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.