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.