Mortgage Calculators
Testimonials
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.
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
B
Back Title Letter
A letter or document from the title insurance company that specifies the condition of the title. The letter is generally given to the lawyer involved in the real estate transaction.
Backup Offer
Another offer or bid for a property to be considered by the property seller if the current offer falls through.
Bad Debts
Money that cannot be collected is considered bad debt. Businesses can deduct bad debts under certain circumstances. If a bad debt is personal, it can also be deducted in some instances as a short-term capital loss.
Balance
The amount of money in your account.
Balance Sheet
Also know as the Statement of Financial Position or Statement of Assets and Liabilities is a listing of the assets, liabilities, and owners' equity of a business enterprise at a specific point in time. The assets must equal the liabilities plus the owners' equity.
Balance Transfer
Transferring or moving an unpaid credit card debt from one credit card company to another. Credit card companies will sometimes offer lower interest rates to encourage balance transfers to their company, but they will also charge transfer fees to discourage their customers from leaving.
Balance Transfer Fee
A fee charged to customers when transferring outstanding balances from one credit card to another credit card. Customers generally transfer outstanding balances to obtain better interest rates.
Balloon Loan
This type of loan is not designed to be repaid in full through periodic payments at the end of the loan term. When the term ends, a balloon payments is due. This means that one larger payment is made to pay off the remaining principal.
Balloon Mortgage
This type of loan requires the borrower to make regular monthly payments which amortize over a specified term, but at the end of that term a final payment or large lump sum (balloon payment) must be made to pay off the remaining principal. The typical term for a balloon loan is 10 year.
Balloon Payment
The payment of the principal balance of a mortgage loan outstanding on maturity of the term. A balloon mortgage is one that does not fully amortize over its term to maturity.
Bank Rate
The rate at which the Bank of Canada charges loans to the chartered banks. This is the rate on which lending institutions base their prime lending rate.
Bank Holding Company
A company that owns or controls one or more banks or companies associated with banking activities. Holding companies can include leasing companies or credit companies and are often identified by having either Bancorp or Bancshares in the company name. All bank holding companies are regulated by the Federal Reserve Board of Governors.
Bank Spread
Bank spread refers to the difference between the interest rate in which a bank charges a borrower and the interest rate the bank pays a depositor.
Bank Wire
An electronic money transfer system used to move funds between banks.
Bankruptcy
The financial status of an individual or firm that has been legally judged either to have debts that exceed assets or to be unable to pay bills. The individual or firm can declare bankruptcy voluntarily or be pressed by creditors to do so. The debtor's remaining property and assets are then administered for the creditors or distributed among them.
Bankruptcy Trustee
A private third party or company that is appointed to initiate bankruptcy proceedings for an individual or firm that is subject to a bankruptcy.
Bargain
From the Latin barcaniare, ‘to change about’. An arrangement or undertaking negotiated between two or more parties by which the parties accept a mutual undertaking; the terms upon which parties propose to enter into contract. "A bargain is an agreement of two or more persons to exchange promises or to exchange a promise for a performance." American Restatement of Contracts, § 4 (1932). A bargain lies at the foundation of the modern concept of a commercial contract; that is, that someone has entered into a bargain, not a mere expression of intent - "for the intent of man cannot be tried; for the Devil himself knows not the intent of man" Chief Justice Briar, Anon. (1478) Year Book 17 Edw. IV, 1. On the other hand, a bargain does not create a contract without consideration. ‘Bargain’ is used also to refer to a process of haggling; coming to an understanding; the giving of an assurance or pledge; or the purchase of something at a favorable price. A bargain, once reached, is not normally relinquished lightly, even though in reality it be not much more than a gentleman’s agreement: "I'll give thrice so much land to any well-deserving friend; but in the way of a bargain mark ye me; I'll cavil on the ninth part of a hair." William Shakespeare, Henry IV Part II, Act III. See also agreement for sale, earnest money, subject to contract.
Bargain Sale
A bargain sale refers to purchasing a property or an item for less than the market value.
Base Price
The cost of a vehcile without any extra options such as power windows, air conditioning, etc. The base price simply includes standard equipment and the manufacturer's warranty.
Basis Point
One one-hundredth of one percent. Used to describe the amount of change in yield in money debt instruments, including mortgages.
Basket Clause
A provision in a governing act which allows trust and loan corporations to make investments and loans not authorized, but not specifically prohibited, on up to usually about 7% of assets.
Bearing Wall
A wall or the side of a structure that supports a roof or offers integrity to other parts of the structure.
Bedroom Community
A suburb in which most residents live, but do not work. These people commute to the city to work.
Before-tax Income
A person's income or earnings before income taxes are paid.
Benchmark
A durable post, block or other device established by surveyors to indicate a definite point from which elevations are set.
Beneficiary
A person who is legally named to benefit from an insurance policy, will, deed, or trust.
Betterment
An improvement, addition, or replacement to a property that increases the value.
Bidding War
A bidding war can occur when multiple buyers are interested in purchasing a single property. Competing offers will likely cause the price of the property to escalate resulting in larger profits for the seller.
Bilateral Contract
A legal agreement or contract where both parties involved agree to give each other something. For example, in a property purchase agreement the buyer pays money to the seller and the seller then transfers the property to the buyer. This is a bilateral contract.
Bill of Sale
Written proof in the form of a receipt or document that serves as confirmation for the transfer of title to personal property.
Bill Presentment
An online system that allows customers to receive and view bills electronically via computer. Customers can then pay the bills electronically by transfering funds from their accounts to the creditors seeking payment.
Billing Cycle
The amount of time between the last statement date and the current statement date.
Billing Statement
A monthly bill that is sent by a creditor to the customer that provides a summary of the activity on an account. This can include balances, purchases, payments, credits, and finance charges.
Binder
An agreement with the seller from a potential buyer to consider the purchase of a property. The agreement is secured and backed by a cash deposit as a declaration of good faith on the part of the buyer.
Biweekly Mortgage
A mortgage loan that requires payments every two weeks instead of one standard monthly payment. Each 26 biweekly payment is equal to one-half of the standard monthly payment. Making biweekly mortgage payments is advantageous to the buyer because it results in a substantial reduction in interest payments because the mortgage is paid off quicker.
Binder Insurance
A temporary agreement whereby one party agrees to insure another party pending receipt of, and final action upon, the application for insurance.
Blank Cheque
The account holder has filled out the cheque with all the required information (including a signature), except for a dollar amount.
Blanket Insurance
An insurance policy that covers common areas of a co-op, condominium, or neighborhood governed by a homeowner's association. This type of policy does not cover the actual structures or their contents. The policy only covers areas that are owned in common by the individual owners.
Blanket Mortgage
A single mortgage registered against two or more individual parcels of real property.
Blighted Area
A neighborhood that is run-down and unestetically pleasing.
Blended Payments
Regular equal mortgage payments combining interest and principal components.
Blended Rate
A new interest rate on an increased mortgage loan which is derived from a formula which takes into account the interest rate and remaining term on the existing loan and the derived rate and term on the new funds being advanced.
Blue Book
This term refers to the Kelley Blue Book which is an industry guide used by dealers to estimate wholesale and retail vehicle prices. The books are issued by many organizations, and are commonly available on the Internet or in the reference sections of public libraries. It is important to note that the books are not always blue in color.
Blueprint
A contact print of a drawing or other image rendered as white lines on a blue background. A blueprint is generally a print of an architectural plan or technical drawing and is often used for construction purposes or obtaining permits.
Board Foot
A measurement of lumber that is equal to 1 inch thick, 1 foot long, and 1 foot wide.
Boilerplate
The standard and routine jargon used in legal documents.
Bona Fide
In good faith, with valuable consideration and with absence of notice of any problems.
Bond
A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date.
Bonus
1. A sum paid by the mortgagor, or retained by the mortgagee from the advance of mortgage money, as part of the consideration for the making of the loan.
2. A sum paid by the mortgagor to the mortgagee as consideration for prepayment of all or part of the principle outstanding.
Book Value
The capital amount at which property is shown on the books of an account. Usually it is the original cost, less reserves for depreciation plus additions to capital.
Boot
A way to make an exchange of property equal. For example, if you trade in a work vehicle for a new model, the cash you pay on top of your trade in is called boot. Property or assets can also be considered boot because it does not always have to be cash to make an exchange equal.
Borrowing By-laws
A document evidencing that a corporation has the power to borrow under its company charter.
Borrow Pit
A hole from which topsoil, gravel, or other material is removed for use in a construction project.
Breach of Contract
Failure without legal reason to perform any promise that forms the whole or part of the agreed terms contained in the contract.
Bridge Financing
A loan provided to the borrower to provide financing for purchase, pending closing of the sale of their existing property.
Breach of Warranty
A certainty that a seller cannot pass clear title of property to a buyer.
Break-even Point
When a person's expenses match their income or savings then they are said to have reached the break-even point. In home finance, the term can refer to the amount of time it takes to regain the costs of refinancing a loan or paying discount points.
Bridge Loan
A loan that "bridges" the gap between the purchase of a new home and the sale of a current or existing home. The current home is used as collateral and the bridge loan is used to pay closing on the new home before the current home is sold. Some bridge loans are structured to completely pay off the existing mortgage at the bridge loan's closing, while other variations of the loan add the new debt to the old debt. Bridge loans usually come with six month terms.
Broker
A person or firm who acts on behalf of another. For example, a mortgage broker works on behalf of a client to find the best mortgage rate possible for the client.
Broom Clean
This term means that a property is ready to be cleaned and painted, but it does not mean immaculate or spotless.
Browser
A computer software application used for accessing and viewing Internet Web sites. There are many different types of browsers available and two of the most common include Microsoft Internet Explorer and Netscape Navigator.
Buffer Strip
This refers to a parcel or stretch of land that separates two pieces of property.
Builder's Risk Insurance
Fire and extended coverage insurance for a building under construction. Coverage increases automatically as the construction progresses and terminates at completion.
Builder Upgrades
Refined features or materials that are offered by the builder for an extra charge. These features allow home buyers to upgrade materials or add personal touches to their home instead of using the base (economoical) materials and features chosen by the builder.
Building and Loan Association
A financial institution that is designed to help members finance property purchases and real-estate transactions.
Building Code
A set of minimum regulations respecting the safety of buildings with reference to public health, fire protection and structural sufficiency.
Building Inspector
A local civil servant who enforces the building code as determined by government standards. It is the building inspector's responsibility to ensure that construction and renovations are up to code.
Building Moratorium
A temporary halt or permanent stop to construction.
Building Permit
A permit issued by a local government giving authorization to construct a building or repair an existing structure.
Building Restrictions
Local governments impose certain regulations and restrictions on the size and height, building materials, colours, uses, locations, placement, and other characteristics of commercial and residential buildings or structures.
Built-ins
Items that are permanently attached to a dwelling or building are considered "built-ins". Such items can include appliances, cupboards, shelving, etc.
Bull and Bear Markets
When a market is thriving and stock prices are being driven up, this is called a bull market. When stock prices fall and the market turns poor for investors, then it is called a bear market
Bundle of Rights
Legal rights which real estate ownership embraces which include the right to use, sell, lease, enter, or to give away the property, plus the right to refuse to take any of these actions.
Burden of Proof
To win a lawsuit, those involved must provide enough evidence to make their case. This is a legal requirement. In civil cases, such as tax court, the burden of proof is decided by the the most evidence. Except in cases of tax fraud, the burden of proof in a tax case generally is on the taxpayer.
Business Bankruptcy
This type of bankruptcy occurs when business related debts cannot be paid and the business or individual defaults or files for bankruptcy. The debtor can be a business or an individual involved in a business.
Business Interest Expense
Interest acquired in business operations can be deducted as a business expense
Buy Down
A lump sum payment as consideration for the reduction in the interest charged on a loan from that which would normally be charged.
Buyer Broker
An individual who is paid a commission from a buyer to find a property and to assist with the negotiations involved with closing the real estate transaction.
Bylaws
Laws or rules that govern the internal affairs of an organization or a city. Bylaws are often considered to be secondary laws.
www.mymortgage.ca
PHONE: 1.866.509.1090
FAX: 1.866.392.3672
Head Office
Unit 207, 4603 Varsity Drive NW
Calgary, AB. T3A 2V7
Canadian
Mortgage Rates
| Term | Rate (%) |
Apply
TODAY!
VERICO MyMortgage.ca Inc., Canadian Mortgage Associate/
Canadian Mortgage Broker/Canada Mortgage Agent/
Canadian Mortgage Rates/Canadian Mortgage Calculators
Copyright MyMortgage.ca All Rights Reserved. Disclaimer. Privacy Policy.
