GLOSSARY OF MORTGAGE TERMS

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DEED:
A LEGAL DOCUMENT THAT IS SIGNED BY BOTH THE VENDOR AND PURCHASER TRANSFERRING OWNERSHIP. THIS DOCUMENT IS REGISTERED AS EVIDENCE OF OWNERSHIP. A.K.A. CERTIFICATE OF OWNERSHIP.

DEFAULT:
A FAILURE TO SATISFY THE CONDITIONS OF THE MORTGAGE (E.G. MAKING MORTGAGE PAYMENTS, PAYING REALTY TAXES). DEFAULTING ON THE LOAN MAY CAUSE THE MORTGAGE LENDER TO TAKE LEGAL ACTION.

DEPOSIT:
A SUM OF MONEY DEPOSITED IN TRUST BY THE PURCHASER WHEN MAKING AN OFFER TO BE HELD IN TRUST BY THE VENDOR’S AGENT, BROKER, LAWYER OR NOTARY UNTIL THE CLOSING OF THE TRANSACTION.

DISCHARGE OF MORTGAGE:
A DOCUMENT EXECUTED BY THE MORTGAGE, AND GIVEN TO THE MORTGAGOR WHEN A MORTGAGE LOAN HAS BEEN REPAID IN FULL BEFORE, AT, OR AFTER, THE MATURITY DATE.

DISCHARGE STATEMENT:
STATEMENT INDICATING THE AMOUNT OF MONEY THAT IS REQUIRED TO FULLY REPAY A MORTGAGE ON A GIVEN DATE.

DOWN PAYMENT:
THERE ARE TWO PARTS TO THE DOWN PAYMENT.  THE DEPOSIT THAT IS GIVEN AT THE TIME OF THE OFFER OF PURCHASE AND IS A PART OF THE
NEGOTIATION PROCESS. THE DOWN PAYMENT IS MONEY PAID BY THE BORROWER / PURCHASER THAT IS USED TO CLOSE THE PURCHASE OF THE HOME, AND REPRESENTS THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND THE MORTGAGE LOAN AMOUNT.