The period of time, most often 15, 20 or 25 years, required to reduce a debt to zero when payments are made regularly.
The legal merging of a territory into another body. A city might join or attach to parts of surrounding areas and combine into one.
A process for estimating the market value of a particular property. It can help the Buyer determine what price to offer. It can also be used by the lender for mortgage purposes. The appraised value seldom matches the actual purchase price as other factors influence price.
The increase of a property's value over time.
A lending institution authorized by the Government of Canada through CMHC to make loans under the terms of the National Housing Act. Only Approved Lenders can negotiate mortgages which require mortgage loan insurance.
When a borrower of a loan is behind, or late, in payments.
Property offered for sale in its present condition with no guarantees as to quality and no promise of repair by the Seller. It's purchased in exactly the condition in which it is found.
The value of a property, set by the local municipality, for the purposes of calculating property tax.
A mortgage held on a property by the Seller that can be taken over by the Buyer, who then accepts responsibility for making the mortgage payments.
A legal document signed by a home Buyer that requires the Buyer to assume responsibility for the obligations of a mortgage by the builder or the original Owner.
A combination of two mortgages, one with a higher interest rate than the other, to create a new mortgage with an interest rate somewhere between the two original rates.
A mortgage payment that includes principal and interest. It is paid regularly during the term of the mortgage. The payment total remains the same, although the principal portion increases over time and the interest portion decreases.
Breach of Contract
When one party fails to live up to the terms and conditions of a contract, without a valid, legal excuse.
Licensed individual who acts independently in conducting a real estate brokerage business. Also a person who buys and sells for another for a commission.
The place of business, or office, of licensed real estate individuals.
Written statement by a builder assuring that a dwelling was completed according to a stipulated set of standards. It protects the Buyer from any latent defects.
Minimum construction standards set by provincial and regional laws for public safety and health. Includes the design, construction, repair, and quality of building materials, as well as the use and occupancy of structures.
A certificate that must be obtained from the municipality by the property Owner or contractor before a building can be erected or repaired. It must be posted in a conspicuous place until the job is completed and passed as satisfactory by a municipal building inspector.
When the Seller reduces the interest rate on a mortgage by paying the difference between the reduced rate and market rate directly to the lender, or to the Buyer, in one lump sum or monthly installments.
An excess supply of homes for sale, in which there are few Buyers and many Sellers. In such a market, the Buyer can typically negotiate more favourable prices and terms.