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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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50% - Moderately

Modification


Synonyms:adjustment, change, revision
Filed Under: financial-banking, mortgages
Tags: banking, mortgage
 

Definition of modification

modification
1. Altering or making changes to the terms of a loan agreement. For example, many mortgage lenders in Canada will allow you to modify the amortization period from a 10 year to a 15 year at any time during the mortgage term.

Related Terms and Acronyms:

  • acceptance   A property seller's formal, written approval of a buyer's offer.
  • addendum   A change made to a contract.
  • agreement of sale (AOS)   A document in which a property's buyer and seller approve the price and other terms of the transfer of title.
  • 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.
  • breach of contract (BOC)   Failure to abide by terms of a legal agreement without a legal excuse.
  • consideration   A thing of value that is negotiated as part of a contract.
  • contract   An agreement between two or more parties that can be enforced by law.
  • non-cancellable   A contract or section of a contract that cannot be modified.

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