Cell:  604-808-1050        
JIMMY KWON & LISA YUN DOMINION LENDING CENTRES
  • Home
  • Testimonials
    • Income >
      • Salaried or Hourly Income >
        • Income Tax Notice of Assessment
      • Self Employed & Commissioned Income >
        • Income Tax Notice of Assessment
        • T1 General
        • Statement of Business Activities
        • BC Company Summary
      • Retirement Income >
        • Notice of Assessment
        • Old Age Security & Canadian Pension
        • T4A
      • Statement of Real Estate Rentals
  • About Us
    • Top 10 reasons to use a mortgage broker
    • Why should you use a mortgage broker?
  • Documents
    • House Purchase
    • Strata Purchase
    • House with Rental Income
    • Sale & Purchase
  • Mortgage
    • Pre-Approval
    • Purchase
    • Renewal >
      • Process
    • Mortgage Review
    • Terminology >
      • Mortgage Glossary
      • Appraisal
    • Mortgage 101 >
      • Amortization
      • Choosing a product
      • How The Penalty Is Calculated
      • Decorating Allowance
      • Mortgage Insurance
      • Mortgage Process
      • Payment Frequency
      • Power of Attorney
      • Qualifying Guidelines
      • 10 Most Commonly Asked Mortgage Questions
    • Sell & Buy >
      • Example of Sale & Purchase break down
      • Bridge Financing
    • Down payment
    • Closing Costs >
      • Property Transfer Tax
      • Interest Adjustment
    • Resources >
      • Accountants
      • Appraisers
      • Land Title Office
      • Lawyers/Notaries
      • Home Insurance Agents
      • Property Tax Department
      • Bank of Canada
      • Canada Revene Agency, Track NOA
      • Mortgage Insurance
      • Calculators
  • Apply
    • Anti-Spam
    • Consent
  • Documents
    • Lta Form B
  • Things To Know
  • New Page

Mortgage Glossary

Amortization
A term used to describe the period of time over which the entire mortgage is to be paid assuming regular payments.

Appraisal
An independent assessment of the property by a qualified individual.

Assuming a mortgage
Taking over the previous owner's (or builder's) mortgage when you buy a property.

Closed mortgage
A mortgage that cannot be prepaid, renegotiated or refinanced prior to maturity, unless stated in the agreed terms.

Closing costs
Costs that are in addition to the purchase price of a property and which must be paid on the closing date. Examples include legal fees, land transfer taxes, and disbursements.

Conventional mortgage
A mortgage where the borrower is contributing more than 20% or more of the value of the property as the down payment.

Debt service ratio
The percentage of the borrower's income used for monthly payments of principal, interest, taxes, heating costs and condo fees (if applicable).

Default
A homeowner is 'in default' when he or she breaks the terms of a mortgage agreement, usually by not making required mortgage payments or by not making payments on time.

Down payment
The money that you pay up-front for a house. Down payments typically range from 5%-20% of the total value of the home.

Equity
The difference between the market value of a property and the amount owed on the property. This difference is the amount a homeowner actually owns outright.

High ratio mortgage
A mortgage where the borrower is contributing less than 20% of the value of the property as the down payment.

Home inspection
A visual inspection of the major components of a home by a qualified individual, who will give the home buyer a true and unbiased picture of the home's condition.

Home insurance

Insurance to cover both your home and its contents (also referred to as property insurance). This is different from mortgage life insurance, which pays the outstanding balance of your mortgage in full if you die.

Interest adjustment

The amount of interest due between the date your mortgage starts and the date the first mortgage payment is calculated from. Sometimes there is a gap between the closing date of your home purchase and the first payment date of your mortgage.

Land transfer tax also referred to as property transfer tax
A tax that is levied  on any property that changes hands.

Legal fees and disbursements

Some of the legal costs associated with the sale or purchase of a property. It is in your best interest to engage the services of a real estate lawyer.

Lump sum payment
An extra payment that you make to reduce the amount of your mortgage. This is the same as pre-paying, which you cannot do if you have a closed mortgage.

Mortgage
A loan that you take out in order to buy property. The collateral is the property itself.
Mortgagee/mortgagorMortgagee is the lender; mortgagor is the borrower.

Mortgage broker

A company or individual who helps the homeowner find the right financing to buy a property. A broker does not actually lend money but seeks out a lender and arranges the mortgage terms. This may include negotiating with the lender for the best possible deal for the homebuyer.

Mortgage default insurance
Required if you are contributing between 5% and 20% of the value of the property as the down payment.

Mortgage life insurance

This form of insurance pays the outstanding balance of your mortgage in full if you die. This is different from home or property insurance, which insures your home and its contents.

Mortgage term

The length of time the interest rate is guaranteed for a mortgage. Mortgage terms normally rate from six months to five years or more, after which you can repay the balance of the principal owning or re-negotiate the mortgage at current rates.

Multiple Listing Service (MLS)
A computerized listing of the properties available in your area, including information and pictures of each property.

Offer to purchase/conditional offer
A written contract outlining the terms under which the buyer agrees to purchase the property. There may be conditions attached to the offer, for example: offer being subject to arranging the mortgage or selling a home.

Open mortgage
A mortgage which you can pay off, renew or refinance at any time. The interest rate for an open mortgage is usually higher than a closed mortgage rate.

Porting
Transferring an existing mortgage from one home to a new home when you move. This is known as a "portable" mortgage.

Pre-approved mortgage certificate
A written agreement that you will get a mortgage for a set amount of money at a set interest rate. Getting a pre-approved mortgage lets you shop for a home without worrying how you'll pay for it.

Pre-paid property tax and utility adjustments
The amount you will owe if the person selling you the home has pre-paid any property taxes or utility bills. The amount to reimburse them will be calculated based on the closing date.

Pre-payment
Repaying part of your mortgage ahead of schedule. Depending on your mortgage agreement, there may be a penalty for pre-paying.  Lenders typically allow anywhere from 5-20% pre-payment privileges without penalty.

Property survey
A legal description of your property and its location and dimensions. An up-to-date survey is usually required by your mortgage lender. If not available from the vendor, your lawyer can obtain the property survey for a fee.

Refinancing
Increasing the amount of your current mortgage, at a new interest rate. The term of the new mortgage must be equal to or greater than the term remaining on your current mortgage.

Renewal/renewing
Once the original term of your mortgage expires, you have the option of renewing it with the original lender or paying off all of the outstanding balance.

Powered by Create your own unique website with customizable templates.