly payments.

add-on interest — Definition (Banking, Rates) (Mortgages, Financial-banking)

Interest that is computed at the beginning of the loan, then added to the principal, so that all must be repaid, even if the loan is paid off early.

additional principal payment — Definition (Banking) (Mortgages, Financial-banking)

Extra money included with a loan payment to pay off the amount owed faster. Over time, this practice reduces the amount of interest paid.

additional property — Definition (Realty) (Mortgages, Real-estate)

A property that is owned by the person that is not being financed.

adjustment period — Definition (Mortgages)

The time between changes in the interest rate in an adjustable-rate mortgage.

agency (agcy) — Definition (Contract, Insurance, Investment, Realty, Classifieds, Property Listing, Banking, Legal) (Investments, Mortgages, Real-estate, Insurance, Financial-banking, Abbreviation, Legal-contracts)

A relationship between two parties -- a client and an agent -- in which the agent represents the client in transactions with a third party.

agency closing — Definition (Banking, Contract, Legal, Realty) (Mortgages, Real-estate, Financial-banking, Legal-contracts)

The use of a title company to supervise the meeting where the property is transferred and mortgage is settled.

agent (agt) — Definition (Property Listing, Insurance, Agent, Investment, Realty, Classifieds) (Investments, Mortgages, Real-estate, Insurance, Financial-banking, Abbreviation, Legal-contracts)

A person who acts on behalf of another. In real estate, an agent is a person who conducts transactions on behalf of sellers and sometimes buyers.