Umbrella Mortgage

Definition

• Also referred to as a wraparound, a special arrangement whereby one document encompasses one or more already existing mortgages registered on the same property. The mortgagee is responsible for remission of payment(s), to lender(s), while the mortgagor makes one payment to the mortgagee.

Synonyms
encompass, incorporate, enclose, cover, engulf

Related Terms and Acronyms

• Application Fee — Definition,
  • What the lender charges to process the document in which a prospective borrower details his or her financial situation to qualify for a loan.
• Blanket Mortgage — Definition,
  • A mortgage that covers more than one property owned by the same buyer.
• Debt Consolidation — Definition,
  • The replacement of multiple loans with a single loan, often with a lower monthly payment and a longer repayment period. It's also called a consolidation loan. CanEquity has access to Canada's best debt consolidation products, for more info about debt consolidation see our debt consolidation page.
• Junior Mortgage — Definition,
  • A loan that is subsequent to the claims of the holder of a prior (senior) mortgage.
• Loan Servicing — Definition,
  • Supervising a loan after it has been made. This could involve collecting payments, keeping accounting records, computing interest and principal, etc.
• Mortgage (mtg) — Abbreviation, Important,
  • 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.
• Refinance — Definition,
  • To arrange a new loan for an increased amount or better terms whereby the old loan is paid off from the proceeds of the new loan.
• Refinancing — Definition,
  • The act of paying off one mortgage with another mortgage to take advantage of lower interest rates. Refinancing is also used to transform equity into cash for vacations, home improvements, or for consolidating debt.
• Wraparound Mortgage — Definition,
  • A refinanced home loan in which the balances on all mortgages are combined into one loan.