After almost 2 years of regularly posting the Real Estate Glossary for each individual letter, we finally have completed the alphabet. The definitions where taken from different public sources, both printed and online. Some of its content might need reviewing, as the real estate terminology may change, but for the most part I believe it to be pretty accurate. Click on the correspondent letter … [Read more...]

Valuation The act or process of assessing value or price of a property through an appraisal. Variable Interest Mortgage A mortgage product where the interest rate can change or vary during the loan term. The variance in the interest rate usually depends on a specific factor such as prime bank rate or the guaranteed investment certificate rate for a designated lender. Variable Interest … [Read more...]

Umbrella Mortgage A specific arrangement where one document encompasses one or more already existing mortgages registered on the same property. The mortgagee is responsible for remission of payment(s), to lender(s), while the mortgagor makes one payment to the mortgagee. Also referred to as a wraparound. Underwriting To support or agree to (a decision, for example). In real estate, … [Read more...]

Takeout Mortgage Loan A long term mortgage loan that is advanced to a borrower on the completion of construction or in compliance with any other conditions in the loan commitment. The funds are typically used to pay off or take out the construction lender. Tangible Personal Property Assets other than real estate that physically exist. Business equipment and vehicles are tangible personal … [Read more...]

Selling Expenses Additional expenses to be paid when selling an immovable, including mortgage loan balance, real estate broker compensation, notary, tax adjustments, etc. Sale-leaseback A type of real estate transaction where the seller transfers the title to the buyer upon purchase, but then rents the property from the new owner. This practice is not common in Canada. Sales Contract A … [Read more...]

Rate The percentage paid by a borrower for the use of money which is generally expressed as an annual percentage. Rate Hold The length of time, typically between 60 and 120 days, that a lender will guarantee a loan's interest rate once you are locked in. Rate Lock-in A written agreement or contract in which the lender guarantees the borrower a specified interest rate, provided the … [Read more...]

Qualifying Ratios As calculated by lenders, the percentage of income that is spent on housing debt and combined household debt. The first qualifying ratio, called the gross debt service or GDS is up to and including a maximum of 32% of the combined gross family income. The second qualifying ratio is the Total debt service or TDS is up to and including 40% of gross income. Quit Claim Deed A … [Read more...]