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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 TITLE
A written history of the title to a parcel of real estate as recorded in a Land Registry Office.

ACCELERATION CLAUSE
A 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 INTEREST
Interest which has accumulated unpaid since last payment date.

ADJUSTMENT DATE
Date regarded as the official beginning of a mortgage

ADVERSE POSSESSION
When an individual, not the owner, takes actual possession of the property, hostile to, and without the consent of, the owner.

ADD-ON INTEREST
An 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).

AFFIDAVIT
A statement of declaration in writing and sworn or affirmed before an authorized individual, such as a notary public.

AGENCY
A 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 SALE
A 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 CLAUSE
This 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).

AMORTIZATION
The gradual retirement of a debt by means of partial payments of the principal at regular intervals.

AMORTIZATION OF A MORTGAGE
The arrangement for paying off a mortgage by installments, over a period of time.

AMORTIZATION PERIOD
The time period required to completely retire a debt through scheduled payments of principal.

ANNIVERSARY DATE
The occasion of one year from an event pertaining to a mortgage. (E.g. Registration date)

APPRAISED VALUE
An 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 LENDER
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.

APPURTENANCE
Something 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.

ARREARS
To be "in arrears" is to be behind in the payments called for under a mortgage agreement.

ASSESSED VALUE
An amount assigned to taxable property, for the purpose of equalizing the burden of taxation.

ASSIGNEE
One who takes the rights or title of another by assignment.

ASSIGNMENT OF MORTGAGE
The 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 RENTALS
The enforceable diversion of income from mortgaged property to the Mortgagee.

ASSIGNOR
One who transfers or assigns the rights or title to another.

ASSUMABILITY
Allows the buyer to take over the seller’s mortgage on the property.

ASSUMPTION AGREEMENT
A document which binds someone other than the mortgagor, to perform mortgage obligations.

ASSUMPTION OF MORTGAGE
The 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 RENT
The redirection of rental income to a Mortgagee, usually in the event of default.

AUTHORITY
The legal right given by a principal to an agent to act on the principal’s behalf in performing specific acts or negotiations.

AVERAGING
Sometimes 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.