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Marketable Title is a title that may not be completely clear but has only minor objections that a well-informed and prudent buyer of real estate would accept.

Market Data Approach is one type of appraisal. See direct comparision and methods of appraisal.

Maturity is the end of the mortgage's term.

Maturity Date is the final day of the term of the mortgage, on which the balance of the mortgage owing becomes due.

Maximum Loan Amount is the maximum dollar that a lender is willing to fund. It is expressed as a percentage of the value of the property to be purchased when using the loan to value ratio.

Metes and Bounds is a system of land description whereby all boundary lines are set out using terminating points and angles. 'Metes' refers to a limit or limiting mark and 'bounds' refers to the boundary lines.

Methods of Appraisal:

  1. Direct Comparision - Also know as market data approach. Direct comparision generates a property value based on the current selling prices of similar properties.
  2. Cost Approach - An estimation of land value andthe cost of replacing the building less the depreciation of the property in question.
  3. Income Method - This method is used to evaluate income-producing properties such as apartment buildings, plazas and commercial units.

Migration is movement of people to or from one country or area to another.

Mill Rate is a rate which when multiplied by each one thousand dollars of property assessment, gives the annual real estate taxes.

Misrepresentation is a statement of false facts, generally occuring during negotiations prior to contract creation. Misrepresentation typically induces the other party to enter the agreement.

Mistake is an error in the terms of a contract agreement. There are three types of mistake:

  1. Common Mistake - Both parties make the same mistake in a contract.
  2. Mutual Mistake - Each party makes a different mistake on the same agreement
  3. Unilateral Mistake - One party is mistaken while the other party is aware of it and makes no attempts to rectify it.

Moratorium (Mortgage) is a period during which a borrower is granted the right to delay fulfillment of an obligation.

Mortgage is a legal method by which a borrower can pledge property to a lender as security for a debt. In Quebec, this is referred to as a hypothec.

Mortgage Agent is an individual authorized to deal in mortgages on behalf of a mortgage broker.

Mortgage Averaging is a method of determining a weighted mortgage rate. Mortgage averaging is used when calculating an "average" rate for a first and second mortgage, each of which has a different morgage rate.

Mortgage Banker is the one who originates mortgages with fthe intent to sell them to permanent investors. The mortgage banker doesso under the understanding that it will service these loans for the investor.

Mortgage Backed Securities (MBS) represent an undivided interest in a pool of insured residential first mortgages. As mortgages, these financial instruments are secured by the value of the underlying real estate. NHA MBS carry the CMHC Timely Payment Guarantee and represent an obligation of the Government of Canada.

Mortgage Bond - In recent years, there has been an increased activity in mortgage bonds, mainly for larger loans. When a very large loan is required, the number of potential lenders is limited. A loan in the category of $50,000,000 for instance, is usually made by the mortgage bond method that is really a device for dividing up the loan. A bond could be issued for an amount as low as $100,000 and sold to various pension funds through investment dealers on a public issue, or more commonly sold as a private placement issue.

Mortgage Broker is an individual authorized to deal in mortgage and lend money using real estate as a security.

Mortgage Brokers Act is a piece of legislation that regulates the activities of mortgage brokers across Canada. In Ontario, for example, the Mortgage Brokers Act regulates the activities of mortgage brokers in that province.

Mortgage Consultant - see Mortgage Agent.

Mortgage Creditor Insurance is type of insurance which protects the borrower, by relieving the borrower of the need to make mortgage payments should unforseen circumstances make it impossible for them to do so (e.g. serious illnes or death).

Mortgage Default Insurance is a type of insurance which protects the mortgage lender in case the borrower defaults on the mortgage payments.

Mortgage Fraud is any material misstatement, misrepresentation or omission relied upon a lender or insurer to underwrite, approve, fund or insure a mortgage loan.

Mortgage Impairment Insurance is a master insurance policy carried by mortgage lenders that provides them with insurance proceeds in the event of an otherwise uninsured loss of a property securing their debt. Some policies also insure losses resulting from the borrower's failure real estate taxes.

Mortgage Originator is a mortgage professional engaged in the acceptance, completion and/or submission of the mortgage loan applications to an underwriting lender.

Mortgage Portofolio is the aggregate of mortgage loans held by an investor.

Mortgage Refinancing is the replacement of current mortgage financing with new financing, usually to take advantage of different interest rate or financial conditions or the existing equity in property.

Mortgage Representative are employees of a financial institution who originate mortgages. Unlike originators operating outside of lending institutions who are regulated provincionally, institutional originators, if working for federally incorporated lenders, are governed under the Office of Superintendent of Finacial Institutions (OSFI).

Mortgage Servicing is the process of managing the administrative duties resulting from the mortgage contract.

Mortgage Specialist - see Mortgage Agent.

Mortgage Term is the length of time the interest rate is guaranteed for a mortgage. Mortgage terms normally range from 6 months to 5 years or more, after which time the borrower can either repay the balance of the principal owing or re-negotiate the mortgage at current rates.

Mortgaged Out is the situation existing when the total mortgage debt equals or exceeds the market value or cost of the property.

Mortgagee is the lender or creditor.

Mortgagor is the borrower or debtor.

Movable Property is the term used for personal property (as opposed to real property) in civil law.

Municipal Property Assessment Corporation (MPAC) is responsible for administering a consistent, Ontario-wide property valuation to property owners, municipalities, and the Province of Ontario. It operates using an automated valuation model (AVM).

Mutual Mistake occurs when each party makes a different mistake on the same contract.

 

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Walter Pawlowski Ontario Mortgage Agent M11002486