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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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38% - Moderately

Purchase Price


Synonyms:final purchase price, full purchase price, purchase cost
Filed Under: real-estate
Tags: realty
 

Definition of purchase price

purchase price
1. In real estate, purchase price refers to the total selling price of a property which includes the down payment and the principal on the loan.

Related Terms and Acronyms:

  • appraised value   An educated opinion of how much a property is worth.
  • closing   In real estate, the delivery of a deed, the payment of the purchase price, the signing of notes, and the paying of closing costs, which completes a real estate transaction.
  • down payment   The portion of the purchase price a buyer pays, in cash, at the time the loan originates.
  • fair market value (FMV)   The highest price that a buyer would pay for a property and the lowest price a seller is willing to accept.
  • loan-to-value (LTV)   The ratio of the principal amount of the loan to the lesser of the purchase price of the property or the property's appraised value. This can be expressed as an 80% loan, or 80% LTV.
      ➥  A widely used term in the mortgage brokerage and lending industry, especially by mortgage underwriters.
  • lpq amount   A term used by CanEquity which is short for Loan, Purchase or Qualification amount.
  • 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.
  • principal   The original balance of money lent on an outstanding loan and fees, excluding interest. Also the remaining balance of a loan, excluding interest.
  • sale price   The price that is paid for an asset.
  • valuation   The estimation of a property's price value through an appraisal.

More Related Terms and Acronyms

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