APR (Annual Percentage Rate)The yearly interest percentage of a mortgage as expressed by the actual rate of interest paid given the term, rate, amount and cost of arrangement.
ARM (Adjustable Rate Mortgage)A mortgage for which the interest rate is adjusted periodically according to movements in a pre-selected index.
ABSTRACT OF TITLEA written history of the title to a parcel of real estate as recorded in a Land Registry Office.
ACCELERATION CLAUSEA clause in the mortgage document which accelerates the maturity date and states that upon default, the principal sum of the mortgage and accrued interest falls due.
ACCRUED INTERESTInterest which has accumulated unpaid since last payment date.
ADJUSTMENT DATEDate regarded as the official beginning of a mortgage
ADVERSE POSSESSIONWhen an individual, not the owner, takes actual possession of the property, hostile to, and without the consent of, the owner.
ADD-ON INTERESTAn interest amount added to the principal of a debt and made payable as part of the debt , usually in equal periodic installments (also called Pre-calculated interest).
AFFIDAVITA statement of declaration in writing and sworn or affirmed before an authorized individual, such as a notary public.
AGENCYA relationship which arises out of a contract, where an agent is authorized by a principal to engage in certain acts, usually in dealing with one or more third party(s).
AGREEMENT OF PURCHASE AND SALEA written contract to buy property in which the purchaser and vendor agree to sell upon terms and conditions as set forth in the agreement.
ALIENATION CLAUSEThis is a clause that enables the mortgagee to demand payment of the outstanding balance including interest upon sale or transfer of title, (also known as a "due on sale" clause).
AMORTIZATIONThe gradual retirement of a debt by means of partial payments of the principal at regular intervals.
AMORTIZATION OF A MORTGAGEThe arrangement for paying off a mortgage by installments, over a period of time.
AMORTIZATION PERIODThe time period required to completely retire a debt through scheduled payments of principal.
ANNIVERSARY DATEThe occasion of one year from an event pertaining to a mortgage. (E.g. Registration date)
APPRAISED VALUEAn estimate of property value written by a qualified individual (AACI). Appraisals performed for mortgage lending purposes may not reflect the market value of the property, or the purchase price.
APPROVED LENDERLending 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.
APPURTENANCESomething which is outside the property itself, but belongs to the land and is joined thereto; e.g. a road over another’s land providing an access (right-of-way) is an appurtenance.
ARREARSTo be "in arrears" is to be behind in the payments called for under a mortgage agreement.
ASSESSED VALUEAn amount assigned to taxable property, for the purpose of equalizing the burden of taxation.
ASSIGNEEOne who takes the rights or title of another by assignment.
ASSIGNMENT OF MORTGAGEThe assigning of a mortgagee’s interest in the mortgage to a new mortgagee. The legal sale of the mortgage with or without an agreement to repurchase.
ASSIGNMENT OF RENTALSThe enforceable diversion of income from mortgaged property to the Mortgagee.
ASSIGNOROne who transfers or assigns the rights or title to another.
ASSUMABILITYAllows the buyer to take over the seller’s mortgage on the property.
ASSUMPTION AGREEMENTA document which binds someone other than the mortgagor, to perform mortgage obligations.
ASSUMPTION OF MORTGAGEThe action of a purchaser taking responsibility for a mortgage debt by way of a legal agreement. The original covenanter(s) responsibility pursuant to the mortgage obligation remains intact in such arrangement, so long as the existing documentation remains registered.
ATTORNMENT OF RENTThe redirection of rental income to a Mortgagee, usually in the event of default.
AUTHORITYThe legal right given by a principal to an agent to act on the principal’s behalf in performing specific acts or negotiations.
AVERAGINGSometimes called ‘leveling’, this is the calculation made to determine the interest when a second mortgage is taken out; averaging determines the average interest rate of the two mortgages.
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