Finance Charge

Definition

  • The charges that include all of the interest expected to be earned over the life of a loan, in addition to the service charges, mortgage insurance premiums and certain other charges related to a loan.

Synonyms
cost of financing, lending fees, financing charges

Related Terms and Acronyms

  • Commitment Fee Definition,
    • A fee paid by a borrower to a lender who promises to lend money on certain terms for a specified time period.
  • Disclosure Definition,
    • A statement listing potential defects to a property, such as the possible existence of lead paint or radon.
    • 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.
  • Interest (IN, int) Acronym & Abbreviation,
    • Money paid for the use of borrowed funds, usually expressed as an annual percentage.
    Bank account transaction code.
  • Interest Rate (IR) Acronym, Very Important,
    • The rate a lender charges an individual to borrow money.
  • Legal Fees and Disbursements Definition,
    • Charges paid on your behalf by a solicitor that are in addition to professional costs.
  • Mortgage (mtg) Abbreviation, Important,
    • A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
  • Mortgage Insurance Definition, Very Important,
    • Insurance that protects a lender if a homeowner fails to pay off his or her mortgage.
    • A policy covering a mortgagor from which the benefits are intended (a) to pay off the balance due on a mortgage upon the death of the insured, or (b) to meet the payments on a mortgage as they fall due in the case of his death or disability.
    CanEquity offers mortgage insurance.
  • Mortgage Life Insurance Definition, Very Important,
    • Insurance that covers the costs of paying off a mortgage if the insured dies or becomes disabled.
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