Loan payment divided into equal periodic payments calculated to pay off the debt at the end of a fixed period including accrued interest on the outstanding balance.

The measurement of the full cost of a loan including interest and loan fees expressed as a yearly percentage rate. Because all lenders apply the same rules in calculating the annual percentage rate it provides consumers with a good basis for comparing the cost of different loans.

A mortgage covering at least two pieces of real estate as security for the same mortgage.

An individual in the business of assisting in arranging funding or negotiating contracts for a client but who does not loan the money himself. Brokers usually charge a fee or receive a commission for their services.

The amount of cash derived over a certain period of time from an income producing property. The cash flow should be large enough to pay the expenses of the income producing property (mortgage payment maintenance utilities etc).

The meeting between the buyer seller and lender or their agents where the property and funds legally change hands also called settlement. Closing costs usually include an origination fee discount points appraisal fee title search and insurance survey taxes deed recording fee credit report charge and other costs assessed at settlement. The cost of closing usually are about 3 percent to 6 percent of the mortgage amount.

Expenses over and above the price of the property that are incurred by buyers and sellers when transferring ownership of a property. Closing costs normally include an origination fee property taxes charges for title insurance and conveyancing costs appraisal fees etc. Closing costs will vary according to the area Province and the lenders used.

This is some helpful explanation on the cost of selling a home and what this means.

The ratio expressed as a percentage which results when a borrower's monthly payment obligation on long term debts is divided by his or her gross monthly income. See housing expenses-to-income ratio.

Failure to meet legal obligations in a contract specifically failure to make the monthly payments on a mortgage.

When a mortgage is written with a monthly payment that is less than required to satisfy the note rate the unpaid interest is deferred by adding it to the loan balance. See negative amortization.

Money paid to make up the difference between the purchase price and the mortgage amount.

You are likely to hear this comment when people talk about using their home to obtain some ready money. “Just mortgage the equity in your home”. Most commonly this is to take advantage of lower rates of interest you can benefit from by using your home as collateral. This option gives you the ability to mortgage your equity and use that money for any number of reasons such as: consolidating debt (like credit cards); stock investments; RRSP or RESP contributions; a down payment to purchase an investment property; purchase a car, to name a few.

To find your equity take the difference between the value of your property and the amount outstanding on your current mortgage, if any. While there are some banking rules that dictate maximum ratios your Global Mortgage professional can assess your needs, work out your equity values and ratios, outline your options and give you sound mortgage advice.

An account held by the lender into which the home buyer pays money for tax or insurance payments. Also earnest deposits held pending loan closing.

A mortgage is the standard method by which individuals and businesses can purchase real estate without the need to pay the full value immediately from their own resources. A first mortgage gives the lender a superior right to the proceeds on the sale of the property. In other words, the mortgage is security for the loan that the lender makes to the borrower with the property providing that security.

A first mortgage does require a specified payment period, amortization and qualification with the correct loan to value ratios, etc. Call a Global Mortgage specialist to guide and advise you to obtain the best mortgage rates available for you in today’s market and economy.

The mortgage interest rate will remain the same on these mortgages throughout the term of the mortgage for the original borrower.

A legal process by which the lender or the seller forces a sale of a mortgaged property because the borrower has not met the terms of the mortgage. Also known as a repossession of property.

Home insurance, also commonly called hazard insurance or homeowners insurance (often abbreviated in the real estate industry as HOI), is the type of property insurance that covers private homes. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of its use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home.

A Line of Credit is credit extended to a you by a lender that allows you to access funds as needed using the Equity in your home or investment property by registering a mortgage insuring you get the most favorable interest rate available.

It is usually set up as a monthly repayment of interest ONLY so it is up to you when you repay the principal. It is set up as revolving so you can borrow and repay without any penalties. In other words it is an open mortgage and that way you can pay down lump sums as and when you have the influx of cash.

Many people use a Line of Credit to plan for potential future needs. They plan ahead and for contingencies. They create their own security using today’s earning power and equity for qualification. It is a smart business/life event plan. If you do not use your Line of Credit then the balance remains at zero and there is nothing to pay but you have peace of mind knowing that you have access to ready cash if needed for emergencies, that dream vacation, unexpected costs, an investment opportunity, job loss, health issues, etc.

Call your Global Mortgage specialist today to obtain the best interest rate and make this a pain free process.

When closing on a home loan you're probably expecting to get money, which is the entire point of taking out a loan. What you may not be expecting is to pay money out for your mortgage, but you should be prepared to do just that.

The highest price that a buyer would pay and the lowest price a seller would accept on a property. Market value may be different from the price a property could actually be sold for at a given time.

The date on which the principal balance of a loan becomes due and payable.

When your monthly payments are not large enough to pay all the interest due on the loan. This unpaid interest is added to the unpaid balance of the loan. The home buyer ends up owing more than the original amount of the loan.

A legal document authorizing one person to act on behalf of another.

Lenders Mortgage Insurance (LMI), also known as Private mortgage insurance (PMI) in the US, is insurance payable to a lender or trustee for a pool of securities that may be required when taking out a mortgage loan. It is insurance to offset losses in the case where a mortgagor is not able to repay the loan and the lender is not able to recover its costs after foreclosure and sale of the mortgaged property.

This is a description about property tax

A commitment issued by a lender to a borrower or another mortgage originator guaranteeing a specified interest rate and lender costs for a specified period of time.

A person licensed to negotiate and transact the sale of real estate on behalf of the property owner.

A real estate broker or an associate holding active membership in a local real estate board affiliated with the National Association of Realtors.

Refinancing is the rewriting of an existing mortgage (first or second) or placing a mortgage on a property that is owned clear title.

Refinancing can alter current monthly payments either by changing the loan’s interest rate, or by altering the term to maturity of the loan.

Refinancing can also be used to reduce the risk associated the terms of an existing loan. If your current mortgage rate is a floating rate tied to “Prime Interest” then by re-financing into a fixed-rate one removes the risk of the interest rates increasing dramatically thus ensuring a steady interest rate over the term of the mortgage. Although there is a higher premium for this steady rate it can give you peace of mind and security in knowing what your payments will be for the full term of your mortgage.

More favorable lending conditions reduce overall borrowing costs. Refinancing is used in most cases to improve overall cash flow. It allows borrowers to adjust the terms of their mortgage to suit their personal circumstances and lifestyle. A refinance may open doors to a substantial long-term savings.

Call your Global Mortgage specialist to review your current mortgage and your personal circumstance to tell you if refinancing is an advisable course of action which may save you thousands of dollars.

This describes what rent increases and how it may effect your Mortgage Calculation

A loan that is in second position behind the first mortgage. Sometimes used as additional down payment or to pull equity from the home. Also referred to as an Equitable Mortgage or Line of Credit.

This is where a borrower may take another mortgage on their home rather than refinancing their current mortgage. They may have great terms on their first mortgage and not want to refinance those terms. Both mortgages run concurrently. Typically the second mortgage has a shorter maturity period than the first and unless a line of credit a higher interest rate because of the subordinated position to the first mortgage on the property.

Second mortgage rates are still considerably less expensive than unsecured lines of credit; a credit card, which do not provide sufficient security, and thus charges a higher interest rate than a second mortgage loan.

Call your Global Mortgage specialist today to analyze your needs and borrowing power to maximize your choices in obtaining the best mortgage rates available for you in today’s market and economy.

A policy usually issued by a title insurance company which insures a home buyer against errors in the title search. The cost of the policy is usually a function of the value of the property and is often borne by the purchaser and/or seller. Policies are also available to protect the lender's interests.

The decision whether to make a loan to a potential home buyer based on credit employment assets and other factors and the matching of this risk to an appropriate rate and term or loan amount.