Home Buyers Glossary Part 2 of 3

Here is the second part of the Glossary that you should know when purchasing a property…

HIGH-RATIO MORTGAGE:
A mortgage that exceeds 80% of the home’s appraised value. These mortgage must be insured for payment

INTEREST RATE:
The value charged by the lender for the use of the lender’s money. Expressed as a percentage.

MATURITY DATE:
The end of the term, at which time you can pay off the mortgage or renew it.

MORTGAGEE:
The person or financial institution that lends the money.

MORTGAGOR:
The borrower, or yourself.

MORTGAGE INSURANCE:
Applies to high-ratio mortgages. It protects the lender against loss if the borrower is unable to repay the mortgage.

MORTGAGE LIFE INSURANCE:
Pays off the mortgage if the borrower dies.

OPEN MORTGAGE:
Allows partial or full payment of the principal at any time, without penalty.

PORTABILITY:
A mortgage option that enables borrowers to take their current mortgage with them to another property, without penalty.

PRE-APPROVED MORTGAGE:
Qualifies you for a mortgage before you start shopping. You know exactly how much you can spend and are free to make a “firm” offer when you find the right home.

PREPAYMENT PRIVILEGES:
Voluntary payments in addition to regular mortgage payments.

If you have any Real Estate needs, please contact us directly!

Regards,

Jared & Rebecca Chamberlain
www.ChamberlainGroup.ca
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