# Term

**Importance**: 0.57

**Is a company**: no

**Is a proper noun**: no

### Synonyms

- length of action
- extent of time
- time
- period
- predefined duration

### Definition of Term

- A limited or set period of time.
- When dealing with a mortgage, term refers to the length of time in which a borrower agrees to pay back the lender. The interest rate and payment schedule is also predetermined. The interest rate typically stays constant during the term unless otherwise specified in the loan agreement. For example, a five year fixed rate mortgage has a term of five years.

### Related Terms and Acronyms

- Period of Indemnity — Definition,
- The amount of time where insurance benefits are required to be paid by an insurance policy.

- Guaranteed Investment Certificate (GIC) — Acronym,
**Important**,- An investment that pays a set rate of interest over a fixed period of time.

- Term Deposit (TD) — Acronym,
- An investment product in which you deposit a fixed sum of money for a set period of time and are paid interest.

- Term Life Insurance — Definition,
- Life insurance that provides coverage for a set period of time, often from five to forty years.

- Amortization Term — Definition,
- The time required to amortize (repay) an entire mortgage loan.

- Lock-in — Definition,
- A lender's guarantee that the mortgage rate quoted will not change for a specific period. The borrower wants the lock to stay in effect until closing.

- Remaining Term — Definition,
- The time it will take to pay off the rest of an instalment loan as scheduled.

- Loan Term — Definition,
- The period specified in the promissory note for a borrower to pay a loan, such as a mortgage. Most conventional mortgages have a loan term of 5 or 10 years.

- Amortization — Definition,
- Amortization refers to the process of gradually paying down the principal of a loan. Each payment toward the principal reduces your loan by that amount. This is different than an interest-only loan payment where the principal balance is never reduced. Amortization for a mortgage loan in Canada is normally 25 years, but can be as few as 5 years.

- Insurance Renewal — Definition,
- Extending the term length on an insurance policy.

- Amortization Period — Definition,
- The amount of time it will take to pay off a mortgage by making routine payments.

- Term Loan (TL) — Acronym,
**Important**,- A loan intended for medium-term or long-term financing to supply cash to purchase fixed assets such as machinery, land or buildings or to renovate business premises.

- Amortization Schedule — Definition,
- A detailed table showing the amortization of a loan which includes the beginning principal amount, period payments, the interest portion of each payment, the principal reduction portion each payment, and the ending balance. The Canadian Equity Group has developed a mortgage rate calculator which will generate a perfect example of an amortization schedule.

- Principal — Definition,
- The original balance of money lent on an outstanding loan and fees, excluding interest. Also the remaining balance of a loan, excluding interest.

- Mortgage Renewal — Definition,
**Very Important**,- A renewal as it pertains to the mortgage industry is defined as having an existing mortgage term end and signing a new term to continue.

- Pre-computed Loan — Definition,
- With a pre-computed loan, the interest owed over the life of the loan is calculated using a standard amortization table. After signing for this type of vehicle loan, the borrower is obligated to pay back principal plus the full amount of interest that will accrue over the entire term of the loan.

- Porting — Definition,
- A portable mortgage allows you to transfer the terms and conditions from an existing property loan to a new property loan.

- Lump Sum Payment — Definition,
- One-time single-sum payment or payout.
- An extra payment made to reduce a loan.

- Yearly Renewable Group Term Insurance — Definition,
- A group insurance policy that is annually reviewed to keep premiums manageable.

- Fixed Instalment — Definition,
- Periodic (usually monthly) payment on a loan whose sum does not vary.

- Mortgage Calculator — Definition,
**Very Important**,- A program that calculates the costs involved in a mortgage or determines what kind of mortgage a person can qualify for.

➥ CanEquity's mortgage calculator has been rated number one by the Globe and Mail. - Conventional Mortgage — Definition,
**Important**,- A mortgage that is not insured or guaranteed by CMHC or GE Capital.

- Promissory Note (PN) — Acronym,
- A written promise to repay a loan by a specified time.

- Amortization Table — Definition,
- A mathematical formula used to calculate monthly mortgage payments based on the borrowed loan amount, the interest rate, and the loan term.