The highest price which a buyer, willing, but not compelled to buy, would pay, and the lowest a seller, willing, but not compelled to sell, would accept.
A title that may not be completely clear but has only minor objections that a well-informed and prudent buyer of real estate would accept.
The final day of the term of the mortgage.
Metes and Bounds
A system of land description whereby all boundary lines are set forth by use of terminating points and angles. Metes refers to a limit or limiting mark and bounds refers to the boundary lines.
A rate which when multiplied by each one thousand dollars of property assessment gives the annual real estate taxes.
A period during which a borrower is granted the right to delay fulfillment of an obligation.
Any charge on real property as security for a loan.
One who originates mortgages with the intent to sell them to permanent investors with an agreement that the originator service these loans for the investor.
In recent years, there has been an increased activity in mortgage bonds, mainly for larger loans. When a very large loan is required, the number of potential lenders is limited. A loan in the category of $50,000,000 for instance, is usually made by the mortgage bond method that is really a device for dividing up the loan. A bond could be issued for an amount as low as $100,000 and sold to various pension funds through investment dealers on a public issue, or more commonly sold as a private placement issue.
See Loss Payable Clause.
The percentage of the mortgage paid in equal regular payments that provide principal reduction and interest payments over the life of the mortgage. Usually expressed annually.
Mortgage Impairment Insurance
A master insurance policy carried by mortgage lenders that provides him or her with insurance proceeds in the event of an otherwise uninsured loss of a property securing their debt. Some policies also insure losses resulting from the borrower's failure to pay real estate taxes.
Required if you are contributing between 5% and 25% of the value of the property as the down payment. Available through CMHC or GECMIC covering whole or partial losses of principal and interest.
Mortgage Investment Corporation (MIC)
An investment vehicle pursuant to the Income Tax Act.
The aggregate of mortgage loans held by an investor.
The process of managing the mortgage administrative duties.
The length of time the interest rate is guaranteed for a mortgage. Mortgage terms normally range from 6 months to 5 years or more, after which time you can repay the balance of the principal owing or re-negotiate the mortgage at current rates.
An NHA MBS represents an undivided interest in a pool of insured residential first mortgages. As mortgages, these financial instruments are secured by the value of the underlying real estate. NHA MBS carry the CMHC Timely Payment Guarantee and, as such, represent an obligation of the Government of Canada.
Situation when the total mortgage debt equals or exceeds the market value or cost of the property.
The lender or creditor. A mortgagee goes into possession when he or she deprives the mortgagor of the management and control of the mortgaged property.
The borrower or debtor.