Mortgage Glossary – D

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 take out a certain mortgage loan. Under some conditions, Canadian lenders allow persons with good credit to have a zero down payment.

Draw Mortgage – A construction mortgage which allows the borrower to pay trades people a portion of the total mortgage amount as progress is made on the property being built.