A binding contract whereby the seller retains title to the property until the purchaser pays the full purchase price. Standard terms include:
—Possession date
—Conditions applicable to sale, including:
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subject to obtaining financing; subject to approval by a third party (such as a spouse); subject to sale of a current residence; or, subject to a satisfactory building, furnace, or wiring inspection.
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Deposit whish is normally held in trust by the realtors or lawyers until the Agreement is completed.
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Chattels or other property which may be included in the sale, such as: appliances, sheds, garage door openers.
Length of time it will take to repay fully the mortgage money to the lender.
A warning or notice, registered at Land Titles Office, that a third party has an interest in that property.
A mortgage which does not permit early payment or additional payments, except those allowed
in the mortgage. If additional payments are made, it is often in conjunction with payment of a penalty.
When a borrower makes a down-payment of less than 25%, the mortgage is considered a high-risk mortgage and the borrower must apply for a CMHC mortgage.
A loan available when the borrower makes a minimum down-payment of 25%.
The difference between the market value of the property and any money still owing against the property.
An action to collect money owing under a mortgage or to take title of a mortgaged property. If a borrower defaults on payments, the lender may initiate foreclosure proceedings.
A claim registered against the title to secure payment for work done in relation to the property.
The financial institution, usually a bank or credit union, that lends the mortgage money.
To ensure the balance owing on the mortgage will be paid out in the event that the property owner dies.
