DEPOSIT
A sum of money that is required to be paid with an offer to purchase as a symbol of the
purchaser's commitment.
DOUBLE-UP
The option to make twice the normal regular payment at a regular payment due date.
DOWNPAYMENT
The amount of cash put forward by the buyer toward the purchase price of real estate.
EQUITY
The difference between the value of a property and the amount of financing on that
property.
FIXED RATE MORTGAGE
The interest rate remains the same for the term of the mortgage.
FORECLOSURE
Court action taken by a mortgagee when a borrower has defaulted.
GROSS DEBT SERVICE RATIO (GDS)
The percentage of annual gross income of the mortgagor that is required to maintain
annual mortgage payments, property taxes and hydro.
HIGH RATIO MORTGAGE
A mortgage loan that exceeds the normal limit of 75% LTV (loan to value) of a
conventional mortgage. Typically made possible by a mortgage insurance plan, e.g.
CMHC or GE Capital.
INTER ALIA MORTGAGE
"Inter Alia" is Latin for "Amongst other things". An Inter Alia Mortgage is a mortgage that
is secured by more than one property. A single mortgage document is executed and
registered against each property that is used as security.
INTEREST
The price paid to rent money. The rate of interest over a period of time for a specific
amount of money, usually expressed as a percentage.
INTEREST ADJUSTMENT DATE
The date on which the mortgage really begins, usually the first of the month. The interest
owed for the number of days between the closing date and the last day of the month is
paid on the closing date by cheque or by deduction from the mortgage advance and
covers
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