REAL ESTATE GLOSSERY
AMORTIZATION SCHEDULE
A complete table of periodic loan payments, showing the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term.
EQUITY
Home equity is the difference between the value of your home and how much you owe on your mortgage. For example, if your home is worth $250,000 and you owe $150,000 on your mortgage, you have $100,000 in home equity
MORTGAGE
A mortgage is an agreement between you and a lender that gives the lender the right to take your property if you fail to repay the money you've borrowed plus interest. Mortgage loans are used to buy a home or to borrow money against the value of a home you already own.
CLOSING DATE
The date on which the new owner takes possession of the property and the sale becomes final.
COLLATERAL
An asset, such as term deposit, Canada Savings Bond, or automobile, that you offer as security for a loan.
DEPOSIT
A sum of money deposited in trust by the purchaser when making an offer to purchase. Once the offer is accepted by the seller, the deposit is held in trust by the listing real estate broker, lawyer, or notary, until the closing date of sale, at which point it is given to the seller as part of the purchase price.
TERM
A mortgage term is the length of time, usually in years, in which the parameters of a mortgage have legal effect. After the expiration of the mortgage term, the remaining balance of the mortgage will need to be renewed, refinanced or paid in full.