Mortgage documents may contain an acceleration clause to protect the lender in the event of a default. The clause enables the lender to make the entire principal amount of a mortgage due in the event of a default by speeding up the payment date.
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Terms starting with: A
Acceptance
Acceptance refers to the formal written approval when a property seller accepts the offer made by the buyer for purchasing the property.
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Accredited Mortgage Professional
The Accredited Mortgage Professional (AMP) is Canada’s national designation for mortgage professionals.
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Add-on Interest
Add-on Interest is interest that is calculated at the beginning of the loan and added to the principal amount owing. This means that the added interest must also be repaid, even if the loan is paid off early.
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Additional Principal Payment
Additional Principal Payment (APP) means you can pay extra money in addition to your required loan payment to help pay off the principal loan amount faster.
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Adjustable Rate Mortgage
An Adjustable Rate Mortgage (ARM) refers to the type of mortgage loan where the interest rate and monthly payments can be adjusted to rise and fall with market conditions.
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Adjustment Period
The Adjustment Period is the length of time between interest rate changes in an adjustable rate mortgage.
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Agreement of Sale
The Agreement of Sale (AOS) is a legally binding document that details the agreement between a property buyer and the property seller. This document specifies the agreed price and any other terms of the title transfer or sale.
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Alternative Mortgage
An Alternative Mortgage is when a home loan is not a standard fixed-rate mortgage, it is considered an alternative mortgage.
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Amortization
Mortgage Amortization refers to the process of gradually paying down the principal of a loan. Each payment toward the principal reduces your loan by that amount.
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