Appraisal: The estimate of the homes market value
Assessment: The value of a property set by the local municipality. It is used to calculate your property tax
Assumable Mortgage: A mortgage held on a property by a seller that the buyer can take over
Blended Mortgage Payments: Equal or regular mortgage payments consisting of both a principal and an interest component
Canada Mortgage and Housing Corporation (CMHC): CMHC controls the Mortgage Insurance Fund, which protects NHA Approved Lenders
Closed Mortgage: A mortgage that cannot be prepaid, renegotiated or refinanced without significant penalties
Closing Date: The date when the deal is final, and the new owner can move in
Conditional Offer: An offer that has conditions attached
Debt Service Ratio: The percentage of a borrower’s gross income that can be used for housing costs
Firm Offer: The offer to buy the home with no conditions
First Mortgage: The first security registered on a property
First Refusal: In real estate, the right of first refusal is a provision in a lease or other agreement. It gives a potentially interested party the right to buy a property before the seller negotiates any other offers.
Listing Agreement: The contract between the listing brokerage and the homeowner. This allows the REALTOR® to look after all aspects of the sale of the home
Multiple Listing Service® (MLS®): is a system for sharing the listing of homes to a vast audience
High-Ratio Mortgage: A mortgage for more than 75 percent of a property’s value or price
Interim Financing: Short-term financing to help the person buying the home
Irrevocable: offers to purchase property normally have an irrevocable date and time. Irrevocable is defined as incapable of being recalled or revoked.
Maturity Date: The number of years it will take to pay off the mortgage
Mortgage: A contract between a borrower and a lender to repay the money borrowed to buy the home
Principal: The amount of money borrowed for a new mortgage
Variable Rate Mortgage: The rate of interest may change