Glossary M-Q
Market Value
Generally accepted as the highest price that a ready, willing, and able Buyer will pay, and the lowest price a ready, willing, and able Seller will accept for a property.
Master Plan
Long-range, comprehensive guide for the physical growth or development of a community.
Maturity Date
The last day of the term of the mortgage agreement. On this day the mortgage loan must be either paid in full or the agreement renewed.
Minor Variance
A permit granted as an exception to a zoning ordinance that allows a property owner to meet certain specified needs.
Mortgage
A mortgage is security for a loan on the property that you own. It is your personal guarantee to repay the loan as well as a pledge of the property as security for the loan.
Mortgage Broker
A licensed individual who, for a fee, brings together a borrower in search of a mortgage and a lender willing to issue that mortgage.
Mortgage Life Insurance
Insurance that pays off the mortgage debt, should the insured borrower die. This insurance can be conveniently purchased through your lender and the premium added to your mortgage payments. However, you may want to compare rates for equivalent products from an insurance brokerage.
Mortgage Loan Insurance
If you have a high-ratio mortgage (more than 75% of the purchase price), your lender will require mortgage loan insurance in case of default - available from CMHC or a private insurer. The insurance premium will cost between 0.5% and 3.75% of the amount of the mortgage (additional charges may apply).
Mortgage Payment
The regular installments made to pay back the principal and interest on a mortgage.
Mortgagee
The lender who provides the mortgage loan.
Mortgagor
The borrower who pledges the property as security for the loan.
Multiple Listing Service® (MLS® )
A system for relaying data to a group of member REALTORS® about properties for sale.
Net Worth
Your financial worth, calculated by subtracting your total liabilities from your total assets.
Non-Conforming Use
Use of a property that is permitted to continue after a new zoning ordinance prohibiting the use has been passed.
Offer To Purchase
A written contract setting out the terms under which the Buyer agrees to buy. If accepted by the Seller, it forms a legally binding contract subject to the terms and conditions stated in the document.
Open Mortgage
A mortgage that allows partial or full payment of the principal at any time, without penalty.
Option Agreement
A document stipulating that, in exchange for a deposit, a specified individual is to be given the first chance of buying a property at, or within, a specified period of time, failing which, the option holder then loses the deposit and the agreement is cancelled.
P.I.T.
Principal, Interest, Taxes - payments due on a regular basis under the terms of the mortgage agreement. Generally, payments are made monthly and include one-twelfth of the estimated annual municipal taxes and school taxes. Since these taxes change from year to year, this section of the mortgage will change accordingly.
P.I.T.H.
Principal, Interest, Taxes, Heating - costs to calculate the Gross Debt Service ratio (GDS).
Plat
Map or survey showing the location and boundaries of individual properties and how they have been subdivided into lots and blocks.
Portability
A mortgage feature that allows borrowers to take their mortgage with them without penalty, when they sell their present home and buy another one.
Power of Sale
A clause commonly inserted in a mortgage that grants the creditor the right and authority, upon default in the payment of the debt, to advertise and sell the property.
Pre-Approved Mortgage
Qualifies you for a mortgage before you start shopping. You know exactly how much you can spend and at what interest rate.
Prepayment Privilege
A mortgage feature that allows the borrower to prepay a portion, or all, of the principal balance with or without penalty, usually restricted to specific amounts and times.
Principal
The mortgage amount initially borrowed, or the portion still owing on the mortgage.
Property Tax
Assessment levied by city and county governments on real and personal property to generate the bulk of their operating revenues to pay for such public services as schools, libraries, and roads.
