|
Amortization
Period |
the
amount of time that it will take the
principal amount of the mortgage, at the
current rate of interest, to be repaid
in full (usually 20 or 25 years) |
|
Amortization
Schedule |
a
schedule showing each payment to be made
under the mortgage for the entire term
of the mortgage, how much of each
payment is applied to principal and to
interest and the balance owing following
each payment |
|
Balloon
Payment |
the
final amount of the mortgage that must
be repaid to the chargee at the end of
the term (this amount may also be
renegotiated for another term) |
|
Charge/Mortgage of Land |
a
document that details the loan given to
a land owner and that, once registered,
conveys an interest in the land secured
by the Charge/Mortgage of Land to the
Chargee |
|
Chargee |
the bank
or other mortgage lender |
|
Chargor |
the land
owner who has arranged the mortgage (or
charge) |
|
Closed
Mortgage |
a
mortgage that cannot be repaid in full
prior to the end of the specified term,
without payment of a penalty, as
determined by the Standard Charge Terms |
|
Discharge |
once a
mortgage has been paid in full, a
discharge is registered against the
property, effectively removing the
mortgage as an encumbrance against the
property |
|
Interest
Adjustment Date |
Mortgage
payments are often arranged for the 1st
or 15th of each and every month. When
mortgage monies are advanced on a day
other than the pre-arranged day for
mortgage payments, an adjustment for
interest must be made between the day of
advance and the day of the pre-arranged
payment. This is known as the interest
adjustment date. |
|
Interest
Rate |
annual
percentage of the principal amount
borrowed that the chargor must repay to
the chargee, in exchange for the right
to use the principal amount borrowed for
a set length of time |
|
Maturity
Date |
the date
on which the balance owing under the
mortgage must be either repaid to the
chargee or renegotiated for another term |
|
Open
Mortgage |
a
mortgage that can be repaid before the
end of the specified term |
|
Principal |
the
amount of money borrowed by the chargor
(or given by the chargee), which the
chargor must pay back to the chargee |
|
Priority |
the
status of the mortgage (first, second,
third, etc.) as determined by the date
of registration |
|
Standard
Charge Terms |
terms
that set out the rights and obligations
of the chargor and chargee |
|
Term |
the
length of time that the chargor is
entitled to use the mortgage funds,
during which time, regular mortgage
payments are made and, at the end of
which the total balance owing must
either be repaid to the chargee or
renegotiated for another term (usually
anywhere from 6 months to 7 or 10 years) |
