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Agreement of Purchase and Sale - a contract by
which one party agrees to sell and another agrees to purchase - the offer
may be firm (no conditions attached) or conditional (certain conditions must be
fulfilled before the deal can be closed).
Amortization
period - The time over which equal
payments would totally pay off the mortgage. This is normally 25 years for
a new mortgage.
Appraised value - an estimate of the market
value of the property.
Assessed value - a valuation placed on a
property as a basis for municipal taxation.
Assuming
a mortgage - When the purchaser accepts responsibility for
repayment of a mortgage already on the house being bought.
Closing Adjustments - necessary adjustments made
between the purchaser and the vendor for property taxes, insurance and heating
fuel already paid by the vendor, as determined by the lawyers.
Closing date - the date, specified in the
agreement of purchase and sale, on which the sale of a property becomes final
and the new owner takes possession - the purchaser delivers the balance of the
money due and the vendor delivers a duly executed deed and vacant possession of
the property (unless otherwise agreed).
CMHC
- Canada Mortgage and Housing Corporation. CMHC administers the
National Housing Act of Canada and also provides default insurance on mortgages
where the down payment is less than 25%.
Condominium Fee
- a common fee paid by all owners which is allocated to pay the common expenses
of a condominium property.
Conventional
Mortgage - a mortgage that does not exceed 75% of the purchase
price of a home.
Deposit - payment of money as a pledge to fulfill
a contract.
Down Payment - A percentage of the home purchase
price that the purchaser pays in cash instead of borrowed money.
High
Ratio Mortgage - a mortgage that
exceed 75% of the purchase price of a home and therefore must be insured
against default.
Home equity
- the difference between the
price for which a home could be sold (market value) and the total debts
registered against it.
Interim
financing
-
short-term financing to help a buyer bridge the gap between the closing
date on the purchase of a new home and the closing date on the sale of
the current home.
Interest adjustment - the amount of interest due between the date your
transaction closes and the date your first mortgage payment is
calculated from
Listing - an agreement between a property owner
and a real estate broker to offer the owner's property for sale or lease.
Mortgage term
-
the number of years or
months over which you pay a specific interest rate. Terms usually
range from six months to 10 years.
Mortgagee
- the lender
Mortgagor
- the borrower
Multiple Listing Service (MLS®)
- an arrangement among brokers
who are real estate board members, whereby each broker shares information
regarding his listings with the other members, who may negotiate the
transaction.
P.I.T.
- principal, interest and
taxes. Together, these make up the regular payment on a mortgage
if you elect to include property taxed in your mortgage payment.
Principa
l
- the amount of money borrowed
for a new mortgage or now owing on an existing one.
Title - legal
ownership of a property.
The above information is believed to be
accurate but is not warranted.
Low Fees - Full
Service
