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
M
Macroeconomics
A study of the economy as a whole, particularly the interaction of its various components.
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.
Manufactured Housing
Homes that are preconstructed in a factory then transported and assembled to a lot where they are placed temporarily or permanently. Styles vary from modest trailers to homes that look as if they were built on site.
Margin
The amount (expressed as percentage points) that a lender adds to an index to arrive at the final interest rate. For example, if the index is 9 percent and the margin 2.75 percent, the final interest rate is 11.75 percent.
Marital Deduction
For estate tax and gift tax purposes, a deduction that allows you to transfer assets to your spouse tax-free.
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 estimated value of a property that an owner can expect to receive if he or she sells under normal conditions. Also known as "Fair Market Value."
Marketable Title
A title that may not be completely clear but has only minor objections that a well-informed and prudent buyer of real estate would accept.
Market Value
The highest price which a buyer, willing, but not compelled to buy, would pay, and the lowest a seller, willing, but not compelled to sell, would accept.
MasterCard
A credit card issued by MasterCard International which is distributed by many financial institutions around the world. Card holders use the card to borrow money against a credit line. The funds must be repaid and interest is charged if a balance is carried from month to month.
Maturity
The date when the principal balance of a loan is due and payable to the lender. Also, the date when a bond pays off its principal.
Maturity Date
The final day of the term of the mortgage.
Maximum Financing
A loan given for a property where the buyer puts down the lowest allowable down payment possible.
Meals and Entertainment
Deductible expenses in your business such as the cost of taking a client to a restaurant (meals) or a sporting event (entertainment). However, these expenses are only partially deductible (50 % in Canada).
Mechanical Systems
The heating, cooling, plumbing, and electrical systems within a house or building.
Median Price
In a specific area, the amount paid for a property where half of the properties in the area sell for less and half sell for more.
Mediation
A method for resolving a dispute using a neutral third party (a "mediator") who works to resolve the differences of those in the dispute. A mediator cannot make a binding decision, whereas an arbitrator can.
Merged Credit Report
A summary of a person's credit history from the big two credit bureaus: Equifax and Trans Union.
Metes and Bounds
A system of land description whereby all boundary lines are set forth by use of terminating points and angles. Metes refers to a limit or limiting mark and bounds refers to the boundary lines.
Microeconomics
The study of the individual parts of the economy, with emphasis given to the market process and how it works.
Mileage Allowance
The number of miles a leased vehicle can be driven over the life of the lease. Mileage allowance is detailed in the lease agreement.
Mileage Limitation
See "Mileage Allowance."
Mill Rate
A rate which when multiplied by each one thousand dollars of property assessment gives the annual real estate taxes.
Minimum Average Balance to Avoid Fees
The balance in the account from day-to-day must average this amount when calculated. If the account balance falls below this amount, the account holder is subject to the monthly charge and/or per usage transaction charges.
Minimum Balance to Avoid Fees
The balance in the account from day-to-day must average this amount when calculated. If the account balance falls below this amount, the account holder is subject to the monthly charge and/or per usage transaction charges.
Minimum Balance to Open an Account
The minimum initial deposit required to open a bank account.
Minimum Monthly Balance
The least amount of money in a bank account during an entire month.
Minimum Payment
The minimum amount a cardholder must pay to keep the account from defaulting. Some card issuers set high minimums if they are uncertain of the cardholder's ability to pay. Most card issuers require a minimum payment of three to five percent of the outstanding balance.
Mint Condition
The state or appearance of a building, vehicle, or item that is like brand new.
Mixed-income Housing
A community or neighborhood where the residents earn wages and salaries that vary drastically.
Modification
Altering or making changes to the terms of a loan agreement.
Monetary Policy
The Bank of Canada's ability to influence the economy through changes in short-term interest rates and the money supply.
Money Factor
A leasing term that expresses the cost of borrowing. It is similar to the interest rate paid on a conventional vehicle loan, but is expressed as a difficult-to-understand fraction. To convert the money factor to a recognizable interest rate, multiply it by 24. For example, a money factor of .00345 x 24 = 9 percent interest. The money factor is negotiable, and consumers who lease a new vehicle should look for a money factor close to the current interest rate charged for new-vehicle loans.
Money Laundering
A process used by individuals to conceal illegally acquired funds by converting them into seemingly legitimate income. The term is generally associated with organized crime and those dealing narcotics dealers who need to legitimize illegally earned funds.
Money Market Account
A bank account that restricts the type and number of withdrawals. The account also earns interest similar to money market funds.
Money Market Funds
A mutual fund that invests in short-term debts.
Money Market Mutual Fund
A mutual fund that invests in short-term debt instruments such as Treasury bills, commercial paper, and large CD's. Also referred to as money market fund (MMF).
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."
Mop and Glow
A term used in the automobile industry that refers to add-ons such as paint sealant. These add-ons do not increase the value of the vehicle, but they increase profits for the dealer.
Moratorium
A period during which a borrower is granted the right to delay fulfillment of an obligation.
Mortgage
Any charge on real property as security for a loan.
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 Banker
One who originates mortgages with the intent to sell them to permanent investors with an agreement that the originator service these loans for the investor.
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. CanEquity goes to great lengths to ensure our clients are serviced by the best Mortgage Brokers in the country.
Mortgage-Backed Securities
An NHA MBS represents an undivided interest in a pool of insured residential first mortgages. As mortgages, these financial instruments are secured by the value of the underlying real estate. NHA MBS carry the CMHC Timely Payment Guarantee and, as such, represent an obligation of the Government of Canada.
Mortgage Bond
In recent years, there has been an increased activity in mortgage bonds, mainly for larger loans. When a very large loan is required, the number of potential lenders is limited. A loan in the category of $50,000,000 for instance, is usually made by the mortgage bond method that is really a device for dividing up the loan. A bond could be issued for an amount as low as $100,000 and sold to various pension funds through investment dealers on a public issue, or more commonly sold as a private placement issue.
Mortgage Clause
See Loss Payable Clause.
Mortgage Constant
The percentage of the mortgage paid in equal regular payments that provide principal reduction and interest payments over the life of the mortgage. Usually expressed annually.
Mortgagee
The lender or creditor. A mortgagee goes into possession when he or she deprives the mortgagor of the management and control of the mortgaged property.
Mortgage Disability Insurance
An insurance policy that pays the monthly mortgage payment for the insured individual if he or she becomes disabled. The disability must be one that is covered under the policy and payments are only made for a specified amount of time.
Mortgage Impairment Insurance
A master insurance policy carried by mortgage lenders that provides him or her with insurance proceeds in the event of an otherwise uninsured loss of a property securing their debt. Some policies also insure losses resulting from the borrower's failure to pay real estate taxes.
Mortgage Insurance
Required if you are contributing between 5% and 25% of the value of the property as the down payment. Available through CMHC or GECMIC covering whole or partial losses of principal and interest.
Mortgage Investment Corporation (MIC)
An investment vehicle pursuant to the Income Tax Act.
Mortgage Lien
A legal claim against a mortgaged property which must be paid when the property is sold.
Mortgage Life Insurance
A term policy that pays off an entire mortgage if the borrower passes away. See also "Mortgage Insurance."
Mortgage Term
The length of time the interest rate is guaranteed for a mortgage. Mortgage terms normally range from 6 months to 5 years or more, after which time you can repay the balance of the principal owing or re-negotiate the mortgage at current rates.
Mortgaged Out
Situation when the total mortgage debt equals or exceeds the market value or cost of the property.
Mortgage Portfolio
The aggregate of mortgage loans held by an investor.
Mortgage Servicing
The process of managing the mortgage administrative duties.
Mortgagor
The borrower or debtor.
Motivated Buyer
A prospective buyer with strong personal reasons who must purchase a property quickly. A strong motivation to buy is generally due to time restraints.
Motivated Seller
A property owner who has an urgent need to sell his or her property quickly. Sellers are often motivated for a fast sale because of time restraints or financial difficulties.
Move-in Condition
When the new owner or occupant is given the go ahead to move in, the property is said to be in move-in condition. This means construction is completely finished, all the touch ups are done, the appliances are in working order, and the property has been thoroughly cleaned making it ready for occupancy.
Move-up Buyer
A homeowner who sells his or her property in order to purchase a more expensive home. The homeowner is basically upgrading.
Moving Expenses
Expenses incurred when an individual moves for employment purposes. Moving expenses are deductible if they are the reasonable costs of moving yourself, your family, and your possessions. The cost of meals while moving is not longer deductible.
MSRP
Refers to the Manufacturer's Suggested Retail Price. In the automobile industry, the MSRP is typically the selling price for a vehicle and its options.
Multi-Family
A building or dwelling that has more than four residential units.
Multiple listing
A listing agreement entered into with a member of a multiple listing organization in a particular area. In effect, an exclusive right to sell granted to the organization, but with the provision that the details will be circulated to other members of the organization. Instructions to sell a property are submitted by the seller to a broker who, as a member of the listing organization, is obliged to make details available to other members, although the seller remains contracted directly to the original listing broker. The listing broker then submits a list of properties on which he is retained either to a central bureau (a multiple listing service) or circulates the details to the other members of the organization who generally act as subagents.
Multiple-listing service (MLS)
An arrangement by which real estate brokers place their listings together so that all members of the multiple-listing service have an opportunity to sell properties listed by other members of the service. The original or ‘listing’ broker obtains an exclusive right to sell and then agrees to supply details of the listed property to all members of the service, usually through a central office operated by a local real estate board or association.
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.
