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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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Wraparound Mortgage


Synonyms:absorb, enclose, encompass, engulf, incorporate
Filed Under: mortgages
Tags: mortgage
 

Definition of wraparound mortgage

wraparound mortgage
1. A refinanced home loan in which the balances on all outstanding mortgages are amalgamated into a single loan.

Related Terms and Acronyms:

  • debt consolidation   The replacement of multiple loans with a single loan, often with a lower monthly payment and a longer repayment period. It's also called a consolidation loan. CanEquity has access to Canada's best debt consolidation products, for more info about debt consolidation see our debt consolidation page.
  • junior mortgage   A loan that is subsequent to the claims of the holder of a prior (senior) mortgage.
  • loan servicing   Supervising a loan after it has been made. This could involve collecting payments, keeping accounting records, computing interest and principal, etc.
  • 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.
  • refinance   To arrange a new loan for an increased amount or better terms whereby the old loan is paid off from the proceeds of the new loan.
  • refinancing   The act of paying off one mortgage with another mortgage to take advantage of lower interest rates. Refinancing is also used to transform equity into cash for vacations, home improvements, or for consolidating debt.
  • subordinate loan   A mortgage whose priority is below that of another mortgage; i.e., a second or third mortgage or a home-equity loan.
  • umbrella mortgage   A specific arrangement where one document encompasses one or more already existing mortgages registered on the same property. The mortgagee is responsible for remission of payment(s), to lender(s), while the mortgagor makes one payment to the mortgagee. Also referred to as a wraparound.

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