Terms with Category Mortgages

  • Credit Union (CU) Bank,
    • A non-profit, cooperative financial institution owned and controlled by the people who use its services, usually a group such as employees in the same company or industry. Credit unions historically have been able to offer lower rates and fees and still operate in the black. Credit unions rely on a financial reserve to absorb unexpected losses from loan defaults or other financial setbacks, and the majority of credit unions carry federal deposit insurance that protects individual accounts up to a specified amount in the event the credit union fails.
    Credit unions are member-owned, full service co-operative financial institutions.
  • Credit Worthiness Bank,
    • How likely an individual or entity is to default on their debt.
  • Creditor Bank,
    • One who is owed money.
  • Creditor Insurance Bank,
    • Insurance that repays debt if the borrower cannot.
  • Current Market Value (CMV) Bank,
    • The estimated price determined by the recent sale of similar properties.
  • Current Yield Bank,
    • The annual increase in the value of an investment, usually expressed as a percentage.
  • Debt Bank,
    • Money one person or firm owes to another person or firm.
  • Debt Consolidation Bank,
    • The replacement of multiple loans with a single loan, often with a lower monthly payment and a longer repayment period. It's also called a consolidation loan. CanEquity has access to Canada's best debt consolidation products, for more info about debt consolidation see our debt consolidation page.
  • Debt-to-Income Ratio Bank,
    • The percentage of an individual's income that is used to repay debt.
  • Debtor Bank,
    • Anyone who owes money to a creditor.
    • A person who has filed a petition for relief under the bankruptcy laws.
  • Declining Life Insurance Bank,
    • Life insurance with a decreasing death benefit, often used to insure mortgage debt.
  • Default Bank,
    • When a borrower fails to fulfill the obligations of a loan or lease.
  • Delinquency Bank,
    • Failure to make mortgage payments when mortgage payments are due.
  • Delinquent Mortgage Definition, Important,
    • A mortgage loan where the borrower fails to make payments as specified in the loan agreement.
  • Dependent Definition,
    • A person who relies on someone else for financial support. If you have dependents, you can claim them as exemptions, which will reduce the amount of your income that is taxed.
  • Deposit Bank,
    • An act of putting a sum of money in to a bank account.
    • A sum of money put towards a given transaction. In a property purchase, a deposit signifies the intent to buy, which is paid to the vendor and applied to the principal cost.
  • Disclosure Bank,
    • A statement required by most provinces that requires the creditor to tell the debtor the annual percentage rate, finance charges and other terms of a loan.
    • A statement listing potential defects to a property, such as the possible existence of lead paint or radon.
  • Discount Point Definition,
    • A sum a borrower pays to a lender to decrease the interest rate of a mortgage. A point equals 1 percent of the loan amount.
  • Distress Bank,
    • The right of one party to sell real or personal property belonging to another party to pay unpaid or overdue debt.
  • Document Needs List Definition,
    • An inventory of papers a lender needs to underwrite a loan, usually including pay-cheque stubs, bank statements and tax returns.
  • Down Payment Bank,
    • The portion of the purchase price a buyer pays, in cash, at the time the loan originates.
  • Draw Mortgage (DM) Acronym,
    • A periodic payment made to a construction contractor or subcontractor as work progresses. A draw is part of a construction mortgage.
    See Progress Advance Mortgage (PAM).
  • Draw Period Bank,
    • On a line of credit, the draw period is the fixed time when a borrower can make withdrawals from the account. After the draw period expires, the borrower can renew the credit line or may be required to pay the outstanding balance in full, or over time.
  • Due-on-sale Clause Bank,
    • A condition of a mortgage that states that the loan must be paid when the house is sold. Commonly used in reverse mortgage lending.
  • Encumbrance Bank,
    • Anything that affects or limits the clear and free title to a property, such as mortgages, leases, easements, or restrictions.
  • End Loan Definition,
    • The final mortgage on a property, as opposed to a construction or other interim loan.
  • Equifax (EF) Bank Est. 1899, Canada, Important,
    • A major credit bureau company in Canada along with Trans Union.
  • Equity Bank,
    • Ownership in an asset.
    • The value of a property minus outstanding mortgage debt and other liens.
  • Escrow Bank,
    • An account in which money for property taxes and insurance is held until paid. Money is added to the account every time a mortgage payment is made.
  • Escrow Account (EA) Bank,
    • An account in which money for property taxes and insurance is held until paid; money is added to the account every time a mortgage payment is made.
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