Terms with Category Mortgages

  • Appraisal Report Definition,
    • A detailed evaluation of the value of a property based on an inspection and a review of the values of nearby, comparable properties.
  • Appraised Value Definition,
    • An educated opinion of how much a property is worth.
  • Appraiser Definition,
    • A person qualified by education, training, and experience to estimate the value of real property and personal property.
  • Approval Bank,
    • An assessment made by a lender of a borrower's ability to pay for a home and a confirmation of the amount the borrower may obtain.
  • Assessed Value (AV, ast) Acronym & Abbreviation,
    • A municipal or provincial government's determination of a property's worth for tax purposes.
  • Assessment Rolls Definition,
    • Lists of taxable property.
  • Asset Bank,
    • Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others including bank accounts, stocks, mutual funds, and so on.
  • Assignment Definition,
    • The transfer of a mortgage from one person to another.
  • Assumability Definition,
    • The ability of a mortgage to be taken over from the original borrower by a new borrower.
  • Assumable Definition,
    • A loan or obligation that can be taken over by a new borrower.
  • Assumable Mortgage Definition, Very Important,
    • A mortgage that can be taken over or "assumed" by the buyer when a home is sold.
  • Assumption Clause Definition,
    • A provision in a mortgage contract that allows a buyer to take responsibility for the loan from the seller.
  • Assumption Fee Definition,
    • A lender's charge for updating records when a buyer takes responsibility for a mortgage from the seller.
  • Automatic Payment Bank,
    • An arrangement that authorizes periodic withdrawals to be made from a chequing or savings account to pay bills, usually regular monthly payments such as for rent or mortgages.
  • Bad Credit Bank,
    • Someone who carries a higher credit risk.
  • Bad Debt Bank,
    • Money that cannot be collected is considered bad debt. Businesses can deduct bad debts under certain circumstances. If a bad debt is personal, it can also be deducted in some instances as a short-term capital loss.
  • Balloon Loan Bank,
    • A loan in which the payments aren't set up to repay the loan in full by the end of the term. At the end comes the balloon payment -- one that is larger than the other, periodic payments and pays off the remaining principal.
  • Balloon Mortgage Definition,
    • A loan that has regular monthly payments which amortize over a stated term but call for a final lump sum (balloon payment) at the end of a specified term, or maturity date, such as 10 years.
  • Balloon Payment Bank,
    • A loan instalment that is larger than the other, periodic payments and pays off the remaining principal.
  • Bank Bank,
    • An institution that acts as a financial intermediary by receiving money from depositors and lenders and also lending to borrowers.
  • Bank of Canada (BC, BOC) Bank Est. 1935, Ottawa, Ontario, Canada, Important,
    • Canada's central bank.
    Canada's central bank.
  • Bank Rate Bank,
    • Closely related to the overnight rate, the bank rate is the interest rate the Bank of Canada charges to banks and other major financial institutions for one-day loans.
  • Bank Spread Bank,
    • The difference between the interest rate a bank charges a borrower and the interest rate a bank pays a depositor.
  • Basis Point (BPS) Bank, Very Important,
    • A unit of measure: 1/100th of one percent. For example, the difference between a 9.0% loan and a 9.5% loan is 50 basis points.
    Used by mortgage brokers and lenders when discussing mortgage rates and determining commissions.
  • Biweekly Accelerated Payment Definition,
    • A mortgage that schedules payments every two weeks instead of the standard monthly payment. The 26 biweekly payments are each equal to one-half of the monthly payment. The result for the borrower is a substantial reduction in interest payments because the mortgage is paid off sooner.
  • Blanket Mortgage Definition,
    • A mortgage that covers more than one property owned by the same buyer.
  • Blended Rate Mortgage Definition, Important,
    • If a homeowner renews his or her mortgage early, the old and the new mortgage rates are blended together to split the difference between the interest rates.
  • Borrower Bank,
    • A person who borrows money or obtains a loan.
  • Break-Even Point (BEP) Bank,
    • The point at which expenses meet income or savings. In home finance, the break-even point often refers to the time it takes to recoup the costs of refinancing a loan or paying discount points.
  • Bridge Financing Bank,
    • A short-term, high interest loan that allows a seller to purchase a new property before selling an existing property.
Compare. Calculate. Apply today.
Compare Mortgage RatesMortgage CalculatorsApply for a Mortgage