GLOSSARY OF MORTGAGE TERMS

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CHARGE:
AN ENCUMBRANCE ON LAND BY WAY OF A MORTGAGE AS REGISTERED IN THE LAND TITLE SYSTEM

CHARGE/MTG OF LAND:
PHRASE USED TO REGISTER A CHARGE UNDER THE LAND REGISTRATION REFORM ACT.

CHATTELS:
ARE MOVEABLE POSSESSIONS, PERSONAL PROPERTY (GENERALLY ITEMS THAT MAY BE REMOVED WITHOUT INJURY TO THE FREEHOLD STATE).

CHATTEL MORTGAGE:
A MORTGAGE GIVEN ON MOVEABLE POSSESSIONS, OR PERSONAL PROPERTY, THAT MAY BE REMOVED WITHOUT INJURY TO THE FREEHOLD ESTATE. GENERALLY IT IS A MORTGAGE OF PROPERTY OTHER THAN REAL ESTATE.

CLOSED MORTGAGE:
A MORTGAGE WHERE THE INTEREST RATE, AMORTIZATION PERIOD, TERM AND ALL OTHER PARAMETERS ARE FIXED UNTIL THE MATURITY DATE.

CLOSING (DATE):
THE DATE WHEN THE OFFER OF PURCHASE AND SALE AGREEMENT BECOMES FINAL AND THE SALE IS COMPLETE. THE MORTGAGE IS REGISTERED ON THIS DAY AND THE MORTGAGE LOAN IS ADVANCED. THE OWNERSHIP OF THE PROPERTY IS CHANGED FROM ONE PERSON (VENDOR/SELLER) TO ANOTHER (PURCHASER/BORROWER).

CMHC:
CANADA MORTGAGE AND HOUSING CORPORATION. THE NATIONAL HOUSING ACT (NHA) AUTHORIZED CMHC TO OPERATE A MORTGAGE INSURANCE FUND WHICH PROTECTS NHA APPROVED LENDERS FROM LOSSES RESULTING FROM BORROWER DEFAULT.

CMHC OR GEMICO:
INSURANCE PREMIUM MORTGAGE INSURANCE THAT INSURES THE LENDER AGAINST LOSS IN CASE OF DEFAULT BY THE BORROWER. MORTGAGE INSURANCE IS PROVIDED TO THE LENDER BY CMHC OR GEMICO AND THE PREMIUM IS PAID BY THE BORROWER. THIS INSURANCE ONLY APPLIES TO THOSE PURCHASING WITH LESS THAN 25% DOWNPAYMENT.

COMMITMENT:
A NOTICE FROM A MORTGAGE LENDER TO A PROSPECTIVE BORROWER THAT THE LENDER WILL ADVANCE MORTGAGE FUNDS IN A SPECIFIED AMOUNT UNDER CERTAIN CONDITIONS.

COMMITMENT LETTER:
A WRITTEN NOTIFICATION FROM THE MORTGAGE LENDER THAT THE BORROWER HAS BEEN APPROVED FOR THE MORTGAGE LOAN. THIS COMMITMENT WILL OFTEN HAVE CONDITIONS THAT MUST BE MET BEFORE THE FUNDS WILL BE ADVANCED.

CONDITIONAL OFFER:
AN OFFER TO PURCHASE SUBJECT TO CONDITIONS. THESE CONDITIONS MAY RELATE TO FINANCING, OR THE SALE OF AN EXISTING HOME.  USUALLY A TIME LIMIT IN WHICH THE SPECIFIED CONDITIONS MUST BE SATISFIED IS STIPULATED.

CONSTRUCTION LIEN:
A CLAIM AGAINST A PROPERTY AND IN INTEREST OF THE OWNER FOR LABOUR, SERVICES, AND/OR MATERIALS SUPPLIED TO IT.

CONVENTIONAL MTG:
A FIRST MORTGAGE GRANTED BY A LENDER (BANK, TRUST COMPANY, PRIVATE MONEY ETC) WHEREIN THE AMOUNT OF THE LOAN DOES NOT EXCEED 75% OF THE APPRAISED LENDING VALUE OF THE PROPERTY.

CONVERTIBLE MTG:
A CONVERTIBLE MORTGAGE IS A MORTGAGE THAT GIVES THE OPTION TO CONVERT TO OTHER RATES AND TERMS.

COVENANT:
A MUTUAL AGREEMENT OF TWO OR MORE PARTIES. USUALLY DONE BETWEEN LENDER AND / OR OWNER AND PURCHASER / BORROWER. THIS IS A BINDING AGREEMENT.

CONVEYANCE:
THE TRANSFER OF INTEREST IN A PROPERTY FROM ONE PERSON TO ANOTHER.

CREDIT REPORT:
A REPORT ON THE CREDIT POSITION OF A BORROWER IN CONFORMITY WITH THE CONSUMER REPORTING ACT.