A clause in the mortgage document that accelerates the maturity date of the mortgage; the clause states that upon default, the principal sum of the mortgage and accrued interest is due.
Interest that has accumulated unpaid since the last payment date.
Interest amount that is added to the principal of a debt and made payable as part of the debt, usually in equal periodic installments.
Rate Mortgage (ARM)
A mortgage where the interest rate is adjusted periodically according to movements in a pre-selected index such as the Bank of Canada Prime Rate.
Two types of adjustments that a buyer can be charged on closing are:
Affidavit [back to top]
A statement of declaration in writing and sworn or affirmed before an authorized individual.
Law [back to top]
This type of law defines the underlying working relationship in real estate. Note that this is not legislation or a statute; agency law is common law or case law based on accumulated judgements from court cases.
Amortization [back to top]
The paying down of the principal balance of the mortgage by equal periodic payments (and occasional extra payments) of principal at regular intervals over a target period of time (typically 25 years).
Appraisal [back to top]
An estimate of the current value of the 'subject property' for the lender using (1) a market value comparison approach, which comparing recent sales of similar properties and adding and subtracting the differences in value of the same features in the subject property, or (2) the "depreciated cost" approach, whereby the land value is estimated and added to an estimate of the depreciated building value.
Value [back to top]
An estimate of property value written by a qualified individual - usually for for mortgage lending purposes (note that an appraisal may not reflect the market value of the property or the purchase price).
Assessment [back to top]
An "assessment" is the value of a property that is a historical, static estimate of the value of a property used by municipal governments as a basis for calculating annual property taxes.
Most Provinces allow a legal assignment of interest in a mortgage to have full legal effect without first having to discharge and recreate the existing mortgage.
This is particularly useful in (1) a mortgage switch, where the costs of transferring lenders could be very high, and (2) second mortgage, where a postponement may be difficult to obtain.
Mortgage [back to top]
The type of mortgage where a qualified buyer can take over a mortgage from the current owner upon the sale of a property.
If a buyer can assume a mortgage, they may do so at a below market interest rate in addition to saving on the legal costs of creating and registering a new mortgage.
" Assumption" of a mortgage entails a simple amendment to the mortgage document registered on title (refer to "switch").
of a Mortgage [back to top]
The action taken by a purchaser who is responsible for a mortgage debt through a legal agreement; the original covenantor(s) responsibility pursuant to the mortgage obligation remains intact in such arrangement unless it has released by the mortgagee. See Release of Contract.
and Extend [back to top]
A closed mortgage that can be "opened" for the purpose of extending the term; many lenders will blend the penalty for breaking the mortgage (usually an interest rate differential, or IRD) with the rate for the new extended term.
The main idea of the "blend and extend" is to enable the mortgagee to obtain a lower rate and protect against future mortgage rate increases.
Financing [back to top]
A loan required by a builder so as to obtain funds during the period between a permanent commitment and a construction loan.The lender will usually require a permanent mortgage commitment to the full amount of the construction loan plus a hold back provision that states that only the floor amount will be funded at the completion of construction.
Broker [back to top]
An individual with a "broker" designation may establish a sole proprietor practice or set up a corporation called a brokerage. For brokers, the corporation becomes the agent or broker and the individual is considered a registered real estate salesperson employed by the corporation. When you list your property or sign a buyer agency agreement, you enter into a contract with the brokerage, not the salesperson.
Buy-down [back to top]
Buy-down is a payment to the lender at the time of funding for purposes of reducing the interest rate during the term of the mortgage; often used as marketing features by new home builders, particularly on high ratio second mortgages.
Agent [back to top]
A Realtor who is engaged contractually to act on behalf of the buyer or seller. In most cases, the Realtor acts on behalf of the sellers and is paid out of the proceeds of the sale. A Buyer's Agency Agreement allows a Realtor (with full disclosure to the sellers or their agent) to negotiate on behalf of the buyer with no legal conflict of interest. In this case, the seller still pays the Buyer's Agent fees but this is always specified in the agreement and acknowledged in the Offer to Purchase.
Rate [back to top]
The highest rate that a borrower will pay within a defined time period. Examples of the cap rate are (1) the rate stated on the commitment letter or mortgage pre-qualification for the maximum rate that will be paid by the borrower during the term of a protected variable rate mortgage.
Emptor [back to top]
A Latin statement whose translation is "Let the buyer beware". In terms of purchasing a home or property, a buyer must fully examine all aspects of the transaction before agreeing to the purchase.
Mortgage [back to top]
A mortgage whose terms state that it cannot be paid out, even with a penalty, unless the lender agrees.
Note that in some cases, a closed mortgage may be paid for in full but at a defined cost such as the interest rate differential (IRD) or sometimes with a punitive penalty such as full interest to maturity.
CMHC [back to top]
The Canada Mortgage and Housing Corporation (CMHC) is a Canadian federal government crown corporation which administers the National Housing Act. One of the services provided by CMHC is the insuring of high ratio mortgage loans for lenders.
Letter [back to top]
A written letter from the lender stating that they will lend mortgage funds to a specified borrower (or borrowers) as long as certain conditions are met within a specified period of time period before the closing date. A key component of the commitment is the "rate hold" - this is where a lender may put a "cap" on the mortgage rate for a defined period of time (e.g. 60 days or 90 days), particularly in a period of volatile interest rates. For new homes, commitments on financing may have longer closing dates and can be negotiated between the lender and the builder and be held for as long as 6 months or even a year.
Letter [back to top]
A compliance letter may be required in some municipalities before a property transfer can take place. This letter acknowledges that a property either is clear of outstanding work-orders such as those that specify clean-up or repair requirements that an owner must complete before a transfer of ownership.
Loan Agreement [back to top]
An agreement set between a builder and lender that establishes the terms of an agreement (the loan amount, rate, method of drawing funds, conditions for advancing).
Covenant [back to top]
An agreement contained within a mortgage document that creates an obligation; the agreement may be positive, i.e. it stipulates the performance of certain acts, or it may be negative or restrictive, i.e. it forbidds the commission of certain acts.
Report [back to top]
A report, available from at a credit bureau, that specifies an individual's payment history. Anyone who wishes to obtain a credit report can order a copy of their report by contacting their local credit bureau.
Discount [back to top]
Reduction in product price or cost of a service. A discount if the difference between the nominal face value of a loan and actual cash received by the borrower because interest is paid at the beginning of a loan based on the sum to be repaid at maturity.
Cashflow Analysis [back to top]
This is a method of analysis that calculates the true value of an investment in terms of the present value, i.e. what the investment ifs worth now, although it is spread over a number of years. To compensate for future earnings a discount factor is added in so that a real comparison can be made between an investment with quick return and one that is placed over a number of years.
Double-Up [back to top]
This feature (not offered by all lenders) allows you to double up your mortgage payments anytime without penalty. This feature is often associated with the ability to "skip" an equivalent number of payments. This can be used either to accelerate the pay-off of a mortgage (as it is an enhanced prepayment privilege) or to manage a volatile cash flow. For example, commission-based individuals such as Realtors could "double-up" with each commission cheque, and "skip" during low cash flow periods.
Payment [back to top]
The amount of cash paid towards the purchase transaction by the buyer of a home. This is also known as the purchaser's initial "equity" in the property, but is used by a lender to judge the personal commitment to the property. For example, a lender considers that, if a buyer saved the down payment, or received it as a gift from a loved one, they will be far more committed to maintaining the property value and making the mortgage payments than if they acquired it for "no money down".
Certificate [back to top]
A written statement or certificate which states certain facts upon which the receiver of the statement or a third party may rely. For example, a lender's estoppel statement as to a purchaser or property: this states that a lender cannot later deny the truth of these statements because a third party has relied and acted upon them.
Agreement [back to top]
The lengthening of a term on a contract to (1) extend the maturity date, (2) permit more time for the performance of an obligation or condition, or (3) extend the coverage of a lien to include more property.
Analysis [back to top]
An analysis to determine the feasibility of a project. Details of construction costs, projected income from the project plus location and economic factors affecting the project will be required. Similar to a feasibility study by a developer conducted to decide whether to proceed with plans and required by the lender to decide whether to provide funds.
Mortgage [back to top]
Gives the lender a primary lien/charge against your house and property which has precedence over all other mortgages. Priority is determined by the date and time registered, so a first mortgage was literally and legally registered "first". A new first mortgage can therefore only be registered as a "first" mortgage upon the discharge of an existing one if the holder of a second mortgage "postpones" (i.e., "puts back in time") to a time immediately following the registration of the new first mortgage.
Down Program [back to top]
This allows buyers to obtain up to 95% financing on properties up to a certain value. The loan must be insured against default by CMHC (Canada Mortgage and Housing Corporation) or GE Capital Mortgage Insurance Corporation. This maximum home value will vary according to location (local Realtors should know the applicable limit) and eligibility can vary with personal circumstances.
to Ceiling Loan [back to top]
A permanent loan or advance made in two stages, (a) on completion of construction according to agreed upon terms and conditions, and (b) the balance advanced upon occupancy or upon cash flow requirements.
Debt Service Ratio (GDSR) [back to top]
The percentage arrived at by dividing your monthly shelter costs (principal, interest, property taxes, heating and half of condominium fees if applicable) by your gross monthly income and multiplying by 100. This calculation is used by all lenders as a yardstick by which they can measure the ability of a borrower (or borrowers) to make mortgage payments. Most lenders set a threshold of 32% for this ratio, while other lenders may allow higher limits; 32% is also the maximum qualifying GDS for most default insurance applications.
Income [back to top]
The scheduled income from the operation of the business of the management of the property, customarily stated on an annual basis. Income before deductions for tax or expenses.
Rent Multiplier [back to top]
An appraisal method where the fair market value of property is calculated by multiplying the gross rents by a factor which varies according to the type and location of the property.
Income Mortgage [back to top]
A guarantee included in the purchase money (by a seller-mortgagee) that there will be a minimum cash-flow or net operating income to the purchaser mortgagee (this type mortgage is limited in duration and may be combined with a management contract where the seller agrees to manage and operate the property).
Hedge [back to
A complex money market instrument whose purpose of is to insure a mortgage lender (or borrower, through a protected or split-term mortgage) against interest rate movements. In the case of lenders, the price of this insurance will vary depending upon many different factors, but will generally be lower when interest rates and the economy are less volatile. Conversely, the buyer can hedge at no cost, or at a reasonable rate premium, by using specifically designed products.
Mortgage [back to top]
A mortgage where the Loan To Value ratio is greater than 75% of the value of the property; this type of mortgage normally requires the mortgagee tp purchase insurance to ensure the lender is protected against default.
Inspection Report [back to top]
A report commissioned by a property owner or purchaser, usually to verify the condition of a property prior to the "firming up" of a Real Estate transaction. The scope and detail may vary, but most reports indicate the specific problem and the cost to repair. Unfortunately, no licensing is required, and this service is not specifically regulated other than by general consumer protection legislation. The best safeguard against inadequate work is to ask for the resume of the Inspector, and if possible check references from previous customers.
Adjustment Date [back to top]
A date from which interest on a mortgage advanced is calculated for regular payments. The IA date is usually one payment period before regular mortgage payments begin, as interest payable is due from the date a mortgage is advanced.
Only Loan [back to top]
Where the borrower pays back only the interest on the loan and there is no amortization until the end of the term. An "interest-only loan" may be used when a purchaser wishes to resell property after a short period or if they wish to accumulate enough income from the property before amortization.
Rate Differential [back to top]
A penalty for early prepayment of all or part of a mortgage outside of its normal prepayment terms. Normally this is calculated as the difference between the existing rate and the rate for the term remaining, multiplied by the principal outstanding and the balance of the term.
To calculate the IRD, given
1. $175,000 mortgage at 8.75% with 24 months remaining.
2. Current 2 year rate is 6.25%.
3. Differential is 2.5% per annum.
4. IRD is $175,000 * 2 years * 2.5% p.a. = $8750.
of Credit [back to top]
The letter issued by a bank or lending institution that promises payment to a third party in accordance with the terms of the agreement. For example, letters of credit may be used in situations where a deposit is required or as security.
Leverage [back to top]
In real estate terms, upside leverage occurs when the yield or net return on property exceeds the debt service for a loan. Conversly, downside leverage occurs when the debt service is greater than the net return on investment.
of Credit [back to top]
A maximum credit limit allowed by a bank to a borrower, provided the borrower maintains an acceptable balance on account or has a good credit rating (the line of credit may vary according to the changing circumstances of the borrower or the bank).
Processing [back to top]
The process a lender goes through upon application and approval of a loan; e.g. the procedures completed to finalize and disburse the loan such as the setting up of files, ordering of credit reports, verification of employment, bank accounts etc.
Ratio [back to top]
The percentage of the value of a property for which a mortgage is required. The LTV ratio is used to determine whether or not default mortgage insurance is required, and, if so, the cost of mortgage insurance. For example, given a property value is $250,000, and the down payment available is $25,000, the required mortgage is $225,000; therefore, the LTV is $250,000 / $225,000 or 90%.
Home [back to top]
Any property in which a person has an interest and that is or has been occupied by the person and their spouse as the family residence; matrimonial homes include condominiums, co-operatives, and leasehold interests.
Broker [back to top]
A registered agent who negotiates with lenders on behalf of a borrower to obtain the best overall mortgage for that borrower's circumstances. Mortgage Brokers are particularly useful in financing "non standard" situations which cannot be funded by a major national lender. This is possible because a Mortgage Broker has access to lenders who do not advertise nationally or operate retail locations.
Insurance [back to top]
If the down payment is less than 25% of the purchase price of the property, the lender is will require either private mortgage insurance or public mortgage insurance through Canada Housing and Mortgage Corporation (CMHC) or GE Capital. The fee is calculated as a percentage of the mortgage; known as "default insurance".
Insurance Premium [back to top]
An insurance premium which is added to the mortgage and paid by the borrower over the life of the mortgage. The mortgage insurance insures the lender against loss in case of default by the borrower.
Life Insurance [back to top]
A form of insurance recommended for the borrower; in the event of the death of the owner(s), the insurance pays the balance owing on the mortgage. The intent of mortgage life insurance is to protect survivors from losing their home.
Loan [back to top]
An agreement by which a sum of money is borrowed and a promise to repay is given by a mortgagor, and as a further security, the mortgagor gives the mortgagee a conveyance on the property they own (a promissory note executed in favor of the lender giving them an encumbrance or lien on the mortgagor's property).
Underwriter [back to top]
A mortgage lender or broker who approves or turns down loan applications based upon the quality of the real property, credit-worthiness and ability to pay according to the guidelines of the lender with regard to ratio of mortgage loan to value of property.
Listing Service (MLS) [back to top]
A service of a local Real Estate Board which publishes and exchanges details of properties registered with them. The majority of properties sold in Canada are sold through the local MLS.
A levy charged by a municipality to recover the cost of special services, if these services cannot, for some reason, be funded out of general revenues, or apply primarily to homebuyers (e.g. water meter installation, road and sewer improvements)
Operating Income [back to top]
The balance remaining after deducting the operating expenses from gross receipts and gross rental, but not including the deduction of debt service on mortgages. The "free and clear return" on property is calculated by the ratio of NOI to total investment including mortgages and equity. ("free and clear return" gives a direct means of comparing the return on different properties)
Interest Rate [back to top]
The interest rate stated on the face on a loan document. Note that if the loan amount is discounted or sold at premium, the effective rate of interest will either be higher or lower.
To Purchase [back to top]
A written proposal that is either "firm", i.e. it has no conditions, or "conditional", i.e. certain conditions that have to ve fulfilled, to purchase real estate that becomes binding upon acceptance of the vendor.
Or Closed [back to top]
The restriction or denial of repayment rights until the maturity of the mortgage is a closed mortgage. For example, if the mortgage is specified as open, then the mortgagor can pay extra payments of principal sums at any time or at specified times with or without repayment penalty.
Expenses [back to top]
All expenses, occurring periodically, that are necessary to produce net income before depreciation; under some conditions these expenses may be placed in two categories: operating expenses and fixed charges.
Loan [back to top]
The combination of two types of loan. For example, a construction loan and permanent financing (the borrower benefits by only having to negotiate with a single lender and only having to pay a single set of closing costs)
Loan [back to top]
An agreement whereby two or more lenders share in advancing a portion of a loan made by the originating or lead bank; the terms in this type of agreement establish a method of apportionment and interest rates.
Partnership [back to top]
An arrangement whereby individuals join together where, in the beginning a general partner who has the experience and the limited partners have the money, in the end the general partner has the money and the limited partners gain the experience.
Rental Against Minimum [back to top]
A rental paid on a percentage lease where rent paid by a tenant varies according to volume of business. For example, a percentage of gross receipts, sales or revenue are paid to the extent where they exceeds a minimum rental.
Covenant [back to top]
A legally-binding promise made by a borrower to repay the mortgage including the interest. The "personal" aspect refers to the lender's right to personally sue the borrower for breach of promise or default of the mortgage.
Liability [back to top]
A person liable on a debt to the full extent of their entire assets as opposed to limited liability where a maximum or a ceiling is fixed on the amount of assets that can be drawn upon to satisfy a debt.
With personal liability, joint and several liability establishes the liability of each individual borrower for the total debt, joint liability binds all the borrowers together in one action, and several liability fixes the liability of each borrower to the extent of their share of the debt.
Mortgage [back to top]
A mortgage which allows one to transfer the amount and terms over to a new property without cost or penalty. The mortgage must be registered on title of the new property, therefore it is not identical in all respects. While most mortgages have a portability feature, one may require additional money when transferring the mortgage to the new property.
Clause [back to top]
A mortgage may contain a postponement clause where the mortgagee permits the borrower to renew or release an existing first mortgage that falls due prior to the maturity date of the current mortgage.
Penalty [back to top]
If one's mortgage is not fully open, they may be charged a penalty to pay off all or part of the mortgage before the end of the fixed term. Normally, the prepayment penalty is the greater of three months' interest or the interest rate differential (IRD) on the amount to be prepaid. Note that with CMHC (insured) mortgages, plus a few of the major lenders, the maximum penalty is set at 3 months interest after the mortgage has been in effect for three years regardless of the number of times it has been renewed.
Privilege(s) [back to top]
The right to periodically repay an amount that is greater than the scheduled principal payment. This may be limited to a single annual payment on the anniversary date of no more than 10% of the original principal.
Pre-Qualification [back to top]
An interview with a client, generally prior to the writing of an offer to purchase a property, in order to determine the applicant's qualifications for obtaining a mortgage.
Interest, Taxes, Heating (PITH) [back
The principal, interest, taxes, heating and half of any condominium fees, if applicable. These expenses are known as the "shelter expenses". The "shelter expenses" are a basic component of the ratios used to determine whether one qualifies or not for a mortgage.
Forma Statement [back to top]
A financial statement of the gross income, operating costs, net operating costs and net operating income for a specified financial period (e.g. one year) using specified assumptions.
Advances [back to top]
Loan advances made on a property under construction where a lender makes advances on the basis of the retention at all times of an amount of the loan which, in their opinion, will be sufficient to complete the building should the construction fail to be completed.
Estate Representative [back to
A person (often incorrectly referred to as an "agent") who has met provincial government criteria for registration as a real estate salesperson and is employed by a broker to trade in real estate on behalf of the broker. A Revenue Canada income tax ruling that created "independent contractor" status for salespeople, giving them more tax deductions, has left a false impression that salespeople are legally independent of their broker.
and Discharge Dates [back to top]
Dates of registration by number and date given to the mortgagee. When the mortgage loan has been paid in full on or after maturity date, the mortgagee executes the discharge or cessation of charge and registers same to liquidate the mortgage which allows the mortgagor to redeem the mortgage.
Retirement Savings Plan (RRSP) [back to
An RRSP is a federal plan that allows a taxpayer to contribute approximately 18% of earned income tax free - to a maximum of $13,500 - into a retirement plan. If a taxpayer has already paid tax on personal income, then the RRSP contribution can result in a significant tax rebate. Since RRSP's can be contributed to retroactively, this enables large cash refunds to get first-time home buyers to take the plunge.
Reversion [back to top]
The right to repossess and resume the full and sole use and proprietorship of real property which temporarily has been alienated by lease, easement or otherwise. Depending on the terms of the controlling agreement, the reversionary right becomes effective at a stated time or under certain conditions such as the termination of a leasehold, abandonment of a right-of-way, or end of the economic life of the improvements.
of Survivorship [back to top]
A distinguishing feature of joint tenancies which provides the means, where land is held in undivided portions by co-owners, upon the death of any joint owner, for their interest in the land to pass to the surviving co-owner rather than their estate.
Rights [back to top]
Where the rights of the owners of land on the banks of watercourses include the use of the water on, under, or adjacent to their land, including the right to acquire wharves and fish therefrom.
Mortgage [back to top]
A type of mortgage where the interest rate is established for a specific period of time. At the end, the mortgage is said to "roll over" and the lender and borrower may agree to extend to loan. If satisfactory terms are not be agreed upon, the lender is entitled to be repaid in full. In this case, the borrower may seek alternative financing.
With The Land [back to top]
A covenant is said to "run with the land" when it extends beyond the original parties to the agreement and binds all subsequent owners to either liability to perform it or the right to take advantage of it.
A method of financing where a property is sold to a purchaser who simultaneously enters into a long-term lease of the property with the vendor. The vendor (now the lessee of the property) remains in possession for the specified term of the lease and covenants to pay the rental to this purchaser (now the lessor of the property) as well as all operation expenses.
Commitment [back to top]
A commitment from a mortgage lender to make a loan in a specified period of time, for specified terms, with the understanding the borrower will not draw down the funds.
Survey [back to top]
The legal written and mapped description of the location and dimensions of a property. The survey should also show the dimensions and placement on the lot of any structure, including additions such as pools, sheds and fences. An up-to-date survey is often required by a lender as part of the mortgage transaction.
Switch [back to top]
This is the term almost universally applied to changing lenders at the end of a term, when the mortgage becomes "open". Many lenders will now pay all of the costs of a "switch.", as well as giving them a reduced rate to lure them away from competitors.
Certificate [back to top]
At the time of a sale, the lawyer for the buyer must confirm that all local taxes have been paid up to date. If they are, a tax certificate is issued from which any adjustments can be made - usually requiring the buyer to compensate the seller for any prepaid taxes. However, if the taxes are not up to date, the municipality requires that the seller pay them off from the proceeds of the sale. If there are insufficient proceeds, then it usually falls on the buyer to pay them.
In Common [back to top]
Ownership by two or more persons; however, unlike joint tenancy, in that interest the deceased does not pass to the survivor but is treated as an asset of the deceased's estate.
Insurance [back to top]
A policy which insures the lender against loss due to a flaw in the title of property held as collateral for a mortgage, and thus the mortgage lender against any legal questions on the title to the real estate or of legal priority of the mortgagee.
Search [back to top]
An examination of the title of a property as indicated in the public records in order to determine the ownership of the subject property and the existence of any encumbrances or defects.
Debt Service Ratio (TDSR) [back to top]
The percentage of gross annual income required to cover payments associated with housing and all other debts and obligations. The Total Debt Service Ratio (TDS) is a percentage calculated by dividing monthly shelter costs (principal, interest, property taxes, heating and half of condominium fees if applicable) PLUS all other monthly debt obligations by the gross monthly income and multiplying by 100. TDS is used by all lenders as the upper limit on which to measure the ability of a borrower to make mortgage payments. Most lenders require that this ratio be no more than 40% for a particular application with some as low as 37%; 40% is also the maximum qualifying TDS in most applications for default insurance.
Account [back to top]
An account held by an agent on behalf of their principal for the payment of money due to a third party on the event of specified incidents. For example, a vendor's lawyer will hold funds on their behalf until title deeds to property have been delivered and property registered and the keys delivered to the purchaser, or an account maintained by a mortgagee for the payment of property taxes or life insurance premiums.
This type of mortgage is also referred to as a "wrap around", which is a special arrangement where one document encompasses one or more already existing mortgages registered on the same property. The mortgagee is responsible for remission of payments to the lender while the mortgagor makes one payment to the mortgagee.
Undertaking [back to top]
This is a promise made by a lawyer to ensure that certain conditions of the lender are met after closing, due to time constraints. For example, to register a discharge of an old first mortgage after the new one has been registered because there is simply not enough time to do so at closing. Furthermore, undertaking also governs such closing activities as releasing funds before a new mortgage document is officially registered.
Underwriting [back to top]
The process of deciding whether or not to lend money, or the amount of the loan, based on information provided to the lender. Every lender has a different underwriting process and lending criteria which differ between various lenders.
Consideration [back to top]
The granting of a beneficial right, e.g. an interest, profit, or suffering of some detrimental forbearance, loss or default, by one party in exchange for the performance of another.
Rate Mortgage [back to top]
A mortgage where the interest rate is usually compounded monthly and fluctuates with the prime rate at the chartered banks. In most (but not all) cases, a variable rate mortgage is fully open.
of Employment [back to top]
The lender will sometimes contact an applicant's employer in order to verify information provided in a mortgage application or a job letter, e.g. income structure, length of employment, position.
Orders [back to top]
Municipal by-laws require that residential property be maintained in a safe and habitable condition, and that a property's use conform to specific requirements, e.g. no illegal basement apartments, satellite antenna, etc.
Mortgage [back to top]
This type of mortgage is often erroneously referred to as a "blanket mortgage". It is a new mortgage, registered on the title, that includes a prior existing mortgage as the new mortgagee undertakes the responsibility as mortgagor under the original mortgage.