Home Buyers Glossary Part 1 of 3

The Home buying process can bring many questions. This glossary may be a great way to help outline and understand what it is those around you are talking about.

AMORTIZATION PERIOD:
The actual number of years it will take to pay back your mortgage loan

APPRAISED VALUE:
An estimate of the value of the property. Conducted for the purpose of mortgage lending by a certified appraiser. This appraisal is not to be confused with a building inspection.

ASSUMABILITY:
Allows the buyer to take over the seller’s mortgage on the property.

CLOSED MORTGAGE:
A mortgage that locks you into a specific payment schedule. A penalty usually applies if you repay the loan in full before the end of a closed term.

CONDOMINIUM:
The owner has title to a single unit, as well as a share in the common elements such as elevators
or surrounding land.

CONDOMINIUM FEE:
A common payment among owners which is allocated to pay expenses.

CONVENTIONAL MORTGAGE:
A mortgage loan issued for up to 75% of the property’s appraised value or purchase price, whichever is less.

DOWN PAYMENT:
The buyer’s cash payment toward the property. The difference between the purchase price and the amount of the mortgage loan.

EQUITY:
The difference between the home’s selling value and the debts against it.

Stay tuned for the rest of the list…

Regards,

Jared & Rebecca Chamberlain
www.ChamberlainGroup.ca
Email Us!