The Mortgage Alliance Company of Canada

<h1>Ottawa Mortgage Brokers</h1> <p>As a registered franchise of the Mortgage Alliance Network, we have a number of mortgage professionals who can bring you the choice, convenience, and counsel you need to get the Right Mortgage. Working with over 40 lenders (some offered exclusively through brokers) we'll provide unbiased guidance in your mortgage decision. </p> <p>The decision to buy a home may well be the most important purchase decision of your life - one that should be shaped entirely by your personal needs and preferences, while considering all personal and financial implications. </p> <p>Our main expertise is in home mortgages ? an expertise that we want to put to work for you, and that is where we can help. At MortgagePro.ca, we have more than 15 years experience forming a good foundation, and there by building a proven record of helping Canadians become homeowners. </p> <p>Our dedicated team of Mortgage Consultants will help you achieve your goals, by giving you immediate access to our knowledge and expertise when you need it. </p> <p>The consultants at MortgagePro.ca work with the nation's top lenders and financial instituions to provide you the right mortgage with the best possible features. We also work closely with many real estate associates, financial planners and various home services companies in the National Capital Region.</p> <p>If you are looking for refinancing, debt consolidation, home equity loans, second mortgages, or mortgage information we can help. Just give us a call or apply online and you will be on your way to getting the RightBroker - Right Mortgage(tm) - RightPlace </p> <h2>Our Mortgage Professionals</h2> <ul> <li>Cindy Duncan </li> <li>Geoff Chislett </li> <li>Joseph Berros </li> <li>Harpreet Arora </li> <li>George Hartsgrove </li> <li>Tadek Kulisz </li> <li>Parvin Makhzani </li> <li>Catherine Pantieras </li> <li>Chris Wilson </li> </ul> <h2>Calculators</h2> <ul> <li><a onclick="javascript:popUp('http://www.secureapp.com/coldwellbanker/tools/payment.asp');" href="#">Mortgage Payment Calculator</a> </li> <li><a onclick="javascript:popUp('http://www.secureapp.com/coldwellbanker/tools/maxmor.asp');" href="#">Affordability Calculator</a> </li> <li><a onclick="javascript:popUp('http://www.secureapp.com/coldwellbanker/tools/rentbuy.asp');" href="#">Rent vs Buy Calculator</a> </li> <li><a onclick="javascript:popUp('http://www.secureapp.com/coldwellbanker/tools/mortgage.asp');" href="#">How can I afford to pay off my mortgage faster?</a></li> </ul> <h2>Mortgage Terms </h2> <p>Use our Mortgage Terms Glossary to learn more about mortgages and the process you'll go through to obtain one.</p> <ul> <li><a title="Terms Glossary - Adjustments on Closing" href="#aoc">Adjustments on Closing</a></li> <li><a title="Terms Glossary - Amortization" href="#amort">Amortization</a></li> <li><a title="Terms Glossary - Appraisal" href="#appr">Appraisal</a></li> <li><a title="Terms Glossary - Assessment" href="#assess">Assessment</a></li> <li><a title="Terms Glossary - Assignment of Interest" href="#assign">Assignment of Interest</a></li> <li><a title="Terms Glossary - Assumable Mortgage" href="#assum">Assumable Mortgage</a></li> <li><a title="Terms Glossary - Blend and Extend" href="#blend">Blend and Extend</a></li> <li><a title="Terms Glossary - Buy-Down" href="#buydwn">Buy-Down</a></li> <li><a title="Terms Glossary - Buyer's Agent" href="#buyagnt">Buyer's Agent</a></li> <li><a title="Terms Glossary - Canada Mortgage and Housing Corporation (CMHC)" href="#cmhc">Canada Mortgage and Housing </a></li> <li><a title="Terms Glossary - Cap Rate" href="#caprt">Cap Rate</a></li> <li><a title="Terms Glossary - Canada Mortgage and Housing Corporation (CMHC)" href="#cmhc">Corporation (CMHC)</a></li> <li><a title="Terms Glossary - Closing" href="#clsng">Closing</a></li> <li><a title="Terms Glossary - Closed Mortgage" href="#clsdmort">Closed Mortgage</a></li> <li><a title="Terms Glossary - Compliance Letter" href="#compl">Compliance Letter</a></li> <li><a title="Terms Glossary - Commitment Letter" href="#commit">Commitment Letter</a></li> <li><a title="Terms Glossary - Conventional Mortgage" href="#convmort">Conventional Mortgage</a></li> <li><a title="Terms Glossary - Connection Charges" href="#conct">Connection Charges</a></li> <li><a title="Terms Glossary - Convertible Mortgage" href="#convert">Convertible Mortgage</a></li> <li><a title="Terms Glossary - Credit Report" href="#crreprt">Credit Report</a></li> <li><a title="Terms Glossary - Default" href="#dflt">Default</a></li> <li><a title="Terms Glossary - Double-Up" href="#dblup">Double-Up</a></li> <li><a title="Terms Glossary - Down Payment" href="#dwnpy">Down Payment</a></li> <li><a title="Terms Glossary - Equity" href="#eqty">Equity</a></li> <li><a title="Terms Glossary - First Mortgage" href="#frstmort">First Mortgage</a></li> <li><a title="Terms Glossary - Five-Percent Down Program" href="#fivepdwn">Five-Percent Down Program</a></li> <li><a title="Terms Glossary - Hedge" href="#hedge">Hedge</a></li> <li><a title="Terms Glossary - Home Inspection Report" href="#hmirprt">Home Inspection Report</a></li> <li><a title="Terms Glossary - Genworth Financial Canada" href="#genw">Genworth Financial Canada</a></li> <li><a title="Terms Glossary - Gross Debt Service Ratio (GDS)" href="#gdrs">Gross Debt Service Ratio (GDS)</a></li> <li><a title="Terms Glossary - High-Ratio Mortgage" href="#hrmort">High-Ratio Mortgage</a></li> <li><a title="Terms Glossary - Interest Rate Differential" href="#irdiff">Interest Rate Differential</a></li> <li><a title="Terms Glossary - Land Transfert Tax (LTT)" href="#lndtax">Land Transfert Tax (LTT)</a></li> <li><a title="Terms Glossary - Lien" href="#lien">Lien</a></li> <li><a title="Terms Glossary - Loan-to-Value Ratio" href="#ltvr">Loan-to-Value Ratio</a></li> <li><a title="Terms Glossary - Mortgage Broker" href="#mortbrkr">Mortgage Broker</a></li> <li><a title="Terms Glossary - Mortgage Insurance" href="#mortins">Mortgage Insurance</a></li> <li><a title="Terms Glossary - Mortgagee" href="#mortgee">Mortgagee</a></li> <li><a title="Terms Glossary - Municipal Levies" href="#municlv">Municipal Levies</a></li> <li><a title="Terms Glossary - Multiple Listing Service (MLS)" href="#mls">Multiple Listing Service (MLS)</a></li> <li><a title="Terms Glossary - Open Mortgage" href="#opnmort">Open Mortgage</a></li> <li><a title="Terms Glossary - Pith" href="#pith">Pith</a></li> <li><a title="Terms Glossary - Portable Mortgage" href="#portmort">Portable Mortgage</a></li> <li><a title="Terms Glossary - Prepayment Penalty" href="#prepaypen">Prepayment Penalty</a></li> <li><a title="Terms Glossary - Prepayment Privilege(s)" href="#prepaypriv">Prepayment Privilege(s)</a></li> <li><a title="Terms Glossary - Principal" href="#princpl">Principal</a></li> <li><a title="Terms Glossary - Refinance" href="#refi">Refinance</a></li> <li><a title="Terms Glossary - Registration Fees" href="#regfee">Registration Fees</a></li> <li><a title="Terms Glossary - Simple Interest" href="#smplint">Simple Interest</a></li> <li><a title="Terms Glossary - Survey" href="#srvy">Survey</a></li> <li><a title="Terms Glossary - Switch" href="#switch">Switch</a></li> <li><a title="Terms Glossary - Tax Certificate" href="#txcert">Tax Certificate</a></li> <li><a title="Terms Glossary - Title Insurance" href="#ttlins">Title Insurance</a></li> <li><a title="Terms Glossary - Total Debt Service Ratio (TDS)" href="#tdsr">Total Debt Service Ratio (TDS)</a></li> <li><a title="Terms Glossary - Undertaking" href="#undertk">Undertaking</a></li> <li><a title="Terms Glossary - Underwriting" href="#underwrt">Underwriting</a></li> <li><a title="Terms Glossary - Variable Rate Mortgage (VRM)" href="#varrtmort">Variable Rate Mortgage (VRM)</a></li> <li><a title="Terms Glossary - Verification of Employment" href="#verempl">Verification of Employment</a></li> </ul> <table cellspacing="0" cellpadding="0" width="95%" border="0"> <tbody> <tr> <td><p> </p> <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table align="center" border="0"> <tbody> <tr> <td valign="top"><a name="aoc" id="aoc"><font face="Arial, Helvetica" size="3">Adjustments on Closing:</font></a></font> <p>There are two types of adjustments for which a buyer can be charged on closing;</p> <ul class="dotize"> <li><strong>Prepaid services.</strong> Where the sellers have prepaid property taxes or certain utilities, the buyers can be charged for the amount of prepayment on a pro-rata basis, depending on the date of occupancy. For example, if the sellers have paid the property taxes to the end of the year, and the sale closes on October 15th, the purchasers will be charged with an adjustment of 77 / 365'ths (the number of days remaining in the year) of the total paid for the year. </li> <li><strong>Interest.</strong> This is the amount of interest required to be prepaid up to the Interest Adjustment Date (IAD). IAD is the point at which the mortgage interest starts accumulating "in arrears". In Canada all mortgage interest is calculated and paid after the period to which it applies. This differs from the way in which rental and lease payments are calculated, which is "in advance". The good news on this one is that if you prepay for say 3 weeks you won't have to make your first payment for almost two months. Also, if you take a biweekly payment term, the longest interest adjustment period is less than two weeks, by definition. </li> </ul></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="amort" id="amort" style="TEXT-DECORATION: none">Amortization:</a></font> <p class="dotize">Paying off the principal balance of the mortgage, usually by a combination of equal periodic payments and extra payments of principal at irregular intervals. Usually associated with a target period (the standard being 25 years) over which the initial blended payment is calculated. The maximum amortization available in Canada is 40 years.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="appr" id="appr" style="TEXT-DECORATION: none">Appraisal</a></font> <p>This is an estimate of the current value of the property (the 'subject property'), using one or both of the following techniques;</p> <ol class="dotize"> <li>The majority of residential appraisals use the market value comparison approach, comparing recent sales of similar properties ('comparables' or 'comps' in real estate jargon) and adding and subtracting the differences in value of the same features in the subject property. For example, if a house of the same size on the same street and in the same condition as the subject property recently sold for $200,000, but this 'comparable' had a triple garage and a finished basement and the 'subject' does not; the appraiser calculates the market value of these features (say, $12,000 in total) and deducts this amount from $200,000, giving an 'adjusted value' of $188,000. This is usually done with at least three 'comparables' and either averaged or the middle ('median') value used. </li> <li>A supporting measurement of value used by many appraisers is the "depreciated cost" approach, whereby the land value is estimated and added to an estimate of the depreciated building value. Where there are few comparables available, relatively more weight might be given to this method. </li> </ol></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="assess" id="assess" style="TEXT-DECORATION: none">Assessment:</a></font> <p class="dotize">The "assessed" value of a property is a historical, static estimate of the value of your property used by a municipal (local) government as a basis for calculating annual property taxes. An "assessment notice" from the municipality contains the "assessed value" and when multiplied by the current "mill rate" the property taxes for the year can be calculated. In some municipalities, the mill rate is provided on the assessment notice and in others it is provided separately.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="assign" id="assign" style="TEXT-DECORATION: none">Assignment of Interest:</a></font> <p>Most Provinces allow a legal assignment of interest in a mortgage to have full legal effect without having to discharge and re-register the existing one. This is particularly useful in:</p> <ul class="dotize"> <li>Switch situations, where the costs of transferring lenders would otherwise be very high. </li> <li>Second mortgage situations where a postponement may be difficult to obtain. </li> </ul></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="assum" id="assum" style="TEXT-DECORATION: none">Assumable Mortgage</a></font> <p class="dotize">A mortgage which a qualified buyer can take over from the current owner of a property upon its sale. Assuming a mortgage can provide a buyer with a below market interest rate, (if rates are now higher), as well as saving on the legal costs of creating and registering a whole new mortgage. "Assumption" entails a simple amendment to the mortgage document registered on title (see "<a title="Terms Glossary - Switch" href="#switch">switch</a>").</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="blend" id="blend" style="TEXT-DECORATION: none">Blend & Extend:</a></font> <p class="dotize">A closed mortgage can often be "opened" for the purpose of extending the term. Most lenders will blend the penalty for breaking (usually an <a title="Terms Glossary - Interest Rate Differential" href="#irdiff">Interest Rate Differential</a>) with the rate for the new extended term. The idea is to get a lower rate and protect against rate increases in the future.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="buydwn" id="buydwn" style="TEXT-DECORATION: none">Buy Down:</a></font> <p class="dotize">"Paying down" the mortgage rate by paying the lender a premium at time of funding. This is often used as a marketing feature by new home builders, particularly on high ratio second mortgages.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="buyagnt" id="buyagnt" style="TEXT-DECORATION: none">Buyer Agent :</a></font> <p class="dotize">A Realtor who acts contractually on behalf of the buyer. Traditionally, and still in most cases, the Realtor is the Agent of the Sellers and is paid by them out of the proceeds of the sale. A Buyer's Agency Agreement allows a Realtor (with full disclosure to the sellers or their agent) to negotiate on behalf of the buyer, with no legal conflict of interest. The seller still pays the Buyer's Agent fees, but this is always spelled out and acknowledged in the Offer to Purchase.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="cmhc" id="cmhc">Canada Mortgage & Housing Corporation (CMHC) :</a></font> <p class="dotize">A federal crown corporation which administers the "National Housing Act" (NHA), and through which all federal housing policies and programs are implemented.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="caprt" id="caprt">Cap Rate:</a></font> <p class="dotize">The highest rate that a borrower will pay within a defined time period. Examples are; the rate committed on a commitment letter or a mortgage pre-qualification (also known as a "rate hold"); or the maximum rate that will be paid by the borrower during the term of a "protected variable rate mortgage". A lender will usually have to incur a cost to insure against rate increases during the capping period. This insurance is called a "hedge".</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="clsdmort" id="clsdmort">Closed Mortgage:</a></font> <p class="dotize">A mortgage whose terms state that it cannot be paid out, even with a penalty, unless the lender agrees. In some cases, a closed mortgage may be discharged at a defined cost, usually Interest Rate Differential (IRD), but sometimes with a punitive penalty such as full interest to maturity.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="clsng" id="clsng">Closing:</a></font> <p class="dotize">The final exchange of consideration and legal completion of a transaction, involving either a house purchase, a mortgage registration, or both.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="commit" id="commit">Commitment Letter:</a></font> <p class="dotize">A written commitment from a lender to lend mortgage funds to specific borrowers as long as certain conditions are met within a specified time period before closing. A key component of the commitment, particularly in a period of volatile interest rates, is the "rate hold", where a lender may "cap" a rate for a defined period, such as 60 days or 90 days. Commitments on financing for new homes, which usually have longer closing dates, can be negotiated between the lender and the builder and be held for as long as 6 months, and even a year.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="compl" id="compl">Compliance Letter:</a></font> <p class="dotize">Required in many municipalities throughout Canada before a property transfer can take place. This is an acknowledgement from the building department that the property either has, or is clear of outstanding work-orders. <a title="Terms Glossary : Work Orders" href="#wrkord">Work-orders</a> are specific clean-up or fix-up requirements that the owner must complete, particularly before a transfer of ownership.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="conct" id="conct">Connection Charges :</a></font> <p class="dotize">Some local utility companies (hydro, gas, oil) charge a fee on closing to connect new buyers up to their service. More normal, however, is an extra charge on the first billing.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="convmort" id="convmort">Conventional Mortgage:</a></font> <p class="dotize">A mortgage usually amounting to 80% (Loan to Value ratio) or less of the value of the property.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="convert" id="convert">Convertible Mortgage:</a></font> <p class="dotize">This allows you to convert your mortgage to a new one of longer term while it is still in effect.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="crreprt" id="crreprt">Credit Report:</a></font> <p class="dotize">A record of an individual's payment history available at a credit bureau. Individuals can order a copy of their own report by contacting their local bureau.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="dflt" id="dflt">Default:</a></font> <p class="dotize">Failure to make monthly mortgage payments as agreed, or to meet certain other terms of a mortgage agreement.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="dblup" id="dblup">Double-Up:</a></font> <p class="dotize">This feature (not offered by all lenders) allows you to double up your mortgage payments anytime without penalty. This feature is often associated with the ability to "skip" an equivalent number of payments. This can be used either to accelerate the pay-off of a mortgage (as it is an enhanced prepayment privilege) or to manage a volatile cash flow. For example, commission-based individuals such as Realtors could "double-up" with each commission cheque, and "skip" during low cash flow periods.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="dwnpy" id="dwnpy">Down Payment:</a></font> <p class="dotize">The amount of cash paid towards the purchase transaction by the buyer of a home. This is also known as the purchaser's initial "equity" in the property, but is used by a lender to judge the personal commitment to the property. For example, a lender considers that, if a buyer saved the down payment, or received it as a gift from a loved one, they will be far more committed to maintaining the property value and making the mortgage payments than if they acquired it for "no money down".</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="eqty" id="eqty">Equity:</a></font> <p class="dotize">The difference between the value for which you could sell your property and what is owed against it. There is an important distinction from "down payment" to a lender. For example, if a buyer purchases a home without a down payment, he/ she can have "equity" if the value of the property quickly goes up.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="frstmort" id="frstmort">First Mortgage:</a></font> <p class="dotize">Gives the lender a primary <a title="Terms Glossary - Lien" href="#lien">lien</a> / charge against your house and property which has precedence over all other mortgages. Priority is determined by the date and time registered, so a first mortgage was literally and legally registered "first". A new first mortgage can therefore only be registered as a "first" mortgage upon the discharge of an existing one if the holder of a second mortgage "postpones" (i.e., "puts back in time") to a time immediately following the registration of the new first mortgage.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="fivepdwn" id="fivepdwn">Five Percent Down Program:</a></font> <p class="dotize">This allows buyers to obtain up to 95% financing on properties up to a certain value. The loan must be insured against default by one of Canada's default insurance companies.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="genw" id="genw">Genworth Financial Canada :</a></font> <p class="dotize">One of Canada's private default mortgage insurer. For more details see <a title="Terms Glossary - Mortgage Insurance" href="#mortins">Mortgage Insurance</a>.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="gdrs" id="gdrs">Gross Debt Ratio Service (GDS):</a></font> <p class="dotize">The percentage arrived at by dividing your monthly shelter costs (principal, interest, property taxes, heating and half of condo fees) by your gross monthly income and multiplying by 100. This is used by all lenders as a yardstick by which to measure the ability of a borrower (or borrowers) to make mortgage payments. For example, most lenders require that this ratio be no more than 32% for a particular application, while others allow higher limits. This is also the maximum qualifying GDS for most default insurance applications.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="hedge" id="hedge">Hedge:</a></font> <p class="dotize">A fairly complex money market instrument the simple purpose of which is essentially to insure a mortgage lender (or borrower, through a protected or split-term mortgage) against interest rate movements. In the lender's case the price of this insurance will vary depending upon many political and economic factors, but will generally be lower when interest rates and the economy are less volatile. The buyer on the other hand can hedge at no cost, or at a reasonable rate premium by using specifically designed products. </p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="hrmort" id="hrmort">High Ratio Mortgage:</a></font> <p class="dotize">A mortgage which is greater than 80% (Loan To Value ratio) of the value of the property. Normally requires insurance to be paid to protect the lender. (see Mortgage Insurance)</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="hmirprt" id="hmirprt">Home Inspection Report:</a></font> <p class="dotize">A report commissioned by a property owner or purchaser, usually to verify the condition of a property prior to the "firming up" of a Real Estate transaction. The scope and detail may vary, but most reports indicate the specific problem and the cost to repair. Unfortunately, no licensing is required, and this service is not specifically regulated other than by general consumer protection legislation. The best safeguard against inadequate work is to ask for the resume of the Inspector, and if possible check references from previous customers. </p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="irdiff" id="irdiff">Interest Rate Differential:</a></font> <p>A penalty for early prepayment of all or part of a mortgage outside of its normal prepayment terms. This is usually calculated as "the difference between the existing rate and the rate for the term remaining, multiplied by the principal outstanding and the balance of the term".</p> <p><strong>Example:</strong></p> <ol class="dotize"> <li>$100,000 mortgage at 9% with 24 months remaining. </li> <li>Current 2-year rate is 6.5%. </li> <li>Differential is 2.5% per annum. </li> <li>IRD is $100,000 * 2 years * 2.5% p.a. = $5,000. </li> </ol></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="lndtax" id="lndtax">Land Transfer Tax (LTT):</a></font> <p>A tax payable to the Provincial Government by the purchaser upon the transfer of title from a seller. In Ontario a simple formula applies*:</p> <ul> <li>One half percent (0.5%) on the first $55,000 (minimum $275). </li> <li>One percent (1.0%) on the next $195,000 ($55 - 250,000). </li> <li>One and a half percent (1.5%) on amounts over $250,000. </li> </ul> <p><strong>Example:</strong></p> <ul> <li>Price = $370,000: LTT = ($55,000 * 0.5%) + ($195,000 * 1%) + ($120,000 * 1.5%) = $275 + $1,950 + $1,800 = $4,025. </li> </ul> <p class="dotize">*Please check with your Mortgage Alliance professional as to the rates applicable in your location.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="lien" id="lien">Lien:</a></font> <p class="dotize">This is a claim made against a property for the payment of a debt or obligation related to the property or its owners.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="ltvr" id="ltvr">Loan-To-Value Ratio (LTV):</a></font> <p class="dotize">The percentage of the value of the property for which a mortgage is required. This ratio is important in determining whether or not default insurance is required, and if so, what the cost of that insurance will be (see "Mortgage Insurance") For example, if the property value is $200,000, the down payment available is $20,000 and the required mortgage is $180,000. The LTV is $180,000 / $200,000 or 90%.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="mortbrkr" id="mortbrkr">Mortgage Broker :</a></font> <p class="dotize">A registered agent who negotiates with lenders on behalf of a borrower to obtain the best overall mortgage for that borrower's circumstances. Mortgage Brokers arrange financing for "A+" clients as well as financing "non-standard" situations which cannot be funded by a major national lender. This is possible because a Mortgage Broker has access to lenders who do not advertise nationally or operate retail locations.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="mortins" id="mortins">Mortgage Insurance:</a></font> <p class="dotize">If your down payment is less than 20% of the purchase price of the property, the lender is going to require mortgage insurance. The fee is calculated as a percentage of your mortgage. This is known as default insurance.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="mortgee" id="mortgee">Mortgagee:</a></font> <p class="dotize">Also known as the "lender" - the funder and holder of the mortgage.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="mls" id="mls">Multiple Listing Service:</a></font> <p class="dotize">A service of a local Real Estate Board which publishes and exchanges details of properties registered with them. While this used to be for the exclusive use of registered Realtors, it is now possible for a private individual to "list" a property without committing to pay a Realtor a "listing commission" if the property sells. The majority of properties sold in Canada are sold through the local MLS.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="municlv" id="municlv">Municipal Levies:</a></font> <p class="dotize">Special levies can be charged by municipalities to recover the cost of special services, if these services cannot, for some reason, be funded out of general revenues, or apply primarily to homebuyers. Examples: Water meter installation; road improvements, sewer improvements.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="opnmort" id="opnmort">Open Mortgage:</a></font> <p>This allows you to pay back the borrowed funds without notice or penalty.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="pith" id="pith">Pith:</a></font> <p class="dotize">Principal, Interest, Taxes, Heating and half of Condo Fees, if applicable. Otherwise known as your "shelter expenses". This is a basic component of the ratios used to determine whether or not you qualify.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="portmort" id="portmort">Portable Mortgage:</a></font> <p class="dotize">A mortgage which allows you to transfer the existing amount and terms of your mortgage over to a new property without penalty. The mortgage will, of course, have to be registered on title of the new property, so strictly speaking it is not identical in all respects. While most mortgages have a portability feature, in the event you might need more money when you transfer the mortgage over to the new property, make sure you either have the right to blend in any new funds required, or can arrange the additional funds separately.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="prepaypen" id="prepaypen">Prepayment Penalty:</a></font> <p class="dotize">If your mortgage is not fully open, you may be charged a penalty if you want to pay off all or part of your mortgage before the end of the fixed term. The normal prepayment penalty is the greater of three months' interest or the Interest Rate Differential (IRD) on the amount to be prepaid.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="prepaypriv" id="prepaypriv">Prepayment Privilege:</a></font> <p class="dotize">The right to repay periodically more than the scheduled principal payment.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="princpl" id="princpl">Principal:</a></font> <p class="dotize">The amount of money owing on your mortgage, including accrued unpaid interest.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="refi" id="refi">Refinance:</a></font> <p class="dotize">Obtaining a new mortgage on an existing property. You might be looking for more money, a better rate, or different prepayment terms.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="regfee" id="regfee">Registration Fees:</a></font> <p class="dotize">Fees paid to the provincial government for recording a title transfer, mortgage registration or other instrument such as an Assignment or Lien with the local authorities.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="smplint" id="smplint">Simple Interest:</a></font> <p class="dotize">Interest which is computed only on the principal balance. It is not compounded by calculating interest payable on accrued interest.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="srvy" id="srvy">Survey:</a></font> <p class="dotize">The legal written and/ or mapped description of the location and dimensions of your land. The survey should also show the dimensions and placement on the lot of any structure, including additions such as pools, sheds and fences. An up-to-date survey is often required by a lender as part of the mortgage transaction. Lenders might allow the title insurance in lieu of a survey.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="switch" id="switch">Switch:</a></font> <p class="dotize">This is the term almost universally applied to changing lenders at the end of a term, when the mortgage matures.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="txcert" id="txcert">Tax Certificate:</a></font> <p class="dotize">At the time of a sale, the lawyer for the buyer must confirm that local taxes have been paid up to date. If they are, a Tax Certificate is issued, from which any adjustments can be made - usually requiring the buyer to compensate the seller for any prepaid taxes. If they are not up to date, the municipality requires that the seller pay them off from the proceeds of the sale. If there are insufficient proceeds, then it may fall upon the buyer to pay them.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="ttlins" id="ttlins">Title Insurance:</a></font> <p class="dotize">Insurance offered by Title Companies to protect a landowner, and thus the mortgage lender against any "clouds" or legal questions on the title to the real estate, or of legal priority of the mortgagee. This is usually considerably less expensive than the labour-intensive and liability-fraught process of having to have a lawyer search title, and certify it as "clear" -- a process known as "certifying title" or giving an "opinion of title."</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="tdsr" id="tdsr">Total Debt Service Ratio (TDS):</a></font> <p class="dotize">The percentage arrived at by dividing your monthly shelter costs (principal, interest, property taxes, heating and half of condo fees) PLUS all other monthly debt obligations by your gross monthly income and multiplying by 100. This is used by all lenders as the "upper limit" yardstick by which to measure the ability of a borrower (or borrowers) to make mortgage payments. For example, most lenders require that this ratio be no more than 40%.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="undertk" id="undertk">Undertaking:</a></font> <p class="dotize">This is a promise by a Lawyer to ensure that certain conditions (usually of the lender) are met (usually after closing, due to time constraints). The best example is the undertaking to register a discharge of an old first mortgage after the new one has been registered, because there is simply not enough time to do so at closing. It also governs such closing dynamics as releasing funds before a new mortgage document is officially registered.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="underwrt" id="underwrt">Underwriting:</a></font> <p class="dotize">The process of deciding whether or not to lend you money (or how much to lend you) based on all the information you have given the lender. Every lender has a different underwriting process and lending criteria which diff, er to some (usually small) extent from other lenders.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="varrtmort" id="varrtmort">Variable Rate Mortgage:</a></font> <p class="dotize">The interest rate fluctuates with the prime rate at the chartered banks.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="verempl" id="verempl">Verification of Employment:</a></font> <p class="dotize">The lender will sometimes contact an applicant's employer in order to verify information provided in a mortgage application or a job letter; your income structure, length of employment, position, and so on.</p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <hr /> <p></p> <table width="95%" align="center" border="0"> <tbody> <tr> <td valign="top"><font face="Arial, Helvetica" size="3"><a name="wrkord" id="wrkord">Work Orders:</a></font> <p class="dotize">Municipal by-laws ("zoning" by-laws) require among other things that residential property be maintained in a safe and habitable condition, and that a property's use conform to specific requirements (no illegal basement apartments, satellite antenna, etc.). </p></td> </tr> </tbody> </table>  <p> </p> <table width="95%" align="center" border="0"> <tbody> <tr> <td align="middle"><a onmouseover="makeImg(1);self.status='Back';return true;" onmouseout="clearimg(1)" href="javascript:history.back()"><img src="images/back_off.gif" alt="back" name="back_button" width="77" height="24" border="0" id="back_button" /></a> </td> </tr> </tbody> </table> </p> <p></p> <div> </div></td> </tr> </tbody> </table> <p> </p> <p> </p> <p> </p>