Amortization Period: The actual number of years it will take to pay back your mortgage loan.
Appraised Value: An estimate of the value of the property. Conducted for the purpose of mortgage lending by a certified appraiser. This appraisal is not to be confused with a building inspection.
Assumability: Allows the buyer to take over the seller’s mortgage on the property.
Closed Mortgage: A mortgage that locks you into a specific payment schedule. A penalty usually applies if you repay the loan in full before the end of a closed term.
Condominium: The owner has title to a single unit, as well as a share in the common elements such as elevators or surrounding land.
Condominium Fee: A common payment among owners that is allocated to pay expenses.
Conventional Mortgage: A mortgage loan issued for up to 75% of the property’s appraised value or purchase price, whichever is less.
Down Payment: The buyer’s cash payment toward the property. The difference between the purchase price and the amount of the mortgage loan.
Equity: The difference between the home’s selling value and the debts against it. High-Ratio Mortgage: A mortgage that exceeds 75% of the home’s appraised value. These mortgages must be insured for payment.
Interest Rate: The value charged by the lender for the use of the lender’s money. Expressed as a percentage.
Land Transfer Tax, Deed Tax or Property Purchase Tax: A fee paid to the municipal and/or provincial government for the transferring of property from seller to buyer.
Maturity Date: The end of the term, at which time you can pay off the mortgage or renew it.
Mortgagee: The person or financial institution that lends the money.
Mortgagor: The borrower.