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Brief Glossary on Mortgage terms

by Stewart J Lowe & Associates

GLOSSARY OF MORTGAGE TERMS

 

A BRIEF GLOSSARY OF MORTGAGE TERMS

You are advised to always take Mortgage advice from your mortgage broker.

AMORTIZATION

The period of time, most often 15, 20 or 25 years, required to reduce a debt to zero when payments are made regularly.

APPRAISAL

A process for estimating the market value of a particular property.

APPROVED LENDER

A lending institution authorized by the Government of Canada through CMHC to make loans under the terms of the National Housing Act. Only Approved Lenders can negotiate mortgages which require mortgage loan insurance.

ASSUMPTION AGREEMENT

Courtesy of Quantus Mortgage Solutions. Al Nenshi  Alnenshimortgages.com

MORTGAGE F A Q's - Al Nenshi

by Stewart J Lowe & Associates

MORTGAGE F A Q's

Two types of mortgages: 

High Ratio and Conventional Mortgages.

What is a High Ratio Mortgage?

A high ratio mortgage is a mortgage where the down payment is less than 20% of the purchase price. A high ratio mortgage is a mortgage with a loan to value ratio of more than 80%.  With a high ratio mortgage, you must qualify for mortgage insurance.

What is a conventional mortgage?

A conventional mortgage is one where the down payment is equal to 20% or more of the purchase price; a loan to value of or less than 80%, and does not normally require mortgage loan insurance.

What is a down payment?

Very few home buyers have the cash available to buy a home outright. Most of us will turn to a financial institution for a mortgage; the first step in a potentially long-standing relationship. But even with a mortgage, you will need to raise the money for a down payment. The down payment is that portion of the purchase price you furnish yourself. The amount of the down payment (which represents your financial stake, or the equity in your new home) should be determined well before you start house hunting. The larger the down payment, the less your home costs in the long run. With a smaller 

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Photo of Stewart J. Lowe &  Associates Real Estate
Stewart J. Lowe & Associates
Real Estate Professionals Inc
202 5403 Crowchild Trail
Calgary AB T3B 4Z1
Direct: 403-850-0669
Fax: (403) 476-7608