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Canada Mortgage and Housing Corporation (CMHC) is a Crown Corporation which was initially created to administer the National Housing Act and is Canada's only public sector mortgage insurer. CMHC is charged with administering government housing initiatives and works with community organizations, the private sector, non-profit agencies and all levels of government to help create innovative solutions to today's housing challenges.

Canada Mortgage Bonds (CMBs) are similar to Mortgage Backed Securities (MBS) in that Canada Mortgage and Housing Corporation guarantees the timely payment of interest and principal. However, an MBS has a disadvantage to investors since borrowers of the underlying mortgages can make partial or full prepayments of their mortgage principal. While consumers (borrowers) like this flexibility, investors do not like the this unpredictability. The Canada Mortgage Bond program eliminates this cash flow uncertainty to investors, as CMHC guarantees both semi-annual interest payments, and the repayment of principal on a specified maturity date.

Caisses Populaires are credit unions as they are known in Quebec, see credit union.

Capacity is the ability of a borrower to repay a loan.

Capital is the amount of money the borrower has invested into the property.

Capital Reserve Requirements is specified amount of capital that is necessary for lenders to hold to back up the loans they grant. The amount is determined by government regulations.

Capped Rate Variable Mortgage is a variable rate mortgage on which the lender has set a limit to interest rate increases or decreases.

Cash Back is a mortgage feature that provides the borrower with cash back, as a percentage of the mortgage principal. It is generally used to cover closing costs.

Cessation of Charge is a discharge of morgage registered under the Land Titles Act.

Character  is the overall opinion on a borrower's credibility to repay a loan; the borrower's length of employment is a key measurement.

Charge is the name given to a mortgage document when title is registered under the Land Titles System. Also known as Certificate of Charge.

Chattels are movable possessions, personal property (generally items that may be removed without injury to the freehold estate).

Chattel Mortgage is a mortgage given on chattels. This type of mortgage is usually given as collateral security to a mortgage on real estate. As an example, there may be a chattel mortgage on refrigerators and stoves in an apartment building.

Closed Mortgage is a mortgage agreement that can not be repaid, refinanced or renegotiated until maturity, unless otherwise stated in its terms.

Closing Date is the date on which a sale becomes final, funds are transferred from the purchaser to the vendor, and the new owner takes possession of a property.

Closing Process is the procedure of finalizing the sale, once the lender receives an accepted commitment. 

Co-Applicant is one or two or more people applying together for a loan.

Co-Insurance is sharing of risk between insurer and insured which depends on the relationship of the amount of the insurance carried versus the amount of insurance required at the time of loss.

Collateral is guaranteed support for a loan, generally consisting of funds or real estate, that ensures added security to the lender. Collateral can also take the form of guarantees provided by third parties, i.e. guarantors.

Collateral Mortgage is the mortgage registered to document collateral security.

Collateral Security is security given in addition to the direct security and subordinate to it.

Commercial Properties are properties that are utilized for commerce or trade(e.g. stores, office buildings).

Commitment is a letter / document issued by a lender reciting the basic terms of a loan which,  when accepted by the borrower, forms a binding contract. The commitment may have conditions attached to it which must be met before the contract can be finalized.

Common Law is a legal system of principles and rules of action based on customs and common usages. It forms a major part of the law in many countries, especially those with a history as British territories, such as Canada. Common law developed from rulings by judges based on tradition, custom and precedent, with the idea being that there was a legal framework common to all cultures throughout time.

Common Mistake occurs when both parties make the same mistake in a term of the contract.

Completion Loan is the single disbursment of the total loan following satisfactory completion of the property.

Comparable Properties are properties that contain similar characteristics to the subject property in an appraisal. Appraisals typically require three comparable properties. Comparables should have sold recently, be from the same or similar neighbourhood, be of the same style/age/condition, be of similar size and on similar lots.

Comparative Method of Appraisal is a method of appraisal that bases the value of the property on that of comparable properties.

Compound Interest is interest charged not only on the principal sum but also on interest amounts charged , but not paid, in preceding periods that accumulate as new principal.

Condition is a clause or statement in the contract, which must be met to fulfil an obligation in the agreement.

Condition Precedent is a clause in the contract that lays down factors and/or events that must occur for the agreement to be binding.

Condominium is ownership of a property whereby owners hold negotiable title to their own unit. At the same time they share with fellow owners the title and cost of operation of the balance of the property (common elements) making up the condominium.

Consideration means "some right, benefit or profit accruing to the promisor or some forbearance, detriment, loss or responsibility suffered by the promissee". In other words, when dealing with contracts, the party trying to enforce the contract must have provided some benefit in return for the promise to complete the contract.

Contract is a legally binding agreement between two or more capable people for consideration or value, to do or not do some lawful and genuinely intended act.

 Contract of Purchase and Sale is a contract involving the sale of a property that outlines the complete duties of the promisor and the promissee in the real estate transaction.

Conveyance is the transfer or an interest in property from one person to another.

Conventional Mortgage is a loan based on the credit of the borrower and on the collateral for the mortgage. A conventional mortgage does not exceed 75% of the market value of the property. This means that the borrower must have 25% or more available for the down payment.

Convertible Rate Mortgages feature the ability for borrowers to fix the rate of their variable rate mortgage at any time with no penalty.

Co-Operative is a form of multiple ownership of real estate in which a corporation or business trust holds the title to a property. Individual unit holders have the exclusive right to occupy their unit by lease but their investment in the corporation is by the way of shares.

Co-Ownership is the idea that property (present or future) can be held at the same time by several persons. The most common types of co-ownership are joint tenancy and tenancy-in-common.

Corporation is a separate legal entity which exists apart from a person but has the rights and liabilities of an individual.

Cost of Goods Sold (Income Statement) is the cost of purchasing or producing and manufacturing items sold.

Counter Offer is a new offer made in response to an offer received. This has the effect of rejecting the original offer and placing the counter offer on the table for consideration.

Covenant is an agreement in writing (in Common Law must be under seal) contained in a deed and creating an obligation. It may be positive, stipulating the performance of some action. It may be negative or restrictive, forbidding the commission of some act.

Credit is the repayment history of the borrower.

Credit Report is a detailed description of the applicant's credit records. This includes information provided by lenders concerning credit card payments and loans repayment history.

Credit Score is a single number that represents the information found in a borrower's credit history. Equifax's credit score is known as the Beacon Score, while TransUnion's score is called the Empirica Score.
 
Credit Unions are lending institutions owned by their members. Membership is often based on common bond of association such as employer or ethnic background.
 
Creditor is the one to whom a debt is owed.
 
Cross Default Clause are mutual clauses in two or more mortgages, which state that a default under one mortgage constitutes a default under the other(s).
 
Current Assets are goods that can easily be turned into cash, sold or consumed within a year's time.
 
Current Liabilities are debts and obligations that are expected to be paid within a year, e.g. account payable, expenses, taxes.
 
Current Ratio is a measure that shows the ability of a firm to pay its current liabilities. It is calculated by dividing current assets by current liabilities.
 
 

If you need more information or want free no obligation mortgage advice please feel free to contact me today!

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Walter Pawlowski Ontario Mortgage Agent M11002486