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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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Loan Term


Synonyms:duration of term, loan duration, loan term length, mortgage term, mortgage term length, term length
Filed Under: financial-banking, legal-contracts, mortgages
Tags: banking, contract, legal, mortgage
 

Definition of loan term

loan term
1. The amount of time, as written in the promissory note, for a borrower to repay a loan, such as a mortgage. Most conventional mortgages have a loan term of 5 or 10 years.

Related Terms and Acronyms:

  • amortization term   The time required to amortize (repay) an entire mortgage loan.
  • annual mortgage statement   A report sent to the borrower every year, detailing how much principal remains on the home loan and how much was paid in taxes and interest during the previous year.
  • bridge mortgage   A short-term loan used to allow a homebuyer to purchase a replacement property while still trying to sell their existing home.
  • loan   Letting another party use something of value temporarily.
  • loan application   A document in which a prospective borrower details his or her financial situation to qualify for a loan.
  • lock-in   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.
  • lump sum payment   One-time single-sum payment or payout.
  • remaining term   The time it will take to pay off the rest of an instalment loan as scheduled.
  • term   The length of time you commit to repay a lender or bank at an agreed upon interest rate and payment schedule. The interest rate usually remains constant during this term unless the commitment states otherwise. For example, a five year fixed rate mortgage has a term of five years.
  • term loan (TL)   A loan intended for medium-term or long-term financing to supply cash to purchase fixed assets such as machinery, land or buildings or to renovate business premises.

More Related Terms and Acronyms

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