Mortgage Glossary


We pride ourselves on having the most in depth glossary of mortgage and mortgage related terms on the web. If you come across a word that has not come to our attention as of yet, please leave it in the comments section at the bottom of the page and we will do our best to add it within 24 hours.

*This area is constantly updated: Currently featuring 817 mortgage related definitions*

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A

Abandonment
A disclaimer of ownership by a trustee or debtor in property deemed burdensome or inconsequential. Once a property has been “abandoned,” it is no longer the property of the estate, and creditors can seek to recover their money.
Abatement
A reduction
Absolute Frequency
Number of times each data value occurs within a distribution.
Abstract/Abstract Book
A book in the Registry system that records registered interests in land; record of all registrations affecting a parcel of land.
Abstracting
Process of examining and summarizing into search notes the contents of all registered documents that affect title.
Abstract of Judgment
A court document that states how much the loser of a lawsuit owes, and which creates a lien, or a claim on property, when filed with the county recorder where the property is owned.
Abstract of Title
Located in the Registry System: A condensed history of the title to a parcel of land. The abstract consists of a synopsis of every recorded instrument affecting the title to that land arranged in chronological order of recording.
A-Credit
A consumer with the best credit rating, deserving of the lowest prices that lenders offer. Most lenders require a Beacon score above 720.
Accelerate
To demand immediate payment
Accelerated Bi-Weekly Mortgage Payments
Mortgage payments which are made every 2 weeks for a total of 26 payments per year. Not to be confused with semi-monthly mortgage payments.
Acceleration clause
Clause permitting mortgagor to demand immediate payment of the full amount of the loan in the event of default.
Acceptance
A property seller’s formal, written approval of a buyer’s offer.
Account Agreement
An agreement that you sign and which lists your rights and responsibilities and the bank’s rights and responsibilities for the bank account.
Accounting Method
The method used by a business or individual to keep records. Most individuals and small businesses use the cash method, although businesses that maintain inventory are required to use the accrual method. See also “Accrual Method” or “Cash Method.”.
Accounts Payable
Money owed by a business for goods and services received.
Accounts Receivable
Money owed to a business by purchasers of goods and/or services.
Accrual Basis
Accounting procedure which recognizes revenue at the time it is as opposed to when it is actually received. This method ties in with Revenue Principle. Contrast with Cash Basis.
Accrual Method
Business accounting in which you report income in the year you earned it and expenses in the year you incur them, rather than reporting income and expenses when you receive payment or when you pay the expenses. Under this method, if you built a deck and billed the client in December 1999, the amount you charged would be reported in 1999 as income even if you didn’t get the payment until January 2000. If you own a business that maintains an inventory, you are required to use the accrual method.
Accrue
To come into possession or gather together an amount, often over a period of time.
Accrued interest
Interest that is earned but not paid, adding to the amount owed.
Acknowledgement and Direction
Document signed by parties to a real estate transaction authorizing their respective lawyers to sign and release the document electronically on their behalf.
Acquiring Financial Institution
Vendors must maintain an account with a financial institution to receive credit for credit card transactions. Daily credit card totals are deposited into the vendors account minus any charges or fees.
Acquisition Fee
A fee charged by some leasing companies for originating the loan, just as some mortgage lenders charge points as an origination fee.
Acre
Converted is 43,560 square feet.
Acre Foot
The material needed to cover an acre of land that is one foot deep.
Act of God
Insurance policies refer to this as an event caused by natural forces such as rain, tornado, hail, lightning, earthquakes or floods, which results in damage to property.
Active Income
Income, such as wages, tips and profits from your own business that you participate in. This also includes portfolio income, such as interest and dividends.
Actual Age
The time in years since a structure was erected. Not the same as effective age.
Actual Cash Value
The actual value of an asset once depreciation and other market values are taken into account.
Actual Value
Actual value as determined by the assessor. This value, in thousands of dollars, when multiplied by the tax rate equals the amount of real property taxes payable.
Add-on Interest
Interest that is calculated at the beginning of the loan, and then added to the principal. The grand total must be repaid, even if the loan is paid off before the term expires.
Addendum
Any change made to a contract.
Additional Principal Payment
Payments made on top of the regular principal and interest payments of your mortgage. These payments can be pre-authorized through your lender.
Additional Property
Any real estate that a person may own and is not being financed.
Adjustments on Closing
There are two types of adjustments for which a buyer can be charged on closing

-Prepaid services — Where the sellers have prepaid property taxes or certain utilities, the buyers can be charged for the amount of prepayment on a pro-rata basis, depending on the date of occupancy. For example, if the sellers have paid the property taxes to the end of the year, and the sale closes on October 16th, the purchasers will be charged with an adjustment of 76 / 365’ths (the number of days remaining in the year) of the total paid for the year.

-Interest –This is the amount of interest required to be prepaid up to the Interest Adjustment Date (IAD). IAD is the point at which the mortgage interest starts accumulating “in arrears”. In Canada all mortgage interest is calculated and paid after the period to which it applies. This differs from the way in which rental and lease payments are calculated, which is “in advance”.

Adjoining Land
Property that shares a common boundary with the property being searched
Adjustable Rate Mortgage (ARM)
A mortgage loan where the interest rate and payments may be adjusted frequently. The term and or principal loan balance may also adjust to reflect the rate change.
Adjusted Balance
A method used by card issuers in which they subtract all payments made during the month before they add the finance charges to your total.
Adjusted Basis
The amount used to determine a profit or loss from a sale or exchange of property. This is done by taking the amount you originally paid, add your cost of assessments and improvements, then subtract deductions like depletion or depreciation to get your adjusted basis.
Adjusted Cost Basis
The amount paid for an item, added the amount spent on improvements, subtract losses and depreciation.
Adjustment Period
The time between fluxuations in the interest rate in an adjustable-rate mortgage.
Advanced
Given or provided
Adversely
Without the owner’s permission
Adverse possession
Valid title to land through open, visible, and uninterrupted possession of that property, without the owners permission, for a period of at least 10 years.
Adverse Use
Use of a property without permission without the owners permission.
Advocacy Agency
Serving both landlords and tenants, these agencies represent the concerns of renters and property owners to governments and serve as places to go for help or mediators in the case of a dispute.
Affiant
A person who swears to the truth of statements set out in her affidavit.
Affidavit
A sworn statement of facts that can be used as evidence in court proceedings in lieu of oral evidence.
Affidavit of Documents
An affidavit in which the party will identify those documents that are relevant to the issues in the proceeding and that he has in his possession, power, and control and can produce; he must also identify those documents that he once had in his possession, power, and control bit no longer has and those that he objects to producing; privileged documents, such as solicitor-client correspondence, will fall in the latter category; the documents being produced and relied on are contained in a document brief that is filed as evidence in the proceeding and may be referred to in court.
Affidavit of Spousal Status
Affidavit attached to a deed (in use after 1978 until the Land Registration Reform Act came into force) that provided evidence of the marital status of the grantors or transferors
Affinity Card
A credit card that has a promotion arrangement with an affiliated organization which is often a charity or non-profit group. The logo of the group or charity appears on the card and they usually get a percentage of the sales made on the card.
Affordability
A consumer’s capacity to afford a house. Affordability is usually expressed in terms of the maximum price the consumer could pay for a house and the size of the mortgage amount they qualify for.
Agency
A relationship between two parties, a client and an agent, in which the agent represents the client in transactions with a third party.
Agency Closing
Use of a title company to supervise the final meeting where the property is transferred and mortgage is settled in full.
Agent
A person who acts on behalf of another. In real estate, an agent is a person who conducts transactions on behalf of sellers and sometimes the buyers as well.
Agreed Boundary
Property lines that are drawn to settle disputes between neighbouring property owners.
Agreement of Purchase and Sale
Contract created once an offer of purchase and sale has been accepted . The offer may be firm (no conditions attached), or conditional (certain conditions must be fulfilled before the deal can be closed, i.e. upon financing, upon inspection).
Air Miles
Rewards issued by airline-affiliated co-branded cards. Air miles are earned with use of the card, and then transferred to the cardholder’s account with a specified airline.
Alienation Clause
A clause that requires the borrower to pay the mortgage in full upon transfer of the property.
Alimony
Monthly payments received by an ex-spouse.
Allowances
Money set aside by builders for amenities, such as landscaping, carpeting, driveway and fixtures that are standard with optional designs to choose from.
Alternative Minimum Tax
This tax mainly affects high income taxpayers who shelter some of their income from tax through certain tax preference items or deductions. Often referred to in tax publications as AMT and, if your income meets the limit, you have to recalculate your tax due based on the separate alternative minimum tax rates and tables.
Alternative Mortgage
A mortgage that is not considered a standard fixed-rate mortgage.
Amenities
Extra conveniences such as stores, malls, transit, parking, restaurants, theatres, service outlets, needed from day to day as well as common areas exclusive to owners.
Amortization
With a mortgage, the borrower agrees to pay back the amount borrowed over a period of time. This breaking of the loan into smaller parts to be paid back over set blocks of time is amortization.
Amortization Period
The time over which all regular payments would pay off the mortgage. This can be between 10 and 37 years but you could pay your mortgage off sooner if you have the money.(penalties may apply)
Amortization Schedule
A schedule setting out the breakdown of each monthly blended payment between principal and interest and the remaining principal balance after each payment
Amortization Table
A mathematical formula for calculating a borrower’s monthly payments, based on the interest rate, the amount borrowed and the length or term of the loan.
Amortization Term
The amount of time required to amortize (fully repay) the mortgage loan.
Amortized Loan
A loan that is completely paid off, interest and principal, by a series of consistent payments.
Amount Due at Lease Signing
The total amount due before the consumer can take delivery of the leased asset.
Amount Financed
The principal amount that has been borrowed. This could include fees for the loan.
Angels
Used to describe private individuals who have capital to invest in business enterprises.
Annexation
An attachment
Annual Fee
A charge for use of a credit card or service levied each year and billed directly to the customer’s monthly statement.
Annual Mortgagor Statement
A report sent to the borrower every year stating the amount of principal owing on the home loan and the amount paid in taxes and interest during the previous year.
Annual Percentage Rate (APR)
A yearly rate of interest that includes fees and costs paid to acquire the loan. Lenders are required by law to disclose the APR. The rate is calculated by taking the average compound interest rate over the term of the loan so that a borrower can compare loans. Used in mortgages, it is the interest rate of a mortgage when taking into account the mortgage insurance, interest and certain closing costs including any fees or points paid at closing.
Annual Percentage Yield (APY)
The percentage disclosed on interest bearing deposit accounts that reflects the total interest to be earned based on an institution’s compounding method, assuming funds remain in the account for a total 365 days.
Annuity
Regular periodic payments made by an insurance company to a policyholder for a specified period of time.
Anticipatory Breach
Notification that one party to a contract plans to renege, releasing the other party from having to fulfill its end of the agreement.
Application
An statement of personal and financial information which is required to approve your loan.
Application Fee
Charged by the lender to process the document in which a prospective borrower details their financial situation to qualify for a loan.
Appraisal
The process of determining the value of property, usually for lending purposes. This value may or may not be the same as the purchase price of the home.
Appraisal Fee
Charged to deliver a professional opinion about how much a property’s value is.
Appraisal Report
A detailed evaluation for the value of a property based on an inspection and a review of values of comparable properties in the area.
Appraisal Value
An estimate of the market value of the property.
Appraiser
A person that is qualified through education, training, and experience to estimate the value of real and personal property.
Appreciation
A rise in the value of a currency or commodity relative to another currency or commodity.
Approval
An evaluation by a lender of a borrower’s ability to pay for a home as well as a confirmation of the amount the borrower may obtain.
Approved Lender
A financial institution that is authorized by Canada Mortgage and Housing Corporation (CHMC) to make loans under the National Housing Act. Only approved lending institutions can arrange mortgages that require mortgage loan insurance.
Arbitration
A resolution method for disputes in which an impartial third party, agreed upon by all sides beforehand, makes a decision in regards to the given dispute.
Arbitrator
A person selected to settle the issue between parties engaged in a dispute.
Architect
A person who designs buildings.
Architectural Fees
Charged as compensation by a person who designs buildings.
Area Sampling
See cluster sampling.
Arithmetic Mean
A measure of central tendency, given by the sum of all the numbers under consideration, divided by the number of numbers. This mean is denoted by µ and is also referred to as the expected value.
Arms Length
A transaction between unrelated entities where a willing seller (the seller is not forced or coerced to sell) transacts with a willing buyer (the buyer is not forced or coerced to buy).
Arrears
As a verb, the state of being behind in fulfilling obligations. As a noun, an unpaid, overdue debt or an unfulfilled obligation.
Arrears of Rent
Unpaid rent that is owed to a landlord
Arpent
An area equal to approximately 0.845 acres. Nowadays, acres and hectares are more commonly used measurements of area.
As Is Where Is
It is the buyers responsibility to examine the goods or property and buy at their own risk.
Asbestos
A fire resistant element that was once used for insulation.
Asking Price
The amount of money a seller requests for property or items
Assessed Value
A province or local government’s determination of a property’s worth for the purposes of taxes.
Assessment
The “assessed” value of a property is an estimate of the value of your property used by a municipal (local) government as a basis for calculating annual property taxes.
Assessment Rolls
Lists of taxable properties.
Asset Case
A bankruptcy proceeding where there are non-exempt assets that may be available to pay the claims of creditors.
Assets
What you own or can call upon. Often used in determining net worth or in the process of securing financing.
Assign
If a tenant leaves before a lease expires and the lease, along with responsibilities, are assumed by the incoming tenant. Also see sublet.
Assignment
Arrangement whereby a tenant transfers tenancy to another person for the reminder of the tenancy’s term. In the case of a mortgage, the transfer of a mortgage from one person to another.
Assignment in Bankruptcy
Debtors who find that there is insufficient income to pay debts as they come due can retain a trustee in bankruptcy and assign all of their assets to the trustee for distribution to creditors, after which debtors may emerge from bankruptcy voluntary bankruptcy, is distinguished from a petition in bankruptcy, which is involuntary and where a creditor forces the debtor into bankruptcy by filing a petition in bankruptcy.
Assignment of Interest
Most Provinces allow a legal assignment of interest in a mortgage to have full legal effect without having to discharge and re-register the existing one. This is particularly useful in:
Switch situations, where the costs of transferring lenders would otherwise be very high.
Second mortgage situations where a postponement may be difficult to obtain.
Assignor
The person who transfers property to another person.
Assumability
The ability of a mortgage to be taken over by another borrower.
Assumable
An obligation or a loan that can be taken over by another borrower.
Assumable Mortgage
A mortgage which a qualified buyer can take over from the current owner of a property upon its sale. Assuming a mortgage can provide a buyer with a below market interest rate, (if rates are now higher), as well as saving on the legal costs of creating and registering a whole new mortgage. “Assumption” entails a simple amendment to the mortgage document registered on title. Also see switch
Assumed Charge
Existing charge taken over by the purchaser, who pays the vendor the purchase price of the property minus the outstanding balance of the charge
Assumption Agreement
A legal document signed by a home buyer that requires the buyer to assume responsibility for the obligations of a former owner’s mortgage. *If someone assumes your mortgage, make sure that you get a release from the mortgage company to ensure that you are no longer liable for the debt.*
Assumption Clause
In a mortgage contract there is a provision that allows a buyer to take responsibility for the loan from the seller.
ATM Access Fee
A fee that is charged, in addition to the account fees, for an account holder to gain access to their funds through the system.
ATM Alliance
Banks and/or credit unions working as a group to provide access to a clients funds without surcharges when using an ATM machine.
ATM Card Fee
The fee that is charged, in addition to individual account fees, for the ability to use ATM machines specifically for the amount of times stated without surcharge.
ATM Surcharge
The fee charged by an ATM machine for a non-account holder.
Audit
An examination by the Federal Government of a taxpayer’s return to see if they have paid the appropriate taxes owed.
Authorized User
A person to whom you give permission to use your credit.
Automated Banking Machine (ABM)

A terminal that uses a magnetic strip on a card to exchange account information and give access to funds. Automated Banking Machines are owned by banks.

Automated Registry
Computerized abstract listing all registered documents, including those registered prior to automation
Automated Teller Machine (ATM)
A computerized terminal, activated by a card with a magnetic strip, that allows their customers to conduct banking tasks such as withdrawals, deposits and transfers between accounts.
Automatic Payment
Authorized periodic withdrawals made from a chequing or savings account to pay their bills as set up in advance.
Average Annual Yield
Average yield per year over the life of the investment, assuming all principal and interest remain on the deposit until maturity.
Average Daily Balance
An average daily balance is determined by adding each day’s balance, then dividing that total by the number of days in a billing cycle. The average daily balance is then multiplied by a card’s monthly periodic rate. This is calculated by dividing the annual percentage rate by 12. This is method by which most credit cards calculate your payment due.
Average Tax Rate
The rate of taxes you pay after taking into account various federal tax brackets. The higher your income, the higher your tax rate.
Aviation Easement
An pre-stated agreement that grants the right to fly airplanes over a property, even if the practice causes damage, inconvenience, or loss of property value. This agreement usually restricts the property owner from building over a specified height.

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Back Title Letter
A title insurance company gives this document to an attorney stating the condition of the title.
Backup Offer
A bid that a property owner will consider for a property if the current transaction somehow falls through.
Bad Debt Allowance
An estimate of the amount of rent that may become uncollectible from the tenants of occupied units (also known as collection loss allowance).
Bad Debts
Money that can not be collected. Businesses are able to deduct bad debts under certain circumstances.
Balance
The amount of funds in your account.
Balance Due on Closing
Exact amount the purchaser pays to the vendor when the real estate deal closes
Balance Due on Completion
The amount of money the purchaser will be required to pay to the vendor to complete the purchase, after all adjustments have been made.
Balance of Payments
Composed of both the current account, which records the flow of goods and services (as well as investment income and transfers), and the capital account, which records the flow of capital assets. In theory one account should offset or “balance” the other. i.e. If office furniture is purchased with cash, the office furniture would show a credit(go up) and the cash account would show a debit(go down).
Balance Sheet
A financial statement listing. Assets, Liabilities, and Owner’s Equity at a specific point in time. Also known as a Statement of Financial Position or Statement of Assets and Liabilities.
Balance Transfer
Moving an unpaid credit card debt from one issuer to another. In other cases moving funds from one financial institution to another.
Balance Transfer Fee
The fee charged to customers for transferring an outstanding balance from one credit card issuer to another.
Balloon Loan
A loan where the payments are not set up to pay off the loan in full by the end of the term. Periodically you are allowed a balloon payment that goes directly towards the principal portion of your loan.
Balloon Mortgage
A mortgage where the payments are not set up to pay off the mortgage in full by the end of the term. At the end of the term you are allowed a balloon payment that goes directly towards the principal portion of your mortgage.
Balloon Payment
A lump sum payment for the unpaid balance of the loan. An option usually provided by the lender once a year without penalty.
Bank
A financial institution that acts as a intermediary by receiving money deposits from clients and lenders. Banks lend money to borrowers.
Bank Holding Company
A company that controls or owns one or more companies or banks that are associated with banking.
Bankruptcy
A tactic that individuals use to relieve themselves of debts and/or liabilities when they are no longer able to repay those debts and liabilities.
Bankruptcy Court
In Ontario, several judges of the Superior Court with expertise in bankruptcy law have been assigned to sit in what is called Bankruptcy Court, which is not a formal statutory part of the Superior Court; its judges sit in Toronto, Ottawa, and London.
Bankruptcy Trustee
A corporation or private individual appointed to undertake bankruptcy proceedings for another individual or corporation.
Bank Spread
Difference between the interest rate a bank pays a depositor and the interest rate a bank charges a borrower.
Bank Wire
A type of electronic payment system for the safe transfer of money between banks.
Bargain Sale
Transfer of an item or property for less than market value.
Bar Graph
A graph of the relationship between the data values for ungrouped data and their frequencies for grouped data. Same as a histogram.
Base Price
The cost of an item without any upgrades and usually refers to a car. This price includes all standard equipment and a manufacturer’s warranty.
Basis
The amount assigned to an asset from which a taxpayer determines capital loss or gain. When considering assets, the basis is the price paid. When assets are acquired through gift or inheritance, special rules apply.
Basis Point
1/100th of one percent. A unit of measure also referred to as Bps. For example, the difference between a loan at 4.0% and a loan at 4.5% is 50 basis points or 50 Bps.
Beacon score
A credit rating, also referred to as a credit score, used by banks and other lenders, indicating a person’s credit worthiness as poor, fair, good, or excellent, in comparison to others.
Bedroom Community
A suburb in which majority of the residents commute to the city to get to work.
Bearing Wall
The side of a structure that provides support for the roof or other parts of the structure.

Before Tax Income
Earnings before income taxes are deducted.
Best Fit Regression Line
That regression line which minimizes the sum of the squared errors by the least squares method.
Better Business Bureau
A private non-profit organization which offers services to businesses and to consumers. The main service to consumers is a rating on a member business which reflects the number of customer complaints received (if any) and how the complaints were settled.
Bimodal
Refers to a distribution with two modes.
Bivariate Regression Analysis
The calculation of a straight line which best summarizes an assumed underlying linear relationship between variables.
Blanket Mortgage
A mortgage creating a lien against more than one property; developers use blankets mortgages when subdividing large parcels of land into many separate lots; a blanket mortgage is spread over the entire parcel of land, rather than applied to each individual lot.
Blended Payments
Payments consisting of both a principal and an interest component, paid on a regular basis (i.e. biweekly, semi-monthly, monthly) during the term of the mortgage. The principal portion of payment increases, while the interest portion decreases over the term of the mortgage, but the total regular payment usually does not change.
Block
Area of land created during the remapping of property under POLARIS.
Block Number
A five-digit number assigned to a block; the first part of the PIN
Bona Fide Purchaser for Value
Purchaser of property who gives valuable consideration for the property and is acting in good faith.
Bonus
The portion of the face value of a mortgage loan which exceeds the funds actually received by the borrower and which is intended as additional compensation for the lender.
Bonus Interest
Penalty of interest for a period of time, for early payment of a loan.
Book Value (of a mortgage)
The original face value of the mortgage less the amount of principal repayment, or the mortgage amount outstanding at a particular point in time. At origination, the book value and face value are the same.
Borrowing
Incurring an obligation to repay a debt in order to invest or consume more than one currently owns.
Breach
A violation of a law, contract, or obligation between two or more parties.
Bridge Financing
A loan made for a short term, to “bridge” (or cover) the time gap between completing the purchase of one property and finalizing arrangements to pay for it from the sale of another. The need for this type of financing often results from mismatched closing dates on the properties.
Broker
An individual in the business of assisting in the arranging of funding or negotiating contracts for a client but who does not loan the money himself. Brokers usually charge a fee or receive a finders fee for their services.
Brokerage
A license (often corporate) on behalf of which other licenses must provide real estate/mortgage services.
Brokerage Fee
A fee charged by a mortgage broker for arranging a loan.
Building Permit
A certificate issued by your municipality to the owner/contractor prior to any building being erected or repaired.
Business Cycle
The fluctuation of economic activity over time. These fluctuations follow a very defined pattern. Starting from a peak, the level of activity falls marking the entry into a recessionary phase. Activity drops to a low point from which positive growth resumes moving the economy into a recovery phase. Once the level of output surpasses the previous peak, the economy is characterized as being in an expansionary phase with positive growth continuing until a subsequent peak in activity is achieved.
Buy-Down
“Paying down” the mortgage rate by paying the lender a premium at time of funding. This is often used as a marketing feature by new home builders, particularly on high ratio second mortgages.
Buyer
Purchaser of the property.
Buyers Agent
A Realtor who acts contractually on behalf of the buyer.
Bylaw (municipal)
Law that is passed by a municipality
Bylaws (condominium)
Rules governing the internal operation of the condominium corporation

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Canada Deposit Insurance Corporation (CDIC)
This crown corporation provides deposit insurance against the loss of deposits made with financial institutions that are members.
Canada Mortgage and Housing Corporation (CMHC)
The National Housing Act (NHA) authorized Canada Mortgage and Housing Corporation (CMHC) to operate a Mortgage Insurance Fund which protects NHA Approved Lenders from losses resulting from a borrower defaulting on their mortgage.
Canadian Bankers Association (CBA)
A professional industry association that provides support services to the banking industry.
Canadian Bank Rate
The minimum rate at which the Bank of Canada lends overnight funds to the direct-clearing members of the Canadian Payments Association including chartered banks.
Canadian Payments Association (CPA)
An association composed of several financial institutions and the Bank of Canada. The association operates a national clearing system for financial institutions payments.
Capacity
A measure of the room to increase production on a sustainable basis with the current levels of capital and technology.
Capital Account
A component of the balance of payments accounting system that records the flow of capital assets between an individual country and the rest of the world.
Capital Gains Tax
Federal tax levied on the profit realized when capital property, other than a principal residence, is sold
Cap Rate
The highest rate that a borrower will pay within a defined time period. Examples are; the rate committed on a commitment letter or a mortgage pre-approval (also known as a “rate hold”).
Capitalization
Changing a stream of income to a capital market value (current market value) using a required rate of return.
Case Management
A process in which the court staff oversee a case as it proceeds to trial, ensuring especially that the case moves from one stage to the next on a schedule determined by the court.
Cash Basis
Accounting procedure with recognizes revenue art the time it is actually received in cash form. Contrast to Accrual Basis.
Cash-Equivalent Price (of an offer)
See Market Value (of an offer).
Cash Flow
The amount of cash derived over a certain period of time from an income-producing property. The cash flow should be large enough to pay the expenses of the income producing property (mortgage payment, maintenance, utilities, management costs etc.)
Carrying Costs
The expenses involve with living in and maintaining a home and property. This includes mortgage payments, property taxes, heating, hydro, repairs, maintenance fees, etc.
Caveat Emptor
Latin term meaning ‘let the buyer beware’
Ceiling
The maximum allowable interest rate over the life of the loan of an adjustable rate mortgage. Usually used by banks and referred to as the ceiling rate.
Certificate of Action
Certificate of the court verifying that a statement of claim has been filed in a construction lien action.
Certificate of Appointment of Estate Trustee With a Will
When someone dies with a will, he has usually named an executor (known as an estate trustee) to administer the estate in accordance with the will; an executor’s authority is derived from the will itself; the valid will and conforms the executor as estate trustee; an executor will often be named to act not only as estate trustee, but also a trustee for the administration of any beneficiaries who are under a disability, including minors and mentally incapacitated persons; these trusts may require the executor and trustee to administer them over a long period of time.
Certificate of Appointment of Estate Trustee Without a Will
When someone dies without a will, it is necessary for someone, usually a relative, to apply to the court for a certificate of appointment of estate trustee without a will; until the appointment is made, no one has authority to do anything with the deceased’s assets; once an appointment is made, the estate trustee may deal with the estate, settling its debts and distributing remaining assets to relatives in accordance with a statutory formula that determines the shares family members get.
Certificate of Location or Survey
A document that specifies the exact location of the building on the property and describes the type and size of the building including additions, if any.
Certificate of Search or Abstract of Title
A document setting out instruments registered against the title to the property, i.e. deed, mortgage, etc.
Certify Title
Describe the state of the owner’s title, including any limitations
Chain of Title
List of all owners within the 40-year search period.
Charge taken back
Another name for vendor take back charge.
Chargee
The lender or the mortgagor
Chargee in Possession
Chargee who takes possession of the charges property after default by the charger
Chargor
Borrower and owner.
Chattels
Movable possessions not attached to the real property. An item of tangible personal property (tangible means it is a thing, like a car); intangible personal property refers to a right to something of value-for example, a cheque, which is a right to payment.
Children’s Lawyer
Government official charged with protecting the best interests of children in the province.
Close-Ended group
A group from which both bounds are specified.
Closed Mortgage
A mortgage agreement that cannot be prepaid, renegotiated or refinanced before maturity, except according to its terms.(usually a penalty to opt out)
Closing Costs
Various expenses associated with purchasing a home. These costs can include, but are not limited to, legal/notary fees and disbursements, property land transfer taxes, adjustments for prepaid property taxes or condominium common expenses, appraisal fees, home inspection fees, insurance, P.S.T, G.S.T in the case of a new home, cost for title insurance, mortgage insurance if necessary and in some cases an application fee.
Closing Date
The date on which the sale of a property becomes final and the new owner usually takes possession of the property.
Cluster Sampling
A sampling procedure in which a population is divided into groups, some of which are randomly selected for further analysis; same as area sampling.
CMHC/Genworth/ AIG Insurance Premium
Mortgage insurance insures the lender against loss in case of default by the borrower. Mortgage insurance is provided to the lender by CMHC, Genworth Financial or AIG United and the premium is paid by the borrower.
Coefficient of Variation
A measure designed to allow comparisons between the standard deviations of two data sets.
Coerce
To compel or force someone to act or think in a certain way by the use of threats, pressure or intimidation.
Collateral
An asset, such as term deposit, Canada Savings Bond, or automobile, or equity in property that you offer as security for a loan.
Collateral Mortgage
A loan evidenced by a promissory note and backed by the collateral security of a mortgage on a property. The money borrowed is generally used for a purpose other than the purchase of a home, such as home renovations or a child’s tuition.
Commit Waste
Destroy, abuse, or make permanent undesirable changes to a property
Commitment Letter
A written commitment from a lender to lend mortgage funds to a specific borrower/borrowers as long as certain conditions are met within a specified time period before closing. A key component of the commitment, particularly in a period of volatile interest rates, is the “rate hold”, where a lender may “cap” a rate for a defined period, such as 60 days or 90 days. Commitments on financing for new homes, which usually have longer closing dates, can be negotiated between the lender and the builder and be held for as long as 6 months to even as long as a year.
Committee of Adjustment
Independent body appointed by a municipality with the authority to grant consent to conveyances that result in a severance.
Commodity
Raw materials such as crude oil, gold, iron, wheat, etc.
Common elements
Areas of the condominium development owned as tenants
Common Elements and General Index
Register that contains a description of the common elements and any easements and encumbrances that affect all the units.
Common Expenses
Monthly fees paid by unit owners to cover the condominium corporation’s obligations
Compliance Letter
Required in many municipalities throughout Canada before a property transfer can take place. This is an acknowledgment from the building department stating whether the property either has, or is clear of outstanding work-orders.
Compliance with Law Statements
Statements in which a lawyer confirms that all necessary legal requirements have been met.
Compound Period
The number of times per year in which the interest rate is compounded. In Canada, mortgages are generally compounded semi-annually, which is twice per year.
Compounding Frequency
Indicates the number of times compound interest is charged or calculated per year (for example, semi-annually or monthly).
Concession
Large parcel of land created during the original division of land in Ontario resulting from the creation of east-west road allowances in a township.
Condition Precedent
A situation where one must do A before one is allowed to do B-A is the condition precedent to the performance of the condition B.
Conditional Sale Contract
Also called a purchase money security agreement or a hire-purchase agreement; a slang term for this kind of contract is “buying on the never-never,” meaning that you never seem to stop paying in order to get title to (own) the chattel.
Condominium
A form of ownership in which the owner has title to a housing unit and also owns a share in the common elements (such as elevators, hallways, common area’s and perhaps the land).
Condominium Corporation
Corporation that comes into existence upon registration of the condominium plan.
Condominium Unit
Unit that is part of a condominium development.
Condominium Fee
A common payment among owners which is allocated to pay expenses associated with the developments upkeep.
Conditional Offer
An offer to purchase a property subject to conditions. These conditions may relate to financing, or the sale of an existing home. Usually a time limit in which the specified conditions must be satisfied is stipulated.
Connection Charges
Some local utility companies (hydro, gas, oil) charge a fee on closing to connect new buyers up to their service. More common, however, is the extra charge billed on the first billing.
Consent to variance
Committee of adjustment approval of a building or use of a property when it does not conform to a current bylaw and is not a legal non-conforming use.
Constitution Index
Register that contains the declaration, description, and bylaws of the condominium
Construction Lien
Lien against land that may be claimed be a person providing labour, services, or materials to a construction project.
Construction Loan
A short-term interim loan for financing the cost of construction. Majority of the time the lender advance funds to the builder at periodic intervals as the work progresses.
Consistency Payment Loan
A loan which is repaid by equal and consecutive instalments that include principal and interest.
Consumer Proposal
A plan put forth by a debtor to her creditors, through a trustee in bankruptcy, wherein a reduction of dept, interest, and /or a longer period to pay debts is suggested.
Consumer Spending / Consumption
Goods and services purchased by households for the satisfaction of their needs. Consumer goods are often divided into non-durables, such as food, semi-durables, such as clothing, and durables, such as cars.
Contempt
A contemptuous act demonstrates disrespect of defiance of the court and the administration of justice.
Continuous Variable
Variable which can theoretically assume any value between two other given values.
Convenience Sampling
A sampling procedure where the criterion for inclusion is the convenience of the sampler.
Conventional Mortgage
A mortgage that does not exceed 80% of the purchase price of the home. Mortgages that exceed this limit must be insured against default, and are referred to as high-ratio mortgages.
Conversion (of an Interest Rate)
The process of changing an interest rate with one compounding frequency to an equivalent rate with a different compounding frequency.
Convertible Mortgage
This allows you to convert your mortgage into a new mortgage of longer term while your old mortgage is still in effect.
Cooling-Off Period
A 10-day period during which the purchaser can back out of the purchase.
Co-operative
A form of ownership in which the owner has a share in the co-operative which actually owns the property. The individual owner has the right to live in a housing unit but does not own the actual unit.
Corporate Veil
In law, this refers to the distinct status of a corporation as a separate entity from its shareholders and corporate officers. Because a corporation is a separate entity, a person dealing with the corporation may not know the identities of the shareholders of officers. For example, the names of the owners of an incorporated business are not shown on its financial statements.
Corporation
A business entity which is owned by shareholders who decide in the general policies of the company through their elected Board of Directors. A corporation is a separate legal entity and therefore has the rights and liabilities of an individual. Shareholder do not share directly in the income of a corporation, but they may receive Dividends.
Cost Principle
A generally accepted accounting principle which states that the historical cost of an asset must be reflected in a company’s Financial Statements.
Counterclaim
Arises when A sues B and B defends A’s claim and makes her own claim against A.
Counteroffer
Offer tendered by the original offeree as an alternative to the original offer; also known as a sign-back.
Covenant
A promise.
Credit Bureau
An agency that maintains individual credit files on consumers. There are three credit bureaus companies in Canada. The most prominent being Equifax and TransUnion.
Credit check
A process where an individual has their credit history reviewed before credit is extended to them.
Credit File
A detailed history of money you have borrowed, credit you have used and whether you make bill and other payments on time. A credit file may list employment history as well as present and previous residences.
Creditor
A person to whom a debt is owed. Contrast to Debtor.
Credit Rating
A numerical score calculated using the information in your credit file. The credit rating is often used to determine a borrower’s credit worthiness and is sometimes referred to as a credit score.
Credit Report
A record of an individual’s payment history recorded and available through a credit bureau. Individuals can order a copy of their own report by contacting their local bureaus.
Credit Score
A numerical score calculated using the information in your credit file. The credit rating is often used to determine a borrower’s credit worthiness and is sometimes referred to as a credit rating.
Cross-Section Data
Data on one or more variables taken from the same time period.
Crosstab Analysis
Technique of data analysis in which a table is constructed showing the number of observations in the data set which have given values for each of the two variables.
Crosstab Table
The table produced in a crosstab analysis.
Crown in Right of Ontario
The legal title used to refer to the government of Ontario and how the government is usually named when it is a party to a legal proceeding.
Crown Patent
Grant of land by the Crown (the government) to the first owner.
Current Account
A component of the balance of payments accounting system that records the flow of goods and services (as well as investment income and transfers) between any one country and the rest of the world.
Cyclical Fluctuation
Fluctuation due too periods of growth or decline that occur with some regularity.

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Damages
Financial compensation for losses arising out of a breach of contract.
Day book
Record listing recent registrations not yet entered into the abstract book.
Debt Coverage Ratio
The number of items net operating income must cover the annual mortgage payments (principal and interest). For example, if the lender requires the borrower to earn $1,100 in net income to allow him $1,000 is annual mortgage payments, the ratio is 1.1:1. The lender usually states the ratio as a number exceeding one (i.e., 1.1) and the maximum allowable loan payment can then be calculated by dividing N.O.I by the number supplied (i.e., $1,100 ÷ 1.0= $1,000.) See also Ratio.
Debt Financing
Incurring an obligation to repay a debt in order to invest or consume more than one currently owns.
Debt Service
The making of mortgage payments by the borrower, as arranged with the lender.
Debt-Service Ratio
The percentage of a borrower’s gross income that will be used for monthly payments of principal, interest, taxes, heating costs and condominium fees.
Debtor
One who owes a debt. Contrast to Creditor.
Declarant
Upon registration, the person who owns the land described in the description and who registers the declaration and description that creates the condominium plan.
Declaration
Document stating that the property is governed by the Condominium Act, 1998 and providing the consent of all mortgages of the property, setting out the percentage of common elements associated with each unit and the percentage of common expenses that each unit owner will be required to pay, providing the address of the condominium corporation, and designating exclusive use common elements.
Declaratory Judgment
A judgment where the court declares the right of the parties on some issue before it; also referred to as a declaration.
Deed (Certificate of Ownership)
A document signed by the seller transferring ownership of the home to the purchaser. This document is then registered against the title to the property as evidence of the purchaser’s ownership of the property.
Deemed
Accepted as conclusive of a certain state of condition in the absence of evidence or facts usually required to prove that state or condition.
Default
Breach of one or more of the obligations contained in the charge; most commonly, the failure to remit principal and interest payments when due.
Default Judgment
A plaintiff obtains a default judgment when the defendant takes no action and files no defence when he is sued-in that case the defendant is deemed to have admitted the dept and the plaintiff may then present necessary documents to the court clerk, who will then, on behalf of the court, sign a judgment for the amount owing; no hearing is required, no oral submissions are made, and no judge is required to sign a default judgment.
Deflation
A decline in the general price level.
Demand Loan
A loan where the balance must be repaid upon request.
Deposit
Money deposited in trust by the purchaser when making an offer. It is held in trust by the vendor’s agent, broker, lawyer or notary until the closing of the transaction.
Deposit
Document containing a plan of survey of the condominium property, architectural plans of the buildings, specification of unit boundaries, unit diagrams, and the certificates of the architect and land surveyor
Deposit Rate
An interest rate that is paid for keeping money in a deposit account.
Default
Failure to make the monthly mortgage payments as agreed upon, or to meet other terms listed within the mortgage agreement.
Dependent Variable
That variable which is being predicted or explained in a regression analysis. Contrast to Creditor.
Deposit
An amount deposited with the brokerage by the purchaser when an offer to purchase is made.
Depreciation
A decline in the value of a currency relative to another currency.
Devaluation
An official lowering of the exchange value of a country’s currency relative to gold or other currencies.
Diarize
To record on a calendar the dates by which work must be completed
Digital Signature
Unique digital identifiers comparable to a password of bank PIN used by lawyers when documents are registered electronically.
Disbursements
Lawyer’s out-of-pocket expenses, or money actually spent on behalf of the client.
Discharge
Pay out and remove a mortgage connected to a property. To repay a debt in full.
Discharge of Charge
A document given by the charges to the chargor confirming that the loan has been pain in full and extinguishing the chargee’s interest in the property.
Discharge of Lien
Document registered on title that discharges a construction lien.
Disclosure Statement (in mortgage brokerage)
A schedule showing the face value of the loan, all costs associated with issuing the loan to the borrower, and the effective annual rate as required by the B.C. Mortgage Brokers Act.
Disclosure Statement (in development)
A document prepared by the developer of a subdivision to ensure that investors or purchasers have adequate information upon which to base a purchasing decision.
Discovery
A process where each party is asked questions under oath about the fact allegations in their pleadings and where the strength of the evidence with respect to the facts alleged can be tested; as well, credibility of the parties can be assessed and settlement options explored.
Discount Loan
A loan on which payments are determined by the face value, but where the borrower receives a lesser amount.
Discount Rate
The interest rate used to determine the present value of future cash flows.
Discounting
The process of expressing expected future income in terms of a present value.
Discrete Variable
Variable which can assume only a limited number of values.
Distress
When a tenant has breached a commercial lease-for example, by failing to pay the rent when due-the landlord may “levy distress” (an alternative way of describing this is to say that the landlord may “distrain the tenant”) on the personal property of the tenant found on the premises-that is, the landlord may seize the tenant’s personal property in the leased premises without obtaining a court order; the landlord can then sell the seized property and use the money form the sale as compensation for the damage done by the tenant to the landlord’s interests; this remedy may be used as an alternative to eviction but cannot be used in addition to it; it is not available for residential tenancies.
Distress
The right of a commercial landlord to seize and dispose of a tenant’s property.
Distribution
Shorthand term for frequency distribution.
Diversification
The process of investing funds in more than one project or industry in order to reduce the risk of incurring unexpected losses. The opposite of “putting all your eggs in one basket.”.
Document Registration Agreement
Agreement entered into but the lawyers for the parties dealing with the procedures for electronic registration and the escrow closing arrangement.
Dominant Tenement
Land that benefits from an easement.
Double Up
This feature is not offered by all lenders but it allows you to double your mortgage payments anytime without penalty.
Dower
Entitlement of a widow to a one-third life interest in the total value of any land that her husband owned during their marriage.
Down Payment
The amount of cash paid towards the purchase transaction by the buyer of a home. It is taken as a personal commitment for the purchase of the property.
Due on Sale Clause
Provision in a charge permitting the chargee to accelerate full payment of the loan in the event that the chargor sells the property and the chargee does not approve the purchaser.

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E-Reg
Electronic registration.
Easement
Right to use a portion of someone else’s land for a specific purpose, without requiring the owner’s permission.
Easement Implied by Law
Creation of an easement when the only way to gain access to a property is by crossing over another property.
Effective Annual Rate
An annual interest rate which is compounded once a year. This rate is used for disclosure purposes under the Mortgage Brokers Act.
Effective Interest Rate
The cost of credit on a yearly basis expressed as a percentage. This includes up-front costs paid to obtain the loan, and is therefore, usually a higher amount than the interest rate stipulated in the mortgage. (This is useful in comparing loan programs with different rates or points.)
Encroachment
Building or structure intruding upon someone else’s land.
Encumbrance
A claim against a property by another party which will affect the ability to transfer ownership of the property.
Equity
The interest of an owner in a property over the claims against the property. The difference between the market value of the property and any outstanding encumbrances.
Equity Take Out
When the owner takes a mortgage or larger mortgage on an existing property to obtain cash for other purposes such as investments, renovations or to put a child through college.
Equivalent Rate
Two interest rates are equivalent if, for the same amount borrowed, over the same period of time, the same amount is owned at the end of that period of time.
Error
The actual value of the dependant variable minus the predicted value of the dependant variable for any given observation.
Escheat
Reversion of property to the Crown.
Escrow Closing
Exchange and holding of funds, keys, and documents by the lawyers pending registration of the electronic documents
Estate
Interests in land that provides the right to exclusive possession.
Estate Trustee
The deceased’s legal representative for estate administration purposes; the estate trustee may be named in the will or approved by the court.
Estate Trustee During Litigation
A grant made under a court order appointing someone to act for the estate when there is a dispute about the validity of the will or about who should administer the estate; during litigation the estate trustee has control of estate assets but has no authority to make payouts until the court has dealt with the validity of the will or decided who should administer the estate, as the case may be.
Eviction
To remove or force a tenant out of a property using the proper legal processes.
Examination for Discovery
A pre-trial process where lawyers get to ask the opposite party (plaintiff or defendant) questions about the allegations in the statement of claim or statement of defence.
Exclusive Possession
Sole possession of the land; denial of possession to all others.
Exclusive use Common Elements
Areas of the condominium development owned by all unit owners but used only by designated unit owners.
Execution
Signing of a document; also a short name for a writ of execution or a writ of seizure and sale.
Execution Creditor
A creditor who has obtained a judgment and is in the process of executing or enforcing a judgment for debt.
Execution Debtor
A debtor who is the subject of enforcement proceedings at the hands of an executor creditor.
Exigible
A word used to describe assets that the sheriff may seize when executing a writ of seizure and sale; if an asset is exempt from seizure it is referred to as non-exigible asset.
Exigible Assets
Assets that are available to be legally seized under a writ of seizure and sale; non-exigible assets are those that are exempt form seizure under the Execution Act of under the provisions of another statute.
Expected Value
See Arithmetic mean.
Express Grant
Creation of an easement by written document from the owner of the servient tenement to the owner of the dominant tenement.
Expropriation
Reacquisition of land, with compensation, by the Crown fro public purpose.
Extinguish
Bring to an end.

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Face Value of a Loan
The loan amount which must be repaid at a stated rate of interest according to the contract terms.
Fault Grounds
Grounds for termination based on conduct or behaviour of the tenant or a guest of the tenant.
Fee Simple
The right to exclusive possession and the right to dispose of the land for an indefinite period of time; the true owner.
Final Payment
The last instalment that is made on a fully amortized loan. It is usually smaller than the preceding periodic payments.
Finance Canada
The federal department that is responsible for Canada’s economic performance and the regulation of our financial institutions.
Financial Statement
A numerical presentation of particular aspects of a business. Common financial statements include the Balance Sheet and the Income Statement.
Fire Insurance
Before a mortgage can be advanced, the purchaser must arrange fire insurance. A certificate from the insurance company will be required on closing.
Firm Offer
An offer to buy a property as was outlined in the offer to purchase with no conditions attached.
First Mortgage
Gives the lender a primary lien/charge against your house and property which has precedence over all other mortgages. Priority is determined by the date and time registered. A new first mortgage can only be registered as a “first” mortgage upon the discharge of the existing first one.
First-Year Half-Rate Rule
In the year an asset is purchased, only one-half the maximum allowable CCA may be claimed.
Fiscal Policy
Fiscal policy determines the level and the composition of government spending, as well as the distribution of the tax burden among individuals and businesses.
Fiscal Year
Any period of twelve consecutive months chosen by a business as its accounting period.
Five-Percent Down Program
This allows buyers to obtain up to 95% financing on properties up to a certain value. These loans must be insured against default by one of Canada’s default insurance companies.
Fixed Exchange Rate
A currency regime in which the monetary authorities strive to maintain a stable value for the local currency relative to a foreign currency (usually the currency of a country’s main trading partner).
Fixed-Rate Mortgage
A mortgage for which the rate of interest is fixed for a specific period of time (known as the term).
Fixed-Term Tenancy
Tenancy that has a specified beginning and end date and can be for any period of time, from months to years.
Fixtures
Chattels that have become attached or affixed to the real property; immovable possession attached to the real property.
Flip
Resale of property before the closing of the original purchase.
Floating Exchange Rate
A currency regime in which the value of the local currency is determined in the marketplace for foreign exchange.
Floating Rate Mortgage
Another term for a variable rate mortgage.
Forecast
A prediction about a variable for a future time period.
Foreclosure
A legal procedure where the lender eventually obtains legal title to the property after the borrower has defaulted on payments.
Forfeit
Lose the right.
Freehold
Ownership of an interest in land (or land and a building) for an indefinite period of time.(usually means no condo fee’s or maintenance fee’s involved with the ownership of the property).
Frequency Distribution
A listing of data values accompanied by the number of times each value occurs.
Full Legal Age and Capacity
To sue or be sued, an individual usually has to have reached the age of majority and be mentally capable of taking part in a lawsuit; a person who is capable of participating and who is over 18 years of age is referred to as being of full age and capacity.
Fully Amortized Mortgage
Loan which is repaid completely by a series of payments over the full duration of the amortization period.
Future Value
Any lump sum which is payable or will have been accumulated some time from now.

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Generally Accepted Accounting Principles(GAAP)
The rules and guidelines followed in the preparations of Financial Statements. They include the Cost Principle, the Revenue Principle, the Matching Principle, the Objectivity Principle, the Consistency Principle, and the Fiscal Year.
Genworth Financial Canada
One of Canada’s leading private default mortgage insurance companies.
Goodwill
The amount by which the purchase price of a business exceeds the fair market value of its net assets. This extra amount could be attributed to factors such as the value of good customer relations, high employee morale, a well-respected business name, or other intangible attributes of expectations for the income potential of the business.
Grant
Document that transfers governorship of land.
Graphic Method
A method in which the best fit regression line is determined by plotting the data points and then subjectively choosing that regression line which appears to best fit the data.
Gross Debt Service (GDS) Ratio
The percentage of gross income required to cover the monthly payments associated with housing costs. Most lenders recommend that the GDS ratio be no more than 32% of your gross (before tax) monthly income.(there are a few special circumstance exceptions)
Gross Household Income
Gross household income is the total salary, wages, commissions and other income, before deductions, by all household members who are co-applicants for the mortgage.
Group Midpoint
The midpoint of a group when data have been classified in groups.
Grouped Data
Data that have been classified into groups.
Guarantor
A person with an established credit rating and sufficient earnings who guarantees to repay the loan for the borrower if the borrower defaults.

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Habendum Clause
Clause in a deed (old form) that indicates that ownership is subject to reservations, limitations, provisos, and conditions expressed in the original Crown grant.
Hedge
A complex money market instrument the purpose of which is to insure a mortgage lender (or borrower, through a protected or split-term mortgage) against interest rate movements. In the lender’s case the price of this insurance will vary depending upon many economic and political factors, but will generally be lower when interest rates and the economy are less volatile. The buyer on the other hand can hedge at no cost, or at a reasonable rate premium by using products specifically designed to hedge.
High Ratio Mortgage
If you don’t have 20% down from the lesser of the purchase price or appraised value of the property, your mortgage must be insured against payment default by a Mortgage Insurer, such as CMHC or Genworth.
Highrise
A multi-unit residential building that is six or more stories high.
Histogram
See bar graph.
Holdback
The amount of money required to be withheld by the lender during the construction or renovation of a house to ensure that construction is satisfactorily completed at every stage. This amount is released when the lender is satisfied that there are no outstanding work-orders against a property
Home Equity
The difference between the price for which a home could be sold (market value) and the total debts registered against it.
Home Equity Line of Credit
A personal line of credit secured against the borrower’s property. Generally, up to 80% of the purchase price or appraised value of the property is allowed to be borrowed with this product but could be less for lower beacon clients or at a higher rate of interest.
Home Inspection Report
A report commissioned by a property owner or purchaser, usually to verify the condition of a property prior to the “firming up” of a Real Estate transaction. Most reports indicate if their are any problems with the property and the costs involved to repair those problems.
Housing Starts
The number of housing units for which foundations have been poured.

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Improvement
Changes made to real property, including construction, alteration, repair, installation, erection, and demolition.
In Escrow
Holding of funds or documents by a third party to be released only on certain specified conditions.
Improvement
A structural addition to the land which can be considered to be a fixture.
Income Statement
A financial statement which lists the revenues and expenses of a business organization for a stated period of time. Also called a profit and loss statement.
Income Tax
That part of taxable income which a person or corporation is required to forward to Revenue Canada periodically.
Independent Variable
The variable (or variables) which is (are) used to predict the value of the dependant variable.
Index Number
A measure of how a variable (or variables) changes over time.
Inflation
A sustained rate of increase in prices.
Information
A sworn written statement made before a justice of the peace that can initiate criminal proceeding against a person.
Inspection
The examination of a house by a certified building inspector selected by the purchaser.
Institutional Lender
A lender other than an individual, including a bank, trust company, credit union, or insurance company.
Insurance Binder
Documented confirmation that a property has been insured.
Interest
Interest is the cost of borrowing and is the amount paid on the money borrowed. It is represented as a semi-annual percentage rate when referring to a mortgage.
Interest Accruing Loan
Debt which is paid off as one lump sum, including principal plus accumulated compound interest.
Interest Adjustment
The process of calculating compound interest payable in the amount borrowed between the day the monies are advanced and the day the amortization period starts.
Interest Adjustment Date (IAD)
A date, usually one month before regular mortgage payments begin, when interest on monies advanced before that time is calculated and must be paid for by the borrower.
Interest-Only Mortgage
A mortgage on which only the monthly interest cost is paid each month. The full principal remains outstanding at all times. The payment is lower than an amortized mortgage since once is not paying any principal.
Interest Rate
The percentage rate that represents the cost of borrowing or the benefit of lending money.
Interest Rate Differential Amount (IRD)
An IRD amount is a compensation charge that may apply if you pay off your mortgage principal prior to the maturity date or pay the mortgage principal down beyond the prepayment privilege amount. The IRD amount is calculated on the amount being prepaid using an interest rate equal to the difference between your existing mortgage interest rate and the interest rate that can now be charged when re-lending the funds for the remaining term of the mortgage.
Interests
Right to land that are not estates and do not confer a right to exclusive possession of the land.
Interim Financing
Short-term financing to help a buyer bridge the gap between the closing date on the purchase of a new home and the closing date on the sale of the current home. Also known as bridge financing.
Interim Occupancy Closing Date
Date on which the purchaser takes possession prior to final closing and transfer of title.
Interviewer Bias
Bias arising because of interviewer characteristics.
Intestate, Intestacy
When a person dies without having made will, he is said to have died intestate; dying without a will is said to create a intestacy-that is, a situation where the estate will have to be administered without a will.
Investment
The spending of capital today in order to receive benefits in the future (e.g., the purchase of a Canada Saving Bond which pays interest periodically). Contrast to Consumption.
Irregular Variation
Fluctuations occurring through time which are completely unpredictable and are sporadic.
Issued and Entered
A judgment or order is issued when it is signed by a judge or registrar and the court’s seal is affixed to it; is then entered-that is, recorded-by the registrar, using a system for referencing and recording an issued judgment; an entered judgment or order will usually have a stamp on it, indicating that microfilm or disk it was recorded on, or will be otherwise referenced so that it can be found in court files.

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Joint Tenants
Two or more people owning property where on the death of one, the survivors inherit the deceased’s share.
Judgment Creditor
Party to whom a court awards the payment of money.
Judgment Debtor
Party against whom a court awards the payment of money.
Judgment Proof
Term used to described a debtor against whom a judgment may be obtained, where the judgment will be unenforceable because the debtor has no assets to pay the judgment or the debtor has hidden or encumbered assets so that they cannot be easily seized; a judgment in these circumstances is sometimes described as a “paper judgment”- that is, it is worth no more than the paper it is printed on because it cannot be enforced in any practical way.
Judgment Sampling
A sampling procedure where the analyst chooses which elements will be included in the sample.
Judicial Sale
Sale of charged property ordered and administered by a court.

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Landlord
The person who rents or leases a premises they own to another party. Landlords of residential premises typically own an apartment building, condominium, townhouse or house.
Land Titles Absolute (LT Absolute)
Properties originally in the Land Titles system prior to POLARIS; corporate existence and Planning Act compliance are not guaranteed.
Land Titles Assurance Fund
Fund established under the Land Titles Act to compliance are not guaranteed.
Land Titles Conversion Qualified (LTCQ)
Properties originally in the Registry system and converted to the Land Titles system as a result of POLARIS; Planning Act compliance and corporate existence are guaranteed for the period prior to the date of conversion; properties remain subject to any pre-existing mature claims for adverse possession, prescription, or misdescription.
Land Title Plus (LT Plus)
Properties upgraded from LTCQ with the additional guarantee against any mature claims for adverse possession.
Land Titles System
Land registration system in Ontario governed by the Land Titles Act.
Land Transfer Tax
A fee paid to the municipal and/or provincial government for the transferring of property from the seller to the buyer.
Latent Defect
Defect of which the vendor of a property was aware but which the purchaser did not know about and could not have discovered upon reasonable inspection of the property.
Law Society of Upper Canada (LSUC)
Professional body governing the activities of lawyers in Ontario.
Lawyer’s Professional Indemnity Company (LAWPRO)
Insurance company controlled by the Law Society of Upper Canada that insures lawyers against errors and omissions and administers TitlePLUS, a title insurance product.
Lease
As a verb, to rent a premises (apartment, house, condo etc.) for a specific period of time. As a noun, a contract or agreement between a landlord and a tenant.
Lease (Capital Lease)
A type of lease where ownership is transferred to the leassee from the leassor at the end of the term.
Lease (Operating Lease)
Any lease that is not structured as a Capital Lease is an Operating Lease.
Leasehold Estate
Right to exclusive possession of property for a specified period of time in the return for the payment of rent.
Leasehold Mortgage
A mortgage loan for the purchase or improvements to a home where the building is on land which is leased (rented).
Least Squares Method
A method of determining the best fit regression line by minimizing the sum of the squared errors.
Legal Description
Description of land that is used in documents creating an interest land; describes that land with reference to recorded maps, surveys, or plans.
Legal Non-Conforming use
Status of a building or use of a property that does not conform to the current municipal bylaw but is acceptable because the building or use existed before the passing of the bylaw and has not subsequently been altered or discontinued.
Legally binding
A legal agreement enforceable by an authorized authority.
Legislation
An enacted law or group of laws.
Lending Value
The estimated value of a property for lending purposes. It is a long-term, conservative estimate of the value of the security as determined by the lender and , therefore, does not necessarily equal Market Value or Sales Price.
Liable
Legally responsible or obligated.
Liabilities
What you owe are your liabilities.
Lien
A claim to a right to sell or seize property, either real or personal, on the fulfillment of certain conditions.
Life Estate
Right to exclusive possession of the property for the length of a particular lifetime.
Line Graph
A graph of the relationship between the data values and their frequencies for ungrouped data.
Linear Correlation Coefficient
A measure of the strength of the relationship between two variables. The coefficient, denoted r, varies between -1 (negative correlation) and +1 (positive correlation). A coefficient of 0 indicates that the variables are uncorrelated.
Liquidated Amount
A specific sum of money that can be easily and objectively calculated; if a debtor borrows $1,000.00 for a one-year period at 10 percent interest per year, the amount owing-$1,100.00- would be a liquidated amount because it is precise and specific and the total is easily calculated using an objective standard or formula.
Liquidity
The degree of ease and certainty with which an asset can be converted into cash.
Litigation Guardian
An individual who conducts a lawsuit and instructs counsel on behalf of a party who is under a disability or who is not of full age and capacity.
Loan-To-Value (LTV) Ratio
The percentage of the value of the property for which a mortgage is required. This ratio is important in determining whether or not mortgage default insurance is required, and if so, what the cost of that insurance will be. (i.e. on a $100 000 property 80% LTV would be$80 000)
Lot
A 200-acre parcel of land created during the original division of land into concessions; also, a parcel of land created by a plan of subdivision.

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Mareva Injunction
Permits a creditor to obtain an injunction to secure the debtor’s assets in a case where it is likely that the debtor will dispose of or remove all assets from the jurisdiction, before judgment, leaving no assets to satisfy the judgment debt
Margin
The amount a lender will add to the index on an adjustable rate mortgage to establish the adjusted interest rate.
Market Value
The highest price that a buyer would pay and the lowest price a seller would accept on a property.
Market Rate
The prevailing interest rate, at any given point in time, at which financing or refinancing can be expected.
Master
A judicial officer of the Superior Court who decides procedural issues on pre-trial matters and performs other judicial functions.
Matching Principle
A generally accepted accounting principle which states that expenses should be recognized in the same period as the revenues with which they are associated.
Matrimonial Home
Defined under the Family Law Act to include every property in which a person has an interest and that is (if the parties are still married) or was (if the parties have separated) at the time of separation occupied by the spouses as their family residence.
Maturity Date
Date on which any outstanding balance of a charge is to be paid.
Maximum
A measure of dispersion given by the largest value in the distribution.
Measure of Dispersion
Measure which indicated how spread out a distribution is.
Median
A measure of central tendency given by the middle value or the mean (or descending) order.
Metes and Bounds Description
Written description of the boundaries and dimensions of a parcel of land in relation to lot lines; enables a sketch of the parcel to provide a picture of the area of land.
Minimum
A measure of dispersion given by the smallest value in the distribution.
Mode
A measure of central tendency given by the most frequent value. If all values occur with equal frequency, there is no mode.
Monthly Tenancy
A periodic tenancy that renews automatically at the end of each month until terminated by the landlord or the tenant.
Mortgage
A mortgage is both a loan used to purchase or refinance a property. The property is security for the repayment of the loan.
Mortgagee
The lender.
Mortgage Commitment
The mortgagor’s agreement with the mortgagee when the mortgage is arranged.
Mortgage Insurance
If your down payment is less than 20% of the purchase price of the property, the lender is going to require mortgage insurance. The fee is calculated as a percentage of your mortgage. This is known as mortgage default insurance.
Mortgage Critical Illness Insurance
Critical Illness Insurance is available as an enhancement to Mortgage Life Insurance.
Mortgagee and Mortgagor
The lender is the mortgagee and the borrower is the mortgagor.
Mortgage Life Insurance
Recommended for all mortgagors. If you die, have a terminal illness, or suffer an accident, the insurance would pay the balance outstanding on the mortgage. This protect survivors from the loss of their homes.
Mortgage Payment
Regular instalments made towards paying back the principal and interest on a mortgage.
Mortgage Term
The number of months to years over which you pay a specified interest rate. Normally terms range from six months to 10 years.
Mortgage Broker
A registered agent who negotiates with lenders on behalf of a borrower to obtain the best overall mortgage for that borrower’s specific circumstances. Mortgage Brokers arrange financing for “A+” clients as well as financing “non-standard” situations which cannot be funded by a major national lender. This is possible because a Mortgage Broker has access to dozens of lenders who do not advertise nationally or operate retail locations.
Mortgage Loan
A loan used for the purchase of real property. The property being purchased is the security for the loan.
Mortgagor
The borrower.
Motion
An application to the court within the man proceeding to settle a legal issue that has arisen on the main proceeding-for example, a plaintiff might bring a motion to court asking that the defendant provide more detail in the statement of defence; a motion is brought by a notice of motion, which states what remedy is sought and the reasons for it; the facts in support of the motion are usually presented in an affidavit.
Moving Average
A series of arithmetic means used to smooth time series data.
Moving Total
A series of totals or sums of data from consecutive time periods used to compute a moving average.
Motmain Licence
A license to own land in Ontario that a corporation was required to obtain if it was incorporated in a jurisdiction other than Ontario, Quebec, or Canada.
Multiple Listing Service (MLS)
A service of a Real Estate Board which publishes and exchanges details of properties registered with them.
Multivariate Data Analysis
The analysis of problems in which there is more than one variable.
Multivariate Regression Analysis
Regression analysis in which there is one dependant variable and more than one independent variable.
Municipal Levies
Levies can be charged by municipalities to recover the cost of services, if these services cannot be funded out of general revenues.
Municipality
Form of urban organization including cities, towns, and villages.

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National Housing Act Loan (NHA)
A mortgage loan which is backed/insured by Canada Mortgage Housing Corporation to certain maximums.
Natural Environment
Air, land, and water, or any combination of part thereof.
Negative Correlation
Two variables are negatively correlated if their linear correlation coefficient is less than 0.
Net Income
The amount by which revenues exceed expenses in any given time period. Contrast to Net Loss.
Net Loss
The amount by which expenses exceed revenues in any given time period. Contrast to Net Income .
Net Proceeds
The face value of a loan less all brokerage fees, legal fess, appraisal costs and other charges .
New Charge
Arrangement by the purchaser for a new loan by way of charge for the purchase of property.
No-Fault Grounds
Grounds for termination unrelated to the conduct of behaviour of the tenant or a guest of the tenant.
Nominal Rate
The quoted interest rate for a mortgage loan.
Non-Blended Payment
Charge payment that does not blend or combine principal and interest into equal payments; the amount of principal repaid each month is a fixed amount and the amount of interest is calculated on the outstanding principal at the time.
Non-Response Error
Errors due to the differing characteristics of respondents and non-respondents.
Notice of Motion
A document that states what remedy is sought and the reasons for it.
Notice of Sale
Document used in a power of sale setting out the particulars of the default and the amounts owing under the charge.

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Objectivity Principle
A generally accepted accounting principle which states that all recorded financial information is based upon objective and verifiable data.
Offer
Proposal from one person to another that, when accepted, becomes a contract.
Offer To Purchase
A formal, legal agreement which offers a price for a specified real property. The offer may be firm with no conditions attached or conditional where certain conditions must be fulfilled.
Offeree
Person to whom an offer is made.
Offeror
Person who makes the offer.
Official Plan
Statement of planning principles prepared for a municipality by the local planning board.
Official Receiver
A government official in the Office of the Superintendent of Bankruptcy who receives proposals, examines bankrupts under oath, and chairs meetings of creditors.
Off-Title Documents
Documents that are required for closing but are not registered on tile.
Open a File
Start a file.
Open Charge
Charge that permits repayment of the loan before the expiry of the term.
Open-Ended Group
A data group for which either the upper or lower bound is unspecified.
Open Mortgage
A mortgage which can be paid off at any time, without penalty.
Open Variable Mortgage
A variable rate mortgage in which the interest rate varies with money market conditions usually reflected by prime. You may pay off or renegotiate an Open Variable mortgage at anytime without interest penalties.
Operating Expenses
Those costs which have to be incurred to keep any business going, including the business of renting real property.
Outstanding Balance (OSB)
Usually refers to the amount of principal which is outstanding at the end of the term but can also be looked at as the principal outstanding at any given point.
Overdraft Rate
Refers to the rate charged for monies outstanding exceeding your allowable credit.
Owner’s Equity
Refers to how much of a property’s value is actually that of the owner’s-for example, if a house is worth $100,000 and is mortgaged for $50,00, the mortgagee is entitled to $50,000 is free and clear of the mortgage claim and is the owner’s equity in the house.

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Parcel Register
A book in the Land Titles system that records all registered interest in land.
Parcelized Day Forward Registry (PDFR)
Computerized abstract listing only the most recent transfer prior to automation and those documents registered after the property was automated.
Partial Amortization
A loan repayment scheme in which the term is shorter than the amortization period. Whereas the loan payments will be calculated as if the loan will be paid back over the full amortization period, at the end of a specified term the outstanding balance is due and payable.
Partial Indemnity
Usual order for costs, based on a cost grid that establishes hourly rates for tariff items listed in the grid; provided less than full recovery of legal fees for the client.
Pat Lot Control
Government control over transactions involving part of a subdivision lot.
Payment
A periodic instalment that is made to service a debt. For an interest-only loan, the payment consist of interest; for a constant payment loan, the payment consists of interest and principal.
Payment Frequency
The choice of making regular mortgage payments weekly, bi-weekly, monthly or semi-monthly.
Penalty
A fee usually charged by the lender if you would like to pay the mortgage in part or in full before it’s designated date.
Per Annum
Latin for “per year”.
Per Diem
per day; for each day; daily.
Percentage
A statistic used to facilitate data comparisons.
Perfect
Ensure that a preserved lien does not expire by commencing an action to enforce the lien and registering a certificate of action against title to the property.
Periodic Tenancy
A tenancy that renews automatically at the end of the relevant period until terminated by either the tenant or the landlord, the period being defined by the frequency of rental payments.
Personal Property
Consists of tangibles such as consumers goods, other goods, inventory and equipment, and intangibles including investments and securities.
Phase 1 Environment Assessment
Assessment of property conducted to determine the likelihood that one or more contaminants have affected all or part of the property.
Phase 2 Environment Assessment
Assessment of property conducted to determine the location and concentration of contaminants on the property; follows completion of a phase 1 assessment.
P.I. (Principle and Interest)
Principal, and interest due on a mortgage.
P.I.T.
Principal, interest and taxes. These make up the regular payment on a mortgage if you choose to include property taxes in your regular mortgage payments
P.I.T.H
Principal, Interest, Taxes, Heating and Half of Condo Fees, if applicable. This is a basic component of the ratios used to help determine how large of a mortgage loan you can comfortably carry.
Plan of Subdivision
Registered plan illustrating the measurements and boundaries of all lots and streets created by the division of concession lots into many smaller lots.
Plan of Survey
Schematic sketch showing boundaries of property and location of all fences, structures, and rights of way.
Periodic Rate
The interest rate which is charged per compounding period (for example, per month or per day).
Pleadings Noted Closed
The act of noting pleadings closed means that no party may file any further claims, defences, motions, or other court documents; this act brings the pre-trial stage to a close-in a defended is barred from filing a statement of defence and the plaintiff is free to sign judgment.
POLARIS
Province of Ontario Land Registration Information System; computerized land information system.
Possession
Control or occupancy of land regardless of ownership.
Porting
This allows you to move to another property without having to lose your existing interest rate. You can keep your existing mortgage balance, term and interest rate plus save money by avoiding early discharge penalties.
Portable Mortgage
A mortgage which allows you to transfer the existing amount and terms of your mortgage over to a new property without penalty.
Post-Dated Cheque
A cheque made out with a date after today’s current date. The cheque cannot be cashed until on or after the date on the cheque.
Population
The entire universe or set of observations which is being considered.
Positive Correlation
Two variables are positively correlated if their linear correlation coefficient is greater than 0.
Potential Output
A level of production the economy is able to achieve with stable inflation.
Power of Attorney
A legal document authorizing a person to act on behalf of another.
Power of Sale
A clause in a mortgage that permits the mortgagee to sell the property in the event that mortgage payments are not made in a timely manner.
Practice Direction
A procedural directive issued by the chief justice of Ontario for the Superior Court or by a regional chief judge for a particular judicial region; a practice direction may clarify or supplement the procedural requirements of the Rules of Civil Procedure-at one tome, there was some question about the authoritativeness of practice directions, but they are now clearly authorized by the Rules of Civil Procedures.
Pre-Approved Mortgage
This product offers you the security of knowing how much mortgage financing is available, and protect your rate for up to 60 to 90 days depending on the lender. This is not the same as a commitment from the lender!
Prepayment
The act of fully or partially paying off the outstanding balance of a loan at any point during the term of the loan at a time earlier than set out in the contract.
Prepayment Charge
A fee that is charged by the lender when the borrower prepays all or part of a closed mortgage before the designated date(s) set out in the mortgage agreement.
Prepayment Option
The ability to pays off all or a portion of the principal balance.
Prepayment Penalty
A fee charged to the borrower by the lender when the borrower prepays all or part of a mortgage over and above the amount agreed upon. The usual penalty is the greater of the Interest Rate Differential (IRD) or 3 months interest.
Prepayment Privilege(s)
The right to repay periodically more than the scheduled principal payment.
Pre-Population
Electronic process of copying information from a database into a document.
Prescription
Means by which an interest is acquired in another’s land after a period of open and uninterrupted use.
Present Value
The current equivalent of a future dollar amount.
Preserve
Ensure that lien right are protected and do not expire by registering a claim for lien against title to the property on which work was performed within 45 days of completion of the work.
Price Index
An index to compare one or more prices over two time periods.
Prime
The lowest rate a financial institution charges to the most credit worthy of customers.
Principal
The amount of money borrowed for a new mortgage.
Principal Residence
A housing unit that is owned by a taxpayer jointly with another person or otherwise. The tax payer, the tax payer’s spouse/former spouse, or a child of the tax payer must ordinarily live in the house.
Principal
Amount of money borrowed under a loan.
Priority
Rand or status of a registered interest in land as determined by the date of registration of that interest.
Privity of Contract
A rule that only parties to a contract can enforce contact rights.
Productivity
Measures the amount of goods and services that can be produced with one unit of labour.
Profit and Loss Statement
See Income Statement.
Promissory Note
An unconditional promise to pay on demand or by a fixed date a specified amount of money.
Profit à Prendre
Interest created when mineral rights are acquired in the land of another person.
Property
Can refer to a section of land, or a home.
Property Identifier Number (PIN)
Unique nine-digit number for each property created by combining the block and property number for that property.
Property Number
Four-digit number assigned to a property; the second part of the PIN.
Property Parcel Register
Register that contains the description of the property including any easements and the original encumbrances that affect the entire condominium property.
Proposed Declarant
Prior to the registration of the declaration and description, the person who owns the land described in the description.
Propriety Tax Account
An account that provides for the automatic payment of property taxes.
Public Guardian and Trustee
A government office whose staff are responsible for looking after the interests of the mentally incapable (formerly called mentally incompetent) where no guardian of the person or guardian of property has been appointed.
Public Utility
System that provides to the public water, sewage, fuel (including natural gas), energy (excluding electricity), heating, cooling, or telephone supplies or services.
Purchaser
Buyer of the property.
Purchaser in Good Faith
Sometimes given in Latin as bona fide purchaser, this phrase describes an individual who has bought something in circumstances where there is nothing to tell her that the seller is trying to unload the asset quickly, get cash, and get away with the cash before creditors manage to seize the asset or its proceeds; where a bad-faith sale has occurred, there are usually signs that tip off a reasonable and prudent buyer-for example, a price below fair market value, secrecy in the transaction, undue haste, insistence on payment in case, amount other things-so that a purchaser would be presumed to be on notice that the seller’s title is flawed or questionable and the purchaser is deemed to acquire ownership subject to that claims of creditors.

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Quantity Index
An index to compare the quantities of one or more products over tow time periods.
Quick Close
Usually refers to a property being purchased in 45 days or less
Quota Sampling
A sampling procedure where a specified number of elements in each strata or group is selected.

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Random Sampling
A sampling method where each and every item in the population has an equal probability of being chosen.
Range
A measure of dispersion given by the maximum minus the minimum.
Rate
The annual percentage amount charged in return for borrowing funds.
Rate Hold/Rate Commitment
The number of days the lender will guarantee the mortgage rate on a mortgage approval. This can vary from lender to lender commonly between 30 to 120 days.
Ratio
A ratio expresses one value in terms of another value; e.g., one out of every four houses is painted white. It can be stated as a fraction, one-quarter (¼) of the houses are white; or as a ratio, one out of four (1:4) houses is white.
Real Exchange Rate
The exchange rate adjusted for differences in prices or purchasing power in two countries.
Real Interest Rate
The cost of borrowing funds after adjusting for the expected erosion of purchasing power resulting from inflation. i.e.If the rate of interest on a loan is 4.5% and inflation is expected to average 1% during the life of the loan, then the real interest rate or real cost of borrowing is 3.5%.
Real Property
Land, including everything that is attached to it.
Realize on the Security
Seize and/or sell the charged property.
Realtor
A real estate professional who is a member of their local real estate board and the Canadian Real Estate Association
Receivable
Refers to money that is owing to a creditor (also called an account receivable); because it describes a right to future payment or income, a creditor can sell or assign its receivable as a way of paying others-a creditor who has done this gives the purchaser or assignee of the receivable the right to be paid the amount of the receivable by the debtor.
Recent
In appraisal, that time period just prior to the date of valuations over which demand and supply conditions have remained relatively stable.
Recession
A period of falling output in the economy.
Recital
Statement that sets out facts on which a document is based.
Recovery
An initial period in the business cycle where the level of output is returning to its previous peak.
Redeem
Release or free land from a claim against it by paying the amount owing under the charge.
Reference
A judicial proceeding used where it is necessary to inquire into an issue in an action in great detail; rather than tie up the court’s time in a formal proceeding, a judge may order a reference to be held before a judge or other judicial official, such as a master, with expertise or time or both to delve in to the matter using a less formal process than the process used in a formal trial.
Reference Plan
Registered survey prepared to illustrate the boundaries of a parcel of land.
Refinancing
Renegotiating your existing mortgage agreement. May include paying out the mortgage in full or increasing the principal balance that is outstanding.
Register
As a noun, the term refers to the books in which certificates of indefeasible title are entered or kept and, as a verb, the term refers to registering documentation pursuant to the provisions of the Land Title Act.
Registered Encumbrance
A legal claim against real property. A debt for which the property was pledged as security.
Registration Fees
Fees that are paid to the provincial government for recording a title transfer, mortgage registration or other instrument such as an Assignment or Lien with the local authorities.
Reinvestment
The act of investing the funds generated by one investment into another investment.
Relative Frequency
Number of times each data value occurs within a distribution, divided by the total number of data values.
Relief from Forfeiture
A remedy granted to a debtor whose property has been seized by a creditor who has acted in an oppressive or capricious manner.
Renegotiate
To change the terms and conditions of a mortgage agreement prior to its maturity. Only can occur with the lender who presently holds the mortgage.
Renew
To extend a mortgage agreement with the same lender for another specified term. The length of the term and the conditions, such as the rate of interest, may be changed to match the current market conditions.
Registry System
Land registration system in Ontario governed by the Registry Act.
Renewal
At the end of a mortgage term, the mortgage may be renewed on new terms and conditions acceptable to both the lender and the borrower. If your not renewing, the lender is entitled to be repaid in full. In this case, the borrower may seek alternative financing and the previous lender will be paid through the proceeds received from the new lender.
Rent
As a noun, payment made by a tenant at specified intervals in return for the right to occupy or use the property of another. As a verb, to obtain occupancy or use of another’s property in return for regular payments.
Rent bank
A community-based organization providing assistance to individuals and families who cannot afford to pay the rent.
Rent Control
Regulations defining how a landlord can increase the rent and restricting the amount they can increase the rent by.
Rent Geared-to-Income(RGI)
More common in subsidized housing, where the amount of rent to be paid by the tenant(s) is based on the amount of income earned by the tenant(s), often applied as a percentage of the tenant’s income.
Rental
Refers to any rented property.
Rental accommodations
Refers to any residential rooms or buildings available for rent.
Rental Authority
The legal authority that oversees landlord tenant issues in a province or territory. In some areas the Rent Tribunal the rental authority, while in other areas the courts are the authority.
Rental Agreement
– A legally binding agreement to rent a premises, whether written or oral, between a landlord and tenant.
Rental Application
This is filled out by a prospective tenant and often includes authorization to conduct a credit check. A landlord will use the application to determine the suitably of renting a unit to the individual.
Rental Property
Refers to lands and/or units and/or buildings and/or rooms available for or being rented.
Representative
A licensee providing real estate services under the supervision of a managing broker.
Requisition
Request made to the vendor to clear up problems revealed by the title requisitions to the vender (seller).
Requisition Date
Deadline by which the purchaser (buyer) must submit any title requisitions to the vendor (seller).
Requisition Going on the Root of Title
Requisition based on a defect that calls into question the legal enforceability/validity of the title.
Requisition on Conveyance
Requisition that requires the vendor to produce an effective conveyance, assuming that the vendor has the ability to do so.
Requisition on Matters of Contract
Requisition for specific things that the purchaser is entitled to receive under the contract.
Requisition on Title
Query of directives made by the purchaser that asks the vendor to remedy problems with title.
Reserve Fund
Covers costs of major repairs to and replacement of common elements.
Residual Method
A technique for determining cyclical variation based on a comparison of actual and predicted trend values.
Restrictive Covenant
Promise by an owner of land to refrain from doing something on the property.
Retail Sales Tax
Provincial tax on purchase of chattels.
Retainer
A document that records the contractual relationship between lawyer and client, usually stating that the lawyer acts for the client and stipulating generally what the lawyer has been retained to do; also used to describe and amount of money that the client pays the lawyer to be available to her to perform legal work for a specified period-in purposes; he is deemed to be entitled to the money for making himself available to the client, although he may charge for any services actually performed during the period of the retainer.
Return
See Yield.
Reverse Search
A reverse search allows you to submit an address, telephone number, or email address to obtain the name of a resident of subscriber.
Right of First Refusal
Describes a contract tern that gives a person the right to purchase a property, or exercise another right with respect to property, before the property of a right on it can be offered to others-if someone with a right of first refusal receives the offer and refuses to exercise his right to accept the offer, then he is deemed to have refused the offer and the property can now be offered to others.
Right of Survivorship
Automatic vesting of an interest in the surviving joint tenant or tenants when the joint tenant dies.
Right of Way
Right to use a portion of another’s land for access purposes.
Riparian Rights
Rights to the use of a watercourse running through or adjacent to the property.
Roll-Over Mortgage
A mortgage loan whose interest rate is established for a specific term. At the end of this term, the mortgage is said to “roll over” where the borrower and lender may agree to extend the loan. If satisfactory terms cannot be agreed upon, the lender is entitled to be repaid in full. In this case, the borrower may seek alternative financing.
Roommate
Someone who lives in a rental property with other tenant(s), sharing rent, the cost of utilities and other expenses according to mutually agreed upon terms before residence takes place.
Root of Title (root deed)
First conveyance of the free simple estate (a deed or transfer) registered after the commencement date of a title search.
Ruled Off
The land registrar’s drawing of a line through the entry in the abstract book of a mortgage that has been discharged.

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Sale/Leaseback
Situation in which the vendor will lease the subject property from the purchaser.
Sales Price
Value in exchange; the price obtained in an actual transaction.
Sample
A subset of a population.
Sample Bias
Errors arising in a sampling process.
Sample Statistics
Summary measures such as the mean and the standard deviation calculated for a sample.
Saving
The process of consuming less than what can be afforded in order to increase consumption in the future.
Savings Rate
The ratio of savings over income with income being defined as the residual income less expenditures and transfers.
Scattergram
A graph in which the data points are plotted for the purposes of data analysis.
Search Notes
Summary of the contents of all registered documents affecting title; reveals the state of the title including any encumbrances.
Search the Title
Conduct an investigation into the status and history of the title to land.
Searching Behind the Plan
Examining the abstract book for the original concession lot of which property was a part prior to the registration of the plan of subdivision.
Seasonal Variation
Fluctuations within ear year in time series data that tend to be repeated from one year to the next.
Second Mortgage
A mortgage loan granted when there is already a first mortgage registered against the property.
Secular Trend
A long run pattern in time series data.
Secured Credit Transaction
A transaction where the debtor has put up some asset of value as collateral that the creditor may use as security for the unpaid debt-if the debtor defaults, the creditor can recover what is owing by seizing the collateral; the debt is said to be secured by the creditor’s right in the collateral with it.
Security
In the case of mortgages, real estate that is offered as collateral for the loan.
Seize
To take possession of by means of legal processes.
Seller
Vendor of the property.
Semi Monthly Mortgage Payments
Mortgage payments which are made on the 1st and 15th of the month equalling 24 payments per year. Not to be confused with bi-weekly mortgage payments which are equal to 26 payments per year.
Servicing Agent
A person or firm that takes the necessary steps and operations a lender performs to keep a loan in good standing, such as payment of taxes, collection of payments, insurance, property inspections. etc.
Servient Tenement
Land over which an easement runs.
Settlement Services
Organizations and Agencies who assist immigrants establish themselves in their new locations.
Severance
Division of land into smaller parcels.
Sign-Back
Offer whereby the original offeree changes some of the terms in the original offer, initials the changes, then submits it to the original offeror.
Similar
In appraisal, two properties are similar if the actual differences between the properties will not have a material effect on their selling price.
Simple Interest
Interest which is computed on only the principal balance.
Simultaneous Conveyance
Two abutting parcels of land conveyed at the same time to two different people.
Skip A Payment
If you are short for the mortgage payment you may be eligible to skip a payment. If you have chose the double-up option you may be entitled to reverse the payments.
Specific Performance
Court order requiring a transaction to be completed; a type of remedy for breach of contract.
Spousal Consent
Consent of the spouse of the owner on title to the transfer or mortgage of a matrimonial home, required under the Family Law Act.
Standard Charge Terms Form
A document which clearly states the responsibilities of the mortgagor and the mortgagee.
Standard Deviation
A measure of dispersion of a distribution around its mean.
Standard Error of the Estimate
A measure of the average disparity between the actual and predicted values of the dependent variable. It is a measure of how good the best fit regression line is.
Standard Error of the Mean
A measure of dispersion in the distribution of means of random samples which are the same size and which are drawn from the same population.
Statement of Adjustments
Statement that outlines the various credits and debits against the purchase price and specifies the exact amount to be paid on closing.
Statistical Reliability
Relating to how representatives a sample might be of a population.
Statistics
The collection, assembly classification, summarization, presentation, and analysis of data. Also refers to summary measures.
Status Certificate
Certificate from the condominium corporation that includes, among other things, financial information, directors and officers, and the declaration.
Statutory Declaration
Sworn statement given by a person that attests to a given set of facts.
Stratified Random Sampling
A sampling method where the elements of the population are first stratified and then a sample is selected from each of the strata using a random sampling technique.
Stayed
A legal proceeding may be stopped from proceeding further, or stayed by a judge, until one of the parties does something they are obliged to do; for example, a plaintiff who is suing using an unregistered business name will have the proceeding stayed until he proves that he has registered the name as he is legally required to do.
Subdivision
This is a defined term in various statutes. Basically, a subdivision is the division of land into two or more parcels.
Subdivision Agreement
Agreement between a municipality and a builder setting out the terms under which the building is allowed to subdivide the land.
Subdivision Control
Government control over the division of land into smaller parcels.
Subject Property
The property to be appraised.
Sublet
To rent a property you lease to another person while still maintaining your responsibility to your landlord under your rental agreement. You are still responsible for the actions of your sublessee. This is not the same as assigning, where you transfer the responsibility of your agreement to the new tenant.
Sublessee
One who sublets from the current tenant.
Subsearch
A brief examination of title records to update an earlier search.
Substantial Indemnity
Costs scale usually used as a punitive costs award that results in near indemnity for the winner on a dollar-for-dollar basis.
Summary Measure
A single number of measure which summarizes a distribution without listing every value.
Summation Sign
Mathematical symbol to denote the sum of several numbers.
Superintendent of Bankruptcy
A government official in Ottawa who supervises and oversees the administration of the Bankruptcy and Insolvency Act.
Survey
The legal written and/or mapped description of a location and dimensions of the specified piece of land. The survey should also show the dimensions and placement on the lot of any structures, including additions such as sheds, fences and pools. An up-to-date survey is often required by a lender as part of a mortgage transaction. Lenders might allow title insurance in place of a survey.
Sweat Equity
Equity created by a purchaser performing extra work on a property in the process of being purchased.
Switch
The process of transferring an existing mortgage from one financial institution to another.
Syndicator
The promoter who sets up a syndicate investment package.
Systematic Sampling
A sampling procedure where every nth item in the population is chosen.

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Taking of Accounts
A court may order that there be a taking of accounts where an issue involving complex financial transactions needs to be examined in some detail in a less formal process than a trial; accounts may be taken before a judge of other judicial officers, usually masters of the Superior Court; the process is similar to that used in a reference.
Tax Certificate
At the time of a sale, the lawyer for the buyer must confirm that local taxes have been paid and are up to date. If they are, a Tax Certificate is issued, from which any adjustments can be made and usually requiring the buyer to refund the seller for any prepaid taxes. If they are not up to date, the municipality requires the seller to pay them off from the proceeds of the sale. If there are insufficient proceeds, then it may fall upon the buyer to pay them.
Tax Rate
The number of dollars per $1,000 worth of actual value which is payable in property taxes.
Taxable Income (Loss)
Income (loss) reported for tax purposes. It is not to be confused with net income (loss). Net income (loss) is arrived at by the deduction of Depreciation Expense, whereas taxable income (loss) is calculated after the deduction of Capital Cost Allowance.
Tenancy Agreement
Written, oral, or implied agreement between a landlord and a tenant that creates the tenancy.
Tenants in Common
Two or more people owning a property where on the death of one, the deceased person’s share passes to his or her heirs rather than the other owners; no right of survivorship.
Tender
Presentation of executed copies of all closing documents or funds to the other party in a real estate transaction.
Teraview
Software that is used to access the electronic land registration system in Ontario.
Term
The length of the current mortgage agreement. A mortgage may be amortized over a long period (such as 37 years) but there is always a specified term that is usually between six months to ten years or more. After the term expires, the balance of the principal owing on the mortgage can be repaid or a new mortgage agreement can be entered into at the then current interest rates.
Termination for Cause
Termination by the landlord on the grounds of fault.
Terms of Trade
The ratio of export prices over import prices.
Testamentary Trust
A trust set up by the testator in a will to preserve and administer assets for specific purposes after the rest of the estate had been wound up-for example, for a child beneficiary; here, capital is set aside for investment by a trustee (often the estate executor and trustee), with the income to be used for the child’s benefit until the child reaches an age set by the trust, at which time the capital may be paid out; if an individual is set up, the person who establishes it, called a settler, no longer owns or controls the trust property; the trustee is then the legal owner; however, the trustee’s ownership rights are controlled by the trust terms, which require the trustee to use the property for the benefit of the beneficiary (sometimes called a cestui que trust).
Testator
One who makes a will to dispose of his estate on death.
Time Series Data
Data on one or more variables taken from one or more time periods.
Title
The legal ownership of something; often refers to a document that indicates ownership or an ownership interest-to say someone has title to a car usually mean that the car is registered with the province in the name of that person.
To Purge Contempt
When an order has been made by the court finding someone in contempt, the person may avoid punishment for contempt by doing what was required of him; this is referred to as purging his contempt-for example, a person who refuses to answer questions on an examination may purge his contempt by re-attending and answering the questions.
Total Debt Service (TDS) Ratio
The percentage of gross income needed to cover monthly payments for housing and all other debts including other financing obligations. The total should generally not exceed 40% of gross monthly income.
Title
Written evidence that proves the right of ownership of a specific piece of property.
Title Insurance
Protection for lenders or homeowners against financial loss resulting from legal defects in the title of the specified property.
Title Requisition
A request made to the vendor/seller to clear up a problem found during the search of title
Title Search
An examination of municipal records to determine the legal ownership of a property.
Trade Balance
The difference between what the country exports and what the country imports.
Trade-Weighted Exchange Rate
An index of a currency’s value in terms of a combination of foreign currencies. Each foreign currency in the combination is weighted according to the relative size of trade between the foreign country and the domestic country. The trade-weighted exchange rate is sometimes called the effective exchange rate.
Transfer
A document that transfers ownership of land
Transfer Fee
An administration fee that is levied by the financial institution when the mortgage is transferred in, a discharge fee may also apply on the transfer out of a mortgage.
Treasury Bill (T-Bill)
A shot-term promissory note issued by the Government of Canada to finance ongoing expenditures in excess of current tax revenues. New T-bills are auctioned off weekly, in multiples of $1,000 of face value, by the Bank of Canada. T-bills are originated with maturities of 91 days, 182 days, or 1 year. The discount rate at which T-bills are sold at auction is widely observed benchmark of short-term interest rates.
Trend
A regular pattern in time series data.
Trial Record
A record that consists of the pleadings, pretrial orders, a solicitor’s certificate that the record is complete, and, depending in the nature of the case, other documents as well; once a record has been served and filed, the registrar will put the matter on the trial list 60 days later.
Trustee
Individual or business entity in whose name a trust is held.
Trustee in Bankruptcy
An individual, usually an accountant, who is licensed to act as a trustee under the Bankruptcy and Insolvency Act-such individuals advertise their services in the Yellow Pages; an individual or corporation that wishes to make a proposal or an assignment in bankruptcy begins by consulting a trustee; the trustee, once retained, is pain out of the debtor’s/bankrupt’s estate and becomes trustee over the estate for the benefit of the creditors to whom he is ultimately responsible for the administration and liquidation of the estate.

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UFFI
Ureaformaldehyde Foam Insulation
Uncorrelated
Two variables are uncorrelated if their linear correlation coefficient is 0.
Undertaking
A promise given in the course of legal proceedings by a party or his lawyer, generally as a condition to obtaining some concession from the opposite party.
Underwriting
The process of verifying data and approving a loan.
Underwriting Fees
A sum of money collected by some lenders to offset expenses incurred during the lending process.
Undue Influence
Any improper or wrongful constrain, manipulation, or persuasion whereby the will of a person is overpowered and he is induced to do or refrains from doing an act which he would not do or would do if left to act freely.
Unemployment Rate
The proportion of people currently without work though actively looking for jobs relative to the number of people who are working at the time.
Unimodal
Refers to a distribution with only one mode.
Unit
The premises rented under one tenancy agreement, usually an apartment within a complex of a group of units such as apartment buildings, condominiums, townhouse complexes, etc.
Unit Register
A register that shows ownership of each unit and any mortgages, liens, and leases relating to the unit
Unsecured Credit
A loan or extension of credit to a debtor where the debtor has not given the creditor a right to seize property belonging to the debtor to satisfy the debt when the debt remains unpaid.
Usurious Rate
A rate that is based on unlawfully or unnecessarily high interest.
Usury
Excessive interest and is illegal.
Utilities
Services such as heat, water and electricity that may or may not be included in the rent that is paid.

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V
When the letter V is attached to the APR (Annual Percentage Rate), the interest rate is a variable rate and subject to changes.
Vacancy Allowance
An estimate of the amount of rent that may be foregone because of unoccupied units.
Vacant Possession
free or empty of all people and chattels
Vacated
Removed from title by registration of a court order that vacates or annuls the certification of action
Valid
In effect.
Valuation
An estimation of a property’s price value achieved through an appraisal.
Value Index
An index to compare the value of several products over two time periods.
Variable
Symbol which can take on any of a predetermined set of values.
Variable Interest Mortgage
A mortgage where the interest rate varies during the term of the mortgage. This fluxuation is usually tied to a factor such as the prime lending rate.
Variable Interest Rate
The rate of interest that fluctuates with changing market conditions during the term of the loan
Variable Name
Name used to refer to a variable.
Variable Rate Mortgage
A mortgage for which the rate of interest may change when other market conditions change such as prime. This is sometimes referred to as a floating rate mortgage.
Variance
A measure of dispersion of a distribution around its mean; the square of the standard deviation.
Vendor
The seller in a real estate transaction.
Vendor Take Back
Where the seller of a property provides some or all of the mortgage financing in order to sell the property. The seller has the right to call in his loan at any time.
Vendor Take Back (VTB) Mortgage
A mortgage provided by the vendor/seller to the buyer.
Vendor Take Back Charge
A charge created when the vendor of a property agrees to lend the purchaser money toward the purchase price and the purchaser gives the vendor a charge on the property as security for the loan
Verification of Employment
The lender will contact an applicant’s employer in order to verify information provided in a mortgage application or a job letter. These questions may involve your income structure, length of employment, position, and so on.
Vest
To provide an immediate right to present or future ownership or possession
VISA
A company that provides credit through cards that are distributed through financial institutions around the world.
Void
Has no legal effect and is null.
Voidable
When one party to a contract is permitted to rescind the contract.

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Waiver
An intentional and voluntary abandonment or surrender of some right, privilege or claim.
Walk-Away-Lease
Also known as a closed-end lease this is usually used when leasing vehicles. This allows the lessee to return a car at the end of its lease term, pay any end of lease costs, and the lease agreement is complete.
Walk-Through
The buyer’s final inspection of the property. Usually done on the day of closing or the day before closing.
Warranty
A document that certifies clear title to real estate. Also, a guarantee from a dealer or a manufacturer that their product will perform as specified.
Wealth Effect
The impact on consumer spending from a shift in the value of net household assets.
Week-To-Week
Refers to a periodic tenancy that is not bound to a specific lease period, such as a year, but renews each week.
Weighted Arithmetic Mean
A arithmetic mean where each of the values is assigned a weight indicating its importance or frequency.
Whiteprint
A copy of the plan of survey of a subdivision that shows the dimensions of individual building lots
Will
A document stating how a person’s property will be dealt with upon death
With Prejudice
A phrase used in connection with attempts to settle; when it is used (usually at the start of a letter), it signifies that the writer intends to make an offer that he is prepared to disclose to the court during the trial; such disclosure indicates that the party does not fear that disclosure will prejudice his case; rather the idea is that it will enhance his case by showing him to be reasonable, and otherwise presenting him in a favourable light.
Without Prejudice
A phrase used in connection with attempts to settle; unlike “with prejudice” letters, this phrase means that statements will be make in the letter that are made solely in the context of an offer and the letter may not be disclosed to the court, even if it contains damaging statements or admissions; the making of an offer on a without-prejudice basis allows for a free and frank discussion of settlement, without the loss of the ability to present a case to the court, where the court is not prejudiced by admissions made in the course of settlement.
Witness
When one subscribes a name to a deed, a will or any other document for the purpose of attesting its authenticity.
Work Orders
Municipal/zoning by-laws require that residential property be maintained in a safe and habitable condition, and that a property’s use conform to specific requirements.
Workout
A mortgage where the monthly payment has been adjusted to prevent foreclosure.
World Bank
Its current mandate includes the provision of funds and technical advice to Third World borrowers, the coordination of aid to less developed countries and theoretical leadership in development policy.
Wraparound Mortgage
A where the balances on all mortgages are combined into one mortgage.
Writ of Execution
A judicial order addressed to the sheriff requiring the enforcement of a judgment
Writ of Possession
A court order giving the mortgagor the right to take possession of the property
Writ of Seizure and Sale
Also called a writ of execution; allows the sheriff to seize and sell goods or land belonging to the judgment debtor and apply the proceeds to the judgment creditor’s claim.

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X
The symbol used in legal documents that represents where a signature should appear.

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Year-End Statement
The report sent each year to the borrower. The report states the amounts paid in taxes and interest during the year, as well as the outstanding balance at years end.
Yield
The income and/or value appreciation of an investment expressed in terms of the purchase price of that investment. For example, if a property that has sold for $100,000 is worth $2,000 more one year later and has generated an income of $5,000 during the year, the yield to the investor is ($2,000+$5,000)/ $100,000=.07 or 7%. See Return.
Yield to Maturity (YTM)
The internal rate of return on an investment. Usually all investment returns and their timings are taken into account.

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Zero Balance
Shown on a credit card statement when there is no outstanding balance owing.
Zero Down Mortgage
Was available in Canada as a true 100% mortgage financing product. No longer insurable by Canadian mortgage insurance companies.
Zoning
Classification of permitted land use that includes categories such as residential, commercial, industrial and agricultural
Zoning Bylaws
Bylaws enacted by a municipality to regulate the use of land