- A bank 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.
separate account, reliable, third-party, segregated funds, trusted account
Related Terms and Acronyms
- GE Capital — Company,
➥ Also offers commercial financing.
- GE Capital is the new CMHC alternative in the Canadian Mortgage Market place. GE Capital like CMHC provides banks/lenders with mortgage insurance. Not to be confused with life or property insurance. In the event of default or foreclosure GE Capital assumes responsibility of the property and reimburses the bank/lender the entire mortgage amount. This insurance is required generally when you have less than 25% equity or down payment. This insurance is paid by the property owner in advance but usually added to the mortgage amount. See also "CMHC."
- Parking (prk) — Abbreviation,
- A term that refers to depositing cash in a high-yield money market account until it is transferred to another account to pay bills.
- Property Tax — Definition,
- A levy by a city on real estate and personal property whose amount varies depending on the property's value.
- Trust Account — Definition,
- An account used by a law firm or real estate agent to handle earnest money, funds set aside for repairs and other money that the buyer and seller put up before closing.