NATIONAL HOUSING ACT MORTGAGEA first mortgage, originated by an approved lender, granted under the terms of, and insured under, the National Housing Act of 1954.
NHAThe NATIONAL HOUSING ACT (1954) provides for insuring loans made by approved lenders and for direct mortgage lending under a variety of programs by Canada Mortgage and Housing Corporation to improve housing conditions in Canada.
NEGATIVE CASH-FLOWWhere operating costs exceed gross rental income or debts.
NET OPERATING INCOME (NOI)The balance remaining after deduction of operating expenses from gross receipts and gross rental, but not including the deducting of debt service on mortgages. Free and clear return on property is calculated by the ratio of NOI to total investment including mortgages and equity. This gives a direct means of comparing the return on different properties.
NET RATE OF INTERESTThe interest rate received by a mortgage lender net of the servicing fee deducted by a loan correspondent.
NET WORTHYour total financial worth, determined by subtracting your total liabilities from your total assets.
NOMINAL INTEREST RATEInterest rate stated on the face on a loan document. However, if the loan amount is discounted or sold at premium, the effective rate of interest will either be higher or lower. Often referred to as ‘effective rate’.
NON-RECOURSE LOANA clause in a loan which waives personal liability of the borrower on the loan.
NOTICE D.O.R.Notice filed in court by mortgagor under foreclosure proceedings that he desires an opportunity to redeem.
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