Canadian Financial, Real Estate and Mortgage Glossary

Amortized Loan

Definition of amortized loan

Related Terms and Acronyms:

• amortization   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.
• interest rate (IR)   The rate a lender charges an individual to borrow money.
• loan   Letting another party use something of value temporarily.
• mortgage (mtg)   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 calculator   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.
• origination date   The date on which a loan is funded.
• origination fee   The fee a lender charges to process a loan. It usually includes the cost to prepare loan documents, check a borrower's credit history, inspect the property and sometimes conduct an appraisal. CanEquity will in most cases use a lender who doesn't charge this fee or we will cover the cost in full.
• principal   The original balance of money lent on an outstanding loan and fees, excluding interest. Also the remaining balance of a loan, excluding interest.
• reconveyance   The transfer of title to the borrower after a mortgage has been paid fully.
• remaining term   The time it will take to pay off the rest of an instalment loan as scheduled.

More Related Terms and Acronyms

• amortization schedule — Definition
• interest (IN, int) — Acronym & Abbreviation
• original principal balance — Definition