Terminology
The more informed you are, the better decisions you can make with our team.
This is why we created this easy-to-read Learning Centre to help you learn more about qualifying for a home, buying, refinancing and investing, and much more.
A mortgage is a debt owed for a specific length of time, using real estate as security. Since few properties today sell for cash, mortgage money has to be available. Therefore, the mortgage loan is the basis for nearly every transaction in real estate.
The difference between the mortgage(s) on the property (what is owed on it) and what the property could be sold for, is known as equity.
Real estate appraisal is the process of developing an opinion of value for real property. Real estate transactions often require appraisals because they occur infrequently, and every property is unique (especially their condition, a key factor in valuation), unlike corporate stocks, which are traded daily and are identical.
Interest rate is the percentage charged on a mortgage that must be paid in addition to the principal. The mortgage interest rate is related to prevailing interest rate levels and may be fixed or adjustable.
Credit bureau is a company that collects and compiles information regarding your credit history from banks, other financial institutions, and various other bodies such as courthouses and the Office of the Superintendent of Bankruptcy. It is then creditors and lenders who approve someone for a credit request, therefore it is important to remember that each one of them have its own criteria for denying or approving credit requests.
Mortgages are an excellent source for Registered Retirement Savings Plans, yielding a better return than many other plans. We invite you or your accountant to discuss details with us.
● You receive a monthly income with every payment
● You get a high rate of interest on your investment
● Your investment is very secure, is properly selected
● Your equity increases as the mortgage decreases
● You may use it as an RRSP/RRIF investment
● There is usually no cost to place your investment funds
A home equity line of credit ( HELOC ) is a form of credit secured by your home. The lender uses your home as a guarantee that you’ll pay back the money you borrow. Home equity lines of credit are revolving credit. You can borrow money, pay it back, and borrow it again, up to a maximum credit limit.
A business line of credit is a type of small-business loan that provides more flexibility than a regular business loan. A business line of credit works similarly to a credit card.
You can borrow up to a certain limit — say, $100,000 — and pay interest only on the portion of money that you borrow. As long as you don’t exceed you credit limit, you can draw and repay funds as you wish!
A term loan is a advance with a fixed amount and a pre-determined interest rate. There is a set duration for repayment called a repayment schedule. A commercial loan is a debt-based solution between a business (borrower) and a financial institution such as a bank (lender). It is typically used to fund major capital expenditures and/or cover operational costs that the company may otherwise be unable to afford.
Before a project is built, an environmental assessment examines its potential effects on the environment and works to reduce or eliminate them.
A loan officer will work with you directly to facilitate the application process and gather all information needed to prequalify your loan request. To submit a complete loan application, you will first need to discuss your plan for the loan proceeds to help the lender understand your business and your plans for the future. The application includes items such as corporate tax returns, current financial statements and annual call volume as well as your contact information, resume and personal tax returns. Once all the necessary documentation is submitted, the Bank or the Lender will be able to send you a loan proposal(subject to approval). After the proposal is accepted, you will move into the underwriting stage.
A drop dead fee is a fee paid by a borrower to a lender when an acquisition deal falls through. It’s applied to compensate the loaning institution for lost interest if a loan is secured and then becomes unnecessary because of a failed deal.
A finder’s fee (also known as “referral income” or “referral fee”) is a commission paid to an intermediary or the facilitator of a transaction. The finder’s fee is rewarded because the intermediary discovered the deal and brought it to the attention of interested parties. The presumption is that without the intermediary, the parties never would have found the deal, and the facilitator thus warrants compensation.
An estoppel certificate provides the terms of the rental agreement, such as the amount of rent, the amount of security deposit and the expiration of the agreement. It is certified by the tenant(s) and it allows them to voice any claims they may have against the landlord which in turn can affect a buyer’s or lender’s decision to complete the proposed transaction.
Inter Alia Mortgage is a single mortgage document that is secured by more than one property.. An inter-alia mortgage is set up as a blanket mortgage over two or more properties and is registered against each property that is used as security.
