GLOSSARY OF MORTGAGE TERMS

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PER DIEM:
PER DAY.

PORTING:
THIS ALLOWS YOU TO MOVE TO ANOTHER PROPERTY WITHOUT HAVING TO LOSE YOUR EXISTING INTEREST RATE. YOU CAN KEEP YOUR EXISTING MORTGAGE BALANCE, TERM AND INTEREST RATE PLUS SAVE MONEY BY AVOIDING EARLY DISCHARGE PENALTIES.

POWER OF SALE:
THE RIGHT OF THE MORTGAGEE TO FORCE A SALE OF THE PROPERTY, WITHOUT JUDICIAL PROCEEDINGS, SHOULD DEFAULT OCCUR.

PRE-APPROVAL LETTER:
A LETTER THAT STATES THAT THE BORROWER HAS RECEIVED A GUARANTEED RATE (HELD FOR USUALLY UP TO 120 DAYS) FOR A CERTAIN MORTGAGE AMOUNT AND FOR A CERTAIN TERM.

PRE-AUTHORIZED PAYMENT:
AN AUTOMATIC WITHDRAWAL FROM AN ACCOUNT HELD WITH A FINANCIAL INSTITUTION. WHEN THE BORROWER SIGNS THE BANKING INFORMATION AND INCLUDES A VOID CHEQUE AND SIGNS AN AUTHORIZATION FORM THAT WILL BE USED BY THE BANK TO DEBIT THEIR BANK ACCOUNT FOR PERIODIC PAYMENTS.

PREPAYMENT OPTION:
THE PAYING OFF OF ALL OR PART OF THE PRINCIPAL SEPARATE AND APART FROM PAYMENTS CALLED FOR UNDER THE MORTGAGE AGREEMENT.

PREPAYMENT PENALTY:
A FEE CHARGED BY THE LENDER WHEN THE BORROWER PREPAYS ALL OR PART OF A CLOSED MORTGAGE MORE QUICKLY THAN SET OUT IN THE MORTGAGE AGREEMENT.

PRINCIPAL:
THE LOAN AMOUNT BORROWED, NOT INCLUDING THE INTEREST.

PRINCIPAL, INTEREST:
PAYMENTS DUE ON A REGULAR BASIS UNDER THE TERMS OF THE MORTGAGE AGREEMENT, WHICH WOULD INCLUDE THE PRINCIPAL AND THE INTEREST.

PRIOR CHARGE:
AN ENCUMBRANCE OR DEBT THAT RANKS IN HIGHER PRIORITY THAN THE SPECIFIC MORTGAGE DOCUMENT BEING CONSIDERED.