Licensing Info: Alberta Mortgage #MW-0511205,
FSCO (Ontario) #10315,
Saskatchewan Mortgage #315872, and all other provinces.

Division of

1-800-604-1864

GLOSSARY

# Canadian Financial, Real Estate and Mortgage Glossary

 Previous Page Agreed Boundary — American Growth Fund Currently Displayed — Page 5 American National Standards... — Annuity Certain Next Page Annuity Consideration — Assessment Rolls
American National Standards Institute (ANSI) — Company Est.1919, United States
US standards and conformity assessment organisation.
➥  See Standard Council of Canada (SCC).
amortizationDefinition
Amortization refers to the process of gradually paying down the principal of a loan. Each payment toward the principal reduces your loan by that amount. This is different than an interest-only loan payment where the principal balance is never reduced. Amortization for a mortgage loan in Canada is normally 25 years, but can be as few as 5 years.
amortization periodDefinition
The amount of time it will take to pay off a mortgage by making routine payments.
amortization scheduleDefinition
A detailed table showing the amortization of a loan which includes the beginning principal amount, period payments, the interest portion of each payment, the principal reduction portion each payment, and the ending balance. The Canadian Equity Group has developed a mortgage rate calculator which will generate a perfect example of an amortization schedule.
amortization tableDefinition
A mathematical formula used to calculate monthly mortgage payments based on the borrowed loan amount, the interest rate, and the loan term.
amortization termDefinition
The time required to amortize (repay) an entire mortgage loan.
amortized loanDefinition
A loan that is completely paid off, interest and principal, by a series of regular payments that are equal or nearly equal.
amount due at lease signingDefinition
The total amount due before the consumer can take delivery of a leased vehicle. It can include any security deposit, title fee, capitalized cost reduction, monthly payments paid at signing and registration fees.
amount financedDefinition
The principal that is financed. It could include the cost of the purchase and other items rolled into the payments.
angel investorsDefinition
Private individuals with capital to invest in business enterprises.
annexDefinition
To add one thing onto another.
An annual (yearly) fee charged for the administration of a service.
annual crediting capDefinition
The highest rate that can be credited to an equity-indexed annuity in a year.
annual feeDefinition
A bank charge for use of a credit card levied each year, which can range from \$15 to \$300, billed directly to the customer's monthly statement. Many credit cards come without an annual fee.
annual general meeting (AGM) — Acronym
➥  A general meeting for shareholders to review and discuss routine matters such as reports, profits, election of directors and other issues involving ownership of a company.
annual household income (AHI) — Acronym
➥  Also written as AHHI.
annual maintenance fee (AMF) — Acronym
annual membership fee (AMF) — Acronym
annual mortgage statementDefinition, Important
A report sent to the borrower every year, detailing how much principal remains on the home loan and how much was paid in taxes and interest during the previous year.
annual percentage rate (APR)Definition, Very Important
A yearly rate of interest that includes fees and costs paid to acquire the loan. Lenders are required by law to disclose the APR. The rate is calculated in a standard way, taking the average compound interest rate over the term of the loan, so borrowers can compare loans. In mortgages, it is the interest rate of a mortgage when taking into account the interest, mortgage insurance, and certain closing costs including points paid at closing. There is no APR in an automobile lease; instead, the cost of money is expressed as the money factor.
➥  A number used to compare costs associated with mortgage loans and other forms of financing.
annual percentage yield (APY)Definition
The percentage, required by Truth in Savings regulations, to be disclosed on interest-bearing deposit accounts that reflects the total interest to be earned based on an institution's compounding method, assuming funds remain in the account for a 365-day year.
annual percentage yield earned (APYE) — Acronym
annual premium equivalent (APE) — Acronym
➥  A standardized measure of the volume of new life insurance business written.
annual renewable term (ART) — Acronym
annualized internal rate of return (AIRR) — Acronym
The internal rate of return on an investment that makes the net present value of all cash from a particular investment equal to zero.
annuitantDefinition
An individual who owns or is the recipient of an annuity.
annuitizationDefinition
The process of turning a retirement plan or annuity into income in the form of periodic payments or a single lump sum.
annuitization optionsDefinition
The different income dispersal options available when annuitizing a retirement plan or annuity, such as the timeframe and list of beneficiaries.
annuityDefinition
A financial instrument that disperses a number of payments over a set period of time.
annuity certainDefinition
A type of annuity that makes payments to the annuitant for a set term; payments stop when the agreed upon term ends, even if the annuitant is still alive after the term ends.
 Previous Page Agreed Boundary — American Growth Fund Currently Displayed — Page 5 American National Standards... — Annuity Certain Next Page Annuity Consideration — Assessment Rolls

### Index for The Letter 'a'

 Page 1: Abandonment — Accounts Receivable/Accounts... Page 2: Accredited Mortgage Broker — Additional Principal Payment Page 3: Additional Property — Aggregate Stop Loss Page 4: Agreed Boundary — American Growth Fund Page 5: American National Standards... — Annuity Certain Page 6: Annuity Consideration — Assessment Rolls Page 7: Assessments — Audit Page 8: Auditing and Assurance... — Aviation Easement

### Notable Terms

Mortgage Rates
Mortgage rates are at the lowest they've been in years. Lock in while you still have a chance to take advantage of these historically low rates.

Our Best Mortgage Calculator Yet
Try out Canada's top rated calculator. Use our mortgage calculator to find the ideal repayment schedule. Add a pre-payment or cash injection and see exactly how it will affect your mortgage.

Hire a Mortgage Professional
Let us shop the mortgage market to find the best product for you. With dozens of lenders to choose from, we can secure the best residential mortgage rates across Canada.