- A debt that is secured by a lien on a debtor's property (typically a mortgage loan) that may be taken by the creditor if the debtor defaults on his or her payments.
mortgage, loan with collateral, auto loan
Related Terms and Acronyms
- Collateral — Definition,
- Any property pledged as security for repayment of a debt.
- Debt — Definition,
- Money one person or firm owes to another person or firm.
- Debt Consolidation — Definition,
- The replacement of multiple loans with a single loan, often with a lower monthly payment and a longer repayment period. It's also called a consolidation loan. CanEquity has access to Canada's best debt consolidation products, for more info about debt consolidation see our debt consolidation page.
- Foreclosure — Definition,
- The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.
- Fresh Start — Definition,
- The characterization of a debtor's status after bankruptcy. i.e., free of most debts.
- Garnishment — Definition,
- An amount withheld from your pay and remitted to another party, such as a creditor. You must include in your taxable income any amount that was garnished from your pay, because the full amount of your pay is considered to have been received by you even though some was withheld to pay your debts.
- Guarantee — Definition,
- An enforceable warranty on the promise of quality of a product or formal promise by one person to take responsibility for the debts or obligations of another person if that person fails to meet them.
- Home Equity Debt — Definition,
- Debt secured by your home.
- Home Equity Line of Credit (HELOC) — Acronym, Very Important,
➥ Also known as a Home Line of Credit.
- An open-ended loan, paid as revolving debt, that is backed by the equity in the property.
- Instalment — Definition,
- The regular periodic payment that a borrower agrees to make the lender.
- Leveraged Property — Definition,
- A property financed with mortgage debt.
- Lien — Definition,
- A legal hold or claim of a creditor on the property of another.
- Loan — Definition,
- Letting another party use something of value temporarily.
- 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.
- Secured Loan — Definition,
- Borrowed money that is backed by collateral.
- Unsecured Debt — Definition,
- Debt that is not guaranteed by the pledge of any collateral. Most credit cards are unsecured debt, which is a main reason why their interest rate is higher than other forms of lending, such as mortgages, which employ property as collateral.
- Unsecured Loan — Definition,
- An advance of money that is not secured by collateral.