Real Estate Glossary: H

Hectare
An area equal to 100 meters by 100 meters

High-Ratio Mortgage
A mortgage loan higher than 80% of the lending value of the property. Such types of mortgages may need to be insured.

Holdback
The amount of money withheld by the lender during construction of a property to ensure that construction at every state is satisfactory.

Home Equity
The part of a home’s value that the mortgage borrower owns outright; the difference between the fair market value of the home and the principal balances of all mortgage loans.

Home Equity Debt
Debt secured by your home.

Home Equity Line of Credit
An open-ended loan, paid as revolving debt, that is backed by the equity in the property or home.

Home Equity Loan
A loan that can replace or be an addition to the first mortgage. Typically used as a home improvement loan.

Home Inspection
A thorough examination of a house’s visible structural parts and systems, conducted before purchase.

Homeowner’s Association
An elected group that governs a subdivision or planned community. It collects fees from owners to maintain common areas and enforce covenants, conditions and restrictions set by the developer and the association itself.

Homeowner’s Insurance
A policy that includes hazard coverage, covering loss or damage to property, as well as coverage for personal liability and theft.

Homeowner’s Insurance Binder
A document accompanying a homeowner’s insurance policy. Its sole purpose is to verify that the homeowner’s property is, in fact, properly insured.

Homeowner’s Warranty
A policy that guarantees workmanship on construction of a home and functionality of some appliances, and which pays for repairs for a specified period.

Hypothec
Real right granted to a creditor on an immovable as collateral for a debt. This right gives the creditor, in case the repayment terms are not respected by the borrower, the option to exercise certain remedies such as taking the immovable in payment or selling it in a judicial sale.