- A mortgage or loan in which the buyer puts down a small down payment and borrows a very high percentage of the purchase price.
low down loan, small down payment
Related Terms and Acronyms
- High-ratio Mortgage — Definition, Important,
- A mortgage in which a borrower places a down payment of less than 20% of the purchase price.
- Loan-to-Value (LTV) — Acronym, Very Important,
➥ A widely used term in the mortgage brokerage and lending industry, especially by mortgage underwriters.
- The ratio of the principal amount of the loan to the lesser of the purchase price of the property or the property's appraised value. This can be expressed as an 80% loan, or 80% LTV.
- Low-down Mortgages — Definition, Important,
- Mortgages with a low down payment, usually less than 10 percent.
- Maximum Financing — Definition,
- A loan given for a property where the buyer puts down the lowest allowable down payment possible.
- Mortgage Insurance — Definition, Very Important,
➥ CanEquity offers mortgage insurance.
- 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.
- Mortgage Life Insurance — Definition, Very Important,
- Insurance that covers the costs of paying off a mortgage if the insured dies or becomes disabled.
- No Money Down Mortgage — Definition, Important,
- Available in Canada as a true 100% mortgage financing product.
- Total Debt Service (TDS) — Acronym, Important,
- The ratio of a borrower's total monthly debt payments to his or her monthly gross income. Lenders use this ratio to determine how much of a loan a borrower is qualified for.
- Zero Down Mortgage — Definition,
- A mortgage product that allows the borrower to financing 100% of their property.