Terms with Category Mortgages

  • Teaser Rate Bank,
    • Often called the introductory rate, it is the below-market interest rate offered to entice customers to switch credit cards or lenders.
  • Term Bank,
    • The length of time you commit to repay a lender or bank at an agreed upon interest rate and payment schedule. The interest rate usually remains constant during this term unless the commitment states otherwise. For example, a five year fixed rate mortgage has a term of five years.
  • Title Report Definition,
    • A report that reveals any competing claims, liens, or other problems relating to a property. A title report is required before title insurance will be issued. Also known as a "Preliminary Title Report" or "Prelim."
  • Total Annual Loan Cost (TALC) Bank,
    • A method of finding the annual cost of a reverse loan.
  • Total Debt Service (TDS) Acronym, Important,
    • The ratio of a borrower's total monthly debt payments to his or her monthly gross income. Lenders use this ratio to determine how much of a loan a borrower is qualified for.
  • Trade Equity Bank,
    • A swap of property, such as real estate or a car, as part of a down payment for other real estate.
  • Transfer of Title (TOT) Acronym,
    • A document signed by the seller and purchaser transferring ownership, at which time the document is registered against the property.
  • TransUnion (TU) Bank,
    • One of the major Canadian credit bureau companies along with Equifax.
    See TransUnion Canada.
  • Type 'A' Property Definition,
    • Residential property that is centrally heated and accessible year-round.
  • Type 'B' Property Definition,
    • Property that may not be centrally heated or may only be seasonally accessible.
  • Umbrella Mortgage Definition,
    • A specific arrangement where one document encompasses one or more already existing mortgages registered on the same property. The mortgagee is responsible for remission of payment(s), to lender(s), while the mortgagor makes one payment to the mortgagee. Also referred to as a wraparound.
  • Underwriter Bank,
    • An entity that issues and distributes financial products including equity capital, credit, mortgages, and insurance.
  • Underwriting (UW) Bank, Important,
    • The analysis of risk involved in making a mortgage loan to determine whether the risk is acceptable to the lender. Underwriting involves evaluating the property as outlined in the appraisal report, and also evaluating the borrower's ability and willingness to repay the loan.
    • Assessing individuals for eligibility and issuing and distributing a financial product such as insurance, equity capital or credit.
  • Underwriting Expenses Bank,
    • The expenses accumulated by an insurance company while underwriting a product.
  • Underwriting Guide Bank,
    • The rules and guidelines an underwriter must follow while writing policies.
  • Underwriting Income Bank,
    • The income earned by an insurer from underwriting in a certain amount of time.
  • Underwriting Risk Bank,
    • The total amount of risk an entity takes on from underwriting something.
  • Upside-down Bank,
    • A position that consumers find themselves in when the outstanding balance of a loan is higher than the current fair market value of the property purchased with the loan. See also "Depreciation."
  • Variable Interest Mortgage Definition, Important,
    • A loan where the interest rate may vary during the term of the mortgage. The variance is usually tied to some specific factor such as prime bank rate or the guaranteed investment certificate rate for a designated lender.
  • Variable Interest Rate Bank,
    • Percentage that a borrower pays for the use of money, and which moves up or down periodically based on changes in other interest rates.
  • Variable Rate Bank,
    • A floating percentage value that fluctuates based on certain conditions.
  • Variable Rate Mortgage (VRM) Acronym, Very Important,
    • Home loan in which the interest rate is changed periodically based on a standard financial index. Also called an "Adjustable-rate Mortgage."
    A type of mortgage loan offered by brokers and lenders.
  • Vendor Take Back Bank,
    • Where the seller of the property provides all or some of the financing in order to sell the property.
  • Verification of Employment (VOE) Bank, Important,
    • Confirmation that a loan applicant is telling the truth about where he or she works and how much he or she makes.
  • Workout Definition,
    • A "mortgage workout" is when a lender works with a borrower on altering their existing mortgage terms in order to prevent a foreclosure.
  • Wraparound Mortgage Definition,
    • A refinanced home loan in which the balances on all mortgages are combined into one loan.
  • Year-end Statement Bank,
    • A report sent to the borrower each year. The report shows how much was paid in taxes and interest during the year, as well as the remaining mortgage loan balance at the end of the year.
  • Zero Down Mortgage Definition,
    • A mortgage product that allows the borrower to financing 100% of their property.
Compare. Calculate. Apply today.
Compare Mortgage RatesMortgage CalculatorsApply for a Mortgage