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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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Amortized Loan


Synonyms:amount, credit, mortgage
Filed Under: financial-banking, mortgages
Tags: banking, mortgage
 

Definition of amortized loan

amortized loan
1. An amortized loan is a loan where the interest and principal are both paid off in their entirety through a series of scheduled payments over a specified amount of time.

Related Terms and Acronyms:

  • amortization   Amortization refers to the process of gradually paying down the principal of a loan. Each payment toward the principal reduces your loan by that amount. This is different than an interest-only loan payment where the principal balance is never reduced. Amortization for a mortgage loan in Canada is normally 25 years, but can be as few as 5 years.
  • interest rate (IR)   The rate a lender charges an individual to borrow money.
  • loan   Letting another party use something of value temporarily.
  • mortgage (mtg)   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 calculator   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.
  • origination date   The date on which a loan is funded.
  • origination fee   The fee a lender charges to process a loan. It usually includes the cost to prepare loan documents, check a borrower's credit history, inspect the property and sometimes conduct an appraisal. CanEquity will in most cases use a lender who doesn't charge this fee or we will cover the cost in full.
  • principal   The original balance of money lent on an outstanding loan and fees, excluding interest. Also the remaining balance of a loan, excluding interest.
  • reconveyance   The transfer of title to the borrower after a mortgage has been paid fully.
  • remaining term   The time it will take to pay off the rest of an instalment loan as scheduled.

More Related Terms and Acronyms

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