.
TERM
The length of time a mortgage has been committed for. The interest rate usually remains
constant during this term unless the commitment states otherwise.
TOTAL DEBT SERVICE RATIO (TDS)
Percentage of gross annual income of a borrower required to maintain annual payments
of mortgage, property taxes, hydro and other debts such as loans, credit card payments,
child support and leases.
UNDERWRITING
The assessment of loan applications based on: the value of real property, a borrowers
credit worthiness and ability to pay and the lending guidelines of the lender.
VARIABLE RATE MORTGAGE
A mortgage where the interest rate varies during the term of the mortgage, usually
based on the prime bank rate or the GIC rate of the lender.
WEEKLY AND BI-WEEKLY PAYMENTS
You can usually choose to make your mortgage payments once a week or once every
two weeks. This accelerates the reduction of your mortgage because you are making
the equivalent of one extra monthly payment per year.
WAIVER
A document to voluntarily relinquish certain rights or privileges.
WALK-THROUGH
Inspection of a property by the prospective buyer before closing the mortgage.
WARRANTY DEED
Protects the home buyer against outside claims to a property.
YIELD
The ratio of investment income to the total amount invested over a given period of
time; also known as "return on investment" or ROI.
ZONING
Local government control over development within an area of land.
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