Canadian Financial, Real Estate and Mortgage Glossary

Loan Terms

advance (adv) — Abbreviation (Abbreviation)

advance line of credit (ALOC) — Acronym

Alberta Disaster Assistance Loan Program (ADALP) — Alberta, Canada

alternative consumer credit market (ACCM) — Acronym

amortization — Definition (Mortgages, Financial-banking)

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 period — Definition (Mortgages, Financial-banking)

The amount of time it will take to pay off a mortgage by making routine payments.

amortization schedule — Definition (Mortgages, Financial-banking)

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 table — Definition (Mortgages, Financial-banking)

A mathematical formula used to calculate monthly mortgage payments based on the borrowed loan amount, the interest rate, and the loan term.

amortization term — Definition (Mortgages, Financial-banking)

The time required to amortize (repay) an entire mortgage loan.

annual percentage rate (APR) — Definition (Mortgages, Financial-banking)

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 rate of charge (APRC) — Definition

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.

automated tracking loan origination system (ATLOS) — Acronym

  ➥  File management tracking system.

automatic premium loan (APL) — Acronym

An option that prevents a lapse of coverage whereby the insurance company will make a premium payment on your behalf using the cash value of the policy provided there are sufficient funds to draw from.

  ➥  A provision available in some life insurance policies.

automatic transfer of loan payments (ATLP) — Acronym

average weighted prime lending rate (AWPLR, AWPR) — Acronym

  ➥  The more common acronym is AWPLR.

benchmark prime lending rate (BPLR) — Acronym

bridge loan — Definition (Mortgages, Real-estate, Financial-banking)

A loan that "bridges" the gap between the purchase of a new home and the sale of the borrower's current home. The borrower's current home is used as collateral and the money is used to close on the new home before the current home is sold. Some are structured so they completely pay off the old home's first mortgage at the bridge loan's closing, while others pile the new debt on top of the old. They usually run for a term of six months.

bridge mortgage — Definition (Mortgages, Financial-banking)

A short-term loan used to allow a homebuyer to purchase a replacement property while still trying to sell their existing home.

British Columbia Payday Loan Association (BCPLA) — Company, British Columbia, Canada

British Columbia Student Loan (BCSL) — British Columbia, Canada

business line of credit (BLOC) — Acronym

business revolving line of credit (BRLOC) — Acronym

Canada Small Business Financing Loan (CSBFL) — Canada

  ➥  Offered by numerous banks in Canada.

Canada Small Business Financing Program Directorate (CSBFPD) — Canada

Canada Student Financial Assistance Act (CSFAA) — Canada

Canada Student Loan (CSL) — Canada

Canada Student Loans Act (CSLA) — Canada

Canada Student Loans Program (CSLP) — Canada

  ➥  (Human Resources and Skills Development Canada)

Canadian Small Business Loan (CSBL) — Canada

Coalition for Student Loan Fairness (CSLF) — Est. 2007, Vancouver, British Columbia, Canada

combined loan-to-value (CLTV) — Definition (Mortgages)

The connection between the unpaid principal balances of all the mortgages on a property (first and second usually) and the property's appraised value (or sales price, if it is lower).

  ➥  A term used by mortgage lenders and mortgage underwriters.

commercial line of credit (CLOC) — Acronym

commercial loan origination (CLO) — Acronym

commercial property finance (CPF) — Acronym

convertible unsecured loan stock (CULS) — Acronym

credit contingent interest rate swap (CCIRS) — Acronym

current loan-to-value ratio (CLTVR) — Acronym

debt service ratio (DSR) — Acronym

dedicated loan origination and servicing (DLOS) — Acronym

Dell Financial Services Canada (DFSC) — Company, Canada

demand promissory note (DPN) — Acronym

equity line of credit (ELOC) — Acronym

Farm Credit Canada (FCC) — Company, Canada

Federal Business Development Bank (FBDB) — Canada

  ➥  Now called the Business Development Bank of Canada.

Financial Services Commission of Ontario (FSCO) — Company Est.1998, Ontario, Canada

A regulatory agency of the Ministry of Finance that protects public interests and regulates insurance, pension plans, loan and trust companies, credit unions, caisses populaires, mortgage brokering, and co-operative corporations in Ontario.

  ➥  Oversees the mortgage, insurance and pension industries in Ontario.

First Data Loan Company, Canada (FDLCC) — Company, Mississauga, Ontario, Canada

First National Financial Corporation (FNFC) — Company, Toronto, Ontario, Canada

First National Financial LP is Canada’s largest non-bank lender, offering both commercial and residential mortgage.

  ➥  Now called First National Financial LP.

First Nations Finance Authority (FNFA) — Company, Westbank, British Columbia, Canada

  ➥  Non-profit organization that provides low-rate loan, investment options, and capital planning advice to First Nation governments.

Firstline Mortgages (FLM) — Company, Toronto, Ontario, Canada

As of July 31, 2012, Firstline Mortgages announced that it will no longer be accepting new mortgage clients.

  ➥  A Canadian NHA approved mortgage lender that offers all lending types, including both residential single family and multi-unit mortgages.

fully secured on land (FSOL) — Acronym