- An innovative or unusual way of structuring a mortgage loan to allow the buyer to purchase the property.
suited mortgage, creative mortgage, private lender, hard money loans
Related Terms and Acronyms
- Accredited Mortgage Professional (AMP) — Acronym, Canada, Very Important,
➥ Accreditation offered by Canadian Association of Accredited Mortgage Professionals (CAAMP).
- The Accredited Mortgage Professional (AMP) is the only national proficiency standard created by CAAMP for Canada's mortgage industry.
- Cash Back Mortgage — Definition, Important,
- A mortgage that provides the borrower a lump sum cash payment.
- Home Loan — Definition,
- A loan used to buy a home is referred to as a "mortgage."
- Low-documentation Loan — Definition,
- A mortgage that requires less income or asset verification than conventional loans. Low-documentation loans are designed for the entrepreneur or self-employed, for recent immigrants, or for borrowers who cannot or choose not to reveal their financial information. A substantial down payment and excellent credit history are generally required. This type of loan will also yield a higher interest rate.
- Mortgage Broker (MB) — Acronym, Important,
- One who finds clients perspective lenders at generally no cost. Mortgage Brokers have a special relationship with lenders and can offer their clients the best rates and service. CanEquity goes through great lengths to ensure you are serviced by the best Mortgage Brokers in Canada.
- No Money Down Mortgage — Definition, Important,
- Available in Canada as a true 100% mortgage financing product.
- No-documentation Loan — Definition,
- A mortgage in which the applicant provides a minimum of information -- name, address, Social Insurance number (so credit reports can be pulled), and contact information for an employer, if there is one. The underwriter decides on the loan based on the applicant's credit history, the appraised value of the house and size of down payment.
- Policy Loan — Definition,
- A loan where a life insurance policyholder's death benefit is used as collateral.
- Pre-approval — Definition,
- A process that mortgage lenders use to determine how much money they would lend you based on a thorough review of your financial situation. Lenders issue a pre-approval letter which strengthens your position when bidding on a home, as it shows sellers that you will be able to raise funds needed to purchase.
- Private Lender — Definition,
- A lender not associated with a traditional lender.
- Shared-Appreciation Mortgage (SAM) — Acronym,
- A home loan in which the lender offers a below-market interest rate in exchange for sharing in the profit when the home is sold. Usually done only with private funds/lenders.
- A mortgage loan where the lender or a third-party backer agrees to offer a highly reduced mortgage rate to the borrower in exchange of sharing profits when the property is sold.
- Social Insurance Number (SIN) — Acronym, Canada, Very Important,
➥ A nine-digit number that you need to work in Canada or to have access to government programs and benefits. Banks may also request your SIN for tax purposes or to verify credit checks.
- Every person who has an income or pays taxes must apply for this number, which is assigned by the Government of Canada. You must, by law, provide this number to financial institutions with which you have an interest-bearing deposit account.
- Vendor Take Back — Definition,
- Where the seller of the property provides all or some of the financing in order to sell the property.
- Zero Down Mortgage — Definition,
- A mortgage product that allows the borrower to financing 100% of their property.