MARGIN OF SAFETYA measure of the extent to which a loan is protected by property values or operating income. In the case of a mortgage, the margin of safety is the excess of equity (at fair market value) above the outstanding amount of the loan.
MARKET VALUEThe highest price estimated in terms of money which a property will bring if exposed for sale in the open market
MARKETABLE TITLEA title which a court of equity considers to be so free from defect that it will enforce acceptance by a purchaser.
MATRIMONIAL HOMEAny property in which a person has an interest and that is, or has been, occupied by the person and his or her spouse as their family residence. Condominiums, co-operatives, and leasehold interests can be matrimonial homes.
MATURITY DATEThe last day of the term of the mortgage agreement. A mortgage loan must then be paid in full or the agreement renewed.
MECHANICS LIENA claim against the state or interest of the owner in a property for labour, services, or materials supplied to it.
METES AND BOUNDSA system of land description whereby all boundary lines are set forth by use of terminal points and angles -mete referring to a limit or limiting mark, and bounds referring to boundary lines.
MIXED USE DEVELOPMENTA large scale real estate project which is developed for a number of uses. An example of mixed use development is a shopping centre complex.
MLSMultiple Listing Service: trademarks owned by the Canadian Real Estate Association; used in conjunction with a real estate database service, operated by local real estate boards, under which properties may be listed, purchased and sold.
MORATORIUMLegislation enacted to assist debtors by postponing or suspending their contractual payments.
MORE OR LESSTerm often found in a property description intended to cover slight, unimportant or insubstantial inaccuracies to which both parties are willing to assume risk.
MORTGAGEThe legal pledge of real estate as security for a loan. Lenders consider both the property (security) and the financial worth of the borrower (covenant) in deciding on a mortgage loan.
MORTGAGE BANKERBy legislation a chartered bank authorized under the BANK ACT of Canada to take deposits from individuals for placement in mortgages, by pooling these deposits and funding mortgages. The security for the depositor is an interest in the mortgage through the bank. A mortgage broker cannot by law pool money from individual depositors and fund mortgages, unless licensed to do so under other legislation.
MORTGAGE BONDA bond issued by corporations and secured by a mortgage on their property.
MORTGAGE BROKERA person who originates real estate loans and allocates mortgage funds. These funds are placed on behalf of others, through negotiation of lenders and borrowers for the best possible arrangement and satisfaction of all concerned. Licensed in Ontario by the Ministry of Financial Institutions. Could also be known as an underwriter, correspondent or investment dealer in a mortgage transaction. The mortgagor pays the broker a fee for arranging the mortgage.
MORTGAGE COMMITMENTA formal indication by a lending institution that it will grant a mortgage loan on property, in a certain specified amount and on certain specified terms.
MORTGAGE DEBENTURESynonymous with mortgage bond.
MORTGAGE INSURANCEApplies to high-ratio mortgage; the borrower arranges and pays for the insurance, which protects the lender against default, if the borrower is unable to repay the mortgage.
MORTGAGE LIFE INSURANCEPays off the mortgage if the borrower dies.
MORTGAGE LOANAn agreement by which a sum of money is borrowed and a promise to repay is given, wherein as a further security the borrower gives to the lender a conveyance or charge on property which he owns.
MORTGAGE NOTEA promissory note executed in favour of the lender giving him an encumbrance or lien on the borrower’s property. A mortgagor is usually personally liable on the note.
MORTGAGE PORTFOLIOSeveral mortgages held by a mortgagee, lender or broker en bloc.
MORTGAGE POSTPONEMENTThe process whereby a mortgagee may permit the borrower to renew or replace an existing mortgage that falls due prior to the maturity date of the subject mortgage.
MORTGAGEEThe lender.
MORTGAGEE IN POSSESSIONA mortgagee goes into possession by entering into actual occupation of, or by obtaining the receipt of, the rents of the mortgaged premises.
MORTGAGING OUTTerm applied to a mortgage which exceeds the current value of the property on which it is secured. This type of mortgage may be obtained on improvable property where the security is based on future value and future earnings which are expected to exceed construction costs.
MORTGAGORThe borrower.