Mortgage Glossary – C

Canadian Bankers Association (CBA)
A professional association that provides information, research, education, information and operational support services mainly to the banking industry.

Capital Gain or Loss – The profit lost or gained on a financial investment.

Capital Gains – The profit made from investments.

Capital Gains Tax – Taxes owed on the profits from the sale of real estate or investments.

Caveat – A charge or instrument placed on land title.

Certificate of Occupancy – Authorization by a local government for an individual to occupy a newly constructed home or renovated building.

Certificate of Title – A legal document indicating the owners of a particular property.

Chattel – personal property in a home that is removable. Example are: washer and stove

Closed Mortgage – a mortgage that has a set repayment schedule. In order to break a closed mortgage contract, borrowers will have to pay a penalty in order to be release from the agreement.

CMHC – Canada Mortgage and Housing Corporation also know as CMHC is a governing body that insures high ratio mortgages. A high ratio mortgage is determined by the Loan to value (LTV) on particular mortgage. Mortgages in Canada with a LTV of more than 75% must be insured by either CMHC or Genworth Insurance.

Co-signer – A person or party that agrees to be mutually responsible for a loan. This person or party is legally responsible for the loan payments and total debt.

Commercial Property – a property that is zoned strictly for business use.

Commitment Letter – A document provided by a lender that details all term and conditions in which the lender will lend money to the borrower. The mortgage commitment will often include interest rates and terms and conditions for the mortgage advance.

Comparative Market Analysis or CMA – A process to to produce and estimated value on a property based on previous sales.

Condominium – A multiple unit complex that is individually owned in each owner receives a recordable title.

Condominium Conversion – When a multiple unit building is converted into a condominium. Example are: Rental Apartment complexes converted into condos for the purpose of resale.

Construction Loan – Generally a short term loan for the purpose of constructing a property.

Contract – A written agreement between two or more parties.

Conventional Mortgage – A mortgage that is not insured or guaranteed by CMHC or Genworth. Conventional mortgages in Canada have a Loan to value of less than 75%.

Convertible Mortgage – An adjustable Rate Mortgage or ARM that allows the borrow to convert to a fixed rate mortgage with certain conditions.

Credit Bureau – A company that collect and records information on borrowers. In Canada, there are generally two recognized Credit Bureaus, Equifax and Trans Union.

Credit History – A record on a credit bureau showing the borrowers repayment history on loans.

Credit Rating – Also known as a credit report, a credit rating is the actual number assigned to a borrower to determine credit worthiness.

Credit Report – A history report on an individual or business showing payment history.

Credit Score – A number representing the credit worthiness of an individual or business. Scores generally range from 300 -800. The higher number indicating great credit worthiness.

Mortgage Glossary – B

Bank – A financial institution that borrows and lends money.

Bankruptcy – The financial status of an individual or company that may be voluntarily or involuntarily. The judgment of being legally insolvent. Legally and financially insolvent.

Basis Point – A measurement of a percentage: 1/100th of one percent.

Bill of Sale – A receipt or documented proof that legally indicates a transaction has been completed.

Biweekly Mortgage – Payment of a mortgage on a 2 week cycle. Bi weekly payments are beneficial as they will decrease your principal owing sooner.

Blanket Mortgage- A mortgage that covers more than one property.

Borrower – A person that obtains a loan.

Bridge Loan – A loan that “bridges” the gap between the sale of a home and the purchase of a new home.

Broker – a person or company that acts on the behalf of a client to facilitate a transaction.

Mortgage Glossary – A

Accredited Mortgage Professional (AMP) – Developed by the Canadian Institute of Mortgage Brokers and Lenders (CIMBL). The designation was developed to ensure the highest standard and quality of professionalism within the mortgage brokerage industry. Mortgage Brokers with this designation are continually educated to meet the changing demands of the industry.

Accrued Interest – Interest accumulated but that has not been paid

Acre – a land measurement, equal to 43,560 square feet or 1/640 square mile (4047 square meters).

Additional Principal Payment — Extra payments, usually as a lump sum, allowed toward the loan which goes directly to the principal. These payments are limited depending on the rules of the lender.

Adjustable Rate Mortgage (ARM) – An Adjustable Rate Mortgage is a mortgage product that will allow your monthly payments to fluctuate from time to time as the prime rate increase or decreases. Some banks will adjust on a quarterly basis while others will adjust on a monthly basis.

Affidavit – A sworn written and signed statement made under oath. Affidavit are made in the presence of a notary public or commissioner of oaths.

Agency — A company that represents clients to carry out legal transactions with a third party.

Agent — A technical expert who works in the interest of his borrower (client) to engage in a legal transaction with a lender. The agent usually gets paid by commission.

Amortization — The gradual payment either by equal or periodic installments towards a debt over a specified time, usually 25 years in the case of a mortgage.

Amortization Term — The specified time for paying off the entire mortgage loan.

Annual Fee — A set fee charged by credited lenders to customers for services rendered each year.

Appraisal – An estimate market value of a parcel of real estate done by an appraiser at a specified date.

Appraisal Fee – A service charge by the appraiser to make an estimate market value of a property at a specified date.

Appraised Value — An estimated value of a property done at a specified date.

Appreciation — An increase in value of a property or item.

Approval – A decision made by a lender to provide financing for a particular loan. Getting a mortgage approval in Alberta prior to house shopping will assist give you when it comes time to make an offer.

As is Where is – The buyer purchase a property with no conditions and at his own risk.

Asking Price — The selling price of the property that the owner requests.

Assessed Value – The value placed on a particular house or land by the city, province or country.

Asset – An item of value that is owned by an individual.

Assumability – The option for a borrower to transfer there mortgage to a different borrower.

Assumable Mortgage – An existing mortgage that can be transferred or assumed by a new borrower.

Mortgage F.A.Q.

Q: How does a mortgage broker get paid?
A: We are paid by the banks a finder fee for each mortgage we arrange. However, we work on your behalf to secure the best mortgage rates in Canada.

Q: What is a Mortgage Broker?
A: A Mortgage Broker in Canada is a person who works on your behalf to find the best mortgage rates and product for you. More importantly Urban Mortgage broker’s services are FREE and we have access to over 54 lenders across Canada.

Q: Where is Urban Mortgage located?
A: Urban Mortgage is located in Calgary, Edmonton and Red Deer.

Q: How can I contact Urban Mortgage?
A:  You can also contact us directly through our online contact form.

Q: How long does it take to get pre-qualified?
A: It generally takes a minimum of 2 hours to obtain a pre-qualification. There is no obligation with pre-qualifications to obtain a mortgage. Full mortgage approvals can be processed within 24hrs if all documentation can be verified.

Q: Does Urban Mortgage share my information?
A: Urban Mortgage does not distribute your information without your written consent.

Q: Can I finance a rental property?
A: Yes you can at the most competitive rates in Canada.

Q: Do you lend on commercial properties?
A: Yes, we have lenders that deal with both residential mortgages and commercial mortgages.

Q: How fast is the turn around for refinancing?
A: Refinancing your mortgage in Alberta will generally take 15 days from start to end

Q: How do I become a mortgage agent in Alberta?
A: You must complete a mandatory course through the Real Estate Council of Alberta in order to get your license.

Q: Can I still refinance my home if I have been through bankruptcy?
A: Yes. So long as your bankruptcy has been discharged, we are able to refinance your mortgage.

Industry Articles

In this fast-paced and ever-changing market, Urban Mortgage is continually alerting its clients to changes in the housing industry. Please see the articles and news bites below for the latest news.

Alberta boom unprecedented. Statistics Canada releases report
By Ian Wilson, Business Editor – Calgary Sun
Break free from debt: got bills? Four women show how to pay off creditors and achieve your goals
by Tamara E. Holmes
Housing market dropping. August sales down 9.5% from same time last year

By Ian Wilson, Business Editor – Calgary Sun
Housing Starts will Slow in 2007
CMHC News Release
Interest Rates Hold Steady
By Michael Hammond, CP

Mortgage Information

Here you can find useful mortgage information to help guide your mortgage decision. Please feel free to read through the materials we have here and get informed about mortgages.

Mortgage Tools
toolsThese mortgage tools can help you determine payback amounts, payback periods, help you decide between renting and buying and more.

Mortgage Glossary
tools
This useful glossary of terms will help you understand mortgage terminology. If you’re seeking the explanation of a particular mortgage term, check out this glossary.

Mortgage Articles
toolsThe articles posted here contain useful mortgage information that you can use to your advantage when selecting a mortgage product.

Mortgage F.A.Q.
toolsHave questions? We have answers. Take a look at our mortgage frequently asked questions and find answers to some of the questions you might have.

Client Testimonials
toolsUrban Mortgage is proud to have satisfied clients time and time again. These are testimonials show how happy our clients are with our services.

Privacy Policy

This website was founded on principles of trust, integrity and the delivery of outstanding service.

Therefore, we are very concerned with the privacy rights of our online visitors and customers and are committed to protecting the information collected about you. This website, owned and operated Urban Mortgage and The Canadian Equity Group (CEG) has taken extensive measures to protect the confidentiality of your personal information and to protect your data from misuse and unauthorized access or disclosure. Unfortunately, no data transmission over the Internet can be guaranteed to be 100% secure. As a result, although we take great measures to protect your information, CEG cannot ensure or warrant the security of any information you transmit to us, and you do so at your own risk. Once we receive your transmission, CEG takes industry standard efforts to safeguard the confidentiality of your information, such as Firewalls and unique User Name and Password protections. We also restrict internal access of stored data to select employees that have been informed of our privacy policies. If you have concerns involving the security or privacy of your information, you can arrange to talk to one of our representatives.

Information Collected at our Website

Personal Information
If you submit a mortgage application to this website you are required to provide certain information necessary to deliver the selected services. In some instances you will only provide personal information such as name, address, e-mail address, phone number and other contact information. In other cases you will be asked to provide the preceding contact information as well as personal financial information in order that CEG can perform the services requested. The more information you share with CEG the more accurately CEG will be able to provide you with information and services you have indicated are of interest.

Statistical Information
We automatically collect anonymous statistical information regarding usage of our website. This helps us understand our Customers’ needs better and improve areas of our services that our Customers find valuable. For instance, when you visit this website, we recognize the type of browser you are using (Netscape or Internet Explorer), the site that linked you to our site, the pages you visit at our site, and similar information. None of this information identifies you personally.

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Although we believe the use cookies is useful in tracking site usage trends and patterns, as while implementing individual user preferences, this website does not use cookies at this time.

Use and Disclosure of Information
With your prior consent, we may disclose any information we collect, as described above, to CEG affiliates or service providers to perform a service for us or perform a function on our behalf. In cases where we use service providers, we restrict such service providers from using your non-public personal information except to act on our behalf or as required or permitted by law. Disclosure to CEG affiliates or service providers will be necessary so that you can receive the best possible RATES, SERVICE and MORTGAGE OPTIONS from the financial services offered by CEG affiliates or service providers.

Removal of Personal Information
You can request that we purge the entirety of the personal information submitted by you through This website from our database by providing detailed instructions to CEG’s Privacy Officer (see below). In such cases CEG will delete all digitally warehoused information you have submitted. Please note that CEG cannot purge information from the systems or files of our CEG Affiliates, service providers or other financial institutions that have subsequently been sent your personal information to provide their services.

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CEG provides this website “as is” to the user without any warranty or condition, express, implied or statutory. CEG disclaims any implied warranties of title, merchantability, non-infringement of intellectual property or fitness for any particular purpose.
Except as may be otherwise expressly provided by written agreement between CEG and the user, CEG will have no tort, contract or any other liability to the user and/or any third party arising in connection with the use of this Internet site, or reliance on any information or services provided at this Internet site.

CEG does not endorse the services or products of advertisers, sponsors, or affinity partners. Product or service information is believed to be correct, but should not be relied on without prior verification. This website contains links to outside sites, through banners, email and other portals, to third party sites that send their own cookies, collect data and solicit information. CEG does not control these sites and as such we do not endorse their products, services or information and are not associated with the operators.

In the event of errors or omissions in any information CEG ‘s sole responsibility shall be to use its best efforts to correct, by the issue of a corrected release, any errors or omissions which it or any of its employees, servants or agents may have made, negligently or otherwise, in transmitting copy accurately and which are brought to its attention. Without limiting the generality of the foregoing, in no event shall CEG or any of its servants, employees or agents be liable in contract, tort or otherwise to any person (including, without limitation, the subscriber) for any loss, damage, injury, liability, cost or expense of any nature (including, without limitation, direct, indirect, consequential, incidental, special and punitive damages) which such person may suffer or incur as a result of any such errors or omissions or any delays in transmission or non-transmission.

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By using this site, or by submitting personal information to us, you signify your agreement to CEG ‘s Privacy Policy and Terms Of Use. From time to time we may change or update our privacy policies. It is your responsibility to check back regularly to inform yourself of such changes. Your continued use of the this website site following the posting of changes to these terms will be deemed as your acceptance of those changes.

The foregoing policies are in effect as of April 1, 2005. CEG reserves the right to change this policy statement at any time by posting the revised policy on this website. This statement and the policies outlined herein are not intended to and do not create any contractual or other legal rights in or on behalf of any party.

Media

News Releases

March 14/11 – New Mortgage Insurance Rules take Effect This Week
Calgary, AB – On January 17th of this year, the Federal Government announced new rules with the intention of ensuring the stability of Canada’s housing market and to save Canadians from taking on too much debt…

March 8/11 – How will $25,000 Change Your Life? (UPDATED)
Calgary, AB – The Urban Group of Companies: Urban Mortgage Inc. and Urban Property Real Estate, are excited to truly change people’s lives. Someone in Alberta will be the lucky recipient of $25,000 with the You Deserve It! video contest…

February 17/11 – No one has pensions, mortgages are bigger than ever, there’s more tugging at our money.
Calgary, AB – The Vanier Institute of the Family revealed that that the average family has more than $100K debt. Most of this is in mortgages, and with the new rules coming down the pipe in one month, this could dramatically, and negatively affect Canadian’s debt-to-income ratio…

February 15/11 – How will $25,000 Change Your Life?
Calgary, AB – The Urban Group of Companies: Urban Mortgage Inc. and Urban Property Real Estate, are excited to announce how they plan to truly change people’s lives. The You Deserve It! video contest was launched today, and one lucky winner will be the recipient of $25,000…

February 11/11 – Urban Mortgage Inc. selected as a finalist in the CMP Canadian Mortgage Awards
Calgary, AB – After months of nominations and research across the entire mortgage industry, Calgary’s Urban Mortgage Inc. has been selected as a finalist in the CMP Canadian Mortgage Awards 2011…

About Urban Mortgage

Urban Mortgage Inc. is a Calgary-based mortgage brokerage. Our agents have direct relationships with over 54 different lenders across Canada in order to provide our clients with the best mortgage rates and products. We are a company that believes that every client should be treated equally, fairly, and with the highest respect, no matter what their financial situation may be.

Urban Mortgage Inc. was developed by an Alberta mortgage broker with the mindset that every client is unique and should be treated as such. With so many lending institutions and products available to consumers in the market place, it can be overwhelming to choose from the vast array. For this reason, Urban Mortgage agents are continually educated to ensure that the best products and most up-to-date information are passed on to our unique clientele.

We believe the most valuable tool we can offer our clients is our ears. By listening to each client, we can accurately determine which products would best suit their individual needs and circumstances. All too often, banks and mortgage brokerages try to provide cookie cutter solutions for their clients. A product that may be good for one client may not necessarily be right for another.

Urban Mortgage Expert Team
The Urban Mortgage Team

At Urban Mortgage, we not only listen to our clients, we take the time to understand, empathize and most importantly, build a professional relationship with each and every individual.

We offer the best mortgage rates to all of Alberta including these cities: Calgary, Cochrane, Banff, Canmore, Chestermere, Didsbury, Edmonton, Fort McMurray, High River, High Level, Jasper, Leduc, Lethbridge, Red Deer, Sherwood Park, and Okotoks.

Application

Urban Mortgage Inc. uses this form solely for the purpose of mortgage qualification. Once filled out, it will remain  strictly confidential. The  information will be used to quickly verify your credit rating. This form is secure, so please  provide the following information to the best of your ability to help Urban Mortgage Inc. get started on finding the best  mortgage for you. There is no cost, obligation or commitment by submitting this   form.

By filling out this secure online application, I hereby authorize Urban Mortgage Inc. to obtain a credit report and make any necessary inquiries regarding my mortgage application and to release this information to any approved lender  who may be interested in providing funds on my behalf as stated in the Urban Mortgage Inc. Privacy Policy (attached). I also agree to provide a signed and dated copy of the Urban Mortgage Inc. consent form (attached).