Also know as the Statement of Financial Position or Statement of Assets and Liabilities is a listing of the assets, liabilities, and owners' equity of a business enterprise at a specific point in time. The assets must equal the liabilities plus the owners' equity.
The payment of the principal balance of a mortgage loan outstanding on maturity of the term. A balloon mortgage is one that does not fully amortize over its term to maturity.
The rate at which the Bank of Canada charges loans to the chartered banks. This is the rate on which lending institutions base their prime lending rate.
One one-hundredth of one percent. Used to describe the amount of change in yield in money debt instruments, including mortgages.
A provision in a governing act which allows trust and loan corporations to make investments and loans not authorized, but not specifically prohibited, on up to usually about 7% of assets.
A durable post, block or other device established by surveyors to indicate a definite point from which elevations are set.
A temporary agreement whereby one party agrees to insure another party pending receipt of, and final action upon, the application for insurance.
A single mortgage registered against two or more individual parcels of real property.
Regular equal mortgage payments combining interest and principal components.
A new interest rate on an increased mortgage loan which is derived from a formula which takes into account the interest rate and remaining term on the existing loan and the derived rate and term on the new funds being advanced.
In good faith, with valuable consideration and with absence of notice of any problems.
1. A sum paid by the mortgagor, or retained by the mortgagee from the advance of mortgage money, as part of the consideration for the making of the loan. 2. A sum paid by the mortgagor to the mortgagee as consideration for prepayment of all or part of the principle outstanding.
The capital amount at which property is shown on the books of an account. Usually it is the original cost, less reserves for depreciation plus additions to capital.
A document evidencing that a corporation has the power to borrow under its company charter.
Breach of Contract
Failure without legal reason to perform any promise that forms the whole or part of the agreed terms contained in the contract.
A loan provided to the borrower to provide financing for purchase, pending closing of the sale of their existing property.
Builder's Risk Insurance
Fire and extended coverage insurance for a building under construction. Coverage increases automatically as the construction progresses and terminates at completion.
A set of minimum regulations respecting the safety of buildings with reference to public health, fire protection and structural sufficiency.
Bundle of Rights
Legal rights which real estate ownership embraces which include the right to use, sell, lease, enter, or to give away the property, plus the right to refuse to take any of these actions.
A lump sum payment as consideration for the reduction in the interest charged on a loan from that which would normally be charged.