MORTGAGE ENCYCLOPEDIA

A mortgage where the interest rate adjusts based on a specific index.

The process of paying off a debt through regular payments over time.

A measure of borrowing cost, including the interest rate and additional fees.

A professional estimation of a property's market value.

A mortgage that doesn't fully amortize over its term, leaving a balance due at maturity.

A temporary loan bridging the gap between two separate mortgages.

The final step in property purchase where the title transfers from seller to buyer.

Additional expenses incurred by buyers and sellers during property ownership transfer.

A mortgage not guaranteed or insured by the government.

A ratio comparing a person's debt payments to their overall income.

Failure to fulfill the mortgage payment obligation.

The initial cash payment made during a transaction, typically for property purchases.

The value difference between a property's market value and the mortgage owed.

A mortgage with a constant interest rate throughout its term.

The process where lenders recover the amount owed on a defaulted loan by selling the mortgaged property.

The income percentage used for housing costs in relation to affordability for the mortgage you are requesting.

A mortgage where the loan-to-value ratio is higher than 80%.

A credit line secured against a homeowner's property equity.

Cost of borrowing money, expressed as a percentage of the loan amount.

The ratio between the loan amount and the property's value.

An insurance policy protecting lenders against losses from borrower defaults.

Paid by the borrower, protecting the lender in case the borrower defaults.

A mortgage allowing the borrower to pay it off at any time without penalties.

Fees paid to mortgage brokers at closing by the lender.

A mortgage feature allowing a borrower to transfer their mortgage to another property without penalty.

A lender's commitment to provide credit under specific conditions.

A fee charged for paying off a mortgage before its maturity.

The loan amount borrowed or still owed, excluding interest.

A municipal tax based on the assessed property value.

A rate used to assess borrower affordability, especially for variable rate mortgages. Currently 5.25% set by OFSI

A financing technique where the buyer, seller, or developer pays an amount to the lender to reduce the interest rate and monthly payment.

Replacing the original mortgage with a new one for better terms.

Re-establishing the terms of a mortgage at the end of its term.

Allows homeowners to convert part of their home equity into cash without making monthly payments. The monthly payments are added to the principal balance of the mortgage each year over the term.

An additional mortgage taken on a property that's already mortgaged.

A legal professional who deals with property conveyance and other legal matters.

A way to determine a borrower's ability to manage increased mortgage rates.

The time duration defining the mortgage rate, payment, and other conditions.

A document proving property ownership.

Insurance provided by companies on the title of the home to prevent fraud and identity theft.

The income percentage used for housing costs and other debt obligations.

The process determining borrower qualification for a loan.

A mortgage with an interest rate that varies based on a specific index.

Where the seller provides some or all of the mortgage financing.

Municipal laws dictating land use in specific areas.