The period of time required to reduce a debt to zero when
payments are made regularly. Amortization periods are most often
15, 20, or 25 years long.
Most lenders allow borrowers to make a payment on the
anniversary of the mortgage. (For a mortgage assumed on June 1,
a payment can be made every subsequent June 1 for the term of
the mortgage.) It is applied against the principal and is a good way
of reducing a loan.
A process that determines the market value of a property.
An estimated value of a property that is completed by a certified
appraiser for mortgage financing.
A lending institution authorized by the Government of Canada to
make loans under the terms of the National Housing Act. Only
Approved Lenders can negotiate mortgages that require mortgage
A legal document signed by a homebuyer that requires the buyer to
assume responsibility for the obligations of a mortgage by the
builder or original owner.
Where demand for property equals the supply of available property.
Sellers usually accept reasonable offers and houses generally sell
in sufficient time periods. Prices remain stable and there is usually
a good number of homes to choose from.
A mortgage payment that includes principal and interest. It is paid
regularly during the term of the mortgage. The payment total
remains the same, although the principal portion increases over
time and the interest portion decreases.
A certificate that must be obtained from the municipality by the
property owner or contractor before a building can be erected or
repaired. It must be posted in a conspicuous place until the job is
completed and passed as satisfactory by a municipal building
When there is a higher number of homes to choose from than
buyers in comparison. Prices of homes tend to be lower and they
remain available for sale longer. Buyers