CANADIAN MORTGAGE GLOSSARY TERMS

Here is a simple glossary of Canadian
mortgage lending and finance related
terms.
To find the term you are looking for
quickly, simply click on the letter below.

 

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G

Gale Date
In mortgaging, the date on which interest is charged or compounded on the loan.

Gap Insurance
 A type of insurance offered to customers with leased vehicles. The policy pays the difference between what is owned and what the vehicle is worth if the car is stolen or destroyed.

Garnishment
The legal attachment by creditors of a debtor's wages, cashflow or assets. The party served with notice must comply with the Garnishee Order and forward funds to the creditor(s) named.

GE Capital
 GE Capital is the new CMHC alternative in the Canadian Mortgage Market place. GE Capital like CMHC provides banks/lenders with mortgage insurance. Not to be confused with life or property insurance. In the event of default or foreclosure, GE Capital assumes responsibility of the property and reimburses the bank/lender the entire mortgage amount. This insurance is required generally when you have less than 25% equity or down payment. This insurance is paid by the property owner in advance but usually added to the mortgage amount. See also "CMHC."

General Contractor
 A business or person who contracts for and takes responsibility for completing a construction project. The general contractor also hires, supervises, and pays all subcontractors and suppliers.

Gift From a Family Member
 A monetary gift given to a mortgage applicant from his or her relative by blood or marriage. The gift cannot be money that must be re-paid and in some cases a written statement may be required by the lender as proof the funds are not a loan, but in fact a gift.

Good Repair
The sort of condition in which a fair minded tenant would maintain a property; "such a state of repair as will satisfy a respectable occupant using [the premises] fairly; but not that state of repair which an owner or tenant might fancy.

Grace Period
Refers to the interest-free time that lenders allow between the transaction date and the billing date if card users do not carry a balance. The standard grace period is typically between 20 and 30 days. If there is no grace period, finance charges accrue immediately at the time of purchase. Those who carry a balance on their credit cards have no grace period.

Grant
Technical term used in deeds of conveyance to indicate a transfer of an interest or estate in land.

Grantee
The party to whom an interest in real property is conveyed (the buyer).

Grantor
The person who conveys an interest in real estate by deed (the seller).

Gross Area
The total floor area of a building, measured from the outside of the exterior walls.

Gross Debt Ratio
The ratio of the monthly housing payment in total (PIT -- Principal, Interest and Taxes) divided by the gross monthly income. This ratio is sometimes referred to as GDS.

Gross Domestic Product
The total value of all the goods and services produced by the Canadian economy in a single year.

Gross Income (Single Family)
The total annual personal income before deductions used in the calculation of an applicant's debt service ratios

Gross Lease
A lease that provides that all expenses attributable to the real estate are paid by the landlord. According to local terminology, leases may require some expense to be paid by the tenant.

Gross Leasable Area
The total floor area designed for tenant occupancy and exclusive use and that area on which tenants pay rent. As adopted by the shopping centre industry, it is measured from the centre line of joint partitions and from outside wall faces. This will not include common areas.

Gross National Product
The value of all goods and services accruing to Canadians in a given year. It equals Gross Domestic Product, plus income of Canadians from foreign production, less income from Canadian production earned by non-residents (such as interest and dividends paid to foreign lenders).

Gross Overtime
Overtime pay before taxes that is averaged over two years can be considered monthly income, but it must be over the two years or it does not count.

Gross Profit Margin
The difference between the sales generated by a business and the costs paid out for goods or services.

Ground Lease
Contract for the rental of land usually for a long term.

Guarantor
One who promises to pay a debt or perform an obligation contracted by another in the event the original obligor fails to pay or to perform as contracted.

Guarantee
1. A promise or assurance, typically in writing, that advocates the quality of a product or service. 2. A formal promise or collateral agreement made by an individual to answer for the debt of another in case he or she defaults.

Guaranteed Investment Certificate
An investment that pays a set rate of interest over a fixed period of time.


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