Real Estate Glossary
The end of the term, at which time you can pay off the mortgage or renew it.
The person or financial institution that lends the money.
Applies to high-ratio mortgages. It protects the lender against loss if the borrower is unable to repay the mortgage.
MORTGAGE LIFE INSURANCE:
Pays off the mortgage if the borrower dies.
Allows partial or full payment of the principal at any time, without penalty.
A mortgage option that enables borrowers to take their current mortgage with them to another property, without penalty.
Qualifies you for a mortgage before you start shopping. You know exactly how much you can spend.
Voluntary payments in addition to regular mortgage payments.
The amount borrowed or still owing on a mortgage loan. Interest is paid on the principal amount.
Paying off the existing mortgage and arranging a new one or re-negotiating the terms and conditions of an existing mortgage.
The length of time the interest rate is fixed. It also indicates when the principal balance becomes due and payable to the lender.
Legal ownership in a property.
A mortgage with fixed payments, but fluctuates with interest rates. The changing interest rate determines how much of the payment goes towards the principal.
VENDOR TAKE-BACK MORTGAGE:
When the seller provides some or all of the mortgage financing in order to sell their property.