{"id":492,"date":"2023-04-14T06:22:06","date_gmt":"2023-04-14T06:22:06","guid":{"rendered":"https:\/\/budgetrates.ca\/?page_id=492"},"modified":"2023-05-15T11:35:13","modified_gmt":"2023-05-15T11:35:13","slug":"glossary","status":"publish","type":"page","link":"https:\/\/budgetrates.ca\/fr\/glossary\/","title":{"rendered":"Glossary"},"content":{"rendered":"<div class=\"nectar-sticky-row-wrap nectar-sticky-row-wrap--top_after_nav\">\n\t\t<div id=\"fws_69ecdd44691d0\"  data-column-margin=\"default\" data-midnight=\"dark\" data-top-percent=\"2%\" data-bottom-percent=\"2%\"  class=\"wpb_row vc_row-fluid vc_row full-width-section\"  style=\"padding-top: calc(100vw * 0.02); padding-bottom: calc(100vw * 0.02); \"><div class=\"row-bg-wrap\" data-bg-animation=\"none\" data-bg-animation-delay=\"\" data-bg-overlay=\"false\"><div class=\"inner-wrap row-bg-layer\" ><div class=\"row-bg viewport-desktop\"  style=\"\"><\/div><\/div><\/div><div class=\"row_col_wrap_12 col span_12 dark left\">\n\t<div  class=\"vc_col-sm-12 wpb_column column_container vc_column_container col no-extra-padding inherit_tablet inherit_phone\"  data-padding-pos=\"all\" data-has-bg-color=\"false\" data-bg-color=\"\" data-bg-opacity=\"1\" data-animation=\"\" data-delay=\"0\" >\n\t\t<div class=\"vc_column-inner\" >\n\t\t\t<div class=\"wpb_wrapper\">\n\t\t\t\t<div class=\"nectar-split-heading\" data-align=\"default\" data-m-align=\"inherit\" data-text-effect=\"default\" data-animation-type=\"line-reveal-by-space\" data-animation-delay=\"0\" data-animation-offset=\"\" data-m-rm-animation=\"\" data-stagger=\"\" data-custom-font-size=\"false\" ><h1 style=\" color: #328636;\">Glossary of Mortgage & Lending Terms<\/h1><\/div>\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>3-Months\u2019 Interest Penalty<\/h5>\n<p>A 3-months\u2019 interest penalty is commonly charged by lenders if you break your mortgage before the end of the term. This is the default penalty for most variable (adjustable)-rate mortgages. Fixed-rate mortgages are usually the greater of three months\u2019 interest or the interest rate differential (IRD).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t<div class=\"wpb_content_element\" data-interval=\"0\">\n\t\t<div class=\"wpb_wrapper tabbed clearfix\" data-style=\"material\" data-animation=\"fade\" data-spacing=\"side-25px\" data-icon-size=\"24\" data-full-width-line=\"\" data-color-scheme=\"accent-color\" data-alignment=\"left\">\n\t\t\t<ul class=\"wpb_tabs_nav ui-tabs-nav clearfix\"><li class=\"tab-item active-tab\"><a href=\"#tab-1681453729270-8\" class=\"active-tab\"><span>A<\/span><\/a><\/li><li class=\"tab-item\"><a href=\"#tab-1681453729270-8\" ><span>B<\/span><\/a><\/li><li class=\"tab-item\"><a href=\"#tab-1681453729270-8\" ><span>C<\/span><\/a><\/li><li class=\"tab-item\"><a href=\"#tab-1681453729270-8\" ><span>D<\/span><\/a><\/li><li class=\"tab-item\"><a href=\"#tab-1681453729270-8\" ><span>E<\/span><\/a><\/li><li class=\"tab-item\"><a href=\"#tab-1681453729270-8\" ><span>F<\/span><\/a><\/li><li class=\"tab-item\"><a href=\"#tab-1681453729270-8\" ><span>G<\/span><\/a><\/li><li class=\"tab-item\"><a href=\"#tab-1681453729270-8\" ><span>H<\/span><\/a><\/li><li class=\"tab-item\"><a href=\"#tab-1681453729270-8\" ><span>I<\/span><\/a><\/li><li class=\"tab-item\"><a href=\"#tab-1681453729270-8\" ><span>J<\/span><\/a><\/li><li class=\"tab-item\"><a href=\"#tab-1681453729270-8\" ><span>L<\/span><\/a><\/li><li class=\"tab-item\"><a href=\"#tab-1681453729270-8\" ><span>M<\/span><\/a><\/li><li class=\"tab-item\"><a href=\"#tab-1681453729270-8\" ><span>N<\/span><\/a><\/li><li class=\"tab-item\"><a href=\"#tab-1681453729270-8\" ><span>O<\/span><\/a><\/li><li class=\"tab-item\"><a href=\"#tab-1681453729270-8\" ><span>P<\/span><\/a><\/li><li class=\"tab-item\"><a href=\"#tab-1681453729270-8\" ><span>Q<\/span><\/a><\/li><li class=\"tab-item\"><a href=\"#tab-1681453729270-8\" ><span>R<\/span><\/a><\/li><li class=\"tab-item\"><a href=\"#tab-1681453729270-8\" ><span>S<\/span><\/a><\/li><li class=\"tab-item\"><a href=\"#tab-1681453729270-8\" ><span>T<\/span><\/a><\/li><li class=\"tab-item\"><a href=\"#tab-1681453729270-8\" ><span>U<\/span><\/a><\/li><li class=\"tab-item\"><a href=\"#tab-1681453729270-8\" ><span>V<\/span><\/a><\/li><li class=\"tab-item\"><a href=\"#tab-1681453729270-8\" ><span>W<\/span><\/a><\/li><li class=\"tab-item\"><a href=\"#tab-1681453729270-8\" ><span>Y<\/span><\/a><\/li><li class=\"tab-item\"><a href=\"#tab-1681453729270-8\" ><span>Z<\/span><\/a><\/li><\/ul>\n\n\t\t\t\n\t\t\t<div id=\"tab-a\" data-tab-icon=\"\" class=\"wpb_tab ui-tabs-panel wpb_ui-tabs-hide clearfix\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Accelerated Payments<\/h5>\n<p>A mortgage repayment plan in which the borrower makes more payments than needed. Mortgage payments are made every 2 weeks for a total of 26 payments per year or every week for a total of 52 payments per year. There is an additional monthly payment the client occurs each year, that is directly applied to the principal. The client makes 13 months of payments per year opposed to 12. The additional monthly payment is applied evenly to each biweekly or weekly payment cycle.<br \/>\nAmortization generally drops by 2.5 years by paying on an accelerated payment frequency.<\/p>\n<h5>\nAcceleration Clause<\/h5>\n<p>A clause in a mortgage which provides that where default has occurred in making any mortgage payment, the outstanding mortgage amount becomes due.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Acceptance<\/h5>\n<p>A buyer\u2019s or seller\u2019s agreement to enter into a contract and be bound by the terms of the offer.<br \/>\nAmortization generally drops by 2.5 years by paying on an accelerated payment frequency.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Accessibility<\/h5>\n<p>A building design concept that relates to individuals with disabilities. It refers to building features that facilitate entry or use by individuals with physical and\/or sensory impairments.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Accredited Mortgage Professional<\/h5>\n<p>A national designation for mortgage professionals in Canada issued by Mortgage Professionals Canada.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Accrued Interest<\/h5>\n<p>Accrued interest is the total amount of interest due on a debt, such as a mortgage, that has yet to be paid by the borrower. Most people have monthly mortgage payments and so interest accrues over the course of each month until the next payment date.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Action for Possession<\/h5>\n<p>A legal remedy available to a lender when a mortgage is in default. It allows the lender to take possession of the mortgage property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Addendum<\/h5>\n<p>A document that is attached to, and made part of, an original contract as a result of making changes to elements that have already been agreed to.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Additional principal payment<\/h5>\n<p>A payment made by a borrower of more than the scheduled principal amount due in order to reduce the outstanding balance on the loan, to save on interest over the life of the loan and\/or pay off the loan early.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Adjustable-rate Mortgage<\/h5>\n<p>An adjustable-rate mortgage is another name for a variable-rate mortgage, which has an interest rate and payment that rises and falls with a benchmark, typically prime rate. Payments &#8216;float&#8217; up or down along with changes in the prime rate to account for the interest cost portion of the payment. However, some lenders offer fixed-payment adjustable-rate mortgages, where the payment stays the same for the term even as the rate rises or falls. In this case, the amount of the payment that goes towards principal repayment and interest will fluctuate.<br \/>\nThe original amortization is maintained.The original amortization is maintained.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Adjustments<\/h5>\n<p>The financial calculations made regarding the costs for the respective parties associated with a mortgage or real estate transaction at the time of closing (e.g. property taxes). The original amortization is maintained.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Affidavit<\/h5>\n<p>A formal written statement of fact sworn to or affirmed by the author and witnessed as to the authenticity of the author\u2019s signature before a person such as a notary or commissioner of oaths who is authorized to administer an oath.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Affordability<\/h5>\n<p>The ability of an individual to carry the cost of ownership of a property in relation to his or her available income.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Affordability analysis<\/h5>\n<p>A preliminary analysis of a borrower\u2019s ability to afford the purchase of a home that takes into consideration factors such as income, liabilities and available funds, as well as the type of home loan, the likely taxes and insurance for the home and the estimated closing costs.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Agency<\/h5>\n<p>A consensual relationship created by contract or by law where one party, the principal, grants authority for another party, the agent, to act on behalf of and under the control of the principal to deal with a third party and where the agent accepts responsibility for representing the principal.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Agent<\/h5>\n<p>An industry professional who is expressly or implicitly authorized to act or represent another party, person or business; the principal in transactions involving a third party. Unlike an employee who merely works for the principal, an agent works in place of the principal.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Agreement for Sale<\/h5>\n<p>A financial arrangement between a seller and buyer in which the seller carries the financing for the buyer\u2019s purchase of the property. However, the title remains in the name of the seller and the seller registers a caveat on title protecting his or her financial interests until such time as the funds are repaid by the buyer.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Agreement of purchase and sale<\/h5>\n<p>A written, legally binding agreement between the buyer and a seller of a property.<br \/>\nIt includes price, deposit, closing date and other important information about a real estate deal. It sets out the terms on which the buyer must buy, and the seller must sell, the home on the specified date. An offer to purchase, when accepted by a vendor, becomes an agreement of purchase and sale.<br \/>\nThe offer may be firm, meaning there are no conditions attached, or it may be conditional, which means specified conditions must be met before the deal closes.<br \/>\nWe recommend that you have your offer prepared by a professional realtor who has the knowledge and experience to satisfactorily protect you with the most suitable clauses and conditions.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Agri-Business<\/h5>\n<p>The businesses that are involved in the production, storage, processing and wholesale marketing of agricultural products.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>AIC<\/h5>\n<p>See Appraisal Institute of Canada<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Alternative Lending<\/h5>\n<p>A lending classification where the borrower\u2019s ability or intent to pay may be viewed as less certain than in prime lending; the amount of the mortgage (relative to the property) may be seen as excessive; or the property pledged as security may be seen to have a lower value.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Amendment<\/h5>\n<p>A document that records a correction, addition, deletion or other changes to any previously agreed-to terms in the original contract.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Amenity<\/h5>\n<p>A feature of the home or property that serves as a benefit to the buyer but that is not necessary to its use; may be natural (like location, woods, water) or man-made (like a swimming pool or garden).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Amortization Period<\/h5>\n<p>Typically expressed in years or months, amortization is the period of time required to pay off your mortgage, including interest.<br \/>\nThe payments are typically a combination of principal and interest in blended amounts.<br \/>\nThe maximum allowable amortization for default-insured mortgages is 25 years. Most mainstream lenders also offer 30-year amortizations on uninsured mortgages. A few lenders even offer 35 years.<br \/>\nPrepayment privileges can help borrowers pay off their mortgages more quickly. Any prepayment option applies directly to the principal balance, enabling interest cost savings.<\/p>\n<p>Amortization period differs from mortgage term, which is the length of the contract with your lender. When a term ends, you can either pay off your mortgage or renew it if your lender offers a renewal.<\/p>\n<p>Prepayment privileges can help borrowers pay off their mortgages more quickly. Any prepayment option applies directly to the principal balance, enabling interest cost savings.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Amortization Schedule or table<\/h5>\n<p>A table showing the amounts of principal and interest which make up each of the periodic level payments and the outstanding principal balance of the loan after each level payment is made.<br \/>\nYou can use this schedule to figure out the amount of principal you\u2019ll be repaying during your mortgage term.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Amortization term<\/h5>\n<p>The amount of time required to amortize (pay off) the loan, expressed in months. For example, for a 15-year fixed-rate mortgage, the amortization term is 180 months.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Amortized Mortgage<\/h5>\n<p>A mortgage requiring regular payments which include both principal and interest sufficient to fully repay the loan by maturity.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Amount financed<\/h5>\n<p>It means the amount of money you are borrowing from the lender, minus most of the upfront fees the lender is charging you.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>AMP<\/h5>\n<p>See Accredited Mortgage Professional<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Anniversary<\/h5>\n<p>Many mortgage products allow you to make payments against the principal on the anniversary of the mortgage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Anniversary Date<\/h5>\n<p>The same date in each calendar year during the term of the mortgage. The first anniversary date occurs one year from the date interest is adjusted and the periodic repayments begin.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Annual General Meeting<\/h5>\n<p>A meeting at which the Board of Directors and all members of a condominium corporation gather to elect a Board of Directors for the forthcoming year as well as discuss the finances, current issues and future plans for the condominium corporation.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Annual income<\/h5>\n<p>Annual income is a factor in a mortgage loan application and generally refers to your total earned, pre-tax income over a year. Annual income may include income from full-time or part-time work, self-employment, tips, commissions, overtime, bonuses, or other sources. A lender will use information about your annual income and your existing monthly debts to determine if you have the ability to repay the loan.<br \/>\nWhether a lender will rely upon a specific income source or amount when considering you for a loan will often depend upon whether you can reasonably expect the income to continue.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Annual Percentage Rate (APR)<\/h5>\n<p>Calculated by using a standard formula, the APR shows the cost of a loan; the Annual percentage rate (APR) is the interest rate you\u2019ll pay on your loan annually plus any additional lender fees. You\u2019ll usually see APR expressed as a percentage.<br \/>\nYou may see two interest rates listed when you shop for a loan. The larger number is always your APR because it includes fees (such as points, mortgage broker fees, and other charges that you pay to get the loan)<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Apartment Condominium<\/h5>\n<p>A style of residential condominium involving units that are part of a building and attached to each other on one or more sides. This condominium style has a shared entrance, usually through the building lobby.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Applicant<\/h5>\n<p>Refers to all borrowers, co-borrowers, and guarantors on a mortgage loan application; The individual(s) applying for mortgage financing.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Application<\/h5>\n<p>The first step in the official loan approval process; this form is used to record important information about the potential borrower necessary to the underwriting process.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Appraisal<\/h5>\n<p>A formal, impartial estimate or opinion of of a property\u2019s fair market value, usually written, of a specific and adequately described property, as of a specific date and supported by the presentation and analysis of relevant data pertinent to a property.<br \/>\nA valuation of real estate conducted by a real estate appraiser, who is specifically trained to estimate the market value of real estate and is licensed to do so.<br \/>\nAn appraisal of some sort, either in person or automated, is always conducted when you apply for a mortgage, whether for a purchase or a refinance. This appraised value may or may not be the same as the purchase price of the home.<br \/>\nThe value is determined by either a direct comparison, cost or income approach.<\/p>\n<p>Mortgage lenders usually require that you get an appraisal before you sign on a new home loan. The appraisal assures the lender that they aren\u2019t loaning you more money than what your home is worth. Your lender may help you by scheduling an appraisal, done by an independent third party.<\/p>\n<p>As a homebuyer, you are generally responsible for the appraisal cost.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Application fees<\/h5>\n<p>Nonrefundable fees paid when you apply for your loan. These fees may include charges for items such as, for example, a credit profile or a property appraisal.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Appraisal contingency<\/h5>\n<p>A contingency in a sales contract that the property must appraise at a value that is equal to or greater than your offering price.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Appraisal fee<\/h5>\n<p>An appraisal fee is the cost of a home appraisal of a house you plan to buy or already own. Home appraisals provide an independent assessment of the value of the property. In most cases, the selection of the appraiser and any associated costs is up to your lender.<br \/>\nYour mortgage lender may require that the property be appraised at your expense.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Appraisal Institute of Canada<\/h5>\n<p>Appraisal Institute of Canada is the premier real estate appraisal association in Canada. The institute is a self-regulating body whose mission is to protect the public interest by ensuring highest standards, practices and professional conduct in real estate appraisals. It is a national, member-based association that offers real estate appraiser designations in Canada.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Appraisal Report<\/h5>\n<p>A formal, independent assessment of a property by a qualified individual. A statement giving an opinion of value of an adequately described property, as at a specific date and supported by pertinent data.<br \/>\nA report detailing an opinion of the value of a property based on the findings of a real estate appraiser.<br \/>\nThe report must state the purpose of the appraisal, the date of the appraisal and be signed by the appraiser.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Appraisal Review<\/h5>\n<p>The act or process of reexamining an appraisal report as to its completeness and accuracy and to ensure compliance with the applicable appraisal standards.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Appraised value<\/h5>\n<p>An estimate of the market value of the property, as determined at a specified time. A real estate appraiser determines the appraised value during the mortgage origination process.<br \/>\nThis value may be equal, greater than or less than the purchase price of the property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Appraiser<\/h5>\n<p>A qualified individual authorized to perform real estate appraisal services for a fee. A real estate appraiser is an accredited professional whose main service typically involves estimating the value of real property at a specified date in a manner that is independent, impartial and objective.<br \/>\nAn appraiser determines the market value of a house based on its condition, and the selling price of comparable houses recently sold in the area. The licensing requirement for real estate appraisers varies from province to province.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Appreciation<\/h5>\n<p>An increase in the value of property over time. Important factors in a home\u2019s appreciation are its location, condition and the selling price of similar homes in the area. Appreciation increases the amount of equity, which may also increase the amount you can borrow for a home equity line of credit.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Approved Lender<\/h5>\n<p>A lending institution authorized by the Government of Canada through CMHC to make loans under the terms of the National Housing Act. Only Approved Lenders can negotiate mortgages that require mortgage loan insurance.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Approved term<\/h5>\n<p>The number of months that it will take to pay off your loan. The approved term is used to determine the payment amount, repayment schedule and total interest paid over the life of the loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>APR<\/h5>\n<p>See Annual Percentage Rate<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>ARM<\/h5>\n<p>See Adjustable Rate Mortgage<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Arrears<\/h5>\n<p>Past due, overdue payments.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Asbestos<\/h5>\n<p>A group of silicate minerals that naturally form in host rocks throughout the world. These minerals are made up of millions of thin, fibrous crystals that are strong, durable and resistant to heat, electricity, chemical corrosion, sound, and moisture.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Asking Price<\/h5>\n<p>The amount of money that a seller is asking or intends to ask for his or her property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Assessed value<\/h5>\n<p>The value of a property (land and buildings), established by a public tax assessor. The value placed on real property by a municipality as a basis for determining property taxes.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Assessment<\/h5>\n<p>The process of determining the property value for taxation purposes. Assessment is used to determine the property owner\u2019s proportionate share of municipal taxes on an annual basis.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Assets<\/h5>\n<p>In the context of a mortgage, an asset is anything that you own or can access that has a cash value. These are goods of value, either tangible or not, that a borrower or business owns.<br \/>\nOften used in determining net worth or in securing financing.<br \/>\nSome examples of assets include:<\/p>\n<p>Checking and savings accounts<br \/>\n401(k) and IRA accounts<br \/>\nCertificates of deposit (CDs)<br \/>\nStocks<br \/>\nBonds<br \/>\nMutual funds<br \/>\nWhen you apply for a mortgage, your lender will want to verify your assets. This is to ensure that you have enough money in savings and investments to cover your mortgage if you run into a financial emergency.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Assignee<\/h5>\n<p>A person to which an assignment (transfer) of property, rights or interest is made.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Assignment<\/h5>\n<p>The method of transferring a right or contract, such as the terms of a loan, from one person to another.<br \/>\nThe act of transferring an interest in real property to another.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Assignment of Mortgage<\/h5>\n<p>An agreement that consists of the transfer (i.e. selling) of an interest and all rights in the mortgage contract and the security in the property to a new lender or third party in return for payment of money.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Assignor<\/h5>\n<p>A person who makes a transfer under an assignment.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Assumability<\/h5>\n<p>This allows the buyer to take over the seller\u2019s mortgage on the property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Assumable<\/h5>\n<p>This means that your mortgage MAY be taken over by another party if, for example, you sold your house and the buyer wanted to take over your mortgage payments. This MAY be of an advantage to a buyer if the rate on your mortgage is lower than current rates. Even though the mortgage is assumable, the borrower MUST qualify to the satisfaction of the mortgage lender.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Assumable Mortgage<\/h5>\n<p>A loan that may be transferred to someone else while maintaining the same terms. For example, if you have an assumable loan (not all loans are assumable) and you sell your home, you may be able to transfer that loan to the new owner with no change in the interest rate and repayment schedule. Once the loan is assumed by the buyer the seller is no longer responsible for repaying it.<\/p>\n<p>There may be a fee and\/or a credit package involved in the transfer of an assumable mortgage.<\/p>\n<p>Lenders typically require the individual to qualify under the terms and conditions of the existing mortgage before allowing the mortgage assumption to occur.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Assumption<\/h5>\n<p>The act of taking possession of mortgaged property whereby the buyer accepts liability for the debt and takes responsibility of the seller\u2019s existing mortgage at the interest rate and terms as laid out in the original mortgage documents. The seller remains liable to the mortgage lender unless the lender agrees to release the seller from the debt obligation.<br \/>\nCertain conditions may apply. With builders\u2019 loans, the assumption is usually evidenced by written agreement.<br \/>\nAssuming a loan can normally save the purchaser money since there are no closing costs involved.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Assumption Agreement<\/h5>\n<p>A legal document signed by a buyer that requires the buyer to assume responsibility for the obligations of an existing mortgage. If someone assumes your mortgage, make sure that you get a release from the mortgage company to ensure that you are no longer liable for the debt.<br \/>\nAssuming a loan can normally save the purchaser money since there are no closing costs involved.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Attached Goods<\/h5>\n<p>An improvement or personal property item attached to the real property or building. Whether an item becomes a fixture depends largely on the circumstances, with emphasis placed on the method of how the item is affixed to the property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Attorney<\/h5>\n<p>Refers to the person appointed to act on behalf of a donor in a Power of Attorney.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Auctioneer<\/h5>\n<p>A person who engages in the business of selling or offering for sale by public auction, goods, wares, merchandise or effects of any kind.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Automatic payment<\/h5>\n<p>Automatic payments allow you to set up recurring mortgage payments through your bank. Automatic payments can be a convenient way to make sure that you make your payments on time.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t\t<div id=\"tab-b\" data-tab-icon=\"\" class=\"wpb_tab ui-tabs-panel wpb_ui-tabs-hide clearfix\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Backup Offer<\/h5>\n<p>A backup offer is when a buyer submits an Offer to Purchase on a property that is conditionally sold. If the seller accepts the backup offer, it would be next in line if the conditions are not satisfied on the conditional offer that is already in place.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Balance<\/h5>\n<p>The amount of unpaid mortgage remaining after a payment has been made.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Balance Sheet<\/h5>\n<p>A dated financial statement (in table form) that shows your assets, liabilities and net worth.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Balanced Market<\/h5>\n<p>A real estate market condition where demand from buyers is in equilibrium with the supply of properties.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Balloon Loan<\/h5>\n<p>A balloon loan, or balloon mortgage, gets its name from the large size of its payment. It\u2019s a type of financing that requires a a larger-than-usual, one-time lump sum to be paid at some point in the mortgage term \u2013 most commonly, at the end. This one-time payment is called a &#8220;balloon payment&#8221;.<br \/>\nA balloon loan that provides you with lower-than-usual monthly payments (that may include both principal and interest, or interest only) for a set period of time followed by a payment larger than usual at the end of your loan repayment period.<br \/>\nInterest-only mortgages only require you to pay the cost of interest throughout your term with the entire balance due at the end.<br \/>\nWhile a balloon loan may lower your monthly payments it can also mean you make higher interest payments over the life of the loan.<br \/>\nIf you cannot pay the balloon amount, you might have to refinance, sell your home, or face foreclosure.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Balloon Payment<\/h5>\n<p>A final payment of the mortgage made on the maturity date to retire the debt in full. Such payments are most common in commercial mortgaging.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Bare Land Condominium Plan<\/h5>\n<p>A type of Condominium Plan in which units are individual parcels of land. The boundaries for units within a Bare Land Condominium Plan are defined by the width and depth of each parcel of land and identified using survey monuments (e.g. steel pins, wooden stakes) placed on or under the ground.<br \/>\nAlso called Bare Land Built-Out Condominium Plan<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Barely Blended Condominium Plan<\/h5>\n<p>A type of condominium plan in which units within a bare land condominium have been re-divided into smaller units with boundaries that are defined by the space within a building. The new unit boundaries are based on walls, floors, and ceilings. In effect, a Barely Blended Condominium Plan combines a Conventional Condominium Plan with a Bare Land Condominium Plan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Basement<\/h5>\n<p>A type of foundation that consists of an enclosed space constructed in whole or in part below ground level. Due to the depth to which holes must be dug to construct basements, they can often be used as habitable space by a building\u2019s occupants.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Basis point<\/h5>\n<p>A unit of measure equal to 1\/100th of one percent (a percentage point) that is typically used in quoting changes in interest rates or yields in debt securities including mortgages.<br \/>\nFor example, a fee calculated as 50 basis points of $200,000 would be 0.50% or $1,000.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Beacon Score<\/h5>\n<p>The name given to the credit score published by Equifax. A number that is generated by the Equifax Credit Bureau to rank the credit-worthiness of individuals.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Bilateral Contract<\/h5>\n<p>A legally enforceable agreement where the parties are bound by their exchange of mutual promises.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Bi-weekly payment<\/h5>\n<p>In a bi-weekly payment plan, the mortgage servicer is collecting half of your monthly payment every two weeks, resulting in 26 payments over the course of the year (totaling one extra monthly payment per year). By making additional payments and applying your payments to the principal, you may be able to pay off your loan early. Before choosing a bi-weekly payment, be sure to review your loan terms to see if you will be subject to a prepayment penalty if you do so. Check if your servicer charges any fees for a bi-weekly payment plan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Blanket Mortgage<\/h5>\n<p>A single mortgage registered against two or more pieces of real property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Blend and Extend<\/h5>\n<p>Taking your existing mortgage and adding to the term and combining the old and new rate into a blended rate on a weighted basis.  It can be a good way of avoiding prepayment penalties if you are moving and increasing the size of your mortgage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Blended Payments<\/h5>\n<p>Equal mortgage payments consisting of both an interest and a principal component, paid on schedule (e.g. weekly, biweekly, semi-monthly, monthly) for the duration of mortgage term.<br \/>\nRegular equal mortgage payments combining, or blending, interest and principal components in one constant payment.<\/p>\n<p>Usually, while the payment amount does not change, the principal portion of payment increases, while the interest portion decreases over the term of the mortgage as the balance of the mortgage declines.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Blended Rate<\/h5>\n<p>The rate that results from the blending of an existing mortgage and a new mortgage with differing interest rates into one consolidated mortgage. The calculation to determine the final rate takes into account both the interest rates and the amount of principal for each of the component loans.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Blended Rate Mortgage<\/h5>\n<p>A mortgage that combines the amount a borrower owes under an existing mortgage with additional mortgage money required. Example; borrower owes $100,000 @ 2.69% and is requesting an additional $200,000 in funds at today\u2019s rate of 3.00%. The new rate and mortgage amount will be blended with the old rate and mortgage amount and a new rate will be extended to the borrower. In this case, the rate would be between 2.69% and 3.00%.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Blind Bidding<\/h5>\n<p>In blind bidding, competing offers for a home or property are placed without the transparency of knowing what the other offers contain \u2014 meaning the successful bidder could wind up paying significantly more than the original asking price of the property.<br \/>\nThis type of &#8216;non-transparent&#8217; bidding has seen a recent resurgence in Canada in reaction to a pandemic buying surge, which has been said to further drive up house prices and exacerbate housing inventory issues, especially in heated large-centre markets.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Board Meeting (Condominiums)<\/h5>\n<p>A meeting at which only the Board of Directors gathers to address the affairs of the condominium corporation. However, if the Board of Directors relies on any advisors (e.g. condominium manager), they may be asked to attend. Board meetings occur at regularly scheduled intervals.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Board of Directors (Condominiums)<\/h5>\n<p>A group of individuals who are elected by unit owners to carry out the duties and responsibilities of the condominium corporation according to the rules and procedures set out in the bylaws and governing policies of the condominium.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Bona-fide Sale Clause<\/h5>\n<p>This very restrictive mortgage condition means you can&#8217;t leave your lender or pay out your mortgage during your term unless you sell your property. Often tacked onto &#8216;ultra-low rate&#8217; mortgages, this clause protects the lender from incurring additional costs during the term. Other restrictions may also apply, such as hefty refinance fees, lack of pre-payment privileges, or additional sales conditions that may limit the sale price or to whom you can sell your home.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Bond<\/h5>\n<p>An interest-bearing certificate of debt with a maturity date. A real estate bond is a written obligation that is usually secured by a mortgage or a deed of trust.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Borrower<\/h5>\n<p>A person who has been approved to receive a loan and is then obligated to repay it and any additional fees according to the loan terms.<br \/>\nThe party who obtains financing from a lender with the agreement that it will be repaid, with interest, within a defined timeframe.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Breach<\/h5>\n<p>A failure to fulfill an obligation under a contract.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Break even point<\/h5>\n<p>The point at which total income equals total expenses. Also used in connection with decisions related to purchasing discount points on a mortgage. Calculating the break even point will identify how many months it will take to recoup the costs associated with paying for the discount point amount under consideration. In other words, if $3,600 is paid toward discount points to reduce the interest rate and the reduced rate would decrease the monthly mortgage payment by $100, it would take 3 years to break even on the choice to pay the discount point amount.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Bridge Loan (or Bridge Financing)<\/h5>\n<p>An interim financing option with a higher interest rate made for a short term (i.e. up to 1 year), to \u201cbridge\u201d (or cover) the time gap between completing the purchase of one property or the sale of another property. A bridge loan is required when the scheduled purchase date of a home is before the scheduled sale date of the home.<br \/>\nThis loan is usually only available if you already have a signed, unconditional sale offer on your current home.<\/p>\n<p>The bridge loan covers the amount of down payment &amp; closing costs that are needed on the day of the purchase transaction. Three conditions are needed for a bridge loan:<br \/>\nA firm sale agreement<br \/>\nA firm purchase agreement<br \/>\nA mortgage product (secured lines of credit included) on the subject property<\/p>\n<p>In essence, bridge financing may be used if the closing date for the newly purchased property occurs before the closing date for the sold property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Broker<\/h5>\n<p>This is an individual who is involved in arranging financing for a client who does not personally loan the funds himself. A broker acts as an intermediary between parties in a transaction, and arranges funding or negotiates a contract between parties but does not lend the money.<br \/>\nBrokers are normally compensated for their work by charging a setup fee or receive direct commission from the financial institution they are setting their client up with.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Broker fees<\/h5>\n<p>Fees charged by a real estate broker or a mortgage broker for providing assistance in a real estate transaction.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Brokerage<\/h5>\n<p>The aspect of business concerned with bringing parties together for the transaction of business and the execution of contracts. Brokerage involves sales, exchanges, and rentals.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Budget<\/h5>\n<p>A detailed record of all income earned and spent during a specific period of time.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Builder Warranty<\/h5>\n<p>This is a guarantee on the quality of construction offered by the developer or building contractor.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Builder\u2019s Loan<\/h5>\n<p>A loan designed for borrowers who need financing for construction projects. These differ from normal loans as the funds are received in stages (also known as draws) during the building process to protect the lender from construction abandonment.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Builders\u2019 Lien<\/h5>\n<p>A lien for the unpaid value of work and\/or materials in favor of the party who did the work on, or supplied the materials to a property<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Building Codes<\/h5>\n<p>Based on agreed upon safety standards within a specific area, building codes are provincial standards for the design, construction, and alteration of buildings to ensure the safety of future occupants and visitors to the premises. This code regulates the construction and safety of structures for both old and new buildings.<\/p>\n<p>Provincial legislation that states the technical specifications required for new building construction and building materials.<\/p>\n<p>Standards set by the Codes include electrical wiring, fire alarm systems, fire extinguishers, emergency routes, occupancy limits, lighting, and ventilation.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Building Permit<\/h5>\n<p>The formal permission provided by a municipality for new construction or modification of an existing structure.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Bully Offer<\/h5>\n<p>A bully offer is also known as a pre-emptive offer \u2014 a high-pressure surprise tactic to make an early bid on a home or property in an effort to secure the sale before other prospective buyers even have a chance to bid. It comes in well before the seller&#8217;s set offer date, is often stripped of some or all conditions of sale (that are designed to protect the buyer), and typically with an above-list price.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Bundle of Rights<\/h5>\n<p>A collection of real property rights that an owner enjoys including the right to possess the land and to use it, the right to lease the land, the right to sell the land, the right to give the land away and the right to retain the land.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Business Assessment<\/h5>\n<p>A value placed on a premise occupied for the purpose of, or in connection with, operating a business for taxation purposes.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Buydown<\/h5>\n<p>The lump-sum prepayment of all or a portion of your mortgage interest by a lender or homebuilder in order to lower your monthly mortgage payment, typically for a period of 1-3 years.<br \/>\nThis payment is consideration for the reduction in the interest charged on a loan from that which would normally be charged.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Buyer<\/h5>\n<p>An individual who is in the process of purchasing real estate and enters into a purchase contract to that effect.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Buyers\u2019 Market<\/h5>\n<p>A real estate market condition where property supply is strong and buyer demand is weak.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Bylaws<\/h5>\n<p>A set of directives that govern the affairs and behavior of a condominium corporation and individual unit owners. They empower the condominium corporation to control, manage and administer the units and common property. Bylaws may only be created, amended or repealed through the passing of special resolutions by the condominium corporation.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t\t<div id=\"tab-c\" data-tab-icon=\"\" class=\"wpb_tab ui-tabs-panel wpb_ui-tabs-hide clearfix\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Call option<\/h5>\n<p>A provision in a loan that gives the lender the right to accelerate the debt and require full payment of the loan immediately at the end of a specified period or for specified reason.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Canada Guaranty<\/h5>\n<p>This is a private mortgage default insurance provider.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Canada Mortgage and Housing Corporation (CMHC)<\/h5>\n<p>CMHC, or Canada Mortgage and Housing Corporation, is a federal crown corporation (run by the Canadian government) mandated to promote the construction of new houses, the repair and modernization of existing houses, and the improvement of housing and living conditions, including the establishment of mortgage default insurance for lenders .<br \/>\nCMHC administers the National Housing Act (NHA), and is Canada\u2019s national housing agency and a leading authority on the Canadian housing market.<\/p>\n<p>The National Housing Act (NHA) authorized Canada Mortgage and Housing Corporation (CMHC) to operate a Mortgage Insurance Fund which protects NHA Approved Lenders from losses resulting from borrower default.<\/p>\n<p>Among other services, they insure mortgages for lenders, so that when a borrower has less than 20% down payment of the purchase price or value of the home, for a Loan-to-Value of greater than 80%, they are still able to secure a mortgage loan.<br \/>\nThis insurance protects lenders if you default on your mortgage.<br \/>\nInsurance is mandatory if you\u2019re buying a home with less than 20% down payment; this type of insured mortgage is often referred to as a high-ratio mortgage.<br \/>\nThe cost of that insurance is paid for by the borrower and is generally added to the mortgage amount.<br \/>\nEven though the mortgage default insurance is for the lender, the borrower typically pays the cost through a premium that is generally added to the mortgage amount.<\/p>\n<p>Backed by 60 years of experience, CMHC is charged with administering government housing initiatives and works with community organizations, the private sector, non-profit agencies, and all levels of government to help create innovative solutions to today\u2019s housing challenges, anticipate tomorrow&#8217;s needs, and improve the quality of life for all Canadians.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Canada Mortgage Bonds Program<\/h5>\n<p>Similar to Mortgage-Backed Securities (MBS) in that the Canada Mortgage and Housing Corporation guarantees the timely payment of interest and principal. However, an MBS has a disadvantage to investors because borrowers of the underlying mortgages can make partial or full prepayments of their mortgage principal. While borrowers like this flexibility, investors do not like the unpredictability. The Canada Mortgage Bond Program eliminates this cash flow uncertainty to investors because CMHC guarantees both semi-annual interest payments, and the repayment of principal on a specified maturity date.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Canada Revenue Agency<\/h5>\n<p>The Canada Revenue Agency (CRA) administers tax laws for the Government of Canada and for most provinces and territories; and various social and economic benefit and incentive programs delivered through the tax system.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Canadian National Association of Real Estate Appraisers<\/h5>\n<p>A national, member-based association that offers real estate appraiser designations in Canada.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Canadian Residential Appraiser<\/h5>\n<p>A designation granted by the Appraisal Institute of Canada.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Canadian Uniform Standards of Professional Appraisal Practice<\/h5>\n<p>A generally accepted and recognized standard of appraisal practice for real property valuation adopted in Canada and by certain Canadian appraisal associations and organizations.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Cap<\/h5>\n<p>A limit, such as that placed on an adjustable rate mortgage, on how much a variable interest rate can increase. Many adjustable-rate mortgages have both annual (or semiannual) rate caps and lifetime caps. They limit the amount your payments can increase in an adjustment period and over the life of the loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Capacity<\/h5>\n<p>The power provided under law to a person to enter into binding contracts. Also, the ability of a borrower to repay a loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Capital<\/h5>\n<p>The balance of the loan. A payment pays the interest and repays the capital. Also, the amount of money the borrower has invested into the property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Capped rate<\/h5>\n<p>A variable interest rate with a pre-determined ceiling whose payments are set to exceed the actual payments. The difference is used to repay the capital. If the prime rate increases, the payment will not increase but the excess portion going towards the capital will be reduced.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Capped Rate Variable Mortgage<\/h5>\n<p>A variable rate mortgage on which the lender has set a limit to interest rate increases or decreases.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Carrying Costs<\/h5>\n<p>The expenses of living in and maintaining a home. This includes mortgage payments, property taxes, condo fees, heating, repairs and other home related expenses. When completing a mortgage application, you must prove to the lender you can service the carrying costs on subject &#038; non-subject homes.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Case Law<\/h5>\n<p>The body of legal decisions where the court has interpreted legislation when applying it to a specific set of facts. Court decisions can be made at various levels within the judicial system (e.g. Provincial Court, Court of Queen\u2019s Bench, and Court of Appeal provincially and the Supreme Court of Canada federally). The decisions of a higher court may alter decisions made by lower courts, and the prior decisions of courts will influence future court decisions. Therefore, case law is based on judicial precedent rather than statutory law.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Cash available for closing<\/h5>\n<p>Borrower funds that are available to cover down payment and closing costs. If lending guidelines require the borrower to have cash reserves at the time the loan closes or that the down payment come from specified sources, the borrower\u2019s cash available for closing does not include cash reserves or money from those specified sources.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Cash-back mortgage<\/h5>\n<p>A mortgage feature where the lender refunds a sum of money either as a percentage of the mortgage principal or as a lump sum to the borrower (cash back). It is generally used to cover closing costs. The interest rates on these mortgages are higher than on some other mortgages.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Cash Reserves<\/h5>\n<p>A cash amount sometimes required to be held in reserve in addition to the down payment and closing costs; the amount is determined by the lender.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Cash to close<\/h5>\n<p>The amount a homebuyer needs in cash at the closing of the loan. This typically, this includes down payment and closing costs.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Cash-out refinance<\/h5>\n<p>A refinance transaction in which the new loan amount exceeds the total of the principal balance of the existing first mortgage and any secondary mortgages or liens, together with closing costs and points for the new loan. This excess is usually given to the borrower in cash and can often be used for debt consolidation, home improvement or any other purpose.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Caveat<\/h5>\n<p>Latin for \u201clet him beware,\u201d a caveat is a written legal notice registered against the title of a property warning that a claim or an interest has been made against the property by a third party. The registration of a caveat is only notice of a claim and does not relate to the validity of the claim being made.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Caveat Emptor<\/h5>\n<p>A doctrine of the common law that translates to \u201clet the buyer beware.\u201d<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Certificate of Compliance<\/h5>\n<p>A confirmation from the municipality that the location of building(s), structures and development on a property comply with all the regulations of the Land Use Bylaw. The response may be either in the form of a stamped property survey if the existing development meets regulations or by way of a written letter if the development on the property does not meet regulations. A certificate of compliance is usually required by mortgage lenders and standard real estate purchase contracts.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Certificate of Location or Survey<\/h5>\n<p>A document specifying the exact location of the building on the property and describing the type and size of the building including additions, if any.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Certificate of Ownership (Deed)<\/h5>\n<p>The document signed by the seller transferring ownership of the home to the purchaser. This document is then registered against the title to the property as evidence of the purchaser\u2019s ownership of the property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Certificate of Search or Abstract of Title<\/h5>\n<p>A document setting out instruments registered against the title to the property, e.g. deed, mortgages, etc.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Certificate of Title<\/h5>\n<p>A document provided by a qualified source (such as a title company) that shows the property legally belongs to the current owner; it records the information about the land, such as the legal land description, municipal jurisdiction, ownership and registered interests.<br \/>\nBefore the title is transferred at closing, it should be clear and free of all liens or other claims.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Certified Appraisal Reviewer<\/h5>\n<p>A designation granted by the Canadian National Association of Real Estate Appraisers.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Certified Mortgage Appraisal Reviewer<\/h5>\n<p>A designation granted by the Canadian National Association of Real Estate Appraisers.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Character<\/h5>\n<p>The general impression of how trustworthy a borrower is to repay a loan; the borrower\u2019s length of employment is a key measurement.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Charge<\/h5>\n<p>A charge, or mortgage, is security interest registered on title to secure a loan. A collateral charge allows a borrower to use their home as security for one or more loans, including mortgages or lines of credit.<br \/>\nThe name given to a mortgage when registered.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Charging Clause<\/h5>\n<p>A provision in a mortgage document that charges the borrower\u2019s interest in the real property as security for payment of the debt obligation.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Chattel Mortgage<\/h5>\n<p>A mortgage given on chattels; An agreement that charges the borrower\u2019s personal property identified in the agreement as security for a loan.<br \/>\nA lender may take security on personal property in order to enhance the extent of their security for a loan. This may be the case when borrower\u2019s real property is insufficient for a lender to proceed with the loan.<\/p>\n<p>This type of mortgage is usually given as collateral security to a mortgage on real estate.<br \/>\nAs an example, there may be a chattel mortgage on real estate, or there may be a chattel mortgage on refrigerators and stoves in an apartment building.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Chattels<\/h5>\n<p>The movable items not securely affixed to the land or buildings, as furnishings and appliances that are not considered part of the real property. They may be referred to as personal property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Claimant<\/h5>\n<p>A person who applies or has applied for payment of benefits or financial compensation.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Clean Offer<\/h5>\n<p>Also referred to as a &#8216;no-conditions&#8217; offer, it&#8217;s an offer made on a home listed for sale that is completely stripped of typical sale conditions, in order to speed the process to buy a home.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Clear title<\/h5>\n<p>Titles that are marketable and are free of liens or disputed legal questions as to ownership of the property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Client<\/h5>\n<p>The party in a real estate transaction that is represented by a real estate professional. A client is a person who has entered into a service agreement with an industry member whether or not that service agreement is in writing.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Closed Mortgage<\/h5>\n<p>A mortgage that has prepayment restrictions. Payment deadlines are predetermined and not subjected to modifications.<br \/>\nThis type of mortgage may not be prepaid or renewed early, unless the the lender agrees and the borrower is willing to pay a prepayment penalty.<br \/>\nMany closed mortgages limit prepayment options such as increasing your mortgage payment or lump sum prepayment, as this will break the terms of the mortgage contract. This mortgage agreement cannot be prepaid, renegotiated or refinanced before maturity, except according to its terms.<\/p>\n<p>Each lender has various pre-payment provisions that can be applied to a closed mortgage without incurring a penalty. The interest rate in a closed mortgage is secured for the term.<\/p>\n<p>For example, if you had a closed 5-year fixed mortgage with 20% annual prepayment privileges, you could not pay back more than 20% of the mortgage amount\u2014plus your normal payments\u2014before maturity. If you did, you would incur a prepayment charge (a.k.a. penalty). A fully closed mortgage does not allow prepayment in full before maturity, regardless of penalty.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Closing<\/h5>\n<p>This is the final step in the mortgage process, which involves a meeting between the purchaser, vendor and lender.<br \/>\nAlso known as settlement, this is the time at which the property is formally sold and transferred from the seller to the buyer; it is at this time that the borrower takes on the loan obligation, pays all closing costs, and receives title from the seller. The buyer finalizes the real estate transaction, which includes signing of the title documents, calculations of adjustments and disbursements of funds.<\/p>\n<p>It is where the property, title ownership and money legally change hands.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Closing Costs<\/h5>\n<p>In addition to the purchase price of the home, these are costs you incur to close a home purchase and\/or mortgage.<br \/>\nThe major costs involved in obtaining financing include; land transfer taxes, lawyer fees, title insurance, home inspection, notary fees and disbursements, loan origination fees (if applicable), preparation and title search fees, credit report charges, discount points, pest inspection fees.  survey costs,  adjustments for prepaid condominium common expenses, real estate commissions, outstanding utilities and property taxes, courier charges, appraisal fees, other legal fees, etc.<br \/>\nIt is recommended that you set aside funds equaling between 1.5% and 3% of the property value for closing costs.<\/p>\n<p>Funds often needed to close a loan, such as homeowners insurance, and escrow impound account funds, aren&#8217;t included in closing costs and are considered separate. You should be prepared to pay these costs before your loan closes.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Closing Date (or Closing Day)<\/h5>\n<p>This is the date when the financial adjustments are made for each party in a real estate or mortgage transaction.<br \/>\nOn this date, the sale becomes final, funds are transferred from the purchaser to the vendor, and the new owner obtains title and takes possession of a property.<br \/>\nThe new owner sign the new loan documents and assumes financial responsibility for the property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Closing Disclosure<\/h5>\n<p>A Closing Disclosure is a required document that tells you the final terms of your loan. This document includes your interest rate, your projected monthly payments, loan principal and the closing costs you must pay. Your lender is legally required to give you at least 3 days to review your Closing Disclosure before you sign on your loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Closing statement<\/h5>\n<p>An accounting of funds given to both buyer and seller before real estate is sold.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>CMA<\/h5>\n<p>See Comparative Market Analysis<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>CMAR<\/h5>\n<p>See Certified Mortgage Appraisal Reviewer<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>CMHC<\/h5>\n<p>See Canada Mortgage and Housing Corporation<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>CMHC Premium<\/h5>\n<p>When you buy a primary residence with a down payment of less than 20% of the purchase price, you are required to apply for CMHC Mortgage Loan Insurance. This default insurance protects your lender in case you don\u2019t pay them back. The CMHC Mortgage Loan Insurance premium is calculated as a percentage of your loan and is based on the amount of equity you have. Mortgage insurance premiums increase with the loan-to-value.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>CNAREA<\/h5>\n<p>See Canadian National Association of Real Estate Appraisers<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Co-applicant<\/h5>\n<p>One of two or more people applying together for a loan. Also called co-borrower.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Co-borrower<\/h5>\n<p>An additional person who assumes equal responsibility for repayment of a loan and is fully obligated under the terms of the loan. This person also has equal rights to the proceeds of the loan.<br \/>\nIf 2 or more people are borrowers on a mortgage, they are co-borrowers. All co-borrowers\/co-applicants have the obligation to repay the loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Collateral<\/h5>\n<p>An asset, such as a car or a home, term deposit, Canada Savings Bond, etc., used for securing the repayment of a loan. The borrower risks losing the asset if the loan is not repaid.<br \/>\nThis is a borrower\u2019s pledge of specific property to a lender, and serves as guaranteed support for a loan that ensures added security to the lender.<br \/>\nCollateral can also take the form of guarantees provided by third parties i.e., guarantors.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Collateral Charge<\/h5>\n<p>With a collateral charge, security is provided in favor of the lender, registered in first position priority on the land and building. The specific details of the mortgage loan might not be included in the charge that is registered on the title to your property. A collateral charge can be used to secure multiple loans with your lender, including a mortgage or a line of credit. A separate credit agreement contains the specific terms of the mortgage loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Collateral Mortgage<\/h5>\n<p>A mortgage backed by additional security if the lender believes the primary security is insufficient.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Collection<\/h5>\n<p>The efforts used to bring a delinquent loan current and, if necessary, to file legal papers and notices to proceed with foreclosure.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Combination Loan<\/h5>\n<p>A combination loan pairs a conforming first mortgage with a home equity second mortgage for up to 80% of the property&#8217;s value in a single application with 1 down payment. Combination loans may help you avoid the higher rates of a jumbo first mortgage. Combination loans are made up of 3 parts: 70% first mortgage, 10% home equity second mortgage and 20% down payment.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Combined liens<\/h5>\n<p>The outstanding balance of all mortgages held on a property. Used to determine the total available equity when considering the appraised value of the property less total combined or outstanding liens.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Commercial Building<\/h5>\n<p>A building intended for business use.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Commercial Condominium<\/h5>\n<p>A condominium that consists of units within an office tower, low-rise\/single-level business centre or single-purpose facility, such as medical, dental or professional offices.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Commercial Lease<\/h5>\n<p>A type of contract granting temporary use or occupation of a commercial property for a specified period in exchange for a specified amount of rent.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Commercial mortgage<\/h5>\n<p>A mortgage given to a business to buy or refinance a property used for commercial purposes.<br \/>\nIn a commercial mortgage, the mortgaged property is an income-producing commercial building rather than a residence. Commercial mortgages are usually much larger than residential mortgages. Lenders secure these loans with mortgages registered on title against multi-unit residential buildings, retail plazas, shopping centres, office and industrial buildings. Lenders review the commercial property\u2019s appraised value and monthly income generation to determine how much the owner, often a business or corporation, may be approved for.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Commercial Property<\/h5>\n<p>The real property used to conduct retail or service businesses with the prime objective of making a profit.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Commission<\/h5>\n<p>An amount, usually a percentage of the property sales price that is collected by a real estate professional as a fee for negotiating the transaction.<br \/>\nThe remuneration paid for services as an agreed fee or percentage of sale price or property lease.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Commitment<\/h5>\n<p>A mortgage commitment is a document where the lender agrees to lend the borrower money under a set of specified conditions.  The conditions usually include things like receiving income verification (employment letter, pay stubs, tax information), appraisal, copies of MLS listing, proof of down payment etc.<br \/>\nIn a commitment there is a set list of conditions that need to be met prior to funding by the borrower in order for the transaction to be properly executed.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Commitment Letter\/Mortgage Approval<\/h5>\n<p>Written notification from the mortgage lender to the borrower that approves the advancement of a specified amount of mortgage funds under specified conditions.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Common Area Maintenance Expenses<\/h5>\n<p>The costs charged in a commercial lease for the maintenance, repair, and replacement of the common areas, amenities and building systems of the property. These costs are typically assigned based on the amount of space leased.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Common Law<\/h5>\n<p>The accumulated legislation that is enacted by the courts. The courts create laws based on decisions (i.e. precedents) that were made previously by the same or different courts.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Common Property<\/h5>\n<p>The physical space that is not considered to be part of a unit within a condominium and that is jointly owned under the condominium corporation.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Common Property Expenses<\/h5>\n<p>The expenses associated with the maintenance, repair, and replacement of the common property of the condominium corporation.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Common Property Unit<\/h5>\n<p>In a barely blended condominium, a unit that includes areas for use by unit owners that is owned by the condominium corporation who is responsible for its care and maintenance.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Comparables, Comparable Property, Comps<\/h5>\n<p>Properties similar to the property under consideration for a mortgage that have approximately the same size, location and amenities and have recently been sold. Comparables help an appraiser determine the fair market value of a property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Comparative Market Analysis<\/h5>\n<p>A method of property valuation used by real estate professionals for estimating the value of residential properties.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Compensation<\/h5>\n<p>Payment for performance of service.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Competing Interests<\/h5>\n<p>When the interests of clients represented by the same brokerage compete with each other in regards to a real estate transaction or potential transaction.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Complainant<\/h5>\n<p>A person who files a formal written complaint to the provincial regulatory authority.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Complaint<\/h5>\n<p>A formal written statement made by a person concerning an industry professional\u2019s alleged failure to follow the standards of business practice as set out by the provincial regulatory authority.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Compound Interest<\/h5>\n<p>Interest that is calculated on the initial principal amount and the accrued, accumulated, and unpaid interest of prior periods.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Condition<\/h5>\n<p>An aspect of a contract that serves as an impediment to an enforceable contract, until such time as it has been satisfied or waived. Conditions are typically placed in a contract by a party to that contract in order to protect its interest(s) and include a specific period of time after which the condition(s) will expire. Each condition may have the same or a different expiry. Real estate purchase contracts may include conditions added for the benefit of the seller, buyer, or lender.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Conditional Offer<\/h5>\n<p>A form of ownership in which individuals purchase and own a unit of housing in a multi-unit complex; the owner also shares financial responsibility for common areas.<br \/>\nIt includes both the individual ownership of a unit and the shared ownership of common property with other unit owners.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Condominium Bylaws<\/h5>\n<p>Rules that govern the affairs and behavior of a condominium corporation and individual unit owners. They empower the condominium corporation to control, manage and administer the units and common property. Bylaws may only be created, amended or repealed through the passing of special resolutions by the condominium corporation.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Condominium Corporation<\/h5>\n<p>A legal entity that consists of all unit owners within a condominium.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Condominium Document Condition<\/h5>\n<p>A condition in a purchase contract that gives the buyer the opportunity to review certain condominium documents associated with a unit and condominium he or she is interested in.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Condominium Document Reviewer<\/h5>\n<p>An individual who specializes in interpreting the information contained within the various documents associated with a condominium.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Condominium Documents<\/h5>\n<p>The package of documents that relate to the structure, finances and management of a condominium. The wide range of documents provides important information to industry professionals and to the sellers, buyers, borrowers and lenders with whom they work. Various documents related to the condominium may be obtained from the seller, member(s) of the Board or the property manager, as the case may be.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Condominium Fee<\/h5>\n<p>A fee paid by the condo owner that is allocated to pay building expenses. This monthly fee set by the Board of Directors and paid by a unit owner to the condominium corporation.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Condominium Insurance<\/h5>\n<p>The corporation is responsible for acquiring and renewing insurance for the common property. Insurance coverage typically includes the common perils to property (e.g. fire), general liability and liability for the Board of Directors of the condominium corporation. The insurer issues a Certificate of Insurance to the corporation for proof of coverage and this document forms part of the condominium documents provided to unit owners, buyers, and lenders.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Condominium Management Services<\/h5>\n<p>Condominium management services are those in which and individual or brokerage is exercising the power, or performing the duties of, a condominium corporation on behalf of that corporation. These duties commonly include:<\/p>\n<p>collecting, holding or disbursing funds levied by the condo corporation or due to the corporation (e.g., condo fees)<br \/>\nenforcing the bylaws or rules of the condo corporation<br \/>\nnegotiating and entering into contracts on behalf of the condo corporation<br \/>\nsupervising employees or contractors hired by the condo corporation<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Condominium Manager<\/h5>\n<p>An individual or company that carries out some or all of the duties of a Board of Director and condominium corporation.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Condominium Plan<\/h5>\n<p>A 2-dimensional or 3-dimensional plan of subdivision that outlines the size, location, and boundaries of the land and any building located on the property. The Plan also divides the property into units and common areas. There are 3 types of Condominium Plans: Conventional Condominium Plans, Bare Land Condominium Plans and Barely Blended Condominium Plans.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Condominium Unit<\/h5>\n<p>The separate parts of the overall condominium plan that are designated for private ownership and exclusive use of the owner. The unit boundaries and the unit factor for each unit are defined by the Condominium Plan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Confidential Information<\/h5>\n<p>Any information concerning a client, such as his or her financial information, personal situation, or the details of a real estate, mortgage brokerage or real estate appraisal transaction.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Conflict of Interest<\/h5>\n<p>A situation that undermines the impartiality of a person. A conflict of interest arises when there is a real or apparent incompatibility between an industry member\u2019s interests and the interests of a client or potential client.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Conservation Easement<\/h5>\n<p>A voluntary agreement between a landowner and a government agency or conservation charity that limits the amount and type of development which can occur on the landowner\u2019s property in order to preserve the ecological and\/or natural portions of his or her land.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Construction loan (or Construction mortgage )<\/h5>\n<p>A construction loan is a short-term interim loan for financing the cost of building or rehabilitating a home other buildings on a property.<br \/>\nThe lender advances funds to the borrower in intervals known as draws. As the portions of the construction project are completed, more funds are then released in order to complete the next step in the construction process.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Contingency<\/h5>\n<p>A specified condition in a sales contract that must be satisfied before the home sale can occur. When buying a home, the 2 most common contingencies are that the house must pass inspection and that the borrower must be approved for a loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Contingent Fee<\/h5>\n<p>A form of compensation for services provided that is dependent on the result of the service.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Contract<\/h5>\n<p>A binding agreement, enforceable by the courts, made between 2 or more persons, competent at law to enter into such agreement, for consideration or value, to do or refrain from doing some lawful and genuinely intended act. A contract can contain any number of promises or terms to be performed by either party. The underlying intention of any contract is that it shall be binding on the parties.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Contractual Payment: First Mortgage<\/h5>\n<p>For a mortgage, the contractual payment is the required monthly payment amount for your home loan as described and determined by your loan contract. The contractual payment may include principal and interest due and may include a portion of funds due to cover homeowners insurance, mortgage insurance (if applicable), and property taxes associated with your home.<\/p>\n<p>Here&#8217;s how it works:<br \/>\nPrincipal + interest + mortgage insurance (if applicable) + homeowners insurance and tax (if applicable) = full contractual payment.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Contractual Payment: Home Equity Line of Credit<\/h5>\n<p>For a home equity line of credit, the contractual payment is the amount owed each month, which may fluctuate based on usage of the line and the terms of your loan agreement. At times, your Contractual Payment may consist of interest only or interest and principal payments.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Conventional Condominium Plan<\/h5>\n<p>A type of Condominium Plan in which units are defined spaces within a building. The boundaries for units for this type of Condominium Plan are determined by floors, walls and ceilings. All areas not included in the units are considered to be part of the common property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Conventional Mortgage (or Conventional Loan)<\/h5>\n<p>A mortgage of 80% or less Loan-to-Value (LTV) of the purchase price or the market value of the property (20% or more down payment). This type of loan does not require default mortgage insurance from insurers like CMHC or Sagen.<br \/>\nHowever, insurance may be requested if there are other risks associated with the application.<\/p>\n<p>Note: A mortgage exceeding 80% LTV is referred to as a &#8216;high-ratio&#8217; mortgage which legally requires mortgage insurance.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Conversion Condominium<\/h5>\n<p>A condominium that involves the creation of units and common areas in an existing building through the registration of a Condominium Plan with Land Titles. Conversion condominiums typically involve buildings which previously offered rental accommodation or leased space, such as apartment buildings, offices, warehouses or storage facilities. Upon registration of a Condominium Plan, the former rented\/leased spaces are converted into separately titled units.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Convertibility clause<\/h5>\n<p>A provision in some adjustable-rate mortgages (ARMs) that allows the borrower to change the ARM to a fixed-rate loan at specified times during the life of the loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Convertible ARM<\/h5>\n<p>An adjustable-rate mortgage (ARM) that can be converted to a fixed-rate loan under specified conditions.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Convertible mortgage<\/h5>\n<p>A convertible mortgage is a type of short-term mortgage that can be converted to a longer-term mortgage without paying a prepayment charge. If you have a convertible mortgage, you might choose to convert it to a longer-term mortgage when interest rates fall.<br \/>\nIn some cases, it allows the lender to change a variable rate for a fixed rate during the term.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Convertible Rate<\/h5>\n<p>Mortgages with a convertible rate feature allowing borrowers to fix the rate of their variable rate mortgage at any time with no penalty.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Convey<\/h5>\n<p>To transfer or deliver title to property from one to another by deed or contract. When an item becomes a part of the transfer of title, it is conveyed with the property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Conveyance<\/h5>\n<p>The transfer of an interest in property from one person to another through written documentation to affect such a transfer.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Conveyancing<\/h5>\n<p>The formal process of transferring the legal title of land and recording interests in the land, using the prescribed Land Titles forms submitted in the prescribed manner.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Co-Operative<\/h5>\n<p>A form of multiple ownership of real estate in which a corporation or business trust holds title to a property. Individual unit holders have the exclusive right to occupy their unit by lease, but their investment in the corporation is by way of shares.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Cooperative Housing<\/h5>\n<p>A corporation of shareholders with a common interest or purpose. In a housing cooperative, individuals own shares in the corporation but do not own the units. The individual\u2019s proportionate interest (shares) dictates the size of the unit he or she can occupy. The occupancy right to the space is provided under a tenancy agreement with the corporation.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Co-Ownership<\/h5>\n<p>The idea that a property (present or future) can be held at the same time by several persons. The most common types of co-ownership are joint tenancy and tenancy-in-common.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Co-signer or co-borrower<\/h5>\n<p>A co-signer or co-borrower is someone who agrees to take full responsibility to pay back a mortgage loan with you. This is a second person who signs your loan and assumes equal responsibility for payment of the loan but receives no benefit from the loan proceeds.<br \/>\nThis person is obligated to pay any missed payments and even the full amount of the loan if you don\u2019t pay.<br \/>\nSome mortgage programs distinguish a co-signer as someone who is not on the title and does not have any ownership interest in the mortgaged home. Having a co-signer or co-borrower on your mortgage loan gives your lender additional assurance that the loan will be repaid. But your co-signer or co-borrower\u2019s credit record and finances are at risk if you don\u2019t repay the loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Cost Approach<\/h5>\n<p>An appraisal method for determining the value of a property that is based on the current cost of replacing or reproducing the subject property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Cost of Credit<\/h5>\n<p>The difference between the value received by a borrower and the value given by the borrower to the credit grantor in connection with a credit agreement.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Court Order<\/h5>\n<p>A legally binding decision issued by a court that requires a party to do or refrain from doing a specified act.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Covenant<\/h5>\n<p>A written agreement or promise usually under seal between 2 or more parties for the performance of an action. In mortgage brokerage, it refers to the clauses in a mortgage agreement that establishes the rights and obligations agreed to by the borrower and the lender.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>CPU<\/h5>\n<p>See Common Property Unit<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>CRA<\/h5>\n<p>See Canadian Residential Appraiser<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Crawl Space<\/h5>\n<p>A type of foundation that is typically shorter in height than a basement. Crawl spaces are not tall enough to provide habitable space for use by building occupants but they can accommodate some components of the building infrastructure.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Credit<\/h5>\n<p>The repayment history of the borrower.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Credit Agreement<\/h5>\n<p>A legally binding contract between a borrower and lender which includes terms of repayment, the fees, other costs, as well as rules and requirements of the loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Credit bureau<\/h5>\n<p>An organization (or agency) that gathers, records, updates and stores financial and public records of individuals who have been granted credit and provides (distributes) this information to lenders (creditors) and other authorized users for a fee.<br \/>\nThe 2 major credit bureaus are Equifax and TransUnion and you are legally entitled to receive 1 free report each year from each of these agencies.<\/p>\n<p>The term &#8216;credit bureau&#8217; is also sometimes used to refer to the report generated by these agencies, used by lenders when making credit decisions.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Credit Bureau Score<\/h5>\n<p>A number representing the possibility a borrower may default; it is based upon credit history and is used to determine ability to qualify for a mortgage loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Credit Check<\/h5>\n<p>Examines the borrower\u2019s past payment history, outstanding debt levels, employment, income and residence history in order to assess how likely the borrower is to repay the mortgage loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Credit history<\/h5>\n<p>A credit history is a record of your credit accounts and your debt payments as shown in your credit report.<br \/>\nConsumer reporting companies, also known as credit reporting companies, collect and update information about your credit record and provide it to other businesses, which use this information to gauge a potential borrower\u2019s ability to repay a loan. Credit reports have information about your credit activity and current credit situation such as your loan paying history and the status of your credit accounts.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Credit limit<\/h5>\n<p>The maximum amount you can borrow under a line of credit.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Credit monitoring service<\/h5>\n<p>A service that offers the benefit of early detection of unauthorized activity in order to limit the amount of financial damage that a person may suffer at the hands of an identity thief.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Credit report<\/h5>\n<p>A credit report is a record of your your credit activity and current credit situation such as past borrowing and repayment history, your payment habits,  and the status of your credit accounts..<br \/>\nData includes current and past financial debts, up to 7 years, and a record of debt payment. A lender uses a credit report, among other details, to determine your creditworthiness: they decide whether to accept or deny your mortgage application, whether you qualify for a loan, and what interest rate to offer you.<br \/>\nLenders get credit reports from credit bureaus, like Equifax and TransUnion.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Credit risk<\/h5>\n<p>The likelihood that a borrower will pay their obligations as agreed. Borrowers who pay as agreed pose less credit risk to lenders.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Credit score<\/h5>\n<p>A credit score is a single three-digit number that predicts how likely you are to pay back a loan on time; it rates the quality of an individual\u2019s credit.<br \/>\nIn essence, it is a numerical expression based on a statistical analysis of a person\u2019s credit files which represents the creditworthiness of that person.<\/p>\n<p>In general, the higher your credit score, the more likely you are to be approved for and to pay a lower interest rate on a loan.<br \/>\nIt factors in things like your payment timeliness, the amount of debt you have relative to your credit limits, and the length of your credit history.<\/p>\n<p>In Canada, credit scores range from 300 to 900. Credit scores above 680 are sufficient for most mortgage purposes. A higher score shows the lender that you have a better likelihood of repaying your debts on time.<\/p>\n<p>Companies use a mathematical formula\u2014called a scoring model\u2014to create your credit score from the information in your credit report. There are different scoring models, so you do not have just one credit score. Your scores depend on your credit history, the type of loan product, and even the day when it was calculated.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Credit Scoring<\/h5>\n<p>A system that assesses a borrower on a number of items, assigning points that are used to determine the borrower\u2019s credit worthiness. In Canada, credit scoring is provided by either Equifax or TransUnion.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Creditor insurance<\/h5>\n<p>Creditor insurance is an insurance product that pays a financial benefit in the amount of your regular mortgage payment (or a portion of your regular mortgage payment) in the event of death or disability.<br \/>\nIt can cover your mortgage payments, or reduce or pay off your mortgage in the event of death, critical illness, disability or job loss.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Creditworthiness<\/h5>\n<p>The likely ability of a borrower to repay debt.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Cumulative interest<\/h5>\n<p>Total interest accrued.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Curb Appeal<\/h5>\n<p>How attractive the home looks from the street. The first impression you have of a home is important. A home with good curb appeal will have attractive landscaping and a well-maintained exterior.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t\t<div id=\"tab-d\" data-tab-icon=\"\" class=\"wpb_tab ui-tabs-panel wpb_ui-tabs-hide clearfix\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Damages<\/h5>\n<p>Monetary compensation that is awarded by a court in a civil action to an individual who has been injured through the wrongful conduct of another party.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Dealing<\/h5>\n<p>Describes the activities relating to the provision of services for soliciting, negotiating and collecting funds related to mortgage transactions.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Debt<\/h5>\n<p>The financial amount that is owed as a result of borrowing funds.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Debt consolidation<\/h5>\n<p>A single loan to pay off multiple debts, usually over a longer term.  Multiple debts are combined into a single, larger debt, usually with more favorable terms.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Debt ratios (also called Debt-Service Coverage Ratios)<\/h5>\n<p>Your debt-to-income ratio is all your monthly debt payments divided by your gross monthly income. This number is one way lenders measure your ability to manage the monthly payments to repay the money you plan to borrow. Ii ts a comparison of gross income to housing and non-housing expenses.<br \/>\nIn essence, this calculation is used to determine whether the borrower can afford the debt obligation. The goal is to ensure your debt doesn&#8217;t exceed a certain percentage of your income.<\/p>\n<p>Lenders and mortgage insurers use two debt-service ratios as part of the process to determine if you qualify for a mortgage: gross debt service ratio (GDS) and total debt service ratio (TDS)<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Debtor<\/h5>\n<p>A person who has the obligation of owing money to another party.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Debt-Service Ratio<\/h5>\n<p>The percentage of the borrower\u2019s gross income that will be used for monthly payments of principal, interest, taxes, heating costs and condominium fees.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Debt-To-Income (DTI) Ratio<\/h5>\n<p>Your debt-to-income ratio is equal to your total fixed, recurring monthly debts before taxes (for example: loans, credit cards and court-ordered payments) divided by your total monthly gross household income.<br \/>\nMortgage lenders look at your DTI ratio when they consider you for a loan to make sure that you have enough money coming in to make your payments. You may have trouble finding a loan if your DTI is too high.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Deed<\/h5>\n<p>A deed is a legal document in writing, duly executed and delivered, that conveys title or an interest in real property. It is the physical document you receive that proves you own your home. It is signed by both the vendor and purchaser, and transfers property ownership from the seller to the buyer.<br \/>\nThis document is then registered against the title to the property as evidence of the purchaser\u2019s ownership of the property.<\/p>\n<p>Before making a loan, a lender will usually require a title search or a title report to make sure the borrower legally owns the real estate that is being used to secure the loan.<\/p>\n<p>You\u2019ll receive your deed when you close on your loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Deed of trust<\/h5>\n<p>The document used in some cases instead of a mortgage; title is vested in a trustee to secure repayment of the loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Deed-in-lieu of foreclosure<\/h5>\n<p>A deed-in-lieu of foreclosure is an arrangement where you voluntarily turn over ownership of your home to the lender to avoid the foreclosure process. A deed-in-lieu of foreclosure may help you avoid being personally liable for any amount remaining on the mortgage. If you live in a province in which you are responsible for any deficiency, which is a difference between the value of your property and the amount you still owe on your mortgage loan, you will want to ask your lender to waive the deficiency. If the lender waives the deficiency, get the waiver in writing and keep it for your records. A deed-in-lieu of foreclosure is one type of loss mitigation.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Default<\/h5>\n<p>A mortgage is in default when the borrower breaches an obligation of the mortgage, or fails to abide by the terms of a mortgage loan agreement.<br \/>\nEx: Failure to make mortgage payments on time or to meet other terms of a loan.<br \/>\nA failure to make mortgage payments (defaulting the loan) may give cause to the mortgage holder to take legal action to possess (foreclose) the mortgaged property.<br \/>\nMortgage payments must be brought up to date to avoid foreclosure or power of sale.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Default Charge<\/h5>\n<p>A charge imposed on a borrower who fails to make a payment as it comes due under a credit agreement or who fails to comply with any other obligation under a credit agreement, but does not include interest on an overdue payment.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Default insurance<\/h5>\n<p>Insurance that protects lenders if a borrower defaults on their mortgage. If the mortgage lender is a Federally Regulated Financial Institution, then default insurance is mandatory in Canada when a down payment is less than 20% of the purchase price. Default insurance premiums are paid by the borrower at the beginning of their mortgage. Insurance premiums may be capitalized to the mortgage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Defendant<\/h5>\n<p>A person or organization against whom legal action is brought against in a court of law.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Delineated Parking Stall<\/h5>\n<p>A type of leased parking stall that has been illustrated on a Condominium Plan, typically using dashed lines. Delineated parking stalls can transfer with the sale of the associated unit without first obtaining approval from the Board of Directors.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Delineated Storage Area<\/h5>\n<p>A type of leased storage area that has been illustrated on a Condominium Plan, typically using dashed lines. Delineated storage areas can transfer with the sale of the associated unit without first obtaining approval from the Board of Directors.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Delinquency<\/h5>\n<p>This is when the borrower fails to make their mortgage payments on time. This normally leads to a forced sale on the borrowers home.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Delinquent<\/h5>\n<p>Delinquent is another term for being late on your payments. Your loan can become delinquent when you miss a payment or don\u2019t make a full payment by the due date. After you are delinquent for a certain period of time, a lender or servicer may begin the foreclosure process. The amount of time can vary by province.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Demand Clause<\/h5>\n<p>An option protecting and benefitting the lender that provides for the lender to demand immediate repayment of a loan in full.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Demand Letter<\/h5>\n<p>A formal letter sent by the lender to the borrower, usually drafted by the lender\u2019s lawyer, under a mortgage foreclosure, stating a legal claim and demanding immediate payment of the debt (all arrears, together with costs).<br \/>\nThe letter also outlines the specific terms and time period to perform the obligation without being taken to court.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Demand Loan<\/h5>\n<p>A loan where the balance must be repaid upon request.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Deposit<\/h5>\n<p>A sum of money deposited in trust by the purchaser on making an offer to purchase.<br \/>\nThe deposit is a symbol of the purchaser\u2019s commitment to buy, and is written into the agreement of purchase and sale.<br \/>\nWhen the offer is accepted by the vendor (seller), the deposit is held in trust by the vendor&#8217;s agent, real estate broker, lawyer, or notary until the closing of the sale, at which point it is given to the vendor; the deposit goes towards part of the total purchase price.<br \/>\nIf a house does not close because of the purchaser&#8217;s failure to comply with the terms set out in the offer, the purchaser oftentimes forgoes the deposit, and it is given to the vendor as compensation for the breaking of the contract (the offer).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Depreciation<\/h5>\n<p>The decrease in value of something because it is now worth less than when you bought it.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Designated Amount<\/h5>\n<p>In certain cases, the principal amount of a mortgage may increase; for example, due to adding deferred interest to the mortgage principal after the trigger rate is reached on a variable rate mortgage. If the principal amount of your mortgage exceeds the Designated Amount, the lender will require you to take steps to reduce the principal amount of the mortgage. The Designated Amount is set out in your mortgage disclosure documents<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Designated Appraiser<\/h5>\n<p>Individuals who have completed the education requirements and possess the knowledge, training, and experience needed to obtain a professional certification to perform real estate appraisal services.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Detached Condominium<\/h5>\n<p>A style of residential condominium that has stand-alone, separate units.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Developer (Condominium)<\/h5>\n<p>A person who, alone or in conjunction with other persons, sells or offers for sale to the public units or proposed units in a condominium that have not previously been sold to the public by means of an arm\u2019s length transaction.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Development Permit<\/h5>\n<p>A permit, issued in advance by the municipality, indicating approval for the overall use and planned construction for a particular parcel of land.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Direct Market Comparison<\/h5>\n<p>A frequently used appraisal method for residential properties that compares and analyzes the sale of similar properties with the subject property. The sale price of the comparable properties is adjusted to account for the similarities and differences in the characteristics of the subject property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Discharge<\/h5>\n<p>To release a person from an obligation.<br \/>\nProcess where lawyer removes mortgage from title registered at Land Titles.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Discharge of Mortgage (or Discharge Document)<\/h5>\n<p>A legal document executed by the lender, and given to the borrower when a mortgage loan has been repaid in full, releasing him or her from all obligations and covenants contained in the mortgage.<br \/>\nThis is the legal document which confirms that the borrower is under no further liability to the lender in respect of the loan.<\/p>\n<p>Once the receipt (acknowledging the completion of payment) has been processed and registered to the title, it becomes the discharge document.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Disclosure<\/h5>\n<p>The act of revealing knowledge and making information known. An industry professional is responsible to disclose openly and honestly all matters which are relevant or could result in a conflict of interest.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Discount Points<\/h5>\n<p>Discount points are an optional closing cost you can pay to \u201cbuy\u201d a lower interest rate. One discount point is equal to 1% of your loan amount. The more discount points you buy, the lower your interest rate will be. However, if you buy more points, you\u2019ll need to cover them in cash at closing. You\u2019re essentially paying more up front to enjoy more savings over the life of the loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Discounted mortgage<\/h5>\n<p>A mortgage that offers you cashback. This amount is not included in your balance, and you do not have to repay it. Before considering this type of loan, it\u2019s important to know that it comes with certain conditions (higher interest rate, only fixed, 5 year minimum term, etc.).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Disposable Income<\/h5>\n<p>The amount of after-tax income households have available for spending and saving. It is one of the economic indicators used to gauge the overall state of a nation\u2019s economy.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Disposition<\/h5>\n<p>The act of distributing or transferring property or any right, interest or estate in land to another party.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Dissolution<\/h5>\n<p>The termination of a contract or other legal relationship, such as a business or marriage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Double Up Option<\/h5>\n<p>A clause that may be included as part of an open mortgage contract, giving the borrower the opportunity to double the scheduled principal and interest payments.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Down payment<\/h5>\n<p>A down payment is the amount of money, including deposit, you put towards the purchase price of a property. It indicates to lenders your financial commitment in securing a mortgage loan.<br \/>\nYour down payment is is the amount you pay toward the home upfront; you put a percentage of the home\u2019s value down and borrow the rest through your mortgage loan.<br \/>\nIn essence, it&#8217;s the difference between the purchase price and the mortgage loan.<br \/>\nGenerally, the larger the down payment you make, the lower the interest rate you will receive and the more likely you are to be approved for a loan. The funds mus come from your own funds or other eligible sources<\/p>\n<p>Minimum down payments vary from 5% to 20%, depending on the location, price, and type of property. A down payment of less than 20% of the property&#8217;s value (often referred to as a high-ratio mortgage) requires mortgage default insurance, which comes with added premiums. A down payment of 20% or more of the property&#8217;s value is called a conventional mortgage which doesn&#8217;t require insurance, but may come with higher interest rates.<\/p>\n<p>In Canada, the minimum down payment must be at least 5% of a property&#8217;s purchase price if it is valued under $500,000.<br \/>\nProperties valued between $500,000 and $999,999 require a down payment of 5% on the first $500,000, and 10% on the remaining amount.<br \/>\nIf the purchase price exceeds $999,999.99, you must put down at least a 20% down payment.<br \/>\nYour mortgage is calculated based on the value of the property minus your down payment.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Down payment programs or grants<\/h5>\n<p>A down payment grant or program typically refers to assistance provided by an organization such as a government or non-profit agency, to a homebuyer to assist them with the down payment for a home purchase. The funds may be provided as an outright grant or may require repayment, such as when the home is sold.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Draw<\/h5>\n<p>The process of obtaining an advance against your available line of credit.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Draw period<\/h5>\n<p>The period during which a borrower can obtain advances (also called draws) from an available line of credit. At the end of the draw period, borrowers may be able to renew the credit line or be required to pay the outstanding balance in full or in monthly installments.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Drug Laboratory<\/h5>\n<p>Any property that has been leased or bought by persons in order to use it to manufacture, process, cook, dispose of, or store illegal drugs.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>DSCR<\/h5>\n<p>See Debt Service Coverage Ratio<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Due-on-Sale Clause<\/h5>\n<p>A provision in a mortgage contract that requires the mortgage be repaid in full to the lender upon a sale or conveyance of interest in the property that secures the mortgage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Due-on-sale provision<\/h5>\n<p>A provision in a mortgage home loan that allows the lender to demand repayment in full if the borrower sells the property that serves as security for the loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Duty of Care<\/h5>\n<p>The duties owed to one party by another which include, honesty, reasonable care and skill and performance of the agreed upon functions.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Dwelling Unit<\/h5>\n<p>A unit in a residential condominium.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t\t<div id=\"tab-e\" data-tab-icon=\"\" class=\"wpb_tab ui-tabs-panel wpb_ui-tabs-hide clearfix\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Earnest money<\/h5>\n<p>Earnest money is a deposit a buyer pays to show good faith on a signed contract agreement to buy a home.<br \/>\nAn earnest money deposit tells the seller that you\u2019re serious about buying their home. If the seller accepts your offer, your earnest money deposit goes toward your down payment at closing.<\/p>\n<p>The deposit is held by a seller or third party like a real estate agent or title company. If the home sale is finalized or \u201cclosed\u201d the earnest money may be applied to closing costs or the down payment. If the contract is terminated for a permissible reason, the earnest money is returned to the buyer. If the buyer does not perform in good faith, the earnest money may be forfeited and paid out to the seller.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Easement<\/h5>\n<p>A right acquired by one party to use the land of another, or their property for a specific purpose (e.g. a shared driveway or public utilities). Once registered on title, an easement is a binding interest in the land that runs with the land regardless of any change in ownership.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Effective Date<\/h5>\n<p>The date upon which an agreement such as a contract is considered to take effect.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Effective Interest Rate<\/h5>\n<p>This is the actual interest rate paid on a loan or mortgage. Also known as true cost, the actual interest rate on investment where a debt or loan was bought at a discount or at a premium.<br \/>\nIn Canada, mortgages typically have a higher effective interest rate because interest rates are compounded semi-annually or twice per year.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Electronic Funds Transfer (EFT)<\/h5>\n<p>The automatic transfer of funds from one account to another. Mortgage repayments can be made electronically directly to the lender.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Electronic Records (eRecords)<\/h5>\n<p>Accounts, books, returns, statements, reports, financial documents or other memoranda of financial or non-financial information that are created, recorded, transmitted or stored in digital form or in any other tangible form by electronic, magnetic or optical means or by any other means that have similar capabilities for creation, recording, transmission or storage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Empirica Score<\/h5>\n<p>A number that is generated by TransUnion Credit Bureau to rank the creditworthiness of individuals.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Encroachment<\/h5>\n<p>A physical intrusion from one property to an adjoining property. Also a structure that is placed, erected, or built on an adjoining property. It also applies to soffits and eaves that overhang the adjoining land.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Encroachment Agreement<\/h5>\n<p>An agreement between the property owner and an adjacent property owner to condone a building or structure built on the adjacent property, be it private property or municipal property. The agreement sets out the terms and conditions for the intruding structure to remain and grants an easement to allow that owner to enter onto the adjoining property to maintain or repair the structure. The agreement is registered on the title of all properties it affects.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Encumbrance<\/h5>\n<p>The registered interests on the title of land that affect or encumber the title, or any lien or liability attached to a property that affects or limits the title to that property, for example unpaid taxes, mortgages and leases.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Environmental Hazard<\/h5>\n<p>A substance, object, or condition with the potential to impair a property and\/or the health and\/or safety of its occupants.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Environmental Risk<\/h5>\n<p>A situation in which a property and\/or its occupants are exposed to danger.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Environmental Site Assessment<\/h5>\n<p>A process that determines whether or not a property is contaminated and if so, to what extent and how to best remediate it.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Equifax<\/h5>\n<p>Equifax compiles credit reporting data from many sources and creates a credit file that reflects your personal credit history including your FICO score. You can view your credit report online enabling you to monitor your credit and monitor your score while protecting yourself from identity theft. Before making major purchases, such as buying a home or car, you can see exactly what information is available to potential lenders.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Equity<\/h5>\n<p>This is the difference between the current fair market value of the property and the outstanding mortgage balances (and other liens). It is the amount that the owner would receive after selling a property and paying off the mortgage. This difference belongs to the owner of that property.<br \/>\nIn other words, equity is the amount your property is currently worth minus the amount of any existing mortgage or liens on your property.<\/p>\n<p>Equity usually increases as the mortgage is reduced through regular payments. Market values and improvements to the property may also affect equity.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Equity (Financial)<\/h5>\n<p>The money left over if an individual or organization paid all of its liabilities, collected all that was owed it and sold all its assets.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Equity Mortgage<\/h5>\n<p>A loan that is obtained against the equity in a property and registered as a mortgage on the title of the property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Equity-based Mortgage<\/h5>\n<p>Qualifying for a mortgage loan based on the value of the property and its potential marketability, instead of using traditional income, credit and other property criteria for qualification. Typically, those who acquire this type of mortgage have credit challenges or are unable to provide a traditional source of income.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Errors and Omissions Insurance<\/h5>\n<p>A form of business liability insurance intended to cover damages resulting from errors, omissions, and negligence by professionals that occurred in the course of providing their business services.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Escrow account<\/h5>\n<p>An escrow account holds money to pay your homeowners insurance and property taxes on your behalf. Escrow funds received as part of contractual payments are placed into an escrow account. When an insurance or property tax bill is received, escrow funds collected over time in the escrow account are used to pay these bills.<\/p>\n<p>Escrow accounts can also be referred to as Impound Accounts.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Escrow analysis<\/h5>\n<p>An escrow analysis is performed periodically (generally once per year or more often due to specific events, such as a loan modification) and compares the amounts collected and paid into the escrow account with the actual charges paid out of the escrow account for taxes and insurance billed.<\/p>\n<p>The analysis also projects what will be paid out of escrow over the next year and calculates the escrow payment amounts that will be needed to fund your escrow account for the upcoming year.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Escrow impound account<\/h5>\n<p>Typically refers to an account set up by a lender in which funds to pay for real estate taxes and homeowners insurance are deposited as part of the borrower&#8217;s monthly mortgage payment, then disbursed as tax and insurance payments come due.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Escrow overage<\/h5>\n<p>An escrow overage will occur when your escrow account balance exceeds the required minimum balance for the account. These escrow overages typically happen when there is a decrease in your property taxes or insurance premiums. When this happens, you may receive an escrow overage refund check or funds may be applied towards a future escrow balance.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Escrow shortage<\/h5>\n<p>An escrow shortage will occur when the balance in your escrow account drops below the required minimum balance. These escrow shortages typically happen when there is an increase in your property taxes or insurance premiums. When this happens, you may need to make up the shortage through an increase in your contractual payment or you may elect to make a separate payment into the escrow account.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Estoppel<\/h5>\n<p>A person (the principal) acts in such a way as to lead a third party to believe that another party (the agent) has the authority to act on behalf of another. Note: this term should not be confused with an Estoppel Certificate.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Estoppel Certificate<\/h5>\n<p>A legal, signed, documented statement from the condominium corporation that confirms the financial information it provides regarding a unit is correct as of the date on the statement and can be relied on by a third party. Upon issuing the Estoppel Certificate, the condominium corporation is barred from changing any of the statements it has certified as correct.<br \/>\nIt is required for condominium purchases in many provinces. It contains important disclosures about the condo fees for a unit, including any unpaid amounts. It can also refer to a legally binding disclosure whereby the tenant certifies the terms of his\/her lease and relationship with the landlord.<\/p>\n<p>It is also called a certificate of status; it outlines a condominium corporation&#8217;s financial and legal state.<br \/>\nFees may vary and may be capped by law (does not apply in Quebec).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Estoppel Certificate Fee<\/h5>\n<p>This applies if you are buying a condominium or strata unit and could cost up to $100. (This does not apply in Quebec.)<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Exclusive Representation Relationship<\/h5>\n<p>A real estate relationship between a brokerage and a client that gives the brokerage the sole right to represent the client in a trade or potential trade in real estate.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Exclusive Use Area<\/h5>\n<p>Common property owned by the condominium corporation that is permanently leased to individual unit owners by the Board of Directors. When an area of the condominium has been deemed to be for the exclusive use of a unit owner, only that owner is permitted the enjoyment that area provides.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Exclusive Use Lease Agreement<\/h5>\n<p>A written contract between the condominium corporation and a unit owner in which the unit owner is granted sole access to a specific part of the common property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Exclusive Use Parking Stall<\/h5>\n<p>A parking stall that is part of the common property and therefore owned collectively by the condominium corporation. The use of this parking stall is essentially permanently leased to an individual owner. Responsibility and care for this parking stall is often delegated to the unit owner.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Exclusive Use Storage Area<\/h5>\n<p>A storage area that is part of the common property and therefore owned collectively by the condominium corporation. The use of this storage area is essentially permanently leased to an individual owner. Responsibility and care for this storage area is often delegated to the unit owner.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Executed Contract<\/h5>\n<p>A contract where all the obligations that were required to be performed by the parties have been fulfilled.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Existing Mortgage<\/h5>\n<p>A mortgage loan that is already in place when the property is being sold. The buyer may have the option of assuming the mortgage or taking out a new one, depending on whether the mortgage is assumable.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Existing Real Property Report<\/h5>\n<p>A legal document produced by a land surveyor that clearly illustrates the boundaries of a property and the location of improvements to the land relative to the boundaries. It also illustrates other issues impacting the property, such as rights-of-way, easements, encroachments, etc. In addition, it may contain a surveyor\u2019s opinion or concerns regarding these items. A current real property report (RPR) illustrates the up to date improvements on the land and their relationship to the property boundaries whereas an existing RPR may not illustrate the current state of a property if any improvements were made to the land since the date of the RPR.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Expandability<\/h5>\n<p>A feature available in some mortgages. It allows the borrower to increase or expand the principal on a first mortgage at the lender\u2019s agreed upon interest rate.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Expiry<\/h5>\n<p>The date that ends the mortgage term. This determines the moment to renew the mortgage or make the final reimbursement.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Express Authority<\/h5>\n<p>The instructions which describe orally or in writing what actions may be taken by an agent on behalf of a principal. Whenever possible, express authority should be provided in writing.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Express Consent<\/h5>\n<p>When an organization presents an opportunity for an individual to communicate agreement to a stated purpose. Unless the individual takes action, the organization cannot assume consent has been given. Express consent may be given verbally or in writing.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Express Contract<\/h5>\n<p>An oral or written contract made between the parties involved.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Extended Amortization<\/h5>\n<p>An amortization period that is longer than what is considered to be industry standard (currently 25 years). Up to 35 years may be available in some circumstances.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Extra Payment\/Payment Overage<\/h5>\n<p>When you pay more than your contractual payment, the additional amount that is paid, can either pay your next month&#8217;s contractual payment or reduce the unpaid principal balance of your mortgage after satisfying any other amounts that are due (for example, outstanding fees, etc.). This may reduce the interest assessed in the future.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Extraordinary Meeting<\/h5>\n<p>A meeting at which the Board of Directors and all members of the condominium corporation gather to address a specific issue that requires immediate attention and input from unit owners. Extraordinary meetings are held when urgent decisions need to be made.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t\t<div id=\"tab-f\" data-tab-icon=\"\" class=\"wpb_tab ui-tabs-panel wpb_ui-tabs-hide clearfix\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Factory-Built Construction<\/h5>\n<p>A construction system in which a building is created wholly or partially in a manufacturing facility and transported to a building site.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Fair Market Value<\/h5>\n<p>The highest hypothetical price that a willing buyer and seller will agree upon (after adequate time and exposure to the market) when they are acting freely, carefully, and with complete knowledge of the situation.<br \/>\nThe fair market value is usually determined by an appraisal.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Fee for Service<\/h5>\n<p>A financial model of compensation that charges the client based on services performed rather than a fixed amount.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Fee Schedule<\/h5>\n<p>A table attached to a condominium corporation\u2019s annual budget which shows each condominium unit\u2019s monthly contribution amount for the upcoming year.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Fee Simple<\/h5>\n<p>The highest estate form of land\/property ownership with the most rights with the fewest limitations. Although generally considered absolute ownership, it is still subject to the restrictions imposed by government.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Fee Simple<\/h5>\n<p>The highest estate form of land\/property ownership with the most rights with the fewest limitations. Although generally considered absolute ownership, it is still subject to the restrictions imposed by government.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>FICO\u00ae<\/h5>\n<p>An acronym for Fair Isaac Corporation, which develops the mathematical formulas used to produce credit scores for assessing credit risk. FICO scores fall between a low of 300 and a high of 850. The higher the FICO score, the lower credit risk a consumer presents.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Fiduciary<\/h5>\n<p>A person who is entrusted to represent another person and has the legal obligation to act for the benefit of, and solely in the best interests of that person being represented.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Fiduciary Duty<\/h5>\n<p>A legal duty requiring a real estate professional to act at all times in the client\u2019s best interests.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Fiduciary Relationship<\/h5>\n<p>The relationship between a principal (e.g. client) and an agent whereby the agent is entrusted with acting for the benefit of the principal.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Finance charge<\/h5>\n<p>A finance charge is the total amount of interest and loan charges you would pay over the entire life of the mortgage loan.<br \/>\nIt is the cost of consumer credit expressed as a dollar amount. It includes the amount of interest you will pay during the terms of the loan, origination points and certain other items. Some closing costs are not treated as finance charges.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Financing Activities<\/h5>\n<p>The part of a cash flow statement that denotes the money that was borrowed by an individual or organization from a lender as well as any payments that were made against borrowed funds.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Fire Insurance<\/h5>\n<p>Before a mortgage can be advanced, the purchaser must have arranged fire insurance. A certificate or binder from the insurance company may be required on closing.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Firm offer<\/h5>\n<p>A firm offer is an unconditional offer to buy a property as outlined in the offer to purchase.<br \/>\nOften, sellers prefer firm offers because the home sale is more likely to go through without major holdups when there are no conditions attached.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>First Mortgage<\/h5>\n<p>A mortgage registered before all others on title; a debt registered against a property that has first call on that property.<br \/>\nIt ranks ahead of any other mortgage, based on the date and time of its registration on title, and is the senior lien against a property.<\/p>\n<p>The first mortgage will have first claim on assets in the event of default. It is in first lien position, and takes priority over all other liens that are registered against the property.<br \/>\nThe only way a first mortgage can be pushed into second position is when the government is involved and registers tax liens against the home.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>First Time Home Buyer<\/h5>\n<p>Someone who is buying a property for the first time, or who has not owned a property for a length of time, as outlined by regulatory requirements. This type of buyer may be able to access to federal programs, credits and rebates designed to support their entering into the real-estate market.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>First-time home buyers (FTHB) loan programs<\/h5>\n<p>First-time home buyers (FTHB) may use a number of different types of loan programs to purchase their first home. Some programs define a FTHB as someone who hasn\u2019t purchased (or owned) a home in three years or more.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Fixed Open Mortgage<\/h5>\n<p>A fixed open mortgage features an interest rate that remains constant for the duration of the term, and does not entail any pre-payment restrictions.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Fixed rate<\/h5>\n<p>When a mortgage rate is fixed, the rate and the payments remain the same for the duration of the term.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Fixed-rate mortgage<\/h5>\n<p>If you have a fixed-rate mortgage, your interest rate and monthly payments stay the same for the entire mortgage term.<br \/>\nIf mortgage interest rates go up during the term, you&#8217;re protected because your rate stays the same. The mortgage interest rate is locked-in for the term of the mortgage, and a fixed payment is set during the term negotiated between the lender and the borrower.<\/p>\n<p>Homeowners who choose a fixed-rate term often believe that rates will rise over the course of their loan and want the stability and predictability this type of loan provides.<br \/>\nFixed rate mortgages are most desirable when current interest rates are low.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Fixed-rate option (Fixed-Rate Loan Option)<\/h5>\n<p>An option available on certain home equity lines of credit allowing borrowers to fix the payments and interest rate on a portion of their outstanding principal balance for a specific term. Customers may be charged a fee for this privilege.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Fixtures<\/h5>\n<p>An improvement or personal property item attached to the real property or building. Whether an item becomes a fixture depends largely on the circumstances, with emphasis placed on the method of how the item is affixed to the property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Floating rate<\/h5>\n<p>A loan rate for which the lender has not &#8220;locked&#8221; or committed to lend at a particular interest rate. The floating interest rate and any discount points are not guaranteed. Your actual interest rate and discount points will be based on the market price available for your loan product at the time your interest rate is locked.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Flood certification<\/h5>\n<p>A determination by a reputable source about whether property is located within a special flood hazard zone.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Flood insurance<\/h5>\n<p>Insurance that protects against loss due to floods. When available, this type of insurance is required by law when a property is located within a special flood hazard zone.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>For Sale by Owner<\/h5>\n<p>The process of selling a property that is for sale by the owner without the representation of a real estate industry professional.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Forbearance<\/h5>\n<p>Forbearance is a period during which your lender allows you to temporarily reduce or suspend your mortgage payments. You may qualify for forbearance if you are willing but unable to make loan payments due to certain types of financial hardships, for example, like if you recently lost your job, suffered from a disaster, or from an illness or injury that increased your health care costs.<br \/>\nForbearance is a type of loss mitigation.<br \/>\nDepending on the kind of loan you have, there may be different forbearance options. You must contact your lender to request forbearance. Remember that you will most assuredly have to make up these missed or reduced payments when your forbearance period is over.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Foreclosure<\/h5>\n<p>With a mortgage, your property serves as collateral until you pay the mortgage off. If you cannot do so, the lender (bank) retains the right to sell the property to recoup its loan.<\/p>\n<p>Foreclosure is a legal proceeding, and refers to the act of a lender taking possession of a property after a borrower does not meet his or her contractual obligations. This is done under a legal process called &#8216;power of sale&#8217;.<br \/>\nYou receive notice and have the chance to bring the mortgage back into good standing. If not, the lender can sell your property to recover money you owe them, including principal, interest, legal fees and charges. At times, the amount paid by a buyer at the foreclosure may not be enough to fully repay the loan and the borrower may continue to owe the lender the difference.<\/p>\n<p>When you default on a loan and the lender feels that you are unable to make payments, you may lose your home to foreclosure. This process deprives the borrowers of their equitable right to redeem. Rules may apply to when the foreclosure may start.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Forfeiture<\/h5>\n<p>The loss of money, property, rights or privileges due to a breach of legal obligation.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Foundation<\/h5>\n<p>A building system consisting of a base that a building rests upon.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Fractional Ownership<\/h5>\n<p>A form of ownership whereby more than one individual possesses fee simple title to a property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Fraudulent Misrepresentation<\/h5>\n<p>A statement is made that is untrue and the person making the statement does so knowingly to induce a party to enter a contract to his or her detriment.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>FSBO<\/h5>\n<p>See For Sale by Owner<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Fully Amortized Mortgages<\/h5>\n<p>A mortgage that requires constant regular payments of both principal and interest components for the life of the mortgage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Functional Utility<\/h5>\n<p>The sum of the attractiveness and usefulness of the property. It is the ability of the property to perform the function for which it intended, in terms of current market tastes and standards. Elements of functional utility in a residence include architecture, design and layout, traffic pattern, sizes and types of rooms, and performance standards.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Funding date<\/h5>\n<p>The date on which the proceeds from a loan are available to or disbursed for the benefit of the borrowers.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t\t<div id=\"tab-g\" data-tab-icon=\"\" class=\"wpb_tab ui-tabs-panel wpb_ui-tabs-hide clearfix\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Garnishment<\/h5>\n<p>The legal attachment of a debtor\u2019s wages, cash flow, or assets by creditors. The party served with notice must comply with the order and forward funds to the creditor(s) named.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>GDS Ratio<\/h5>\n<p>See Gross Debt Service Ratio<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>General Meeting<\/h5>\n<p>A meeting at which the Board of Directors all members of the condominium corporation gather to receive information and make decisions regarding specific issues that require input from unit owners. General meetings are usually held at regularly scheduled intervals.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Gift Letter<\/h5>\n<p>A letter verifying that a portion of a borrower\u2019s down payment is a gift from another person.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Good faith estimate (GFE)<\/h5>\n<p>A Good Faith Estimate (GFE) is an itemized, detailed list of certain estimated costs associated with a home loan that the lender is required to provide to the borrower.<br \/>\nIt includes details such as: type of loan, interest rate, amount, appraisal, closing costs, credit report fees, title and escrow fees etc.<br \/>\nLenders are required, by law, to provide you with a GFE.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Goods and Services Tax<\/h5>\n<p>The federal tax charged on goods and services sold in Canada.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Governing Policies<\/h5>\n<p>A set of directives that regulate the affairs and behavior of the condominium corporation and individual unit owners. The creation, modification and\/or elimination of governing policies is at the discretion of the Board of Directors and input from unit owners may or may not be requested.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Grace Period<\/h5>\n<p>A period in which interest accrues but will be forgiven if the borrower satisfies conditions specified in the credit agreement.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Gross Debt Service Ratio (GDS)<\/h5>\n<p>It is one of the mathematical calculations used by lenders to determine a borrower&#8217;s capacity to repay a mortgage.<br \/>\nIt takes into account the mortgage principal, interest, property taxes, municipal utilities, condo and common fees, approximate heating costs, and any maintenance fees. This sum is then divided by the gross household income of the applicants.<\/p>\n<p>In essence, it is the percentage of gross income required to cover monthly payments associated with housing costs. Most lenders recommend that the GDS ratio be no more than 39% of your gross (before tax) monthly income. Lenders take GDS into account when considering whether to approve a mortgage application.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Gross Household Income<\/h5>\n<p>Gross household income is the total salary, wages, commissions and other assured income, before deductions, by all household members who are co-applicants for the mortgage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Gross Income<\/h5>\n<p>The sum of all sources of income over a specified period of time.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Gross Monthly Income<\/h5>\n<p>The total income that an individual earns per month prior to any expenses or deductions are taken into consideration.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Group Insurance<\/h5>\n<p>A type of insurance plan in which premiums are set for a large group as a whole, as opposed to individual premiums set on personal characteristics. All mortgage creditor insurance plans are group insurance plans.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Grow Operation<\/h5>\n<p>Any property that has been leased or bought by persons in the illegal drug trade which has been turned into an indoor growing environment for marijuana plants.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>GST<\/h5>\n<p>See Goods and Services Tax<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Guarantee<\/h5>\n<p>A promise made by a person to pay a debt or perform the obligations of another individual.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Guarantor<\/h5>\n<p>A person with an established credit rating and sufficient earnings who guarantees to repay the loan for the borrower if the borrower does not perform their obligations .<br \/>\nA guarantor is a 3rd party who promises to pay a debt or perform an obligation contracted by another in the event the original borrower fails to pay or to perform as contracted.<\/p>\n<p>Guarantors pledge their own assets as collateral against the loan(s).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t\t<div id=\"tab-h\" data-tab-icon=\"\" class=\"wpb_tab ui-tabs-panel wpb_ui-tabs-hide clearfix\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Hazard insurance<\/h5>\n<p>See: Homeowners insurance<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>High Ratio Mortgage<\/h5>\n<p>A mortgage in which the loaned amount exceeds 80% of the value of the appraised property value or sale price,  whichever is less.<br \/>\nThis occurs when the borrower\u2019s down payment is 20% or less of the property value. High ratio mortgages are only eligible on purchase transactions.<\/p>\n<p>A high-ratio mortgage must be insured by CMHC (Canadian Mortgage and Housing Corporation), Canada Guaranty or Sagen (formerly Genworth).<br \/>\nIt is considered a high-risk loan. Therefore, you are required to buy default insurance to protect your lender from missed payments. If you default on the mortgage, the insurance pays the lender for certain losses.<br \/>\nNot all lenders offer high-ratio mortgages.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Highest and Best Use<\/h5>\n<p>The use of real property that will support the highest value and will produce the greatest net return over a period of time.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>High-Ratio Buyer<\/h5>\n<p>A high-ratio buyer is a homebuyer that makes less than a 20% down payment. For example, if you put down 5% on a property, you would be considered a high-ratio buyer. As a high-ratio buyer, you must purchase mortgage default insurance from CMHC, Sagen (formerly Genworth Canada) or Canada Guaranty.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Historical Title Search<\/h5>\n<p>A review of all past property ownership and registered encumbrances relating to a specific parcel of land to determine the condition of title.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>HOA<\/h5>\n<p>See Homeowners Association<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>HOA dues<\/h5>\n<p>If you\u2019re interested in buying a condo, co-op, or a home in a planned subdivision or other organized community with shared services, you usually have to pay condo fees or Homeowners\u2019 Association (HOA) dues. These fees vary widely. Condo or HOA fees are usually paid separately from your monthly mortgage payment. If you do not pay these fees, you can face debt collection efforts by the homeowner\u2019s association and even foreclosure.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Holdback<\/h5>\n<p>An amount of money required to be withheld (or not advanced) by the lender during the construction or renovation of a house to ensure that construction is satisfactorily completed at every stage.<br \/>\nThis is done to to maintain adequate security, pending achievement of a performance requirement, or as protection against liens.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Home Buyers&#8217; Amount (HBA) for first-time home buyers<\/h5>\n<p>The Home Buyers&#8217; Plan (HBP) is a federal Canadian government program. It lets eligible individuals1 withdraw up to $35,000 each from their Registered Retirement Savings Plan (RRSP) tax-free to buy, build or maintain a qualifying home. You don\u2019t have to pay income tax on the funds as long as you repay the full amount you withdraw from your RRSP over the next 15 years. If you don&#8217;t repay this amount within 15 years, it will be deemed taxable income.<br \/>\nIf the full $35,000 is withdrawn, the minimum annual repayment is just $2,333.<br \/>\nConditions apply.<\/p>\n<p>You are considered a first-time home buyer if, in the four years prior to your home purchase you did not live in a home that you owned, or one that your current spouse or common-law partner owned.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Home Buyers\u2019 Tax Credit (HBTC)<\/h5>\n<p>See Home Buyers&#8217; Amount (HBA).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Home Equity<\/h5>\n<p>Home equity is the difference between what your property is worth (the current market value) and what you owe on it (any outstanding mortgages, liens, or debts secured by the property).<br \/>\nThe calculation is as follows:<br \/>\nProperty value \u2013 total debt secured by the property = home equity<br \/>\nExample: If your property is worth $600,000 and the mortgage is $200,000, your home equity is $400,000 ($600,000 &#8211; $200,000 = $400,000).<\/p>\n<p>On the day you close on a home purchase, your home equity consists of the appraised value of the property minus your mortgage amount.<br \/>\nYour home equity increases as the debt secured by the property decreases.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Home Equity Financing<\/h5>\n<p>A type of mortgage refinancing in which the mortgage amount is increased to take advantage of the increase equity in a home.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Home equity line of credit (HELOC)<\/h5>\n<p>A home equity line of credit (HELOC) is a line of credit that allows you to borrow against your home equity, typically at a much lower interest rate than a traditional line of credit (or other forms of credit, such as a credit card). In return, you must put up your property as collateral.<br \/>\nOnce you get the line of credit, it is yours to use as you see fit. There are no restrictions as to what you can spend the money on.<br \/>\nHome equity lines of credit are revolving, meaning you can borrow more money up to your approved limit at any time, so long as you make the minimum interest payments each month. You can borrow money, pay it back, and borrow it again, up to the available credit limit.<\/p>\n<p>Equity is the amount your property is currently worth, minus the amount of any mortgage on your property.<\/p>\n<p>Unlike a home equity loan, HELOCs usually have adjustable interest rates.<br \/>\nFor most HELOCs, you can borrow money for a specified time from when you open your account. This time period is known as the \u201cdraw period.\u201d<br \/>\nDuring the \u201cdraw period,\u201d you can borrow money, and you must make minimum payments. When the \u201cdraw period\u201d ends, you will no longer be able to borrow money from your line of credit. After the \u201cdraw period\u201d ends you may be required to pay off your balance all at once or you may be allowed to repay over a certain period of time. If you cannot pay back the HELOC, the lender could foreclose on your home.<\/p>\n<p>A HELOC is often used for home improvements, debt consolidation or other major expenses.<br \/>\nIn Canada, a HELOC may allow you to borrow up to 80% of the purchase price or appraised market value of the property if combined with your existing mortgage, or up to 65% if a &#8216;stand alone&#8217; line of credit.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Home equity loan (HEL)<\/h5>\n<p>A home equity loan (sometimes called a HEL) allows you to borrow money using the equity in your home as collateral.<br \/>\nEquity is the amount your property is currently worth, minus the amount of any existing mortgage on your property.<br \/>\nYou receive the money from a home equity loan as a lump sum. A home equity loan usually has a fixed interest rate \u2013 one that will not change. If you cannot pay back the HEL, the lender could foreclose on your home.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Home Inspector<\/h5>\n<p>The home inspector\u2019s role is to inform you on the property\u2019s condition. They will tell you if something is not functioning properly, needs to be changed or is unsafe. You will also be informed of repairs that need to be done and he\/she may even be able to tell you where there may have been problems in the past.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Homeowners Association<\/h5>\n<p>An association with mandatory membership based on residence in a specific area or community.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Homeowners Association Fee<\/h5>\n<p>A compulsory fee paid by property owners in the specific area under a home ownership agreement. Fees are either paid on an annual or monthly basis. A registered caveat on each property title requires the owner to make these payments to the Association.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Homeowners Insurance (or Home Insurance)<\/h5>\n<p>Homeowners insurance (also referred to as property insurance or hazard insurance) is a type of protection that compensates you if your home gets damaged during a covered incident. It covers both your home and its contents in the event of fire, theft, floods, vandalism, hurricanes, burglaries, windstorms, etc.<br \/>\nDepending on your level of coverage, homeowners insurance also covers you against personal liability in case someone is hurt or injured on your property.<br \/>\nIn exchange for coverage, you pay your insurance provider a monthly premium.<\/p>\n<p>You\u2019re not legally required to get homeowners insurance to own a home. However, your mortgage lender may require you to maintain at least a certain level of coverage for the life of your loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Homeowners\u2019 Association (HOA)<\/h5>\n<p>A homeowners\u2019 association (HOA), is typically formed to manage shared expenses such as landscaping and other maintenance costs for a planned subdivision or other organized community. Condominium HOAs take on more responsibilities including, for example, the maintenance of driveways, shared structures, and roofs.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Household<\/h5>\n<p>Refers to a person or group of persons who co-reside in, or occupy, the same dwelling.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Housing Cooperative<\/h5>\n<p>A non-profit, legal entity incorporated and managed by its members through an elected Board of Directors. The cooperative owns the building and holds title to the land on which the structure is built. Its primary purpose is to provide housing and housing-related facilities to its members.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>HVAC<\/h5>\n<p>An acronym for the following 3 buildings systems: heating, ventilation and air conditioning.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>HVAC System<\/h5>\n<p>HVAC (Heating, Ventilation and Air Conditioning) refers to the &#8216;beating heart&#8217; of a home \u2014 the complete system made up of individual components that circulate air flow to heat or cool, and exchange indoor and outdoor air. It&#8217;s important to periodically inspect, repair and maintain proper functioning and efficiency of this system to reduce utility bills, improve air quality and ensure health and safety.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t\t<div id=\"tab-i\" data-tab-icon=\"\" class=\"wpb_tab ui-tabs-panel wpb_ui-tabs-hide clearfix\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Illegal Use<\/h5>\n<p>The use of land or property that does not meet the requirements of the current municipal Land Use Bylaw and, in the case of a property, has been built without the proper permits. The municipality can require the owner of the property to cease the illegal use upon notice.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Implied Agreement<\/h5>\n<p>An agreement based on the conduct and actions of the parties involved.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Implied Contract<\/h5>\n<p>A contract that is formed based on the conduct and actions of the parties involved.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Impound account<\/h5>\n<p>See: escrow impound account<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Impounding<\/h5>\n<p>The collection and placement of monies by a lender into an account in order to pay the borrower\u2019s property taxes and insurance premiums when they become due.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Improvement<\/h5>\n<p>An item that is permanently affixed to the land.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Incentive<\/h5>\n<p>Anything that is advertised, communicated or offered by a brokerage to the public or a person for the purpose of attracting business to the brokerage and includes a promise, good, service, game of chance, contest, or anything else of value.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Income<\/h5>\n<p>Regular income from earnings, commissions, investments, rental payments or other sources.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Income Approach<\/h5>\n<p>An appraisal method for income producing properties that converts the future income to be received from the property into an estimate of value.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Income property<\/h5>\n<p>Real estate developed or improved to produce income.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Indefeasibility<\/h5>\n<p>An estate or right in land that cannot be defeated, revoked or made void.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Indemnification<\/h5>\n<p>The act of reimbursing or repaying a real estate professional for any liabilities he or she incurs on behalf of a client.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Indemnity<\/h5>\n<p>The assurance of one party to another to make compensation or repair for any loss or damage that has been incurred or may be incurred.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Index<\/h5>\n<p>The index is a benchmark interest rate that reflects general market conditions. The index changes based on the market. Changes in the index, along with your loan\u2019s margin, determine the changes to the interest rate for an adjustable-rate mortgage loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Index Rate<\/h5>\n<p>The rate used by a lender to measure the difference between the current interest rate charged on an adjustable rate mortgage and that earned by another type of debt instrument.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Inducement<\/h5>\n<p>Anything offered by a brokerage to a specific person who is a party to a specific real estate trade (or potential trade), and is intended to assist, persuade or cause that person to enter into such a transaction.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Industrial Building<\/h5>\n<p>A building used for processing raw materials and manufacturing goods, as well as their storage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Industrial Condominium<\/h5>\n<p>A condominium which consists of units within a manufacturing or distribution-oriented building, such as a workshop, warehouse or storage facility.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Informed Consent<\/h5>\n<p>The decision of a party (e.g. buyer, seller, borrower) to provide agreement or select an option among available options based on full information and disclosure of any conflicts of interest by the other party (e.g. real estate, mortgage brokerage, real estate appraisal professional). In addition, it requires that the party asked to make the decision (e.g. buyer, seller, borrower) understands the nature of what is being proposed, be fully informed of the choices, be aware of the consequences of any of the options, and be able to freely exercise his or her free will in the absence of duress.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Initial advance<\/h5>\n<p>The process of obtaining an advance against available credit under your line of credit.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Initial draw amount<\/h5>\n<p>The proceeds of the home equity line of credit or construction loan up to an amount the borrower is allowed to request at closing.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Initial escrow deposit<\/h5>\n<p>An initial escrow deposit is the amount that you will pay at closing to start your escrow account, if required by your lender.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Inquiry<\/h5>\n<p>A request for your credit report, made by you or a company considering you for an offer of credit.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Inspection<\/h5>\n<p>The examination of the house by a building inspector selected by the purchaser.<br \/>\nThe process of having a qualified home inspector identify potential strengths and weaknesses in the property you are interested in so that you may have a good idea of its functional condition.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Installment Loan<\/h5>\n<p>A loan that is repaid over time with a set number of scheduled payments, known as installments. The term of loan may be as little as a few months and as long as 30 years. For example, a mortgage may be considered an installment loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Insurable Mortgage<\/h5>\n<p>A mortgage with lender paid default insurance. Insurable mortgages have an LTV of 80% or less but must otherwise meet the same guidelines as an insured mortgage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Insurance<\/h5>\n<p>A contract that provides compensation for specific losses in exchange for a periodic, reguarly-scheduled payment.  Typically, the damages and losses covered in insurance policies are unexpected, unintentional or accidental in nature.<\/p>\n<p>An individual contract is known as an insurance policy, and the periodic payment is known as an insurance premium.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Insurance binder<\/h5>\n<p>A document that states that insurance is temporarily in effect. Because the coverage will expire by a specified date, a permanent policy must be obtained before the expiration date.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Insured<\/h5>\n<p>The person, group, or organization who has, or is covered by, an insurance policy.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Insured Mortgage<\/h5>\n<p>An insured mortgage, also referred to as a high-ratio mortgage, is one in which the purchaser has a down payment of less than 20% of the purchase price of a home or property, for a Loan-to-Value (LTV) greater than 80%. This size of down payment means that the mortgage must legally carry mortgage default insurance. This type of mortgage is protected by an insurer in case of default.<\/p>\n<p>Mortgage insurance protects the lender against a borrower&#8217;s potential default (failure to pay) on the mortgage loan, and comes with premiums.<br \/>\nHowever, the insurance also allows lenders to offer mortgages to home buyers with lower down payments, while covering their risk exposure.<br \/>\nThe insurance protects the lender (not the borrower) if a borrower defaults on the loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Insurer<\/h5>\n<p>A person or company that undertakes to indemnify another in the event of a loss.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Integrity<\/h5>\n<p>The quality of being honest and having strong moral principles.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Intentional Misrepresentation<\/h5>\n<p>A false or misleading statement made by a person who knew that the statement was untruthful and a third party relies on the misrepresentation to his or her potential or actual detriment.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Inter Alia Mortgage<\/h5>\n<p>A single mortgage covering more than one property.  The term is Latin for amongst other things.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Interest<\/h5>\n<p>A fee charged for the use of money; The time value of money.<br \/>\nInterest is a charge for a debt that is owed, usually calculated as a percentage of the amount that was loaned, paid by the borrower to the lender in exchange for the use of borrowed money.<br \/>\nThe amount of interest charged by a lender is usually expressed as an annual percentage rate, which is called the mortgage interest rate.<br \/>\nInterest is generally charged from the day you get the money, and is usually paid to the lender in regular payments along with repayment of the principal (loan amount).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Interest accrual rate<\/h5>\n<p>The percentage rate at which interest accrues on the mortgage. In most cases, it is also the rate used to calculate the monthly payments.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Interest Adjustment<\/h5>\n<p>The amount of interest due between the date your mortgage starts and the date the first mortgage payment is calculated from. Avoid it by arranging to make your first mortgage payment exactly one payment period after your closing date.<br \/>\nYou may also pay an interest adjustment amount if you change your mortgage payment date or mortgage payment frequency during the mortgage term.<\/p>\n<p>Example: If you buy a home on May 15th but mortgage payments are on the first of the month, the IAD is June 1st. You pay interest only \u2014 the interest adjustment amount \u2014 for the time between May 15th to June 1st. Your first regular mortgage payment is one month after the IAD; in this case, July 1st.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Interest Adjustment Date (IAD)<\/h5>\n<p>This is a date from which interest is calculated when mortgage funds are advanced before a regular payment cycle.<br \/>\nFor example, if a mortgage is advanced March 29th and regular monthly payments commence May 1st, there will be an interest adjustment for 3 extra days. (see Interest Adjustment for an example)<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Interest Only Loan<\/h5>\n<p>A loan in which the borrower only pays regularly scheduled payments on the interest to the lender and the principal remains the same during the life of the loan. The principal is repaid in full at the end of the loan\u2019s term (usually in one lump sum)<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Interest rate<\/h5>\n<p>An interest rate on a mortgage loan is the cost you will pay each year to borrow the money, expressed as a percentage rate.<br \/>\nIt is the amount charged by a lender to a borrower for the use of borrowed funds and is calculated as a percentage of the principal. The interest rate is affected by many factors, such as inflation, the economy, the government, etc.<\/p>\n<p>It does not reflect fees or any other charges you may have to pay for the loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Interest rate buydown<\/h5>\n<p>See: Buydown<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Interest rate cap<\/h5>\n<p>A limit on how much the variable interest rate can increase at any one time.<br \/>\nAn interest rate cap, sometimes referred to as an annual cap, is the maximum interest rate increase that can occur annually for an adjustable rate mortgage (ARM) even if the rate would have increased more under market interest rates.<br \/>\nFor example, if this cap is two percent, the new rate can\u2019t be more than two percentage points higher than the previous rate.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Interest rate differential (IRD)<\/h5>\n<p>The interest rate differential (IRD) is a type of prepayment charge you may pay to your lender when you pay all or part of the mortgage (break a closed fixed mortgage) before the term ends. It is the penalty that is charged if you pay off your mortgage early or if you apply additional money to the principal of your mortgage than what is allowed.<br \/>\nFor fixed-rate closed mortgages, prepayment charges are usually 3 months interest or the IRD, whichever is greater.<br \/>\nThe IRD penalty takes into account the difference between the current interest rate on your mortgage and the rate your lender can get today on a term closest to the time remaining on your term.<\/p>\n<p>IRD is generally only applicable if current interest rates are lower than that of the original mortgage and are intended to compensate the lender for the difference in interest income it will receive.<br \/>\nThere are key variations in the way IRD penalties are calculated.<br \/>\nMost commonly, the IRD amount is calculated on the amount being prepaid using an interest rate equal to the difference between your existing mortgage interest rate and the lender\u2019s current interest rate they would now charge when re-lending the funds for the remaining term of the mortgage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Interest-only loan<\/h5>\n<p>An interest-only loan is a loan with scheduled payments for which you pay only the interest due for a specified amount of time. This lowers your periodic payment but does not decrease your principal balance on the loan.<br \/>\nMaking interest-only payments will result in larger payments being due at the end of the interest-only payment period.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Interest-Only Mortgage<\/h5>\n<p>A mortgage on which only the monthly interest cost is paid each month. The full principal remains outstanding.<br \/>\nThe payment is lower than an amortized mortgage since once is not paying any principal.<br \/>\nThe principal is repaid in full at the end of the mortgage term.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Interim Financing<\/h5>\n<p>A loan of short duration (i.e. up to 1 year) with higher interest intended to cover immediate cash requirements until permanent financing is secured or until such time as the permanent financing comes into effect.<br \/>\nIn real estate, this is  the process of obtaining temporary, short term financing to close a real estate transaction. It helps a buyer bridge the gap between<br \/>\nthe closing date on the purchase of a new home and<br \/>\nthe closing date on the sale of the current home.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Intermediary<\/h5>\n<p>An even-handed, objective and impartial relationship formed when a mortgage broker brings together a borrower and a lender with the goal of originating a mortgage loan. In this relationship, the mortgage broker is not representing (not agent for) either the borrower or the lender.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Intestate<\/h5>\n<p>A person owning property who dies without a will.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Investment property<\/h5>\n<p>Property that is purchased to generate rental income, or to be sold once it has appreciated in value.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Investor<\/h5>\n<p>An individual or entity that acquires an ownership position in an investment, assuming risk of loss in exchange for anticipated returns.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>IRD<\/h5>\n<p>See Interest Rate Differential<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t\t<div id=\"tab-j\" data-tab-icon=\"\" class=\"wpb_tab ui-tabs-panel wpb_ui-tabs-hide clearfix\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Joint Tenancy<\/h5>\n<p>A form of land\/property ownership that involves two or more owners, with each owner having the right of survivorship.<br \/>\nTherefore, each owner\u2019s interest in the land\/property will automatically pass to the surviving owner(s) and cannot be willed to another party.<br \/>\nWith right of survivorship, if one party dies, the other owners becomes the sole owners.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Judgement<\/h5>\n<p>The official and authentic decision of a court of justices upon the respective rights and claims of the parties to an action or suit being litigated and submitted to its determination.<br \/>\nIt is also a decree by a court of law that one person is indebted to another for a specified amount.<br \/>\nIn some cases, the court may place a lien against the debtor\u2019s real property as collateral for payment of the judgment to the creditor.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Judicial Sale<\/h5>\n<p>The sale of real property that is conducted under the authority and supervision of the Court of Queen\u2019s Bench.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t\t<div id=\"tab-l\" data-tab-icon=\"\" class=\"wpb_tab ui-tabs-panel wpb_ui-tabs-hide clearfix\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Land Survey<\/h5>\n<p>The legal written and\/or mapped description of the location and dimensions of land.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Land Surveyor<\/h5>\n<p>A licensed professional involved in gathering, storing, processing and delivering geographic information involved in the determination of property boundaries or assembly and analysis of land-related information.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Land Titles System<\/h5>\n<p>A system of land registration under which the registrar, or master of titles, passes on the validity of the mortgage instrument and determines its legal effect. The Government guarantees title.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Land Transfer Tax<\/h5>\n<p>In most provinces, when you buy a home you are subject to a land transfer tax on closing.<br \/>\nIt is a fee paid to the municipal and\/or provincial government by the purchaser for the transferring of property from seller to buyer when the transaction closes.<br \/>\nLand transfer tax is generally calculated as a percentage of the property price.<\/p>\n<p>This tax is levied for most property purchases in all provinces, except for Alberta and Saskatchewan. Some cities charge an additional municipal land transfer tax.<br \/>\nTaxes vary by province.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Land Transfer Tax Rebate<\/h5>\n<p>In Ontario, B.C. and PEI you may be eligible for a rebate on your land transfer taxes if you&#8217;re a first-time homebuyer and meet certain conditions.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Land Transfer Tax, Deed Tax, or Property Purchase Tax<\/h5>\n<p>A fee paid to the municipal and\/or provincial government for the transferring of property from seller to buyer.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Land Transferee<\/h5>\n<p>The person to whom an interest in land is conveyed (i.e. transferred to).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Land Transferor<\/h5>\n<p>The person who conveys (i.e. transfers) an interest in land to another.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Land Use Districts<\/h5>\n<p>The Municipal Land Use Bylaw divides a municipality into districts. There are generally four (4) broad district classifications: Residential, Commercial, Industrial and Special Districts. Each district has sub-categories for the different types of use within that land use classification.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Landlord<\/h5>\n<p>A person or company who leases rights of real estate use to a tenant.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Latent Defect<\/h5>\n<p>A physical deficiency or construction fault in a property that is not visible or discoverable through a reasonable inspection.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Lawyer \/ Notary<\/h5>\n<p>You need a lawyer\/notary to protect your legal interests such as ensuring the property you are thinking of buying does not have any building or statutory liens or charges or work or clean-up orders associated with it. They will review all contracts before you sign them, especially the Offer (or Agreement) to Purchase.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Lease<\/h5>\n<p>See Lease Agreement<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Lease Agreement<\/h5>\n<p>A written agreement (contract) between landlord (lessor) and tenant (lessee) for the occupation or use of the landlord\u2019s interest in a property by the tenant for a specified period of time and for a specified consideration (rent). The landlord allows the tenant the right of exclusive use of the property for a specified time, rent and terms.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Leased Parking Stall<\/h5>\n<p>A parking stall that is part of the common property and therefore owned collectively by the condominium corporation. The use of this parking stall is essentially permanently leased to an individual owner. Responsibility and care for this parking stall is often delegated to the unit owner.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Leased Storage Area<\/h5>\n<p>A storage area that is part of the common property and therefore owned collectively by the condominium corporation. The use of this storage area is essentially permanently leased to an individual owner. Responsibility and care for this storage area is often delegated to the unit owner.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Leasehold Improvements<\/h5>\n<p>An addition or improvement made by a tenant to the leased premises. Leasehold improvements are more commonly associated with interior finishing and mechanical systems made by a commercial tenant pursuant to a lease agreement.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Legal Description<\/h5>\n<p>The official description of land used for legal purposes; the written geographical description of a property (metes and bounds) as described in the land register.<br \/>\nMunicipalities use Plan, Block and Lot for legal land descriptions. Legal Subdivisions are used for the legal description of rural properties and Condominium Plan Numbers are used for the legal description of condominiums. A legal address is not the same as a municipal address.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Legal fees and disbursements<\/h5>\n<p>Legal fees payable to your real estate lawyer or notaries to complete the sale or purchase of a property, including costs for title searches and the preparation\/registration of mortgage documents, and disbursements.<\/p>\n<p>Buyers and sellers pay them to their lawyers or notaries to close a purchase, sale or mortgage transaction. These fees vary by province and are subject to GST or HST.<br \/>\nIt\u2019s in your best interest to engage the services of a real estate lawyer (or a notary in Quebec). These fees must be paid upon closing.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Legal Mortgage<\/h5>\n<p>The first mortgage registered on title as a charge against that property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Legal Use<\/h5>\n<p>The use of land\/property that meets the requirements of the current municipal Land Use Bylaw and, in the case of property, has been built with the proper permits as required by the municipality.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Lender<\/h5>\n<p>An individual or institution responsible for underwriting, funding and administering a mortgage loan and to whom real estate is pledged as security for the loan. This may include institutional lenders, non-institutional lenders, government lenders and private lenders.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Lender Documentation<\/h5>\n<p>The application and all supporting documentation provided by the mortgage brokerage industry member to the lender. Wherever possible, all supporting documentation should be provided to the lender in one package.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Lender Product Sheet<\/h5>\n<p>A lender product sheet describes the particulars of a specific mortgage product, including term, amortization, repayment privileges, loan to value maximum, debt servicing maximum ratios, mortgage size restrictions, underwriting criteria, applicant income, equity sources, acceptable credit history (e.g. minimum credit score, bankruptcy history) and any other details relevant to the specific lender product or program. A lender product generally targets a particular borrower type or meets a specific borrowing need in the marketplace. Product sheets are provided by lenders to mortgage brokerage industry members for their information. If a product sheet is used for a specific mortgage, it should be retained by the industry member as part of the transaction record.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Lender Rate Sheet<\/h5>\n<p>A lender rate sheet shows the rates and fees for its product line. The rates are generally based on term, amortization, prepayment features, loan size, quickness of advance and other relevant details related to the lender\u2019s mortgage products. The rate sheet is provided by lenders to mortgage brokerage industry members for their information. If a rate sheet is used for a specific mortgage deal, it should be retained by the industry member as part of the transaction record.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Lender&#8217;s title insurance<\/h5>\n<p>Lender\u2019s title insurance protects your lender against problems with the title to your property-such as someone with a legal claim against the home. Lender\u2019s title insurance only protects the lender against problems with the title. To protect yourself, you may want to purchase owner\u2019s title insurance.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Lessee<\/h5>\n<p>A person who leases property from another. May also be referred to as a tenant.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Lessor<\/h5>\n<p>A person or company that leases rights of use for real estate to a tenant. A lessor may also be referred to as a landlord.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Letter of Direction<\/h5>\n<p>Sometimes referred to as Letter of Instruction. This letter gives instruction or guidance to the recipient, usually a solicitor, and must be signed by all mortgage holders.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Leverage<\/h5>\n<p>The use of borrowed funds to supplement investment.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Liabilities<\/h5>\n<p>A person\u2019s debts or outstanding financial obligations;  debt owed by an individual or organization to another individual or organization.<br \/>\nLiabilities include long-term and short-term debt, as well as potential losses from legal claims.<br \/>\nFor example: Property taxes, mortgage payment, loans, car leases, balances on lines of credit and credit cards.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Liability Insurance<\/h5>\n<p>(Also called Homeowner&#8217;s Insurance) A type of insurance to protect against claims alleging that a person\u2019s negligence or inappropriate action resulted in injury or damage to another person or property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>License<\/h5>\n<p>The authorization issued to new and existing industry professionals to trade in real estate, deal in mortgages or provide real estate appraisal services.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Lien holder<\/h5>\n<p>An individual or entity that has placed a lien on real property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Line of credit<\/h5>\n<p>An agreement by a lender to extend credit up to a maximum amount for a specified time. In a home equity line of credit, the line of credit is secured by the borrower\u2019s home.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Listing<\/h5>\n<p>A property for which the seller has entered into a written service agreement with a real estate brokerage to market his or her property for sale.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Listing Agreement<\/h5>\n<p>A contract (legal agreement) between a seller and a real estate agent or broker setting out the conditions of the listing.<br \/>\nA listing agreement generally includes, but is not limited to, the length of the listing period, the desired sales price, the services to be provided, the terms of payment, and the amount of the commission payable to the broker upon closing.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Listing Price<\/h5>\n<p>The amount of money that a property that is under contract with a brokerage may be advertised to the public and marketed through various listing databases by the brokerage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Loan<\/h5>\n<p>Money borrowed that is usually repaid with interest.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Loan Broker<\/h5>\n<p>A person who for compensation directly assists a person in obtaining credit or a loan of money for business or personal use, including credit or a loan made from the loan broker\u2019s own funds.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Loan commitment<\/h5>\n<p>A formal notification from a lender stating that the borrower\u2019s loan has been conditionally approved and specifying the terms under which the lender agrees to make the loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Loan Estimate (LE)<\/h5>\n<p>A Loan Estimate is a document that you receive after applying for a mortgage.<br \/>\nIt is a disclosure to help consumers understand the key loan terms and estimated costs of a mortgage before they make a complete application.<br \/>\nAfter a consumer submits 6 key elements: name, income, social security number, property address, estimated property value and desired loan amount, the lender is required to provide this form.<br \/>\nAll lenders are required to use the same standard loan estimate form to make it easier for consumers to compare and shop for a mortgage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Loan File<\/h5>\n<p>The file retained by the mortgage brokerage industry member containing the application and all supporting documentation. Loan files must be kept by the mortgage brokerage for no less than three years for both funded loans and non-funded loans. Supporting documentation may be stored in hard copy or electronically. It is generally understood that Canada Revenue Agency requires retention of all files for a minimum of seven years.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Loan Fraud<\/h5>\n<p>Purposely giving incorrect information on a loan application in order to better qualify for a loan; may result in civil liability or criminal penalties.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Loan modification<\/h5>\n<p>A mortgage loan modification is a change to one or more of the terms of a loan.<br \/>\nThe modification is a type of loss mitigation.<br \/>\nA modification can reduce your monthly payment to an amount you can afford. Modifications may involve extending the number of years you have to repay the loan, reducing your interest rate, and\/or forbearing or reducing your principal balance. If you are offered a loan modification, be sure you know how it will change your monthly payments and the total amount that you will owe in the short-term and the long-term.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Loan origination<\/h5>\n<p>The process by which a mortgage lender makes a home loan and records a mortgage against the borrower\u2019s real property as security for repayment of the loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Loan term<\/h5>\n<p>See: Term<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Loan-to-value ratio (LTV)<\/h5>\n<p>The loan-to-value (LTV) ratio is a measure (expressed as a percentage) comparing the amount of your mortgage with the appraised value of the property.<br \/>\nIt is calculated by dividing the amount borrowed by the price or appraised value of the home to be purchased.<br \/>\nFor example, the loan-to-value ratio of a loan for $300,000 on a home that costs $500,000 is 60%.<\/p>\n<p>The higher your down payment, the lower your LTV ratio.<br \/>\nThe higher the LTV, the less cash a borrower is required to pay as down payment.<\/p>\n<p>The results of this calculation help to determine whether the applicant will qualify for a loan and whether the application, if approved, will be for a conventional loan or a high ratio loan, which will require private mortgage insurance.<br \/>\nThe LTV may change during the term of the loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Lock period<\/h5>\n<p>The amount of time prior to closing that you can secure an interest rate for your loan. Lock periods typically range from 30 days to more than 90 days. Generally, the longer the lock period, the more you pay in points or interest.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Lock-in<\/h5>\n<p>Since interest rates can change frequently, many lenders offer an interest rate lock-in that allows clients in a variable rate to lock in to a fixed rate. Beware, when dealing with branch banks, often they will not guarantee their best rates when you lock in, so you have to negotiate again for the best rate. Many mortgage brokerage lenders do not have posted rates so you are guaranteed their lowest rates whenever you lock in.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Low ratio mortgagen<\/h5>\n<p>A mortgage loan of up to 80% of the property&#8217;s appraised value, with a down payment of 20% or more. A low ratio mortgage may also be referred to as a conventional mortgage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Lump Sum Payment Option<\/h5>\n<p>A clause that may be included in an open mortgage allowing the borrower to prepay a portion of the principal each year if desired, and in accordance with the specific terms of the contract.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>LTV<\/h5>\n<p>See Loan to Value<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Lump Sum Payment (or Lump-sum Prepayment)<\/h5>\n<p>An extra payment, made in lump sum, to reduce the principal balance of your mortgage, with or without penalty.<\/p>\n<p>A closed mortgage typically restricts the amount and frequency of the prepayments you can make.<\/p>\n<p>With an open mortgage, however, you can make a lump sum prepayment at any time without penalty. Making prepayments can help you pay off your mortgage sooner and ultimately save on interest costs over the life of your mortgage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t\t<div id=\"tab-m\" data-tab-icon=\"\" class=\"wpb_tab ui-tabs-panel wpb_ui-tabs-hide clearfix\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Management Agreement<\/h5>\n<p>A contract in which the roles, duties and expectations of the parties regarding the administration of a property are clarified and agreed to.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Manufactured housing<\/h5>\n<p>A structure that has been partially or entirely constructed at another location and moved onto the property (on a permanent foundation). A manufactured home may or may not be a mobile home.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Margin<\/h5>\n<p>The margin is the number of percentage points added to or subtracted from the index rate by the mortgage lender to determine the interest rate adjustments on an adjustable-rate mortgage (ARM). The margin is set in your loan agreement and won&#8217;t change after closing. The margin amount depends on the particular lender and loan and is constant throughout the life of the mortgage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Market Bubble<\/h5>\n<p>A temporary situation in the economy characterized by prices for a product becoming grossly inflated beyond its realistic value due primarily to excessive consumer confidence.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Market Disequilibrium<\/h5>\n<p>Refers to a market condition in economics when the forces of demand and supply do not balance and there is an inherent tendency for change. Disequilibrium is indicated by the existence of either a market surplus or market shortage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Market Equilibrium<\/h5>\n<p>Refers to a market condition in economics where a market price is established through competition such that the amount of goods or services sought by buyers is equal to the amount of goods or services supplied by sellers.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Market Price<\/h5>\n<p>The amount actually paid for a property in a particular real estate transaction.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Market Rent<\/h5>\n<p>The rental income that a property would probably command on the open market, as indicated by current rents being paid for comparable space as of the effective date of the analysis.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Market Shortage<\/h5>\n<p>A condition in the market in which the quantity demanded for a product or service exceeds the quantity supplied at the current price.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Market Surplus<\/h5>\n<p>A condition in the market in which the quantity supplied for a product or service exceeds the quantity demanded at the current price.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Market Value<\/h5>\n<p>The expected value of a property assuming that it has been exposed to an open real estate market for a reasonable period of time and the resulting real estate trade involves informed and willing buyers and sellers. It is the lowest price that sellers would agree to have someone purchase their property for. At the same time the highest price buyers would be willing to pay for that same home.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mass Appraisal<\/h5>\n<p>The process of determining the assessed values of properties by collecting relevant sales data over a specific time period for the same type of property and a similar municipal area. The data is aggregated and analyzed to set an assessed value for each property for that type of property and municipal area. S<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Material Latent Defect<\/h5>\n<p>A physical deficiency that is not visible and renders a property dangerous or potentially dangerous, unfit for habitation or unfit for the purpose for which it is acquired. It may also include defects that would involve great expense to remedy, notices from local authorities that prejudicially affect the property or a lack of appropriate permits.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Material Misstatement<\/h5>\n<p>False, misleading or inaccurate data that could influence the decisions of those individual who review the information.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Maturity Date<\/h5>\n<p>The last day of the term of the mortgage agreement. In essence, the balance of the mortgage owing becomes due.<br \/>\nBy this date, the mortgage must be paid in full, refinanced, switched to a new lender or the agreement renewed with the current lender.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Maximum Mortgage Amount<\/h5>\n<p>The maximum dollar that a lender is willing to fund. It is expressed as a percentage of the value of the property to be purchased when using the loan-to-value ratio.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mediation<\/h5>\n<p>A form of dispute resolution that involves a trained mediator attempting to assist disputing parties arrive at a mutually acceptable solution.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Meeting<\/h5>\n<p>A gathering of individuals at which the affairs of the condominium corporation are addressed. Meetings provide a forum in which interested parties can identify problems, share ideas, allocate tasks, receive updates and make plans for the future. The Board of Directors is responsible for organizing, facilitating and concluding all meetings according to the bylaws of the condominium.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Meeting Minutese<\/h5>\n<p>The official, written record of what transpires during the meetings of the condominium corporation and Board of Directors. They are a technical account of what was discussed.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Member-at-Large<\/h5>\n<p>An individual serving on the Board of Directors for a condominium corporation who is not appointed as an officer of the condominium corporation. A member-at-large usually focuses on how current or proposed changes and actions of the Board of Directors will affect unit owners and may head a specific committee (e.g. welcoming committee, social committee, landscaping committee, etc.).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mere Posting<\/h5>\n<p>A listing on a Real Estate Board\u2019s MLS\u00ae System where the real estate professional has chosen or agreed not to provide services to the seller other than to submit the listing for posting on MLS\u00ae.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>MIC<\/h5>\n<p>See Mortgage Investment Corporation<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mill Rate<\/h5>\n<p>The amount per thousand dollars of assessed value of a property (or one-thousandth of a dollar). Therefore, a mill rate of 1 means an owner will pay $1 tax per $1,000 of assessed value.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mineral Rights<\/h5>\n<p>The natural resources beneath the top layer of land. Unless specified otherwise, most land titles exclude rights to the minerals.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Misrepresentation<\/h5>\n<p>A false or misleading statement or representation made by one party to another or others. It may also occur with non-disclosure or concealment of material facts.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mixed-Use Condominium<\/h5>\n<p>A condominium which consists of units with multiple uses (e.g. retail, commercial, residential).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>MLS &#8211; Multiple Listing Service<\/h5>\n<p>A multiple listing service is a real estate agents&#8217; cooperative service that contains descriptions of most of the homes that are for sale. Real estate agents use this computer-based service to keep up with properties they are listing for sale in their area.<br \/>\nThese are trademarks owned by the Canadian Real Estate Association. They are used in conjunction with a real estate database service, operated by local real estate boards, under which properties may be listed, purchased, or sold.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mobile Home<\/h5>\n<p>A type of residence that\u2019s built upon a wheeled chassis and can be transported from site to site; a mobile home is a portable dwelling other than a holiday trailer or recreational vehicle that is used as a residence, is mounted on its own chassis and running gear, is capable of being transported and is situated in a site intended for residential purposes.<br \/>\nThis definition also applies to mobile homes as residential dwellings for the purposes of property management. They are also commonly referred to as modular homes.<br \/>\nIn other jurisdictions mobile homes sometimes include temporary or RV style dwellings.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mobile Home Site<\/h5>\n<p>Refers to the land that is rented for the purpose of being occupied by a mobile home to be used for residential purposes and where the owner of the mobile home is not the same individual who owns the site on which the mobile home is located.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mobile Mortgage Advisor<\/h5>\n<p>A Mobile Mortgage Advisor is a mortgage expert who meets at a time and place that\u2019s convenient for you to provide expertise and answer questions about mortgages.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Modular Constructione<\/h5>\n<p>A type of factory-built construction that involves manufacturing 3-dimensional units that are combined together to create a cohesive building. In general, modular units are approximately 85% complete when they leave the factory.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Modular home<\/h5>\n<p>A factory-built home that\u2019s erected on-site, with the appearance and characteristics of a site-built residence.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Monthly Contribution<\/h5>\n<p>The monthly fee set by the Board of Directors and paid by a unit owner to the condominium corporation.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Monthly Rental Factor<\/h5>\n<p>A method of income analysis for small income producing properties with a single rental unit. The Monthly Rental Factor relates the gross monthly income of comparable properties to the value of the subject property. The formula for determining the Monthly Rental Factor is as follows: Monthly Rental Factor = Value \u00f7 Gross Monthly Income.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage<\/h5>\n<p>If you\u2019re looking to purchase a home, chances are you can\u2019t pay for it in cash.<br \/>\nA mortgage is both a loan used to purchase or refinance a home (or other type of property), and security for the repayment of the loan. The collateral is the property itself.<br \/>\nBecause of this collateral (guarantee), the interest rate is lower than a personal loan.<br \/>\nIt is a legal agreement between you and a lender that allows you to borrow money (at interest) to purchase or refinance a home and gives the lender the right to take your property if you fail to repay the money you&#8217;ve borrowed.<br \/>\nA mortgage is secured by a lien registered on title to your home or other real estate.<\/p>\n<p>Once approved, you repay the loan according to agreed-upon terms, which include a specified interest rate, payment amount, term and amortization, among other things.<br \/>\nA motgage is generally repaid by regular mortgage payments, which are usually blended payments. This means that the payment includes the principal (amount borrowed) plus the interest (the charge for borrowing money). The payment may also include a portion of the property taxes. These details are set out in the mortgage document.<\/p>\n<p>If you can&#8217;t repay the loan, your lender has the right to take possession of your property and sell it to collect any money you owe them.<\/p>\n<p>Once that loan is paid-off, the lender provides a discharge for that mortgage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage amortization<\/h5>\n<p>See amortization period.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Amount<\/h5>\n<p>The mortgage amount is the balance owing on your loan. It can also refer to the money you&#8217;re looking to borrow. If you&#8217;re purchasing a home, the mortgage amount is the difference between the purchase price and the down payment, plus any default insurance fees that you finance. If you&#8217;re renewing, the mortgage amount is the mortgage balance remaining at the renewal date. If you&#8217;re refinancing, it is your outstanding mortgage amount plus any additional equity that you&#8217;d like to take out of your home.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage assumption<\/h5>\n<p>The act of taking possession of mortgaged property whereby the buyer accepts liability for the debt and takes responsibility of seller\u2019s existing mortgage at the interest rate and terms as laid out in the original mortgage documents. The seller remains liable to the mortgage lender unless the lender agrees to release the seller from the debt obligation.<\/p>\n<p>With a mortgage assumption, you take over, or assume, the seller&#8217;s mortgage on the purchased property. You accept full responsibility to pay the mortgage according to the existing mortgage terms. You need the lender&#8217;s approval before you can assume the seller&#8217;s mortgage.<\/p>\n<p>As the buyer, mortgage assumption may be a good option for you if market interest rates are higher than the interest rate in the seller&#8217;s mortgage on the closing date.<\/p>\n<p>Mortgage assumption may be a good option for the seller if they&#8217;re selling their home before the mortgage maturity date and not getting a mortgage on a new property. Mortgage assumption helps the seller avoid prepayment charges.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Banker<\/h5>\n<p>A company that originates loans and resells them to secondary mortgage lenders.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Brokert<\/h5>\n<p>A mortgage broker is a licensed professional who brings borrowers and lenders together and who sells mortgages on behalf of multiple lenders.<br \/>\nA broker&#8217;s role is to look for the best fit in terms of the borrower&#8217;s financial situation and mortgage needs.<\/p>\n<p>When you plan to buy a new home or refinance your existing home, a broker can help you compare the best loan options from various lenders.<br \/>\nThey also assist you throughout the mortgage process by gathering your financial information, obtaining your credit report, processing income statements and managing the application and closing process. A mortgage broker works on your behalf and searches for the best mortgage deal among various lenders. When you accept a mortgage, the broker completes the application and submits the application on your behalf.<\/p>\n<p>In most provinces, brokers are licensed. In some provinces, &#8216;Mortgage Broker&#8217; means a firm that originates and processes loans for a number of lenders, or a person or company offering mortgage products from several financial institutions.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage closing checklist<\/h5>\n<p>A mortgage closing checklist is a list of steps that you can use to prepare and learn what to expect.  It can help you identify key questions to ask ahead of time so that you can close with confidence.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage closing costse<\/h5>\n<p>Mortgage closing costs are all of the costs you will pay at closing. This includes origination charges, appraisal fees, credit report costs, title insurance fees, and any other fees required by your lender or paid as part of a real estate mortgage transaction. Lenders are required to provide a summary of these costs to you in the Loan Estimate.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage critical illness insuranced<\/h5>\n<p>Mortgage critical illness insurance is optional creditor\u2019s group insurance that can reduce or pay off your mortgage \u2014 up to a maximum benefit amount \u2014 if you\u2019re diagnosed with cancer, acute heart attack or stroke.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Default<\/h5>\n<p>A borrower\u2019s failure to fulfill his or her obligations contained in a mortgage agreement.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Default Insurance<\/h5>\n<p>Government-backed or privately backed insurance provided by three companies in Canada: CMHC (Canadian Mortgage and Housing Corporation) a Crown corporation, and two private companies: Canada Guaranty and Sagen (formerly Genworth).<br \/>\nThis insurance is automatically applied to mortgages with less than 20% down payment of the home purchase price (Loan-to-Value of less than 80%), and protects the lender from potential borrower default of the mortgage loan. It is applied through premiums, that can be paid in a lump sum immediately after the mortgage is advanced, or usually bundled into the mortgag and added to monthly payments. The lender must legally cancel the insurance once the mortgage LTV falls below 78% (when enough principal has been paid).<\/p>\n<p>It is mandatory if you have a high-ratio mortgage.  In Ontario, Quebec, Saskatchewan and Manitoba, provincial tax on the premiums applies and must be paid out of pocket at closing.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage disability insurancem<\/h5>\n<p>Mortgage disability insurance is optional creditor\u2019s group insurance that can pay up to a maximum benefit amount toward the mortgage should the insured borrower become ill or disabled and unable to work.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage discharge<\/h5>\n<p>The process of a lender giving up the rights to a property once the mortgage has been repaid in full.<br \/>\nWhen you pay off your mortgage in full, your lender issues a mortgage discharge document that&#8217;s registered on title to your property. It certifies the property is completely free from that mortgage debt.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Fraud<\/h5>\n<p>A material misstatement, misrepresentation or omission relied upon by a lender or insurer to underwrite, approve, fund or insure a mortgage loan. It is any scheme designed to obtain mortgage financing under false pretenses.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Fraud for Housing<\/h5>\n<p>Occurs when a borrower (i.e. buyer) attempts to obtain a larger mortgage then he or she would otherwise be able to arrange and falsifies the information to the lender in order to qualify for the mortgage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Fraud for Profit<\/h5>\n<p>Typically perpetrated by organized crime or by individuals seeking financial gain through property manipulations.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Insurer<\/h5>\n<p>A provider of mortgage loan (default) insurance to lenders.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Investment Corporation<\/h5>\n<p>A private investment and lending company that pools its funds from many investors for the purpose of loaning money to borrowers. Each loan is secured with a mortgage registered on the title of the respective property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Lender<\/h5>\n<p>A mortgage lender is an entity that lends money for the purchase of property; the financial institution that lends the necessary funds for purchase or refinancing.<br \/>\nThe loan is then secured by the collateral of that property.<br \/>\nMortgage lenders can include banks, credit unions, trust companies, mortgage finance companies, insurance companies or private companies\/individuals such as mortgage brokers that lend his\/her own money. Banks make up the bulk of mortgage lending in Canada.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Life Insurance<\/h5>\n<p>Mortgage life insurance is optional creditor\u2019s group insurance that is recommended for all borrowers. If you die, have a terminal illness, or suffer an accident, the insurance can pay the balance owing (up to a maximum benefit amount) on the mortgage. The intent is to protect survivors from the loss of their homes.<\/p>\n<p>This insurance can be purchased through your lender and the premium added to your mortgage payments. However, you may want to compare rates for equivalent products from an insurance broker.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Loan Insurance<\/h5>\n<p>See Mortgage Insurance<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage loan modification<\/h5>\n<p>A mortgage loan modification is a change in your loan terms. The modification is a type of loss mitigation.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Modification<\/h5>\n<p>A loss mitigation option that allows a borrower to refinance and\/or extend the term of the mortgage loan and thus reduce the monthly payments.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Origination<\/h5>\n<p>The process through which a lender creates a mortgage secured by the borrower\u2019s (i.e. mortgagor\u2019s) real property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage payment<\/h5>\n<p>The amount a borrower is required to pay towards the principal and interest on a mortgage, on a regular agreed-upon schedule.<br \/>\nUsually, mortgage payments (installments) are blended (to include both principal and interest) and made monthly, semi-monthly, bi-weekly, or weekly.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Plus Improvements<\/h5>\n<p>A feature that allows the borrower to add the cost of improvements or renovations to a property into a mortgage loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage points<\/h5>\n<p>See: Points<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Pre-approval<\/h5>\n<p>A mortgage pre-approval establishes your eligibility for a mortgage in advance of a real estate purchase, taking into account your income, credit and debt ratios.<br \/>\nYou&#8217;re asked questions that closely match those of a full mortgage application. The lender does a credit check<\/p>\n<p>A written pre-approval protects the borrower by specifying the mortgage term, interest rate and maximum amount of the loan and holds a rate for up to 120 days.<br \/>\nIf mortgage rates rise, the borrower receives the pre-approved rate.<br \/>\nIf rates drop, the borrower receives the lower rate. However, the borrower must take possession of a property before the pre-approval expires.<\/p>\n<p>A pre-approval is not an official mortgage approval, but rather a preliminary assessment of your qualifications. It is usually subject to an appraisal and a later review of your income, purchase agreement and down payment documentation.<br \/>\nOnce a property has been purchased, the pre-approval is subject to the borrower submitting any final supporting documentation, providing his or her financial position has not changed. It is also subject to the property meeting the lender\u2019s underwriting requirements.<\/p>\n<p>To avoid surprises, look for a lender that reviews all key documentation at the time you apply.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Pre-qualificationl<\/h5>\n<p>Mortgage pre-qualification is a quick assessment process made in advance of a real estate purchase.<br \/>\nThe lender assesses your financial information, including debt, income and assets.<br \/>\nYou get an estimate on the mortgage amount you may be approved for. It is for a specified period of time and subject to the borrower submitting his or her supporting documentation to the lender, providing his or her financial position has not changed.<\/p>\n<p>If you&#8217;re pre-qualified, your lender has only done a basic review of your finances. You must still provide documents and more financial details before getting pre-approved for a mortgage. Once a property has been purchased, the property must also meet the lender\u2019s underwriting requirements.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage principal<\/h5>\n<p>Mortgage principal is the amount of money you borrow from a lender, not including interest.<br \/>\nIf a mortgage is for $350,000, then the mortgage principal is $350,000.<br \/>\nYou repay the principal (with interest) back to the lender over the amortization period through mortgage payments.<\/p>\n<p>If you&#8217;re pre-qualified, your lender has only done a basic review of your finances. You must still provide documents and more financial details before getting pre-approved for a mortgage. Once a property has been purchased, the property must also meet the lender\u2019s underwriting requirements.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Professionals Canada<\/h5>\n<p>Canada\u2019s national mortgage industry association.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Rate<\/h5>\n<p>A mortgage rate refers to the rate of interest charged by a mortgage lender on a mortgage loan, expressed as a percentage of the loan principal.<br \/>\nAn amount of interest cost is added to an amount that is applied towards the principal for regular payments, typically once a month.<\/p>\n<p>For fixed rates, the mortgage interest rate remains the same throughout a specified mortgage term.<br \/>\nFor variable rates, the mortgage interest is tied to the Prime rate, and can move up or down throughout a mortgage term, affecting the mortgage payment amount.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Rate Typee<\/h5>\n<p>There are two main types of mortgage rates in Canada:<br \/>\n1) Fixed mortgage rates, which guarantee a set interest rate for the duration of the mortgage term<br \/>\n2) Variable mortgage rates, which fluctuate based on changes in the lender\u2019s prime rate, which in turn typically changes following an increase or cut in the Bank of Canada\u2019s overnight target rate.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage refinance<\/h5>\n<p>Mortgage refinance is when you take out a new loan to pay off and replace your old loan.<br \/>\nIn essence, it is the process by which a borrower seeks to discharge an existing mortgage in order to establish a new one.<br \/>\nThe new mortgage maybe with the same lender or a different lender. The process typically involves the borrower paying out the existing mortgage, along with any legal claims against the property and any applicable payout penalties as a result of the early discharge.<\/p>\n<p>Common reasons to refinance are to lower the monthly interest rate, lower the mortgage payment, benefiting from different mortgage privileges, experiencing better service or greater convenience, or to borrow additional money.<br \/>\nWhen you refinance, you usually have to pay closing costs and fees.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Renewal<\/h5>\n<p>The process by which a borrower agrees to another mortgage term with the current lender to replace the term that has matured. At the end of the prior mortgage term, and with a balance of funds still owing, the borrower may choose to continue with the same lender for another term. However, the details of the mortgage document may change at the time of the mortgage renewal to reflect the current mortgage market. The new term leaves the existing registered mortgage in place and is therefore not considered a new mortgage. The renewed term is secured by the old mortgage document and its provisions are amended to fit the new term.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Statement<\/h5>\n<p>A written statement received from the lender (often on an annual basis) that includes details of the mortgage such as property address, outstanding principal balance, monthly payment, interest rate, payment history, what portion of each mortgage payment goes towards the mortgage principal, and what goes to interest, and mortgage term.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Switch<\/h5>\n<p>Occurs when a borrower moves his or her current mortgage balance and remaining amortization period to a new lender. An agreement effectively transferring the interest in the mortgage to the new lender is signed by the parties and registered with the Land Titles Office. The previous mortgage terms and conditions are replaced by those of the new lender.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Termh<\/h5>\n<p>The mortgage term is the length of time (in months or years) the current mortgage contract applies between mortgagee (borrower) and mortgagor (lender), as specified in the mortgage agreement.<br \/>\nThe mortgage interest rate, terms and conditions are guaranteed for this amount of time.<br \/>\nA 5-year fixed mortgage has a mortgage term of five years, for example.<br \/>\nTerms usually range from six months to 10 years.<\/p>\n<p>At the end of the mortgage term, the principal and unpaid interest becomes due and payable by the borrower to the lender. At that time the borrower may renew or refinance the mortgage. The borrower may also pay off the loan, or renew with another lender (switch).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Transferee<\/h5>\n<p>The lender to whom a mortgage has been conveyed (transferred).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage Transferor<\/h5>\n<p>The lender who conveys (transfers) a mortgage to another lender.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgage-Backed Securities<\/h5>\n<p>A type of investment that represents an ownership interest in a bundle of amortized residential mortgages insured by Canada Mortgage and Housing Corporation (CMHC) under the National Housing Act (NHA) or the government-backed private mortgage insurers.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgaged Premises<\/h5>\n<p>The security for the loan in the mortgage document, which typically includes the physical land and everything that is part of that land, or becomes part of that land. A mortgage of land automatically extends to everything that is securely attached to that land.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgagee<\/h5>\n<p>A mortgagee is the lender of funds to a borrower for the purpose of purchasing real property ; typically an individual, a financial institution or organization that lends money secured by real property for which they may receive specified payments according to the mortgage agreement.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgagee and Mortgagor<\/h5>\n<p>The lender is the mortgagee and the borrower is the mortgagor.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mortgagor<\/h5>\n<p>A mortgagor (typically a home owner) is the borrower of funds from a lender for the purpose of purchasing real estate for which they may make specified payments according to the mortgage agreement.<br \/>\nA person that borrows funds secured by real property<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mould<\/h5>\n<p>A group of microscopic living organisms also known as fungi. Extensive mould could make a property unfit to live in.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Moving expenses<\/h5>\n<p>The cost of moving from hiring packers, movers, or renting a van.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Multi-family residence (2 to 4 units)<\/h5>\n<p>A residential property with 2 to 4 individual housing units (duplex, triplex or quadplex).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Multiple Listing Service (MLS)<\/h5>\n<p>A multiple listing service is a real estate agents&#8217; cooperative service that contains descriptions of most of the homes that are for sale. Real estate agents use this computer-based service to keep up with properties they are listing for sale in their area.<br \/>\nThese are trademarks owned by the Canadian Real Estate Association. They are used in conjunction with a real estate database service, operated by local real estate boards, under which properties may be listed, purchased, or sold.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Multiple Listing Service (MLS)<\/h5>\n<p>A multiple listing service is a real estate agents&#8217; cooperative service that contains descriptions of most of the homes that are for sale. Real estate agents use this computer-based service to keep up with properties they are listing for sale in their area.<br \/>\nThese are trademarks owned by the Canadian Real Estate Association. They are used in conjunction with a real estate database service, operated by local real estate boards, under which properties may be listed, purchased, or sold.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Multiple Offers<\/h5>\n<p>A situation when multiple buyers submit an Offer to Purchase on the same property, at the same time.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Municipal Address<\/h5>\n<p>The address of a property, which has been provided by the municipality, and typically is the city, street and number of the property on the street. It may often be used as the mailing address as well. However, it is not the legal address of the property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Municipal Development Plan<\/h5>\n<p>The basis for the municipal Land Use Bylaw and determines how property may be used and development may be carried out within its jurisdiction. The province is divided into municipalities and each municipality over a certain size of population must have a Development Plan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Municipal Land Use Bylaws<\/h5>\n<p>General rules applicable to all land use classifications in a municipality (e.g. Residential, Commercial, Industrial and Special district classifications).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Mutual Agreement<\/h5>\n<p>An agreement created by an offer, the acceptance of the offer, and communication of the acceptance back to the offeror. It is one of several essential elements of a contract and is the basis for a meeting of the minds between the contracting parties.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t\t<div id=\"tab-n\" data-tab-icon=\"\" class=\"wpb_tab ui-tabs-panel wpb_ui-tabs-hide clearfix\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Negative amortization<\/h5>\n<p>The result when monthly payments don\u2019t cover all the interest due on the loan. In other words, your mortgage principal balance increases due to failure to cover the interest portion due for your payment.<br \/>\nThe unpaid interest is added to the unpaid balance, which means the homebuyer will owe increasingly more than the original amount of the loan.<\/p>\n<p>For example, if your mortgage interest due is $350, and only $250 is paid then the difference of $50 would be added to your loan&#8217;s principal balance.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Negligent Misrepresentation<\/h5>\n<p>A false or misleading statement made by a person believed to be true and where the person carrying out the misrepresentation took reasonable steps to assure himself or herself of the accuracy of the statement. A third party may rely on the misrepresentation to his or her potential or actual detriment.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Net Effective Income<\/h5>\n<p>The borrower\u2019s gross income less all deductions and taxes.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Net Income<\/h5>\n<p>The revenue after deducting expenses from gross income. If the revenue exceeds expenses, net income is positive (profit). If expenses exceed revenue, net income is negative (loss).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Net Operating Income<\/h5>\n<p>The revenue remaining after operating expenses have been deducted from the gross operating income, but before income taxes and interest are deducted.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Net Worth<\/h5>\n<p>Your financial worth, calculated by subtracting your total liabilities from your total assets.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>No closing cost loan<\/h5>\n<p>A loan in which the borrower is not required to pay cash out-of-pocket at closing for the normal closing costs. The lender typically includes the closing costs in the principal balance or charges a higher interest rate than for a loan with closing costs to cover the advance of closing costs.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>No Cost Switching of Payment Option<\/h5>\n<p>This option allows the borrower to change the payment schedule (monthly\/semi-monthly\/bi-weekly\/weekly).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>NOA<\/h5>\n<p>See Notice of Assessment<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>No-Conditions Offer<\/h5>\n<p>Also referred to as a &#8216;clean&#8217; offer, it&#8217;s an offer made on a home listed for sale that comes without the typical sale conditions that are designed to protect a buyer against certain risks, such as financial and legal exposure.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>NOI<\/h5>\n<p>See Net Operating Income<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Nonconforming loan<\/h5>\n<p>Non-conforming mortgage loans are a subset of conventional mortgage loans and are broadly defined as having higher-risk attributes or deficiencies, relative to other conventional mortgages.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Non-Conforming Use<\/h5>\n<p>The use of a property that met municipal requirements at one time, e.g. secondary suite, but does not meet the current Land Use Bylaw requirements. The non-conforming status may be lost if the building is renovated, damaged or destroyed. If the non-conforming use has ceased, any future use must conform to the current Land Use Bylaw requirements.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Non-Delineated Parking Stall<\/h5>\n<p>A leased parking stall that has not been specifically drawn on a Condominium Plan. Leases for non-delineated parking stalls are only valid while the current owner holds ownership of the associated unit. Once the associated unit is sold, the buyer has to renegotiate a new lease with the condominium corporation in order to use the parking stall.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Non-Delineated Storage Area<\/h5>\n<p>A leased storage area that has not been specifically drawn on a Condominium Plan. Leases for non-delineated storage areas are only valid while the current owner holds ownership of the associated unit. Once the associated unit is sold, the buyer has to renegotiate a new lease with the condominium corporation in order to use the storage area.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Non-Disclosure<\/h5>\n<p>The failure or refusal to declare or reveal information that is required by one or more parties.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Non-Exclusive Representation Relationship<\/h5>\n<p>A real estate relationship that allows for multiple brokerages to act on behalf of a client.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Nonowner occupied<\/h5>\n<p>Properties in which the owner does not live.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Non-Profit Continuing Housing Cooperative<\/h5>\n<p>A form of residential housing whereby members obtain the right to occupy a unit under a tenancy agreement. The cooperative owns the real property, the building and the land on which the structure is built and holds title to the property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Non-Profit Home Ownership Cooperative<\/h5>\n<p>A form of residential land tenure where members own their individual unit with the cooperative owning the land and the common property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Non-Representation Relationship<\/h5>\n<p>A type of real estate relationship in which a real estate professional works with a party to a trade in real estate but does not act on behalf of that party.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Notary \/ Lawyer<\/h5>\n<p>You need a lawyer\/notary to protect your legal interests such as ensuring the property you are thinking of buying does not have any building or statutory liens or charges or work or clean-up orders associated with it. They will review all contracts before you sign them, especially the Offer (or Agreement) to Purchase.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Note<\/h5>\n<p>A written agreement in which the signer promises to pay to a named person or company a specific sum of money at a specified date or on demand.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Note rate<\/h5>\n<p>The interest rate stated in a mortgage note.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Notice of Assessment<\/h5>\n<p>An individual summary sent to each taxpayer by Canada Revenue Agency after processing his or her tax return. It may also indicate any corrections to the return, such as taxes owing or refunds to be paid.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Notice of default<\/h5>\n<p>A formal written notice to a borrower that a default has occurred and that legal action may be taken.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t\t<div id=\"tab-o\" data-tab-icon=\"\" class=\"wpb_tab ui-tabs-panel wpb_ui-tabs-hide clearfix\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Occupancy Rate<\/h5>\n<p>Refers to the number of units or space occupied in a building to the total number of units or space available.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Offer Conditions (a.k.a. Subjects)<\/h5>\n<p>Offer conditions are contingencies that a buyer writes into a real estate purchase offer. These conditions must be met in order for the home sale to close. Common examples include financing, appraisal, sale of an existing property and home inspection conditions.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Offer to Purchase<\/h5>\n<p>An Offer to Purchase is a written contract outlining the terms under which the buyer agrees to purchase the property.<br \/>\nIt contains the date of the offer, the description of the property being offered on, the amount of the deposit, the purchase price being offered, down payment and financing details, as well as the buyer\u2019s name and address, and the name and address of the seller, subject-to clauses, conditions, closing dates, and any special requirements the buyer wants to impose on sellers; for example, the buyer wants the kitchen appliances, or the offer may be conditional on the buyer arranging mortgage financing or selling a current home.<\/p>\n<p>If the Offer to Purchase is accepted by the seller, it forms a legally binding contract that binds those who have signed it to certain terms and conditions.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Off-Site Condominium Manager<\/h5>\n<p>A condominium manager whose office and\/or residence are located away from the condominium he or she is working with.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>On-Site Condominium Manager<\/h5>\n<p>A condominium manager who has a dedicated space to hold office hours and\/or possesses a residence in the condominium.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Open Bidding<\/h5>\n<p>In open bidding, competing offers are placed auction-style, with all potential buyers present and aware of the offers and their values, allowing bidders to increase their offers accordingly within a set time-frame. This &#8216;transparent&#8217; bidding system is not presently common in Canada, but is commonly used in other large world markets, such as in Australia.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Open Mortgage<\/h5>\n<p>Unlike a closed mortgage, an open mortgage can be paid off early without any restrictions, penalties or fees attached.<br \/>\nIn additional to regular mortgage payments, it can be prepaid, paid off, or renegotiated at any time and in any amount without interest penalty.<\/p>\n<p>For this convenience, it&#8217;s usually industry-standard to charge a higher interest rate compared to a closed product.<br \/>\nThe interest rate on an open mortgage is usually higher than a closed mortgage with an equivalent term.  If rates start to increase, you can easily pay off an open mortgage and switch to a closed one.<\/p>\n<p>This is a good option if you are planning to sell your property or pay-off the mortgage entirely in the near future.<br \/>\nSome conditions and\/or admin fees may apply.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Operating Costs<\/h5>\n<p>The expenses that a homeowner has each month to operate a home. These include property taxes, property insurance, utilities, telephone and communications charges, maintenance and repairs.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Operating Fund<\/h5>\n<p>Cash and cash equivalents used to pay for the regular, recurring (e.g. weekly, monthly or annually) expenses of the condominium.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Opposing Interests<\/h5>\n<p>When the interests of clients represented by the same brokerage oppose one another in the same real estate transaction or potential transaction.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Option to Increase a Payment<\/h5>\n<p>The option to increase the periodic payment by a set percentage once a year.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Order<\/h5>\n<p>A decision made by a court or other decision-making entity that may or may not be the final outcome of the matter.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Order of Possession<\/h5>\n<p>A court order that enables the applicant to occupy vacated premises. Typically, an order of possession is obtained by a mortgagee to take possession of the mortgages premises when in default or by an owner who seeks to have illegal occupants removed from the premises. In the case of residential tenancies, there are special provisions.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Ordinary Resolution<\/h5>\n<p>A resolution for which a vote is conducted by a show of hands. A majority consists of more than 50% of eligible voters.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Origination<\/h5>\n<p>The process of preparing, submitting, and evaluating a loan application; generally includes a credit check, verification of employment, and a property appraisal.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Origination date<\/h5>\n<p>The date on which a loan is funded or disbursed.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Origination fee<\/h5>\n<p>A fee imposed by (and paid to) a lender and\/or broker to cover certain processing expenses in connection with processing a mortgage loan application.<br \/>\nNormally, a certain percentage of the loan amount is calculated and deducted from the gross proceeds. The origination fee is stated in the form of points.<\/p>\n<p>The origination fee may include processing the application, underwriting and funding the loan, and other administrative services. Origination fees generally can only increase under certain circumstances.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Owner financing<\/h5>\n<p>A property purchase transaction in which the property seller provides all or part of the financing.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Owner Occupied<\/h5>\n<p>A property that the owner occupies as a principal residence; A property used as a self-contained domestic property occupied by the owner and used as the primary place of residence.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Owner&#8217;s title insurance<\/h5>\n<p>Owner\u2019s title insurance provides protection to the homeowner if someone sues and says they have a claim against the home from before the homeowner purchased it.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t\t<div id=\"tab-p\" data-tab-icon=\"\" class=\"wpb_tab ui-tabs-panel wpb_ui-tabs-hide clearfix\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>P.I.T.e<\/h5>\n<p>Principal, Interest and Property Taxes. Together, these make up the regular payment due on a mortgage if you elect to include property taxes in your mortgage payments.<br \/>\nPayments of principal and interest go directly towards repaying the loan while the portion that covers taxes goes to the city for payment of property taxes.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>P.I.T.H.<\/h5>\n<p>Principal, Interest, Taxes and Heating:  Costs used to calculate the Gross Debt Service ratio (GDS).<br \/>\nP.I.T.H. is also known and referred to as a monthly housing expense. This information is taken into consideration when calculating how much an individual can qualify for.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Partially Amortized Mortgage<\/h5>\n<p>A mortgage that protects both borrowers and lenders from the risk of unexpected interest rate fluctuations. The loan matures on a short-term basis, at which time the full amount of the outstanding amount must be either repaid or refinanced at current interest rates.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Patent Defect<\/h5>\n<p>A physical deficiency in a property that is visible through the exercise of reasonable vigilance in the course of a property inspection.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Payment change date<\/h5>\n<p>The date when a new monthly payment amount takes effect on an adjustable-rate mortgage (ARM). Generally, the payment change date occurs in the month immediately after the interest rate adjustment date. The borrower is notified 30 days before the new rate and payment take effect.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Payment Frequency<\/h5>\n<p>How often payments are made to pay off your mortgage loan.<br \/>\nMonthly payments are the standard, with Semi-Monthly, Biweekly, Biweekly Accelerated, Weekly and Weekly Accelerated being the other options.<br \/>\nChoosing a different schedule, such as an accelerated one, can significantly reduce interest costs and the mortgage amortization.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Payoff<\/h5>\n<p>Payment of the outstanding balance of a loan in full. Also, the amount required to pay the outstanding balance in full.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Payoff amount<\/h5>\n<p>Your payoff amount is how much you will actually have to pay to satisfy the terms of your mortgage loan and completely pay off your debt. Your payoff amount is different from your current balance. Your current balance might not reflect how much you actually have to pay to completely satisfy the loan. Your payoff amount also includes the payment of any interest you owe through the day you intend to pay off your loan. The payoff amount may also include other fees you have incurred and have not yet paid.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Payout Penalty<\/h5>\n<p>The future, currently unpaid, interest some lenders add to the remaining principal of a loan to determine a payout figure in the event that the loan is terminated before the original term is completed.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Per diem interest<\/h5>\n<p>The amount of interest that accrues daily on a loan. This is calculated by multiplying the outstanding loan balance by the annual rate of interest, then dividing the result by 365.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Permit<\/h5>\n<p>A document that gives an individual authorization to build a new structure or demolish, relocate, repair, alter or make additions to an existing building.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Person<\/h5>\n<p>From a legal perspective represents an individual, sole proprietorship, partnership, unincorporated or incorporated entity or organization with legal rights and existence.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Personal Covenant<\/h5>\n<p>The legally binding promise made by the borrower to repay the mortgage amount including the interest. Failure to do so provides the lender the right to sue the borrower personally to obtain repayment of the principal amount in addition to foreclosing on or selling the property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Personal Information<\/h5>\n<p>Factual or subjective information about an individual that can be used to identify that individual.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Personal Information Protection and Electronic Documents Act (PIPEDA)<\/h5>\n<p>Federal legislation governing the collection, use and disclosure of personal information collected through commercial activity applicable to all private enterprises across Canada and all organizations under federal jurisdiction. Alberta, British Columbia and Quebec are not covered by PIPEDA as they are covered by similar provincial statutes however federal organizations in these provinces are governed by PIPEDA.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Personal Trades in Real Estate<\/h5>\n<p>Refers to a real estate professional buying, selling, leasing or renting property for personal or commercial purposes on his or her own behalf. If a real estate professional has a direct or indirect interest in a real estate transaction, they are required to make certain disclosures to the other parties in the transaction.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Phased Development<\/h5>\n<p>A form of new condominium in which the construction is finished in multiple stages and therefore has several completion dates.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Phased Development Disclosure Statement<\/h5>\n<p>A document provided by a developer that contains the following details regarding a phased development:<\/p>\n<p>A statement indicating that the building or land is to be developed in phases<br \/>\nThe maximum and minimum number of units in the entire project<br \/>\nA description of the units and common property in the initial phase and subsequent phases<br \/>\nThe basis for allocating unit factors within the condominium corporation<br \/>\nThe extent to which the developer will contribute to the common expenses during the development of each phase and the entire project<br \/>\nThe effect on the owners\u2019 monthly contributions for administrative expenses and the condominium corporation\u2019s budget if future phases are not completed<br \/>\nDetails of the proposed appearance of each phase and its compatibility with other phases<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>PIPEDA<\/h5>\n<p>See Personal Information Protection and Electronic Documents Act<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>PITI<\/h5>\n<p>Principal, Interest, Taxes, and Insurance, known as PITI, are the four basic elements of a monthly mortgage payment. Also referred to as the monthly housing expense.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Plaintiff<\/h5>\n<p>A person or organization who brings legal action against another person or organization in a court of law.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>PMI<\/h5>\n<p>Private Mortgage Insurance (PMI) is a type of mortgage insurance that benefits your lender.  You might be required to pay for PMI if your down payment is less than 20 percent of the property value and you have a conventional loan. You may be able to cancel PMI once you\u2019ve accumulated a certain amount of equity in your home.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Points<\/h5>\n<p>An amount paid to the lender, typically at closing, to lower (or buy down) the interest rate. One discount point equals one percentage point of the loan amount. For example, 2 points on a $100,000 mortgage would cost $2,000. Negative points indicate the amount to be credited at closing to reduce closing costs. Also called discount points or mortgage points.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Portability<\/h5>\n<p>The ability of the borrower to transfer an existing mortgage, including the rate and terms, from one property to another property. However, the lender may require the borrower to re-qualify for the same mortgage because the financial circumstances of the borrower may have changed and the property securing the mortgage has changed.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Portable Mortgage<\/h5>\n<p>An existing mortgage with an option that allows a buyer to transfer their current mortgage to a new property (typically subject to credit approval and a property appraisal).<br \/>\nOne may want to port their mortgage in order to avoid any penalties, or if the interest rate is much lower than the current rates available.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Porting<\/h5>\n<p>The process where a borrower transfers or &#8220;&#8221;ports&#8221;&#8221; the remainder of their existing mortgage from one property to another one.<br \/>\nThis allows you to move to another qualified property without having to lose your existing interest rate. You can keep your existing mortgage balance, term and interest rate plus save money by avoiding early discharge (prepayment) penalties.<br \/>\nNot all mortgages are portable, and the lender&#8217;s approval is required.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Porting a mortgage (also called mortgage portability)<\/h5>\n<p>See Porting<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Posted rate<\/h5>\n<p>The posted rate is a lender&#8217;s standard advertised interest rate for a mortgage product. You may be able to negotiate with your lender for a lower interest rate.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Power Of Attorney (POA)<\/h5>\n<p>A legal, written, signed, dated and witnessed document that allows an individual to appoint another person to act on his or her behalf with respect to his or her financial and legal affairs including debts. It authorizes one person to act on behalf of or represent another in a legal transaction.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Power of Sale<\/h5>\n<p>A clause generally inserted in mortgages giving the lender the right and power, on default by the borrower, to sell the mortgaged property by public auction, private contract, or tender.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Preapproval (or Pre-approval)<\/h5>\n<p>A preapproval is a document that tells you how much you can afford to take out in a home loan.<br \/>\nIt is a lender\u2019s conditional agreement to lend a specific amount of money (mortgage) to a homebuyer under a specified set of terms, and based on a borrower\u2019s qualifications made in advance of a real estate purchase.<\/p>\n<p>Many lenders consider the preapproval to be the first step in getting a mortgage.<br \/>\nWhen you apply for a preapproval, your lender will ask you about your credit score, income, assets and other financial information. Your lender will then use these details to tell you how much you qualify for in a home.<\/p>\n<p>A written pre-approval protects the borrower by specifying the mortgage term, interest rate and maximum amount of the loan. Many lenders will allow a rate hold of up to 120 days.<br \/>\nIf mortgage rates rise, the borrower receives the pre-approved rate.<br \/>\nIf rates drop, the borrower receives the lower rate. However, the borrower must take possession of a property before the pre-approval expires.<\/p>\n<p>This can give you a rough budget to use when you compare properties.<\/p>\n<p>Once a property has been purchased, the pre-approval is subject to the borrower submitting any final supporting documentation, providing his or her financial position has not changed. It is also subject to the property meeting the lender\u2019s underwriting requirements.<\/p>\n<p>Keep in mind that a preapproval isn\u2019t the same as prequalification. Prequalifications usually don\u2019t involve asset and income verification, which means that they aren\u2019t as reliable as preapprovals. Make sure you get a preapproval before you begin shopping for homes.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Pre-Approved Mortgage<\/h5>\n<p>A mortgage for a set maximum amount based on annual income, down payment and credit history.<br \/>\nMany lenders will allow a rate hold of up to 120 days, which secures market pricing in the event of rising interest rates. This is a key component to help the purchaser establish an affordable price range.<br \/>\nThis qualifies you for a mortgage amount before you start shopping.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Pre-Approved Mortgage Certificate (also called Mortgage Pre-Approval Certificate)<\/h5>\n<p>A pre-approved mortgage certificate confirms you&#8217;re pre-approved by a lender to borrow a maximum amount at a guaranteed interest rate.<br \/>\nThe pre-approval certificate is subject to several conditions and expires after a limited time, usually up to 120 days.<br \/>\nIf the conditions are satisfied and your closing date is within that 120-day period, your guaranteed interest rate won&#8217;t change. With a mortgage pre-approval certificate, you can shop for your new home with confidence.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Prearranged refinancing agreement<\/h5>\n<p>A formal or informal arrangement between a lender and a borrower where the lender agrees to offer special terms (such as a reduction in the rate or closing costs) for a future refinancing as an inducement for the borrower to enter into the original mortgage transaction.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Pre-Foreclosure Sale<\/h5>\n<p>(Also called Short sale) Allows a defaulting borrower to sell the mortgaged property to satisfy the loan and avoid foreclosure.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Premium<\/h5>\n<p>An amount paid on a regular schedule by a policy holder that maintains insurance coverage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Prepaid expenses<\/h5>\n<p>The expenses that are usually paid in advance, such as escrows for taxes and insurance (which are paid at closing).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Prepaid interest charges<\/h5>\n<p>Prepaid interest charges are charges due at closing for any daily interest that accrues on your loan between the date you close on your mortgage loan and the period covered by your first monthly mortgage payment.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Prepaid Property Tax and Utility Adjustments<\/h5>\n<p>The amount you will owe if the person selling you the home has prepaid any property taxes or utility bills.<br \/>\nYou reimburse the seller for any property taxes or utilities they paid before the closing date.<\/p>\n<p>Example: If a property closes on October 1st and the seller paid taxes and utilities to October 31st, you pay the seller those expenses from October 1st to October 31st.<br \/>\nYour lawyer or notary makes these adjustments on a document called the statement of adjustments.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Prepayment (also called Lump Sum Payment)<\/h5>\n<p>A prepayment is an unscheduled payment on a mortgage that goes directly to the principal before the term ends.<br \/>\nThe intention is to reduce the principal balance of a loan before the principal is due, reducing the amount of interest paid over the term of the mortgage.<\/p>\n<p>You can pay off most open mortgages without paying a prepayment charge.<br \/>\nWhen you prepay a closed mortgage, you usually pay a prepayment charge (penalty) to your lender.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Prepayment Charge<\/h5>\n<p>A fee charged by the lender when the borrower prepays any part of a closed mortgage beyond what is allowed in prepayment privileges set out in the mortgage agreement, or pays off the mortgage before the end of the term.<\/p>\n<p>The terms for prepayment charges are defined in the mortgage agreement.<br \/>\nAlthough there is no law as to how a lender can charge you the penalty, a usual charge is the greater of the Interest Rate Differential (IRD) or 3 months interest.<br \/>\nPrepayment privileges are part of open and closed mortgages.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Prepayment Clause<\/h5>\n<p>A clause inserted in a mortgage that gives the borrower the privilege of paying all or part of the mortgage debt in advance of the maturity date.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Prepayment Options<\/h5>\n<p>A mortgage feature that allows the borrower to prepay a portion, or all the principal balance, with or without penalty.<br \/>\nThey include lump-sum payments, accelerated payments and double-up payments, to name a few. They all serve the same purpose, which is to decrease the mortgage amount faster than scheduled (and thus shorten your amortization) and reduce the amount of interest you pay over time.<\/p>\n<p>These options are typically restricted to specific amounts and times. Most lenders offer 15- to 20% pre-payment provisions on the original mortgage balance and the privileges reset on the anniversary date of the mortgage loan.<br \/>\nPrepayment charges may be incurred on the exercise of prepayment options.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Prepayment Penalty<\/h5>\n<p>See Prepayment Charge<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Prepayment privilege<\/h5>\n<p>The right to pay all or part of a debt prior to the maturity date, usually without the risk of incurring any penalties.<br \/>\nLenders generally offer some prepayments without penalty like 15 to 20% per year lump sum, plus 15 to 20% increase in regular payments. However, these may vary based on the mortgage agreement.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Prepayment Restrictions<\/h5>\n<p>Unless a mortgage is an open mortgage, it will have prepayment restrictions. In some cases, such restrictions can prevent the borrower from paying off, refinancing or renewing the mortgage prior to maturity. In most cases, the lender simply limits the amount you can prepay in any given year. A 20% annual prepayment limit, for example, means you can pay up to an additional 20% of the original mortgage balance each year without penalty, on top of your other allowed payments.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Pre-qualification<\/h5>\n<p>Mortgage pre-qualification is a quick assessment process made in advance of a real estate purchase.<br \/>\nThe lender assesses your financial information, including debt, income and assets.<br \/>\nYou get an estimate on the mortgage amount you may be approved for. It is for a specified period of time and subject to the borrower submitting his or her supporting documentation to the lender, providing his or her financial position has not changed.<\/p>\n<p>If you&#8217;re pre-qualified, your lender has only done a basic review of your finances. You must still provide documents and more financial details before getting pre-approved for a mortgage. Once a property has been purchased, the property must also meet the lender\u2019s underwriting requirements.<br \/>\nA prequalification is not a commitment to lend.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Prequalify<\/h5>\n<p>When a lender informally determines the maximum amount an individual is eligible to borrow.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Primary Mortgage Market<\/h5>\n<p>A mortgage market in which original loans are made by lenders.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Primary Residence<\/h5>\n<p>The residential property which the borrower occupies as his or her main residence on a continual basis.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Prime Rate (Also Prime Interest Rate, or Prime Lending Rate)<\/h5>\n<p>The prime rate is a floating interest rate that lenders make available to its best customers (its most creditworthy borrowers)when lending them money.<br \/>\nIt almost always moves with the Bank of Canada\u2019s overnight target rate.<br \/>\nEach lender has its own prime rate, but Canada\u2019s official benchmark prime rate is calculated by the Bank of Canada. It equals the mode average of the Big 6 Banks\u2019 prime rates.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Principal<\/h5>\n<p>Principal is the amount of money you borrow from a lender, not including interest.<br \/>\nIt&#8217;s the amount of money borrowed for a new mortgage; the original amount of a loan, before interest.<\/p>\n<p>Ex: If a mortgage is for $350,000, then the mortgage principal is $350,000.<\/p>\n<p>You repay the principal (with interest) back to the lender over the amortization period through mortgage payments.<br \/>\nDuring the early years of your mortgage, the interest portion is usually larger than the principal portion.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Principal (Agency)<\/h5>\n<p>The individual (i.e. client) who authorizes the agent (e.g. real estate or mortgage brokerage professional) to act on his or her behalf in an agency relationship.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Principal (Financial)<\/h5>\n<p>A sum of money owed as a debt upon which interest is calculated.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Principal (Mortgage)<\/h5>\n<p>The amount of funds originally borrowed from the lender or the portion of a mortgage still owing upon which interest is calculated.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Principal and Interest<\/h5>\n<p>A periodic mortgage payment calculation based on a combination of principal repayment and interest.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Principal balance<\/h5>\n<p>The unpaid portion of the loan amount. The principal balance does not include interest or any other charges.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Principal payment<\/h5>\n<p>Portion of your monthly payment that reduces the principal balance of a home loan. This term also refers to prepayments you make to the principal balance.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Principal, Interest and Tax<\/h5>\n<p>A periodic mortgage payment calculation based on a combination of principal repayment, interest and a portion of the property taxes.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Priority<\/h5>\n<p>The order in which financial obligations registered on the title of a property would be addressed upon disposition of the property (e.g. sale of the property, foreclosure, settlement of an estate). With a few exceptions (e.g. property taxes, condominium fees), the order is determined by the date of registration of the financial encumbrance on the title of the property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Privacy<\/h5>\n<p>Refers to an individual\u2019s ability to retain control over his or her personal information.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Private Lender<\/h5>\n<p>Any individual, group of individuals as in a syndicated mortgage or Mortgage Investment Corporation other than a financial institution that advances funds in return for a mortgage with agreed to repayment terms and conditions. Private lenders do not include chartered banks, treasury branches, credit unions, loan corporations, trust companies, and insurance companies, any persons engaged in the business of making loans secured with mortgages or any persons that manage registered pension plans.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Private Mortgage<\/h5>\n<p>A mortgage contract in which the lender is not a registered financial institution but rather a private corporation and\/or an individual.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Private Mortgage Insurance (PMI)<\/h5>\n<p>Private mortgage insurance (PMI) is a type of insurance that protects your lender in the event that you default on your loan. Your lender will usually require you to pay PMI if you have less than a 20% down payment. You have the option to remove PMI from your loan when you reach 20% equity in your property.<br \/>\nSee also Mortgage insurance<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Processing fee<\/h5>\n<p>A fee charged to cover the administrative costs of processing a loan request.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Product Sheet<\/h5>\n<p>A lender product sheet describes the particulars of a specific mortgage product, including term, amortization, repayment privileges, loan to value maximum, debt servicing maximum ratios, mortgage size restrictions, underwriting criteria, applicant income, equity sources, acceptable credit history (e.g. minimum credit score, bankruptcy history) and any other details relevant to the specific lender product or program. A lender product generally targets a particular borrower type or meets a specific borrowing need in the marketplace. Product sheets are provided by lenders to mortgage brokerage industry members for their information. If a product sheet is used for a specific mortgage, it should be retained by the industry member as part of the transaction record.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Professional Condominium Management<\/h5>\n<p>The Board of Directors delegates some or all of the duties associated with the condominium to a condominium manager.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Professional Liability Insurance<\/h5>\n<p>A form of business liability insurance intended to cover damages resulting from errors, omissions and negligence by professionals that occurred in the course of providing their business services.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Promissory note<\/h5>\n<p>A written promise to repay a specified amount over a specified period of time.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Property<\/h5>\n<p>The rights inherent in the ownership of a commodity.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Property Assessment<\/h5>\n<p>The process of determining the property value for taxation purposes. Assessment is used to determine the property owner\u2019s proportionate share of municipal taxes on an annual basis.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Property survey<\/h5>\n<p>A legal description of your property and its location and dimensions (usually required by your mortgage lender).<br \/>\nIt is a document that shows the legal boundaries and measurements of property, specifies the location of any buildings, and identifies restrictions and conditions that may apply to the property.<br \/>\nA survey identifies property boundaries, lot size and building position. It also shows if there are any overhanging structures or shared driveways that could impact property value.<\/p>\n<p>A professional land surveyor prepares the survey. Your lender may ask you for a current survey of the property during the mortgage application process.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Property Assessor<\/h5>\n<p>An individual who places a value on real estate for the purpose of taxation.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Property Defect<\/h5>\n<p>A shortcoming or failing of a property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Property Inspection<\/h5>\n<p>A visual examination of readily accessible interior and exterior aspects of a property in order to provide an opinion on the property\u2019s condition as of the date of the inspection. The purpose of a property inspection is to look for signs that there may be problems with the property and to suggest any areas that should be looked at further by an expert. Property inspections are performed by property inspectors.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Property Inspection Contract<\/h5>\n<p>A legally binding agreement entered into by a consumer and a property inspector that specifies the details for a property inspection to be performed on a particular property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Property Inspection Report<\/h5>\n<p>Written communication describing property issues discovered from observations made, and research conducted by, a qualified property inspector. The report should include the following information:<\/p>\n<p>Convey the current condition of all inspected items<br \/>\nEmphasize any inspected items that are unsafe or require major repairs and\/or replacement<br \/>\nEstimate when repairs and\/or replacements of inspected items will need to occur<br \/>\nDescribe preventative measures that can be taken to remedy current issues or extend the life of the inspected items<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Property Inspector<\/h5>\n<p>An individual who performs a property inspection.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Property Insurance (also called Home Insurance)<\/h5>\n<p>Insurance that you buy for the building(s) on the land you own. This insurance should be high enough to pay for the building to be re-built if it is destroyed by fire or other hazards listed in the policy.<br \/>\nIt should also provide financial protection against most risks to property due to damage or destruction caused by specified perils such as fire, theft, vandalism.<\/p>\n<p>During your mortgage term, you need property insurance on your home.<br \/>\nThe lender must be named on the policy.<br \/>\nProperty insurance covers the replacement cost of the home in case of fire, windstorms or other disasters. The lender needs proof of property insurance before releasing the mortgage funds.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Property Manager<\/h5>\n<p>An individual or business that performs administrative, operational and\/or maintenance duties on behalf of the owner of a property for compensation. Depending on the duties performed, a real estate authorization from the relevant regulatory authority may or may not be required.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Property survey<\/h5>\n<p>A legal description of your property and its location and dimensions (usually required by your mortgage lender).<br \/>\nIt is a document that shows the legal boundaries and measurements of property, specifies the location of any buildings, and identifies restrictions and conditions that may apply to the property.<br \/>\nA survey identifies property boundaries, lot size and building position. It also shows if there are any overhanging structures or shared driveways that could impact property value.<\/p>\n<p>A professional land surveyor prepares the survey. Your lender may ask you for a current survey of the property during the mortgage application process.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Property Taxes<\/h5>\n<p>The annual amount charged each property owner by the municipality where the property is located.<br \/>\nThe amount is based on the assessed value of the property in relation to the municipal tax rate for that classification of property, as determined annually by the municipality. Property taxes fund the operations and services of the municipality, like garbage collection, community development projects, roads, librairies, snow plowing, police departments and fire protection. In addition, portions of the property tax may also relate to the provision of education and the payment for a local improvement levy.<\/p>\n<p>In some cases the lender will collect a monthly amount to cover your property taxes, which is then paid by the lender to the municipality on your behalf.<br \/>\nDon\u2019t forget to factor in property taxes when you shop for a home.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>PST on Mortgage Insurance<\/h5>\n<p>In Ontario, Manitoba, Saskatchewan and Quebec you must pay provincial tax (PST) on the mortgage insurance premium. This amount must be paid upfront and, unlike default insurance, cannot be added to the mortgage amount.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Purchase agreement<\/h5>\n<p>A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Purchaser<\/h5>\n<p>The buyer of real estate.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Purchase offer<\/h5>\n<p>A legal agreement between the buyer and seller of a real estate property. It contains the price, the date of closing and other information relevant to the sale of a property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Purchase Contract<\/h5>\n<p>A legally binding agreement entered into by a buyer of real estate and a seller of real estate that details the buyer\u2019s intention to purchase a specific property from the seller of that property provided that certain terms and conditions, as described in the agreement, will be met.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t\t<div id=\"tab-q\" data-tab-icon=\"\" class=\"wpb_tab ui-tabs-panel wpb_ui-tabs-hide clearfix\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Qualifying<\/h5>\n<p>The process of determining a prospective borrower\u2019s eligibility for mortgage financing related to a potential real estate purchase.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Qualifying Rate<\/h5>\n<p>A qualifying rate is the rate a lender uses when determining whether you qualify for the mortgage you applied for.<br \/>\nThis rate is usually higher than a typical mortgage rate, and is used to ensure borrowers can continue to afford their payments if interest rates increase.<\/p>\n<p>Your lender uses this rate to calculate your debt-service ratio \u2014 the ratio between your debt and income. This helps your lender determine if you can repay the mortgage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Qualifying ratios<\/h5>\n<p>Calculations that are used to determine whether a borrower can qualify for a mortgage. They consist of 2 separate calculations: a housing expense as a percent of income and total debt obligations as a percent of income.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Quorum<\/h5>\n<p>The minimum number of individuals entitled to vote that must be present or represented by proxy at a meeting in order for the business of the condominium corporation to be transacted.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t\t<div id=\"tab-r\" data-tab-icon=\"\" class=\"wpb_tab ui-tabs-panel wpb_ui-tabs-hide clearfix\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Radon<\/h5>\n<p>An odorless, tasteless and colorless gas. It is a by-product of the decay of uranium, a radioactive element that exists naturally in soil and rock formations.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Rate<\/h5>\n<p>The amount of interest on a loan, expressed as a percentage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Rate cap<\/h5>\n<p>See: Interest rate cap<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Rate Commitment<\/h5>\n<p>The number of days the lender will guarantee the mortgage rate on a mortgage approval. This can vary from lender to lender, anywhere from 30 to 120 days.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Rate hold<\/h5>\n<p>A rate hold is the length of time a lender guarantees your mortgage rate on a mortgage approval for a purchase, refinance or renewal.<br \/>\nRate holds are contingent upon your approval and generally range from 30 to 120 days.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Rate lock<\/h5>\n<p>A commitment issued by a lender to a borrower guaranteeing a specific interest rate for a specified period of time. Rate lock periods are for a fixed number of days, and rate lock expiration occurs when that period has passed, subjecting the interest rate on the loan to market fluctuations since the date of the initial rate lock. When a rate lock expires, you will need to contact the lender (or your mortgage broker) to establish a new rate lock prior to closing your loan.<br \/>\nSee Rate Hold<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Rate reduction option<\/h5>\n<p>A provision in a fixed-rate mortgage that gives the borrower the option to reduce the interest rate at a later date without having to refinance. Exercising a rate reduction option typically does not require requalifying for the loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Rate Sheet<\/h5>\n<p>A lender rate sheet shows the rates and fees for its product line. The rates are generally based on term, amortization, prepayment features, loan size, quickness of advance and other relevant details related to the lender\u2019s mortgage products. The rate sheet is provided by lenders to mortgage brokerage industry members for their information. If a rate sheet is used for a specific mortgage deal, it should be retained by the industry member as part of the transaction record.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Real Estate<\/h5>\n<p>Refers to the unimproved or raw land plus any improvements that are permanent or fixed to the land.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Real Estate Agent<\/h5>\n<p>A real estate agent is a local property professional who is licensed to negotiate and arrange real estate sales, and who can help you shop for a home more effectively.<br \/>\nAs the first step in the home buying process, many prospective homebuyers look for an agent to help guide them.<br \/>\nReal estate agents can show you homes in your price range, draw up offer letters and work with sellers to get you a great deal on a home.<\/p>\n<p>There are two main types of real estate agents: seller\u2019s agents and buyer&#8217;s agents.<br \/>\nSeller&#8217;s agents help individuals sell their properties while buyer&#8217;s agents work with those shopping for a home.<br \/>\nIn exchange for working with you, your real estate agent takes a commission from your home sale or purchase.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Real Estate Appraisal<\/h5>\n<p>A formal, impartial estimate or opinion of value, usually written, of a specific and adequately described property, as of a specific date and supported by the presentation and analysis of relevant data pertinent to a property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Real Estate Appraiser<\/h5>\n<p>An individual authorized to perform real estate appraisal services for a fee. A real estate appraiser is an accredited professional whose main service typically involves estimating the value of real property at a specified date in a manner that is independent, impartial and objective.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Real Estate Professional<\/h5>\n<p>The term that refers to an individual who is authorized to trade in real estate and\/or manage properties. These individual must be engaged by or associated with a real estate brokerage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Real Estate Purchase Contract<\/h5>\n<p>A Real Estate Purchase Contract (also known as an Offer to Purchase) is the contract a property buyer will write for submission to a property seller. It contains the date of the offer, the description of the property being offered on, the amount of the deposit, the purchase price being offered, down payment and financing details, as well as the buyer\u2019s name and address, and the name and address of the seller, subject-to clauses, conditions, closing dates, and any special requirements you want to impose on sellers (for example, you want the kitchen appliances).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Real Property Report<\/h5>\n<p>A legal document produced by a land surveyor that clearly illustrates the boundaries of a property and the location of improvements to the land relative to the boundaries. It also illustrates other issues impacting the property, such as rights-of-way, easements, encroachments, etc. In addition, it may contain a surveyor\u2019s opinion or concerns regarding these items. A current real property report (RPR) illustrates the up to date improvements on the land and their relationship to the property boundaries whereas an existing RPR may not illustrate the current state of a property if any improvements were made to the land since the date of the RPR.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Realtor\u00ae<\/h5>\n<p>A real estate agent or broker who is a member of the Canadian Real Estate Association.<br \/>\nThis is a licensed professional who is legally registered with a real estate brokerage firm that provides the services of helping someone find or sell a home.<\/p>\n<p>Also, a trademark identifying real estate professionals in Canada who are members of the Canadian Real Estate Association (CREA), and as such, who subscribe to a high standard of professional service and to a strict code of ethics.<br \/>\nReal estate professionals are not required to be members of their local board, however only real estate professionals who are members of their local real estate board are authorized to use the Realtor\u00ae term.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Reamortize<\/h5>\n<p>To take the remaining balance of a mortgage loan and establish a new period of amortization after which the principal balance will be zero. Typically used after the end of the term of an interest-only loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Reckless Misrepresentation<\/h5>\n<p>A false or misleading statement made by a person who while they had no intent to mislead anyone failed to take the reasonable steps to confirm the statement\u2019s truthfulness or accuracy. A third party may rely on the misrepresentation to his or her potential or actual detriment.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Reconciliation<\/h5>\n<p>The process by which a real estate appraiser evaluates, chooses and selects from among two or more alternative conclusions or indications to reach a single answer (i.e. final value estimate).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Recourse mortgage<\/h5>\n<p>A recourse mortgage lets your lender go after your property or other assets not used as mortgage collateral if you default on your mortgage.<br \/>\nYour lender can sell your property to recover the amount owing. If the sale price doesn&#8217;t pay off the amount owing, the lender can sue you for the shortfall.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Recreational Building<\/h5>\n<p>A building designed for leisure or as a second residence.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Recreational Condominium<\/h5>\n<p>A condominium that consists of units that owners and\/or occupants visit from time to time as a weekend or vacation destination.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Redemption<\/h5>\n<p>The act of performing the borrower\u2019s obligations and consequential release of the mortgage on the property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Reduced documentation<\/h5>\n<p>A method used to determine income when qualifying a borrower for a loan. Borrower(s) provide their income, however no verification documentation is typically required.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Referral<\/h5>\n<p>The act of recommending or directing a person for service, assistance, or business to another person or business.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Refinance (Also &#8216;Refi&#8217;, or &#8216;Refinancing&#8217;)<\/h5>\n<p>A mortgage refinance is when you break your current mortgage and start a new one under different terms, either with the same lender or a new lender.<br \/>\nYou pay off your existing loan with the proceeds from a new loan, generally using the same property as collateral.<br \/>\nThis process may include increasing the principal, extending the term (or amortization), or paying out the mortgage in full.<\/p>\n<p>The most common consumer refinancing is for a home mortgage.<br \/>\nIf the replacement of debt occurs under financial distress, it is also referred to as debt restructuring.<\/p>\n<p>A loan (debt) can be refinanced for various reasons:<br \/>\n1.) to take advantage of a better interest rate;<br \/>\n2.) to consolidate other debt(s) into one loan (and payment);<br \/>\n3.) to reduce the monthly repayment amount;<br \/>\n4.) to reduce or alter risk (e.g. changing from a variable-rate to a fixed-rate loan)<br \/>\n5.) to free up cash;<br \/>\n6.) to access the equity in your home through a line of credit<\/p>\n<p>Breaking your mortgage contract to renew at a new rate and a new term may include a prepayment charge (penalty) to reimburse your financial institution for the lost interest income.<br \/>\nThis amount will tell you if you should refinance the mortgage.<br \/>\nIn most cases the shorter the remaining term &#8211; less than a year is best &#8211; the smaller the penalty. The longer the term left on your mortgage, the greater the prepayment penalties.<\/p>\n<p>When considering refinancing on your mortgage, consider the closing costs associated with getting a new loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Refinancing<\/h5>\n<p>See Refinance<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>REGISTERED RETIREMENT SAVINGS PLANS (RRSP)<\/h5>\n<p>An RRSP is a retirement savings plan. Deductible RRSP contributions can be used to reduce your tax. First time home buyers are eligible to withdraw up to $35,000 for the purchase of their first home, tax free.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Registered Size<\/h5>\n<p>The floor space of a unit within a condominium as outlined in the Schedule of Unit Factors and Unit Areas on a Condominium Plan. In addition to the above ground space contained in the unit, the registered size may include a variety of areas, such as a basement, garage, parking stall or storage area.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Regular payment amount<\/h5>\n<p>See mortgage payment.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Rehabilitation<\/h5>\n<p>The restoration of a property to satisfy conditions without changing the plan, form, or style of a structure. In urban renewal, the restoration to good condition of deteriorated structures, neighborhood, and public facilities. Neighborhood rehabilitation may extend to street improvements and the provision of such amenities as parks and playgrounds.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Rehabilitation loan<\/h5>\n<p>A first mortgage that enables borrowers to purchase or refinance and rehabilitate homes. With this mortgage product, borrowers can qualify for loan amounts based on the as-completed value of the property, up to the maximum loan limits.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Remainder Unit<\/h5>\n<p>In a barely blended condominium, a unit that includes areas for use by unit owners that is owned by the condominium corporation who is responsible for its care and maintenance.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Remediation<\/h5>\n<p>Measures to reduce contamination to a level that does not impair or damage the environment, human health or safety or property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Remuneration<\/h5>\n<p>The compensation (e.g. commission, gifts, other benefits) received by the brokerage for services rendered to a party (e.g. customer, client).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Renewal (also called renewing)<\/h5>\n<p>About 120 days (4 months) before your current mortgage term expires, your mortgage is considered &#8216;up for renewal.&#8217; You may receive a renewal offer early, or at most, lenders are legally required to provide your renewal offer 21 days before your term expiration date.<br \/>\nMost lenders will not re-qualify the mortgage loan upon renewal.<\/p>\n<p>At the end of a mortgage term, a mortgage can be renewed (re-signed) again for another term if the terms and conditions are acceptable to both the lender and the borrower.<br \/>\nOtherwise, the lender will be repaid in full and the borrower will arrange financing elsewhere.<\/p>\n<p>Before re-signing, your mortgage may be open for pre-payment in part or in full, and may be renewed with your current lender or your mortgage can be transferred to another lender.<br \/>\nWhen renewing your mortgage, the banks often only offer the posted rates. This is why it is never advisable to just renew without having your mortgage broker review available options.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Renewal Agreement<\/h5>\n<p>An agreement through which the lender may agree to extend the mortgage loan, possibly on revised terms for the principal repayments and interest rate.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Rent<\/h5>\n<p>The financial compensation paid to a landlord for the temporary use and\/or occupation of real estate by a tenant.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Rent to Own<\/h5>\n<p>Assists low- to moderate-income homebuyers in purchasing a home by allowing them to lease a home with an option to buy; the rent payment is made up of the monthly rental payment plus an additional amount that is credited to an account for use as a down payment.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Rental Agreement<\/h5>\n<p>A written agreement between an owner (landlord) and a tenant under which the owner allows the tenant the right of exclusive use of the property for a specified time, rent and terms.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Rented Parking Stall<\/h5>\n<p>A parking stall owned by a unit owner or the condominium corporation that is used on a temporary or ongoing basis (e.g. month-to-month) by another unit owner in exchange for a fee.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Rented Storage Area<\/h5>\n<p>A storage area owned by a unit owner or the condominium corporation that is used on a temporary or ongoing basis (e.g. month-to-month) by another unit owner in exchange for a fee.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Repayment plan<\/h5>\n<p>A repayment plan is a structured way to make up your missed mortgage loan payments over a certain period of time. This is a type of loss mitigation. If you have trouble making your mortgage payments, your lender or servicer may allow you to enter into a repayment plan. Before entering into a repayment plan, make sure you understand the requirements of the plan and whether you will be able to make the new payments.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Rescission<\/h5>\n<p>The cancellation of a contract. In certain real estate-secured transactions that involve the refinance of a primary residence, applicants have 3 business days to cancel the transaction.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Reseller<\/h5>\n<p>An individual or business that has previously purchased one or more units within a condominium and is now offering those units for sale.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Reserve Fund<\/h5>\n<p>Cash and cash equivalents used to pay for major capital repairs and replacements of the condominium corporation\u2019s common property that do not occur on an annual basis.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Reserves<\/h5>\n<p>The amount of savings, separate from the down payment, that a homebuyer sets aside in case of unforeseen events or emergencies. During the loan approval process, many lenders require reserves (typically the equivalent of 2 monthly mortgage payments) to be verified.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Residential Building<\/h5>\n<p>A building used as a dwelling by one or more occupants.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Primary Mortgage Market<\/h5>\n<p>A mortgage market in which original loans are made by lenders.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Primary Residence<\/h5>\n<p>The residential property which the borrower occupies as his or her main residence on a continual basis.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Residential Condominium<\/h5>\n<p>A condominium that consists of units in which owners and\/or occupants live full-time.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Residential mortgage<\/h5>\n<p>See mortgage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Residential Property<\/h5>\n<p>A type of property that a municipality has designated for use as single family detached homes, townhouses, apartments, condominiums, and cooperatives that is or was used as a residence.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Residential Tenancy Agreement<\/h5>\n<p>An agreement that outlines the terms and obligations between a landlord of a residential premise and a tenant and sets out any conditions that have been agreed to by the parties to the agreement.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Resolution<\/h5>\n<p>A decision agreed upon by the condominium corporation through the use of a vote.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Restricted Mortgage<\/h5>\n<p>A mortgage that does not allow pre-payment privileges, or that has restrictive conditions that make it more expensive or difficult to discharge the mortgage before maturity. Because of a lender&#8217;s lower costs in offering this type of mortgage, it often comes with lower rates.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Restrictive Covenant<\/h5>\n<p>A written agreement registered on title that places a restriction or limitation on the use of the land or on the architectural detail of a property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Retail Building<\/h5>\n<p>A building used to promote commerce with consumers for goods and\/or services.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Retail Condominium<\/h5>\n<p>A condominium that consists of units in a retail facility (e.g. mall).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Revenue<\/h5>\n<p>Money an individual or organization receives in exchange for providing goods and\/or services.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Reverse Mortgage<\/h5>\n<p>A mortgage on a principal residence that allows older consumers to convert a portion of the property\u2019s equity into cash (a loan), generally for living expenses.<br \/>\nIn essence, homeowners over age 55 can borrow against their home equity.<\/p>\n<p>It is called a \u201creverse\u201d mortgage because, instead of making payments to the lender, you receive money from the lender. The money you receive, and the interest charged on the loan, increases the balance of your loan each month.<\/p>\n<p>No payments are made and the payments and interest accumulate against the equity in the property.<br \/>\nThe owner must continue to reside in the property for the reverse mortgage to stay in place.<br \/>\nRepayment of the loan is typically triggered when the property is sold, is no longer the principal residence or on the death of the owner(s).<br \/>\nThe loan balance is due at the end of the loan period, or upon the death of the homeowner, and is usually settled by the heirs who sell the property to meet the outstanding obligation.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Revolving Credit<\/h5>\n<p>A type of credit that does not have a fixed number of payments, in contrast to installment credit. Examples of revolving credits used by consumers include credit cards.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Private Mortgage<\/h5>\n<p>A mortgage contract in which the lender is not a registered financial institution but rather a private corporation and\/or an individual.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Right of first refusal<\/h5>\n<p>A provision in an agreement that requires the owner of a property to give another party the first opportunity to purchase or lease the property before he or she offers it for sale or lease to others.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Right of Redemption<\/h5>\n<p>The right of a borrower whose real property has been foreclosed upon to reclaim the title and possession of the property by paying off the full debt obligation.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Right of Rescission<\/h5>\n<p>An individual\u2019s ability to cancel a Purchase Contract under certain terms. For new and conversion condominiums, the buyers\u2019 right to rescind a Purchase Contract is tied to the condominium documents a developer is legally required to provide.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Right of Survivorship (Real Estate)<\/h5>\n<p>The right of survivorship comes into effect when land is held in undivided portions by co-owners and one of them dies. In this instance, the deceased\u2019s interest in the land passes to the surviving co-owner, rather than to the deceased\u2019s heirs.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Risk<\/h5>\n<p>Exposure to circumstances or perils which may give rise to injury or loss for a person or organization.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Risk Reduction<\/h5>\n<p>The activities proactively undertaken by a person or organization that are intended to minimize exposure to potential injury or loss and any associated liabilities.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t\t<div id=\"tab-s\" data-tab-icon=\"\" class=\"wpb_tab ui-tabs-panel wpb_ui-tabs-hide clearfix\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Safety and Security System<\/h5>\n<p>A building system that assists in preserving the well-being of a building\u2019s occupants and preventing damage to or loss of property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Sagen<\/h5>\n<p>Sagen, formerly Genworth Financial, assists families with mortgages, protects families through insurance and helps customers secure their financial future.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Sales Taxes<\/h5>\n<p>Taxes applied to the purchase cost of a property. Some properties are exempt from sales tax and some are not. For instance, residential resale properties are usually GST exempt, while new properties require GST.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Sanction (Condominium)<\/h5>\n<p>A penalty imposed for violating a condominium bylaw.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Schedule<\/h5>\n<p>A supplementary form completed and included with the real estate purchase contract for the benefit of a buyer in a real estate transaction.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Schedule of Unit Factors and Unit Areas<\/h5>\n<p>A table that includes the legal number for each unit, the number of unit factors assigned to each unit and the approximate floor space of each unit within the condominium.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Scope of Work<\/h5>\n<p>Refers to the type and extent of research and analyses performed in an appraisal assignment.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Second Home<\/h5>\n<p>A property occupied part-time by a person in addition to his or her primary residence.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Second Mortgage<\/h5>\n<p>An additional mortgage, taken out on a property that is already mortgaged.<br \/>\nDetermination of first, second, third mortgage, etc. is determined by priority of registration (time and date).<\/p>\n<p>A second mortgage is a new mortgage (a junior lien) granted when there is already a mortgage registered against the property (collateral). It is in second lien position, and  takes priority over all other liens that are registered against the property except for the first mortgage.<br \/>\nIf the borrower defaults and the property is sold, the second mortgage is paid after the first.<br \/>\nReasons for a second mortgage include debt consolidations, property and income tax arrears, renovations and to avoid penalties with your first mortgage lender (among many others).<br \/>\nA second mortgage usually has a shorter term and a higher interest rate than the first mortgage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Secondary Mortgage Market<\/h5>\n<p>A formal, impartial estimate or opinion of value, usually written, of a specific and adequately described property, as of a specific date and supported by the presentation and analysis of relevant data pertinent to a property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Secret Profit<\/h5>\n<p>The receipt of any monetary or non-monetary benefit by an industry professional as a result of a referral which is not disclosed to the client.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Secretary<\/h5>\n<p>The individual on the Board of Directors who is responsible for maintaining and preserving the official records of the condominium corporation and Board of Directors (e.g. owner lists, correspondence to unit owners) as well as recording or supervising the recording of the meeting minutes of the Board of Directors and condominium corporation.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Secured loans<\/h5>\n<p>Loans for which the borrower gives the lender a lien on property such as an automobile, boat, other personal property or real estate that will serve as collateral for the loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Securitization<\/h5>\n<p>The process of converting loans or other assets into financial securities which are sold in the capital markets, providing investors with an interest in the pool of loans or assets underlying the security.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Security<\/h5>\n<p>In the case of mortgages, real estate (a property or properties) which has or have been pledged as collateral for a loan.<br \/>\nThe property being purchased or refinanced forms the security for the loan. If the borrower defaults, the lender can sell the collateral to satisfy the debt.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Security Agreement<\/h5>\n<p>An agreement that charges the borrower\u2019s personal property identified in the agreement as security for a loan. A lender may take security on personal property in order to enhance the extent of their security for a loan. This may be the case when borrower\u2019s real property is insufficient for a lender to proceed with the loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Security interest<\/h5>\n<p>The security interest is what lets the lender foreclose if you don&#8217;t pay back the money you borrowed.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Self-Employed Borrower<\/h5>\n<p>A borrower who owns\/operates his or her own business and must provide alternate forms of documentation (e.g. series of tax returns) to substantiate income levels and other required verifications in place of the traditional forms of income validation (e.g. pay stubs, employment letters).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Self-Management<\/h5>\n<p>The process by which the Board of Directors of a condominium carry out the duties related to the operation of the condominium or enlist volunteers from the community or hire staff and\/or service providers to perform the duties.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Seller<\/h5>\n<p>The owner of real estate who is in the process of disposing of his or her property through a sale to a buyer. The property may be for sale through a real estate industry professional or for sale by the owner.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Seller Concessions<\/h5>\n<p>Seller concessions are clauses in your offer that ask the seller to pay certain closing costs. For example, you might ask the seller to cover elements like appraisal fees or your title search. The seller can reject your concessions or send you a counteroffer with concessions removed. Limitations on the percentage of your closing costs sellers can cover varies by property type.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Seller financing<\/h5>\n<p>Seller financing is a loan that the seller of your home makes to you.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Sellers\u2019 Market<\/h5>\n<p>A real estate market condition where buyer demand is strong and property supply is weak.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Semi-Attached Condominium<\/h5>\n<p>A style of residential condominium consisting of 2 units placed side-by-side that share a common wall<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Service Agreement<\/h5>\n<p>See Written Service Agreement<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Service Fee<\/h5>\n<p>Compensation paid to, and disclosed by, an industry professional as a result of providing business services to a client.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Servicer<\/h5>\n<p>Your mortgage servicer is the company that sends you your mortgage statements. Your servicer also handles the day-to-day tasks of managing your loan.<\/p>\n<p>Your loan servicer typically processes your loan payments, responds to borrower inquiries, keeps track of principal and interest paid, and manages your escrow account (if you have one). The loan servicer may initiate foreclosure under certain circumstances. Your servicer may or may not be the same company that originally gave you your loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Settlement<\/h5>\n<p>The completion of a property\u2019s sale or purchase, or the completion of all steps necessary to receive the proceeds of (and create an obligation to repay) a loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Settlement agent<\/h5>\n<p>A person or entity that conducts the settlement to transfer title of the property and to close on the mortgage loan. May be an attorney, a title insurer, a title agent or an escrow agent.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Settlement costs<\/h5>\n<p>See: Closing costs<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Shared appreciation mortgage<\/h5>\n<p>Under a shared appreciation mortgage, you agree to give your lender a share of any increase in the value of your home. Also called a Shared Equity Mortgage<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Short sale<\/h5>\n<p>A short sale is a sale of your home for less than what you owe on your mortgage.<br \/>\nA short sale is a commonly-used alternative to foreclosure, but because it is a sale, you will have to leave your home.<\/p>\n<p>If a homeowner can no longer afford to make mortgage payments and their home is worth less than they owe, a short sale allows them to sell the home to pay off the mortgage. In a short sale, the lender agrees to accept an amount less than is actually owed on the loan, based on a showing of financial hardship.<\/p>\n<p>If your lender agrees to a short sale, you may be able to sell your home to pay off your mortgage, even if the sale price or proceeds turn out to be less than the balance remaining on your mortgage. A short sale is a type of loss mitigation.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Showing<\/h5>\n<p>A scheduled appointment for a real estate professional to view a property that is for sale to a prospective buyer.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Simple Interest<\/h5>\n<p>A method of calculating the cost of borrowing by applying an interest rate to the principal amount. It does not include interest from previous periods.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Single-Family Condominium<\/h5>\n<p>A style of residential condominium that has stand-alone, separate units.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Single-family residence<\/h5>\n<p>A detached individual housing unit. The property shares no common ground with neighboring properties and shares no wall or roof, but can be part of a planned unit development (PUD).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Site<\/h5>\n<p>A parcel of land which is improved to the extent that it is ready to be used for its intended purpose.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Site Analysis<\/h5>\n<p>The identification and analysis of the characteristics that create, enhance or detract from the utility and marketability of a site.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Site-Built Construction<\/h5>\n<p>A construction system in which a building is created by cutting and joining together pieces of lumber on a building site. In site-built construction, all materials and labourers must be transported to the building site.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Skip Payment Option<\/h5>\n<p>&#8220;An example of a mortgage clause that may be added to an open mortgage agreement, which grants the borrower the ability to skip a monthly payment without the mortgage going into default.<br \/>\n&#8220;<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Skylight<\/h5>\n<p>A building system that is similar to a window but is installed in the roof of a building. Skylights may also be referred to as sun tunnels, sun tubes, solar day lighting devices and light tubes.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Sole Ownership<\/h5>\n<p>A form of ownership of land\/property where only one individual (or company) is registered. Although generally considered absolute ownership, it is still subject to the restrictions imposed by government. The rights of the sole owner may also be impacted by the rights of an untitled spouse.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Special Power of Attorney<\/h5>\n<p>A Power of Attorney that grants specific or limited powers to the attorney to make decisions or act on behalf of the donor.  In some provinces, a Special Power of Attorney is required in order for an individual to be able to handle real property transactions on behalf of another.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Special Resolution<\/h5>\n<p>A resolution for which a vote is conducted and a unit owner\u2019s proportional share of unit factors establishes the weight assigned to his or her vote. A majority consists of 75% of all individuals entitled to vote as long as no less than 7,500 unit factors are being represented.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Special Tax<\/h5>\n<p>A levy imposed by a municipality on property owners to fund construction of a project that will benefit a defined area.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Specific Authority<\/h5>\n<p>Limited power given to an agent by a principal to provide one specific service or limited range of specific services on the principal\u2019s behalf.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Standards of Practice<\/h5>\n<p>Refers to the minimum requirements for industry professionals\u2019 conduct and include the responsibilities and prohibitions that they must comply with.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Statement of adjustment<\/h5>\n<p>A document (statement) generally prepared by the seller&#8217;s lawyer (or the notary), detailing the exact amount owed by the purchaser to the vendor upon closing.<br \/>\nIt outlines the various credits and debits against the purchase price of a property and specifies the exact amount to be paid on closing, and includes the balance of the purchase price, deposit amount, reimbursement for any prepaid taxes, utilities or condo fees or services, and lawyer fees and costs.<\/p>\n<p>When these calculations are final, you know exactly how much to pay the seller on the closing date.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Stratae<\/h5>\n<p>The term used in British Columbia for a condominium.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Strata Plan<\/h5>\n<p>A plan defining the boundaries and subdividing volumetric space into strata (layered) space that may be registered at the Land Titles Office. This space is typically over alleyways and buildings.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Straw Buyer<\/h5>\n<p>A person who is paid by a fraudster to act on behalf of the fraudster, and whose name and credit are used for processing mortgage applications and title transfers.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Stress Test<\/h5>\n<p>A mortgage stress-test is rate set by the federal government that determines how much you can borrow and still make your mortgage payments if rates go up.<br \/>\nIt is a simulation allowing financial institutions to ensure that you can weather rate hikes and unforeseen circumstances.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Subordinate financing<\/h5>\n<p>Any mortgage or other lien that has a priority lower than that of the first mortgage. The subordinate loan has a claim to payment in a foreclosure only after the first mortgage is paid.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Subprime mortgage<\/h5>\n<p>When lenders use the term, they generally mean a loan program for borrowers who do not qualify for a prime loan, often with a higher interest rate.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Subsidy<\/h5>\n<p>A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy is usually given to remove some type of burden and is often considered to be in the interest of the public.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Substantial Completion<\/h5>\n<p>When a property has been developed to the point that is can be used for its intended purpose.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Supporting Documents<\/h5>\n<p>The information and communications provided to the lender by the borrower, and\/or other parties, concerning verification of the borrower\u2019s identity, employment, equity and property details. Retained copies of the supporting documentation form part of the loan file. If legibility or authenticity is a concern, best efforts must be made to view original supporting documents.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Survey (also called Property Survey or Certificate of Location)<\/h5>\n<p>A legal description of your property and its location and dimensions (usually required by your mortgage lender).<br \/>\nIt is a document that shows the legal boundaries and measurements of property, specifies the location of any buildings, and identifies restrictions and conditions that may apply to the property.<br \/>\nA survey identifies property boundaries, lot size and building position, measurements, and structures. It also shows if there are any easements, rights-of-way, or encroachments made by either your property or by adjoining properties onto your property, overhanging structures or shared driveways that could impact property value.<\/p>\n<p>A professional land surveyor prepares the survey. Your lender may ask you for a current survey of the property during the mortgage application process.<br \/>\nSurveys are very helpful when exploring renovation and construction options.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Survey Plans<\/h5>\n<p>An illustrative plan used to layout most municipal land and some acreage subdivisions. The land is surveyed, subdivided and registered. The legal description of these lands changes to a legal land description that includes the plan, block and lot number.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Surveying<\/h5>\n<p>The technique and science of accurately determining and recording the measurements of boundaries and elevations of land or structures.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Surveyors Certificate<\/h5>\n<p>A property diagram that indicates legal boundaries, easements, encroachments, rights of way, improvement locations, etc.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Swing loan<\/h5>\n<p>See: Bridge loan<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Switch<\/h5>\n<p>To transfer an existing mortgage from one financial institution to another.<br \/>\nIf a transfer occurs before the end of your current mortgage term, there may be pre-payment penalties involved.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Syndicated Mortgage<\/h5>\n<p>A mortgage in which 2 or more people participate, directly or indirectly, as lenders in a debt obligation that is secured by a mortgage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t\t<div id=\"tab-t\" data-tab-icon=\"\" class=\"wpb_tab ui-tabs-panel wpb_ui-tabs-hide clearfix\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Tax Credit<\/h5>\n<p>An amount of money that a taxpayer is able to subtract from the amount of tax that they owe to the government. The value of a tax credit depends on what the credit is being provided for, and certain types of tax credits are granted to individuals or businesses in specific locations, classifications or industries.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Tax Deduction<\/h5>\n<p>A deduction from gross income that arises due to various types of expenses incurred by a taxpayer. Tax deductions are removed from taxable income and thus lower the individual\u2019s overall tax liability.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Tax Rate<\/h5>\n<p>A rate that represents the percentage of assessed value at which a property is taxed in a particular municipality.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>TDS Ratio<\/h5>\n<p>See Total Debt Service Ratio<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Teams (Real Estate or Mortgage)<\/h5>\n<p>Two or more real estate or mortgage broker professionals who work together on a regular basis, represent themselves to the public as one entity, and typically designate themselves a name that indicates they are a team or group.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Tenancy Agreement<\/h5>\n<p>A written agreement between an owner (landlord) and a tenant under which the owner allows the tenant the right of exclusive use of the property for a specified time, rent and terms.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Tenant<\/h5>\n<p>A person or organization that contracts with a landlord to occupy a specific space for a defined period of time according to the terms of a lease.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Tenants in Common<\/h5>\n<p>A form of ownership of land\/property that involves two or more land owners with no right of survivorship by any owner, and each owner has a separate and divisible interest in the property. Therefore, each owner may will his or her share of the land\/property to another party.<\/p>\n<p>Tenants in common are each issued a separate title reflecting their ownership, and they may hold unequal interests in the property. One party may sell without the permission of the other(s).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Term<\/h5>\n<p>A mortgage term is the period of time a current financing agreement covers (not the same as amortization, which is the overall length it will take to pay off the mortgage).<br \/>\nIt is a contractual detail that represents points of agreement between the contracting parties (e.g. inclusions, exclusions, date contract takes effect, length of the contract).<\/p>\n<p>Terms available are: 6 month, 1 ,2 ,3 ,4 ,5 ,6 ,7, or 10 years.<br \/>\nThe most common term in Canada is 5 years.<br \/>\nYour interest rate type, either fixed or variable, is set for the length of that mortgage term.<\/p>\n<p>Unless you pay out your mortgage entirely after your first term expires, you&#8217;ll need to renew again for another term. After the initial mortgage term expires, renewal and refinancing options may be available to you at the current posted interest rate at the time.<br \/>\nThis process will continue until maturity, when the loan is paid in full.<br \/>\nPre-payment penalties may apply if you break your term early.<\/p>\n<p>Borrowers choose shorter-term mortgages if they need more flexibility or anticipate making changes in the near term. Longer-term mortgages enable borrowers that don\u2019t foresee changes on the horizon to take advantage of favorable rates for a longer period of time.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Term Mortgage<\/h5>\n<p>A non-amortizing mortgage under which the principal is paid in its entirety at the maturity date. A term mortgage is sometimes called a straight loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>The Bank of Canada<\/h5>\n<p>The Bank of Canada is the nation&#8217;s central bank. It is responsible for Canada&#8217;s monetary policy, bank notes, financial system and funds management.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Third Mortgage<\/h5>\n<p>A mortgage placed on real property which is already encumbered with a first and second mortgage. Determination of first, second and third or subsequent mortgage is by priority of registration (time and date).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Third Party<\/h5>\n<p>A party that is legally affected by a real estate or mortgage transaction but not directly involved in it.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Third-party fees<\/h5>\n<p>Fees charged for services rendered by parties other than the borrower or the lender. Such fees may include appraisal, credit report, title and flood certifications.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Time Share<\/h5>\n<p>A form of property ownership in which multiple parties hold similar rights and each party is allotted a time period during which they may have exclusive use of the property. These properties may be either purchased, whereby the use of the property lasts until the interest is sold, or leased, whereby the use of the property only lasts for a certain number of years.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Title<\/h5>\n<p>A title is proof that you own a home.<br \/>\nIt is a legal document that provides ownership verification of an individual\u2019s property.<\/p>\n<p>Your title includes a physical description of your property, the names of anyone who owns the property and any liens on the home.<br \/>\nIt records the information about the land, such as the legal land description, municipal jurisdiction, ownership and registered interests.<\/p>\n<p>A freehold title gives the holder full and exclusive ownership of the land and building for an indefinite period.<br \/>\nA leasehold title gives the holder the right to use and occupy the land and building for a defined period.<\/p>\n<p>When someone says that they\u2019re \u201con the title\u201d of a home, it means that they have some kind of legal ownership of the property.<br \/>\nFor example, if your parents helped you purchase a home, they\u2019d likely be listed on the title.<\/p>\n<p>Lenders require clear &#8220;&#8221;title&#8221;&#8221; to the property before they release mortgage funds. Any issues or concerns about the property&#8217;s title \u2014 fraud, survey errors, municipal work orders, zoning violations and encroachments \u2014 found through the lawyer&#8217;s title search must be resolved before closing. Mortgages are &#8220;&#8221;registered against title&#8221;&#8221; or &#8220;&#8221;registered on title&#8221;&#8221; to protect the lender&#8217;s financial interest in the property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Title Fraud<\/h5>\n<p>A range of fraudulent activity regarding the ownership of property. One form of title fraud involves taking out a mortgage against a home that the fraudster does not own. The fraudster assumes the homeowner\u2019s name and credit history, but absconds with the loan proceeds.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Title Insurance<\/h5>\n<p>Title insurance protects mortgage lenders and homeowners against losses or damages related to the legal ownership of the property and\/or the property&#8217;s title.<br \/>\nEssentially, you buy title insurance to protect yourself against outside claims to your property. Unlike other types of insurance, you don\u2019t need to pay for title insurance every month. Instead, you make a single payment at closing that protects you for as long as you own the home.<\/p>\n<p>Among other things, it covers you from most unknown claims on the property that can affect your ownership rights.<br \/>\nThese claims may involve title defects, title fraud, survey errors, municipal work orders, zoning violations and encroachments, real estate fraud, some non-title issues relating to the ownership of real property, or the enforcement of liens, encumbrances, and servitudes  that exist against it.<\/p>\n<p>Some lenders require you to buy title insurance before you can close on the mortgage. This is to protect their interests if a property survey is not available (title insurance is usually faster and less expensive than getting a new survey done).<br \/>\nDifferent title insurance policies exist for lenders and property owners. Title insurance is more common in residential real estate, although commercial policies are also available.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Title Insurance Policy<\/h5>\n<p>A contract by which the insurer, usually a title insurance company, agrees to pay the insured a specific amount for any loss caused by insured defects to title of a property, for which the insured has an interest as purchaser, lender, or otherwise.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Title Search<\/h5>\n<p>This is a detailed examination of the registered title documents in order to obtain municipal records. It is done in order to confirm the legal ownership of the property.<br \/>\nIt is a verification of public records to be sure that the seller is the recognized owner of the real estate and that there are no unsettled liens, encumbrances, or other claims against the property.<\/p>\n<p>Prior to registering any mortgages, a title search is completed to insure that there are no unknown encumbrances secured against the home.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Title service fees<\/h5>\n<p>Title service fees are part of the closing costs you pay when getting a mortgage.<br \/>\nWhen you purchase a home, you receive a document most often called a deed, which shows the seller transferred their legal ownership, or \u201ctitle,\u201d to the home to you. Title service fees are costs associated with issuing a title insurance policy for the lender.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Titled Parking Stall<\/h5>\n<p>A parking stall that has its own Certificate of Title and therefore is a unit onto itself. Titled parking stalls are held in fee simple ownership by the individual who is registered on the title. These parking stalls are depicted on the Condominium Plan using solid, bold lines.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Titled Storage Area<\/h5>\n<p>A storage area that has its own Certificate of Title and therefore is a unit onto itself. Titled storage areas are held in fee simple ownership by the individual who is registered on the title. These storage areas are depicted on the Condominium Plan using solid, bold lines.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Torrens System<\/h5>\n<p>A system for recording land title transactions and interests in land. It includes three supporting principles: the current title accurately reflects the facts about the property (i.e. Mirror Principle); the current title has all the information about the property (i.e. Current Principle); and the provincial government guarantees the accuracy of the title (i.e. Insurance Principle). This system improved on previous land title systems by facilitating land transactions and providing security of title, thus eliminating time-consuming and costly searches for an accurate chain of title for each transaction.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Total Debt Service Ratio (TDS, or TDSR)<\/h5>\n<p>Along with your Gross Debt Service ratio (GDS), this is the other mathematical calculations used by lenders to determine the proportion of total income (before tax) spent on housing and other expenses, as well as a borrower\u2019s capacity to repay a mortgage.<br \/>\nIt takes into account the mortgage payments, property taxes, approximate heating costs, and 50% of any maintenance fees, and any other monthly obligations (i.e. personal loans, car payments, lines of credit, credit card debts, other mortgages, etc.), and this sum is then divided by the gross income of the applicants.<\/p>\n<p>Most lenders require this ratio to be less than 44%, with 40% being the traditional limit. The TDS ratio must be no more than 42% for mortgages insured by CMHC.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Total expense ratio<\/h5>\n<p>See: Debt-to-income ratio<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Total interest percentage (TIP)<\/h5>\n<p>The Total Interest Percentage (TIP) is a disclosure that tells you how much interest you will pay over the life of your mortgage loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Total of payments<\/h5>\n<p>This number tells you the total amount of money you will have paid over the life of your mortgage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Townhouse Condominium<\/h5>\n<p>A style of residential condominium consisting of multi-story units attached on 1-3 sides. Each unit typically has its own private entrance.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Trading<\/h5>\n<p>Describes the activities relating to the provision of services for buying, selling, leasing or managing real estate (including but not limited to advertising, solicitation and negotiation).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Trans Union Canada<\/h5>\n<p>Trans Union Canada is another consumer credit reporting agency providing credit reporting services to Canadian consumers. Trans Union Canada is also a great source of credit-related information.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Transaction Facilitator<\/h5>\n<p>A real estate professional who has been engaged by the clients under a transaction brokerage agreement to provide facilitation services to clients in the same trade.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Transaction fee<\/h5>\n<p>The fee that may be charged each time you draw on your credit line.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Transfer of Land<\/h5>\n<p>The process of transferring an interest in land from one owner to another owner.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Transfer of Mortgage<\/h5>\n<p>The process of transferring a mortgage from the current lender to another lender.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Transfer Tax<\/h5>\n<p>A tax payable to the Provincial Government by the purchaser upon the transfer of title from the seller. Depending where you are, this is called a Land Transfer Tax, Property Transfer Tax, Land Transfer &#038; Mortgage Registration Fee, or Deed Transfer Tax.<\/p>\n<p>See Land transfer tax.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Transfer\/Deed of Land<\/h5>\n<p>A document prepared by a lawyer containing a detailed description of a property that transfer ownership from the vendor to the purchaser.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Transferring a mortgage<\/h5>\n<p>See porting a mortgage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Trigger Point<\/h5>\n<p>The Trigger Point for a Variable-Rate Mortgage (VRM) is when your mortgage balance has increased to or past the point of the amount you borrowed in relation to the home&#8217;s Fair Market Value (FMV) as determined by the lender. The lender will contact you to make a change, such as higher payments, pay a lump sum or switch to a fixed rate.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Trigger Rate<\/h5>\n<p>For your static-payment variable-rate mortgage, the trigger rate is the rate at which your payment amount no longer covers the interest cost.<br \/>\nIn other words, the trigger rate is the rate of interest at which the regular payment amount is not enough to cover the interest that accrued during the payment period, and there is no portion of the payment amount left over to pay down the principal.<br \/>\nThe trigger rate is set out in the mortgage disclosure documents.<\/p>\n<p>You&#8217;ll likely be asked by the lender (or you should ask) to increase your payment, pay a lump sum or switch to a fixed rate. With no action, your amortization will continue to lengthen (no amount is going to your principal), and any unpaid interest costs are added to your mortgage balance.<br \/>\nThe trigger rate is different for every mortgage and depends on the loan balance and interest rate, and it can frequently change during your term.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Trust Account<\/h5>\n<p>An account separate and apart from one\u2019s personal monies, as required by law.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Trust Fund<\/h5>\n<p>Money held in an account by one individual or company on behalf of another individual or company.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Trustee<\/h5>\n<p>A person (fiduciary) who has been appointed by way of a legal agreement to hold and\/or control assets such as cash, investments or real property for the benefit of one or more persons.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t\t<div id=\"tab-u\" data-tab-icon=\"\" class=\"wpb_tab ui-tabs-panel wpb_ui-tabs-hide clearfix\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Umbrella Mortgage<\/h5>\n<p>A special arrangement by which one document encompasses one or more existing mortgages registered on the same property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Unattached Goods<\/h5>\n<p>The movable items not securely affixed to the land or buildings, such as furnishings and appliances that are not considered part of the real estate.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Underground Storage Tank<\/h5>\n<p>A tank used by a service station, car dealership, taxi company, bus line, research facility, farm or other organization to store various products including gasoline, diesel fuel, oil and other chemicals beneath the surface of the ground.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Underwrite<\/h5>\n<p>The analysis of risk undertaken by mortgage lenders and mortgage insurers to establish whether to grant the mortgage loan or issue the mortgage insurance.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Underwriter<\/h5>\n<p>An individual employed by a lender or insurer who is responsible for verifying the mortgage application information and supporting documentation, making a risk assessment of the applicant(s) and the property, and approving or declining the mortgage based on this assessment.<br \/>\nThis is done according to the lender\u2019s underwriting and approval criteria.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Underwriting<\/h5>\n<p>The process of analyzing a loan application to determine whether to make a loan to a potential borrower, and to determine the amount of risk involved in making the loan.<br \/>\nStandard underwriting includes a review of the potential borrower\u2019s credit history, employment, net worth and a judgment of the property value.<\/p>\n<p>If the loan application is approved, based on the information provided, an appropriate rate, term and loan amount are provided as offers to the client.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Unilateral Contract<\/h5>\n<p>A contract where only one party makes an obligation to perform an act or promise without receiving in return any express promise for performance from the other party.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Unit<\/h5>\n<p>A physical space within a structure or parcel of land that is individually owned within a condominium.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Unit Boundaries<\/h5>\n<p>The dimensions of a unit in a condominium that are stated in the Condominium Plan. If the unit boundaries are described in 2-dimensions (length &#038; width), it is a bare land condominium. If the unit boundaries are described in 3-dimensions (height, length &#038; width), it is either a conventional condominium or barely blended condominium.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Unit Owner<\/h5>\n<p>An individual or corporation who owns a unit in a condominium.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Unpaid Principal Balance<\/h5>\n<p>When we use the term Unpaid Principal Balance, we mean the amount you borrowed (which may include amounts that have been added to your principal balance in connection with loan modifications) over the history of the loan that has not yet been paid back. We may charge you interest each month on the Unpaid Principal Balance (or amount owed), according to the terms of your loan.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Unsecured lines of credit<\/h5>\n<p>Typically used when referring to a loan or a line of credit (unsecured loan, unsecured line of credit) that is not backed by collateral.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Unsecured loan<\/h5>\n<p>Typically used when referring to a loan or a line of credit (unsecured loan, unsecured line of credit) that is not backed by collateral.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Upfront costs<\/h5>\n<p>The costs you must pay when applying for a loan. Typically these include loan application fees. Some lenders require some of your closing costs also be paid when you apply.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Utility<\/h5>\n<p>The utility of a property is its usefulness to a buyer and how efficient that land use is.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t\t<div id=\"tab-v\" data-tab-icon=\"\" class=\"wpb_tab ui-tabs-panel wpb_ui-tabs-hide clearfix\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Vacancy Rate<\/h5>\n<p>Represents the number of available units not occupied to the total number of units available in a building or the amount of rentable space to the total space available.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Vacation home<\/h5>\n<p>A vacation home is a single-family property that the borrower occupies in addition to his or her primary residence. The property cannot be considered income-producing and must not be part of a mandatory rental pool, but occasionally may be rented to friends and relatives. When property is classified as a second home, rental income may not be used to qualify the applicant. A 2- to 4-unit property is not eligible for second home status. Also known as second home.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Valid<\/h5>\n<p>An agreement that contains all the essential elements of a contract that is legally binding and enforceable by the courts.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Valuation<\/h5>\n<p>The process whereby the value of property is estimated or determined through various means. This term is synonymous with evaluation.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Value<\/h5>\n<p>The quantity of one thing which can be obtained in exchange for another: the ratio of exchange of one commodity for another, e.g., one bushel of wheat in terms of a given number of bushels of corn; thus, the value of one thing may be expressed in terms of another. Money is the common denominator by which real property value is usually measured. It is the power of acquiring commodities in exchange, generally with a comparison of the utility of the commodity (property) acquired in the exchange.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Variable Open Mortgage<\/h5>\n<p>A variable open mortgage features an interest rate that can fluctuate throughout the term (typically when prime rate rises or falls) and does not include any prepayment restrictions.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Variable rate mortgage (VRM)<\/h5>\n<p>Also referred to as adjustable rate mortgage, it is the opposite of a fixed rate mortgage.<br \/>\nThis is a mortgage with a variable interest rate that changes over the term of the loan based on changes to the prime interest rate set by the Bank of Canada.<br \/>\nIn other words, it&#8217;s a mortgage for which the interest rate fluctuates based on changes in prime (or current market rates).<br \/>\nThis is sometimes referred to as a floating rate mortgage.<\/p>\n<p>With a variable rate mortgage, the portion of the payment that goes toward principal and interest may change.<br \/>\nIf the interest rate increases, the amount applied to the principal will decrease.<br \/>\nIf the interest rate decreases, the amount applied to the principal will increase.<br \/>\nThis could result in an increase or decrease in the remaining amortization of the mortgage.<\/p>\n<p>Note that your payments may increase or decrease according to changes in the prime rate.<br \/>\nSome lenders will adjust your payments to reflect changes in interest rates, while other will leave the payment as is.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Variable-rate monthly minimum payment<\/h5>\n<p>The minimum amount you will need to pay each month on your home equity line of credit, or HELOC (does not include any payments for the Fixed- Rate Loan Payment Option). The payment amount includes both principal and interest (minimum of $100). The monthly required payment may vary each month and is based on your outstanding loan balance and fluctuating interest rate. In general, this payment is intended to repay your loan balance in substantially equal principal and interest installments over the remaining loan term, based on the balance and rate information at the time of each monthly calculation.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Vendor<\/h5>\n<p>The party who is selling real property (i.e. real estate) or personal property (i.e. chattels) that he or she owns; the seller in a real estate transaction.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Vendor Take-Back (VTB) Mortgage (or Seller Take-Back Mortgage)<\/h5>\n<p>A mortgage in which the vendor uses his or her own equity to provide some or all of the mortgage financing in order to sell the property to the buyer.<br \/>\nThe seller of of the property &#8216;takes back&#8217; or carries for the buyer as part of the purchase price for that property.<br \/>\nUsually, the seller retains some equity in the home and continues to own a percentage equal to the amount of the loan until this mortgage is paid in full.<\/p>\n<p>The seller (rather than a financial institution) finances the mortgage.<br \/>\nThe title of the property is transferred to the buyer who makes mortgage payments directly to the seller.<br \/>\nThese types of mortgages, sometimes referred to as take-back mortgages, can be helpful if you need a second mortgage to by a home.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Vendor\u2019s Lien<\/h5>\n<p>A notice registered on title by the vendor, protecting the vendor for the unpaid balance of the purchase price. It is usually collaterally secured by a mortgage.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Ventilation System<\/h5>\n<p>A building system that provides a supply of fresh, good quality air and controls moisture within a building.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Visitor Parking Stall<\/h5>\n<p>A parking stall that is part of the common property and therefore owned collectively by the condominium corporation. These stalls are used by individuals who do not reside in or operate from a unit in the condominium.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Void<\/h5>\n<p>A contract that is not valid or legally binding.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Voidable<\/h5>\n<p>A contract that may be treated as legally unenforceable at the option of one of the parties.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>VRM<\/h5>\n<p>See Variable Rate Mortgage<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t\t<div id=\"tab-w\" data-tab-icon=\"\" class=\"wpb_tab ui-tabs-panel wpb_ui-tabs-hide clearfix\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Walk-through<\/h5>\n<p>A final inspection shortly before settlement to make sure the property is in the same condition that it was at the time the offer contract was written.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Wall<\/h5>\n<p>A building system consisting of solid, vertical surfaces that enclose and\/or divide a building.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Warranty (New Home Warranty Program)<\/h5>\n<p>A guarantee that if something covered under the warranty needs to be repaired it will be. If the builder doesn&#8217;t repair it, the repair will be made by the organization that provided the warranty. All provinces and Yukon Territory have New Home Warranty programs for newly built homes. However, there are currently no such programs in Nunavut or the Northwest Territories.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Water Quality Inspection<\/h5>\n<p>If the home has a well, you will want to have the quality of the water tested to ensure the water supply is adequate and the water is potable.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>What-if analysis<\/h5>\n<p>An affordability analysis that is based on a what-if scenario. A what-if analysis is useful if you do not have complete data or if you want to explore the effect of various changes to your income, liabilities, or available funds or to the qualifying ratios or down payment expenses that are used in the analysis.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Will<\/h5>\n<p>A written contract by which a person instructs how his or her estate should be distributed upon the person\u2019s death.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Wire transfer<\/h5>\n<p>A transfer of money from one person\u2019s bank to another person\u2019s bank account, either domestically or internationally.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Witness<\/h5>\n<p>Refers to a person who is present at the signing of a document and signs it to confirm the document\u2019s authenticity and legality.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Wraparound Mortgage<\/h5>\n<p>A special arrangement by which one document encompasses one or more existing mortgages registered on the same property.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Writ of Execution<\/h5>\n<p>A written directive from the court issued against a property title when a claimant successfully sues a debtor resulting in a judgment in the claimant\u2019s favor. The Writ relates to the carrying out of this judgment.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Written Service Agreement<\/h5>\n<p>A contract in writing that establishes the relationship between the parties as to the services and obligations to be performed by an industry professional. Written service agreements are required in residential real estate when a real estate professional is working with a consumer as a client.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t\t<div id=\"tab-y\" data-tab-icon=\"\" class=\"wpb_tab ui-tabs-panel wpb_ui-tabs-hide clearfix\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Year-end statement<\/h5>\n<p>The report shows how much was paid in interest during the year, as well as the remaining mortgage loan balance at the end of the year. If the bank has an impound account for you, it will also show how much was paid and reserved in property taxes. If the bank does not have a property tax impound account, then tax details are not displayed on the report.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t\t<div id=\"tab-z\" data-tab-icon=\"\" class=\"wpb_tab ui-tabs-panel wpb_ui-tabs-hide clearfix\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<div class=\"wpb_wrapper\">\n\t\t<h5>Zoning<\/h5>\n<p>General rules applicable to all land use classifications in a municipality (e.g. Residential, Commercial, Industrial and Special district classifications).<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t<\/div> \n\t<\/div> \n\t\t\t<\/div> \n\t\t<\/div>\n\t<\/div> \n<\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"Glossary of Mortgage & Lending Terms 3-Months\u2019 Interest Penalty A 3-months\u2019 interest penalty is commonly charged by lenders if you...","protected":false},"author":3,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"content-type":"","inline_featured_image":false},"_links":{"self":[{"href":"https:\/\/budgetrates.ca\/fr\/wp-json\/wp\/v2\/pages\/492"}],"collection":[{"href":"https:\/\/budgetrates.ca\/fr\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/budgetrates.ca\/fr\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/budgetrates.ca\/fr\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/budgetrates.ca\/fr\/wp-json\/wp\/v2\/comments?post=492"}],"version-history":[{"count":86,"href":"https:\/\/budgetrates.ca\/fr\/wp-json\/wp\/v2\/pages\/492\/revisions"}],"predecessor-version":[{"id":790,"href":"https:\/\/budgetrates.ca\/fr\/wp-json\/wp\/v2\/pages\/492\/revisions\/790"}],"wp:attachment":[{"href":"https:\/\/budgetrates.ca\/fr\/wp-json\/wp\/v2\/media?parent=492"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}