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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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50% - Moderately

Loan


Synonyms:advance, borrow, debt, financing, float, lend
Filed Under: financial-banking, investments, legal-contracts, mortgages
Tags: banking, contract, investment, legal, mortgage
 

Definition of loan

loan
1. An arrangement where one party gives money or an asset to another party in exchange for the promise of future repayment, often with interest.

Related Terms and Acronyms:

  • chattel mortgage   A loan backed by movable personal property. Generally mobile or trailer homes.
  • interest rate (IR)   The rate a lender charges an individual to borrow money.
  • 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 Broker (MB)   One who finds clients perspective lenders at generally no cost. Mortgage Brokers have a special relationship with lenders and can offer their clients the best rates and service. CanEquity goes through great lengths to ensure you are serviced by the best Mortgage Brokers in Canada.
  • mortgage brokerage   An individual or group who brokers deals between their clients and lenders.
      ➥  CanEquity is a mortgage brokerage.
  • personal loan   A loan made for personal, family, or household use as opposed to a business-type loan or a long-term mortgage loan to finance real estate.
  • pre-approval   A process that mortgage lenders use to determine how much money they would lend you based on a thorough review of your financial situation. Lenders issue a pre-approval letter which strengthens your position when bidding on a home, as it shows sellers that you will be able to raise funds needed to purchase.
  • prime lending rate (PLR)   The rate of interest charged on loans by chartered banks to their most creditworthy customers.
      ➥  Bank of Canada's prime (best) lending rate.
  • principal, interest and taxes (PIT)   Principal, interest and taxes. The components of a monthly mortgage payment.
  • simple interest (SI)   Interest computed only on the principal balance, without compounding.

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 all of Canada.

Mortgage Product Type Inquiries
Mortgage Pre-approval21.57%
First-time Home Buyer17.26%
New Purchase15.31%
Refinance/Consolidate Debt14.19%
No Money Down discontinued11.65%
Mortgage Renewal10.16%
Other9.85%