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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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50% - Moderately

Credit


Synonyms:bond, deferred payment arrangement, in trust, loan
Filed Under: financial-banking, investments, mortgages
Tags: banking, credit, investment, mortgage
 

Definition of credit

credit
1. Access to money or funds by a borrower on the condition of repayment to the lender over a certain period.

Related Terms and Acronyms:

  • credit history   A record of an individual's or company's past borrowing patterns and whether or not debts were repaid on time.
  • credit risk   The risk of loss assumed under a financial contract that a borrower or a counter-party to a loan or other credit-related contract may default or fail to fulfill its obligations.
  • credit score   Also referred to as a 'Beacon Score' is a number, between 300 and 900, that reflects a person's credit history. Lenders calculate this number using a computer system as part of the process for assigning rates and terms to the loans they grant.
  • home equity line of credit (HELOC)   An open-ended loan, paid as revolving debt, that is backed by the equity in the property.
      ➥  Also known as a Home Line of Credit.
  • joint credit   Credit that is issued to two people based their credit reports and their combined assets and incomes. The repayment of joint credit is the responsibility of both parties.
  • lead lender   A financial institution which heads up a financial consortium or syndicate to provide funds for a mortgage.
  • lender   The bank or mortgage company offering the loan.
  • letter of credit (L/C)   A letter authorizing a person or company to draw on a bank or stating that the bank will honour the credit up to the stated amount.
  • revolving credit   A line of credit that does not have a specified repayment schedule but may require a minimum payment to cover interest and contribute to paying off principal. Typical of credit card loans, chequing account cash reserve or overdraft accounts that have pre-approved lines of credit.
  • revolving line of credit (RLOC)   An agreement to lend a specific amount to a borrower, and to allow that amount to be borrowed again once it has been repaid. Most credit cards offer revolving credit.

More Related Terms and Acronyms

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Below is a listing of our most popular mortgage product inquiries made using our online mortgage application for clients in Bowmanville.

Mortgage Product Type Inquiries
Refinance/Consolidate Debt27.91%
Mortgage Pre-approval20.93%
First-time Home Buyer11.63%
Mortgage Renewal11.63%
No Money Down discontinued10.47%
New Purchase10.47%
Other6.97%