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Mortgage Glossary – N

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Negative Amortization – An increase in loan debt which occurs when the monthly payment does not cover the complete principal and interest due. The difference is added to the remaining balance which extends the amortization period. No Money Down Mortgage – A 100% financed mortgage offered in Canada. This product is helpful to individuals that […]

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Mortgage Glossary – M

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Market Value – The value a homeowner should receive based on comparative sales. Mortgage – A conditional pledge of property to a creditor as security for a repayment of a debt on a property. Mortgage Broker – A person who works in the interest of their client to facilitate a loan between the borrower and […]

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Mortgage Glossary – L

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Land — Land is any part of the earth not covered by water. In real estate, this includes any physical structure above or below the land that it occupies. Land Contract — A legal contract or agreement is that the purchaser agrees to pay the seller stipulated amounts at specified intervals until the purchased price […]

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Mortgage Glossary – J

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Joint Credit – An issuance of credit to two people. Both parties are responsible for the repayment of any debt incurred on credit. Judgment – A decision made by a court of law or a judicial decision

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Mortgage Glossary – I

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Inspection Report – A written report produced by an inspector indicating the status of a property. Interest Rate – the amount charged on a loan in order to borrow. The rate is usually expressed as an Annual Percentage Rate or APR. Installment – A regular payments towards a settlement of a debt Interest Adjustment Date […]

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Mortgage Glossary – H

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Hold Back – A certain amount of money held back by the lender to ensure completion of construction on a new property or improvement on a property. Home Equity – The difference between the fair market value or appraised value on a property and the amount left owing on the mortgage. Home Equity Line of […]

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Mortgage Glossary – G

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Genworth Financial – Formerly known as GE Capital. Genworth is the CMHC insurance alternative in Canada. Genworth provides banks/lenders with mortgage insurance. This insurance is generally required when you have less than 25% equity or down payment or there is a Loan to value greater than 75%. This insurance is paid by the property owner […]

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Mortgage Glossary – F

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Fiduciary Duty – A mandatory requirement that person in a position of trust acts in the best interest of his or her client. Finder Fee – A fee provided to the agent to match a borrower with a lender. First Mortgage – A mortgagor who has first right on title of the property Fixed Rate […]

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Mortgage Glossary – E

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Effective Age – An estimation of a property’s age made by an appraiser. The effective age can be less than, equal to or greater than the actual Age. Equifax – One of two major credit bureau company in Canada. The other bureau being Trans Union. Equity – the difference between the appraised or sale value […]

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Mortgage Glossary – D

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Debt – A liability or obligation to pay or render something to another person. Debt Consolidation – The combining of 2 or more debts into one single loan. Dependent – A person or child that directly depends on another person for their essential needs. Down Payment – The amount required from a borrower to initially […]

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