Glossary of Terms

Real Estate and Mortgage terms can be confusing.  Below is a list of some of the most common terms that you will encounter.  Click on a term below to learn more.  You can also download a printer-friendly PDF copy of the Glossary HERE.

0/40 Mortgages

ABCP (Asset Backed Commercial Paper)

All-in-One Mortgage

Alt-A Mortgages

Amortization

Amortization Schedule

Assignment

Assumability (Mortgage Assumption)

B Lending (Subprime Lending)

Bankable

Bankers’ acceptance (BA)

Basis Points (bps)

BDM

BFS (Business for Self)

Big Six Banks (Big 6)

Blended Rate

Bond Yields

Breaking a Mortgage

Bulk Insurance (a.k.a. Portfolio Insurance)

Buyers’ Agent

“Canadas” or “GoCs”

Charge

Closed Mortgage

Co-Borrower (Co-Signor)

Collateral Charge

Construction Draw Mortgage (Builder Loan)

Contract Rate

Conventional Mortgage

Conversion Rates

Convertible Mortgages

Debt Ratios (GDS / TDS Ratios)

Discretionary Rate

Dual Agent

Effective Rate

Equity Lender

Equity Mortgage

Equity Mortgage (Equity Lending)

Equity Take-out

Front-loaded Mortgages

Guarantor

High Ratio Mortgage

Hold The Payment

Home Equity Line of Credit (HELOC)

Hybrid Mortgage

Interest Adjustment Date

Interest Offset Mortgage

Interest Rate Differential (IRD)

Land Titles System

Lending Spreads

Lending Value

Listing Agent

Loan-to-Value Ratio (LTV)

Low-Ratio Mortgage

Maturity

Modern Era of Monetary Policy

Monoline Lender

Mortgage Arrears

Mortgage Assignment (Switch)

Mortgage Debt Ratios

Mortgage Insurance

Mortgage Maturity

Mortgage Originator

Mortgage Portability

Mortgage Prepayment

Mortgage Term

Mortgage Terms

Mortgagee

Mortgagor

Negative Amortization

Negative Equity

Notice of Assessment (NOA)

O.A.C.

Open Mortgage

Origination

Overnight Index Swap (OIS)

Payout Date (Discharge Date)

Payout Statement (Discharge Statement)

Percentage Points (pp)

Pre-Qualify / Pre-Approve

Primary Dealer

Prime Mortgages (aka. “A” Mortgages)

Prime Rate

Prime-BA Spread

Property Title Search

Qualifying Rate

Quick Close

Rack Rate

Readvanceable Mortgage

Rent to Own

Rental Add-Back

Rental Offset

Restrictive Term

Reverse Mortgage

Secondary Financing (2nd Mortgages)

Securitization & CMB’s

Smith Manoeuvre

Spreads

Standard Rate Simulation Assumptions

Stated Income Mortgage

Target Rate

TDS Ratio (Total Debt Service Ratio)

TED Spread

Tightening and Loosening  (of Monetary Policy)

Trailer Fees & Renewal Fees

Trigger Rate

Underwriter

Vendor Take-Back Mortgage (VTB)

Variable Rate Mortgage (VRM)

Y/Y (YOY) Year Over Year

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Is there a term not listed here that you would like to learn more about?  Contact me and will be happy to provide you with the information you’re looking for and add it to the list!