Definition
Interest Payment
The interest payment on a housing loan refers to the monthly amount of interest (in dollars) that a borrower is obligated to repay the lender. If a borrower is …
Interest Rate Ceiling (cap)
An interest rate ceiling on a housing loan refers to an upper limit imposed on the maximum interest rate that a borrower will be charged by the bank. Because …
Cumulative Interest
Cumulative interest refers to the sum of all interest payments to date, at a particular point in time, or over the entire life of the loan. This helps a …
Demand Clause
A demand clause is a provision in the mortgage loan agreement contract in which the lender has the right to recall the loan for any reason. This is very …
Recall
A recall refers to a lenders demand for a loan to be repaid in full immediately. These events seldom happen, but are not unheard of. This is because loan …
Fixed Deposit Home Rate (FHR)
The Fixed Deposit Home Rate (FHR) is an index rate used in homes loans as alternative to SIBOR or SOR. It was conceptualized due to an extended period of …
Escrow
An escrow is an agreement between two or more parties whereby a third party would hold funds belonging to them and release them according to the terms of the …
Personal Guarantee
When a borrower agrees to provide a personal guarantee for a loan, he or she basically promises to repay the debt in full, and the lender would be able to …
New To Bank
New to bank (NTB) is a term used by lenders internally to describe new customers that they are dealing with for the very first time. This means that the lender …
Default
A borrower in default means that he or she has failed to adhere to the terms of the loan agreement, and therefore a lender would have the legal right to …
