2/20/2023 0 Comments Jennifer newman moneywell mortgageWhen the offer is accepted by the vendor (seller), the deposit is held in trust by the listing real estate broker, lawyer, or notary until the closing of the sale, at which point it is given to the vendor. DepositĪ sum of money deposited in trust by the purchaser on making an offer to purchase. D Demand LoanĪ loan where the balance must be repaid upon request. Credit scoringĪ system that assesses a borrower on a number of items, assigning points that are used to determine the borrower's credit worthiness. A mortgage exceeding 80% is referred to as a 'Hi-Ratio' mortgage and the lender will require insurance for that mortgage. CONVENTIONAL MORTGAGEĪ mortgage up to 80% of the purchase price or the value of the property. CollateralĪn asset, such as term of deposit, Canada Savings Bond, or automobile, that you offer as security for a loan. The date on which the new owner takes possession of the property and the sale becomes final. These mortgages are often referred to as 'Hi-Ratio' mortgages.Ī mortgage that cannot be prepaid or renegotiated for a set period of time without penalties. The cost of that insurance is paid for by the borrower and is generally added to the mortgage amount. Among other services, they also insure mortgages for lenders that are greater than 80% of the purchase price or value of the home. C Canada mortgage and housing corporation (CMHC)ĬMHC is a federal Crown corporation that administers the National Housing Act (NHA). Typically, while the payment amount does not change, the principal portion increases, while the interest portion decreases. B Blended paymentsĮqual payments consisting of both an interest and a principal component. If someone assumes your mortgage, make sure that you get a release from the mortgage company to ensure that you are no longer liable for the debt. Assumption agreementĪ legal document signed by a buyer that requires the buyer to assume responsibility for the obligations of an existing mortgage. Often used in determining net worth or in securing financing. The process of determining the market value of a property. The number of years it takes to repay the entire amount of the financing based on a set of fixed payments. A professional REALTOR ® has the knowledge and experience to best protect you with the most suitable clauses and conditions. The legal contract between a purchaser and a seller.
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