Real Estate Glossary: M

Maintenance Fee
A periodic assessment or charge that residents pay to their homeowner’s or condo association to pay for the maintenance and repairs of common areas.

Market Conditions
Factors that can affect the sale of homes in a certain area. Such factors include interest rates, the unemployment rate, home appreciation, weather, time of year, etc.

Market Value
The highest price in terms of money, which the property will bring to a willing seller if exposed for sale on the open market allowing a reasonable time to find a willing purchaser, buying with the knowledge of all the uses to which it is adapted and for which it is legally capable of being used, and with neither party acting under necessity, compulsion or peculiar and special circumstances.

Monthly Periodic Rate
The interest rate factor used to calculate the interest charges on a monthly basis. The factor equals the yearly rate divided by 12. See also “Periodic Rate.”

Mortgage
A temporary and conditional agreement that stipulates the use of real property as collateral to a creditor for the guaranteed repayment of a loan. The mortgage incurs a rate of interest that varies according to term and other loan features.

Mortgage Acceleration Clause
A provision or clause in a loan agreement that allows a lender to demand full payment of the loan balance under certain circumstances. Such circumstances can include the sale of the property, loan default, or mortgage refinancing. This clause is not commonly used in Canada or by Canadian lenders.

Mortgage Assumption
Taking responsibility for an existing property loan.

Mortgage Broker
An individual who finds clients perspective lenders at no charge. Mortgage Brokers have special relationships with lenders and can offer clients the best rates and service in Canada.

Mortgage Loan
Method of financing in which the immovable is used as collateral for debt repayment.

Mortgage loan insurance
Insurance taken out by the buyer of an immovable in order to guarantee the payment of the monthly instalments required to reimburse a mortgage loan in full.
Note: If the downpayment for the purchase of the property is less than 20% of the purchase
price, the loan must be insured by the Canadian Mortgage and Housing Corporation (CMHC) or by GE Capital Mortgage Insurance Canada.

Multiple Listing Service (MLS)
A database, provided by the Board of Realtors, that lists all properties in an area that are for sale or lease by realtors. This database excludes properties that are for sale by owner.