Mortgage basics

The mortgage glossary

Useful definitions, without the jargon.

The planned time to repay a loan through scheduled payments. It is usually longer than the mortgage term.

A professional opinion of property value used by a lender in its assessment.

Expenses connected to completing a transaction, such as legal fees, tax and adjustments.

A lender document outlining offered terms and conditions. It is not the same as a funded mortgage.

The portion of the purchase price supplied by the buyer rather than covered by the base mortgage.

The difference between property value and debt secured against it.

An interest rate that remains unchanged for the agreed period.

A home equity line of credit, a revolving loan secured by a home, subject to the lender’s conditions.

The loan amount expressed as a percentage of the property value used by the lender.

Insurance that protects the lender against borrower default. It is different from life or property insurance.

The amount a mortgage contract allows you to repay early without a prepayment charge.

Replacing or restructuring mortgage financing, often to change the amount borrowed or terms.

Arranging a new term when the current mortgage term reaches maturity.

The period covered by a particular mortgage agreement and its terms.

An interest rate that can change according to the loan’s reference rate and contract.

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