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Face Rate is the contractual interest rate stated in a mortgage document or other financial instrument. Also known as the nominal rate.

Face Value of the loan is the amount of money the borrower promises to repay (at the contract rate of interest).

Fair Market Value also known as Market Value is the highest price reasonably expected for an interest in land when sold by a willing seller to a willing buyer after adequate time and exposure to the market.

Fee is the right of ownership of a property. In real estate, this is an inheritable estate in land.

Fee Simple is the highest estate or absolute right in real estate property. In common practice fee simple is thought of as absolute ownership.

Final Order of Foreclosure is a judgement which extinguishes the borrower's (defendand's) equity of redemption and beneficial title goes over to the lender.

Financial Institutions Commission of British Columbia (FICOM) is an agency of the British Columbia provincial government that administers the Real Estate and Mortgage Brokers Department, the Credit Unions and Trust Companies Department, the Insurance Department and the Pensions Department.

Financial Services Commission of Ontario (FSCO) regulates insurance, pensions, credit unions, caisses populaires, cooperatives, mortgage brokers and loan & trust companies in Ontario.

Finder's Fee is a fee or comission paid by a lender to a mortgage professional for referring a mortgage loan.

First Mortgage is a mortgage registered before all others on title.

Fiscal Year is a business' operating year. Some companies do not use the calendar year for their bookkeeping but run over 12 month cycle, beginning and ending at another point in the year.

Fixed Assets are typically long term in nature. The value of fixed assets to a company lies in their use in producing goods and services, rather than in their sale value. Fixed assets wear out over time or otherwise lose their usefulness.

Fixed Rate Mortgage is a mortgage where the interest is determined and is set for the term of the mortgage. Fixed rate mortgages are desirable when current interest rates are low.

Fixtures are chattels that have been attached to the land or building so as to lose their character as chattels.

Forbearance is the waiving of a covenant in a mortgage document.

Foreclosure is a legal remedy available to a lender when there is default under any of the covenants in the mortgage. It deprives the borrowers of their equitable right to redeem.

Freehold Estate is an estate, or interest, in land or real property of uncertain duration, which is either of inheritance or for life of the tenant. There are three freehold estates of interest: fee simple, fee tail and life estate.

Frustration happens when unexpected events occur that render the contract impossible to be performed, the frustrated party is allowed to rescind the contract without penalty.

Full Review is the most comprehensive type of appraisal, it includes a review of both the internal and external features of the property as well as an assessment of neighborhood factors.

Fully Amortized Mortgage is a mortgage that requires the constant regular payments, including both principal and interest components, for the life of the mortgage.

Fully Open Mortgage allows principal payments to be made in any amount, at any time, in addition to regular mortgage payment, without penalty.

Functional Obscolescence (in Real Estate) is a loss of value over time due to some characteristic(s) of a building becoming less valuable as styles change. A building with no central air conditioning will suffer from functional obscolescence as air conditioning becomes "the norm" for new buildings.

 

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Walter Pawlowski Ontario Mortgage Agent M11002486