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Glossary | |
| Terms that are on use on this site. | |
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| There are 11 entries in the definition. | ||
| Pages: 1 | ||
| Term | Definition | |
| Adjustable Rate Mortgage (ARM) | Also known as variable rate, an ARM is a mortgage with interest rates that may fluctuate up and down periodically, according to the index upon which it is based. Most ARM\\\'s will have a limit on the amount that the rate can vary. | |
| Amortization | The amount of time over which the entire debt will be repaid. The longer the amortization, the lower your scheduled mortgage payments, but the more interest you pay in the long run. | |
| Annual Percentage Rate | The true rate of interest, stated as a yearly percentage, for a loan over its projected life. | |
| Appraisal | An official estimate of value of an asset as determined by a qualified, independent part. Appraisal of property is typically based on facts such as recent sales of comparable properties, replacement cost, and ability to produce income. | |
| Appreciation | Increase value of a property, not including increases from improvements. | |
| As-Is Agreement | An agreement in which a property is sold without warranty in whatever condition it is in at the time the contract is signed. | |
| Assessed Value | The value placed on land and building by a government agency for tax purposes. | |
| Assessment | Tax or charge levied against a property by the government, typically to pay for local improvement, e.g. sidewalks, curbs, sewers, etc. | |
| Assets | What the borrower owns. This could include real estate, savings, vehicles, RRSPs, GICs, stocks, bonds, household goods, etc. | |
| Assignment Clause | A sales contract with an assignment clause allows the buyer to transfer the interest in the property (e.g. the right to buy it at the given rates and terms) to another party. | |
| Assumption | The process of taking over the existing mortgage and assuming liability for the payments when purchasing a property. If the purchaser defaults, both buyer and seller are responsible for repaying the debt. | |