Amortization Period: Total length of time it takes to pay off a loan.
Appraised Value: An evaluation of a property’s value at a given point in time.
Assessed Value: A dollar value attached to a property in order to determine applicable taxes.
Assumability: A feature of a mortgage or loan that allows the buyer to take on the existing mortgage from the property seller.
Closed Mortgage: A mortgage that cannot be repaid without prepayment penalties during its term except as permitted by the mortgage agreement
Comparative Market Analysis: An examination of similar properties in the same area as the subject that have recently sold.
Condominium: An owner has the title to a single unit and a share of the common elements and land.
Condominium Fee: A payment among owners that contribute to pay expenses of the condo.
Down Payment:The buyer’s cash payment towards the purchase of the house. Makes up the difference between purchase price and the mortgage amount.
Equity: The difference between the selling price of a home versus the debts held against it.
Irrevocable: The amount of time the offer is allowed to be considered for. Once the irrevocable time expires, the offer is no longer valid.
Land Transfer Tax: A fee paid to the municipality and/or province for the transfer of the property from the buyer to the seller.
Maturity Date: The end of the term of the mortgage at where you may pay off the mortgage or renew it.
Mortgage Broker: Mortgage specialist with access to multiple lenders.
Mortgagee: The lender in a mortgage. Typically, a bank.
Mortgagor: The person or entity borrowing the money. Typically, the homeowner(s).
Mortgage Insurance: Protects the mortgagee should the mortgagor default.
Mortgage Life Insurance: Pays the remaining mortgage should the borrower pass away.
Open Mortgage: Allows for payment of the principal amount of the mortgage at any time without penalties.
Portability: A loan option that allows the borrower to take the mortgage with them to another property without penalty.
Pre-Approved Mortgage: Qualifies you for a loan amount prior to house hunting. You know exactly how much you can spend and can make a firm offer when you find the right home.
Prepayment Privileges: Advanced voluntary payment of the mortgage in addition to regular mortgage payments.
Principal: The amount borrowed or still owing on a mortgage. The interest is calculated based of this amount.
Refinancing: Paying off the previous mortgage and arranging a new one OR renegotiating the terms and conditions of your current mortgage.
Renewal: Renegotiating the mortgage at the end of the term.
Second Mortgage: Additional loan on the property. Usually for a shorter amount of time and at a high interest rate.
Term: The length of time the interest rate is set for a mortgage. At the end of the term the principal becomes payable or renewed.
Title: Legal ownership in a property.
Title Insurance: Protects the homeowner against challenges to the ownership of a property and provides coverage against losses due to title defects.
Variable Rate Mortgage: A mortgage with a fixed payment and a changing interest rate. This will affect how much of the fixed payment is paid toward the principal and how much is paid toward interest.
Vendor Take Back Mortgage: When the seller provides some or all of the mortgage in order to sell their property.