 |
 |
 |
 |
 |
 |
 |
 |
|
|
| LAND TRANSFER TAX, DEED TAX OR PROPERTY PURCHASE TAX: A fee paid to the municipal and/or provincial government for the transferring of property from seller to buyer. MATURITY DATE: The end of the term, at which time you can pay off the mortgage or renew it. MORTGAGEE: The person or the financial institution that lends the money. MORTGAGE INSURANCE: Applies to high-ratio mortgages. It protects the lender against loss if the borrower is unable to repay the mortgage. MORTGAGE LIFE INSURANCE: Pays off the mortgage if the borrower dies. MORTGAGOR: The borrower. OPEN MORTGAGE: Allows partial or full payment of the principal at any time, without penalty. PORTABILITY: A mortgage option that enables borrowers to take their current mortgage with them to another property, without penalty. PRE-APPROVED MORTGAGE: Qualifies you for a mortgage before you start shopping. You know exactly how much you can spend and are free to make a "firm" offer when you find the right home. PREPAYMENT PRIVILEGES: Voluntary payments in addition to regular mortgage payments. PRINCIPAL: The amount borrowed or still owing on a mortgage loan. Interest is paid on the principal amount. REFINANCING: Paying off the existing mortgage and arranging a new one or re-negotiating the terms and conditions of an existing mortgage. RENEWAL: Re-negotiation of a mortgage loan at the end of a term for a new term. SECOND MORTGAGE: Additional financing. Usually has a shorter term and higher interest rate than the first mortgage. TERM: The length of time the interest rate is fixed. It also indicates when the principal balance becomes due and payable to the lender. TITLE: Legal ownership in a property. VARIABLE-RATE MORTGAGE: A mortgage with fixed payments, but fluctuates with interest rates. The changing interest rate determines how much of the payment goes towards the principal. VENDOR TAKE-BACK MORTGAGE: When the seller provides
some or all of the mortgage financing in order to sell their property. |
Myra
McKeen, Broker
of Record |