Definition
Affordability
Affordability is a measure of a borrower’s ability to afford a house. It is usually expressed in either one of three ways, or any combination of the 3. …
Absolute Title
An absolute title refers to a title to property that is clear, without any judgments against it, charges or liens on it. In essence it would be a clear title …
Unencumbered Property
An unencumbered property refers to a property without any existing or prior legal claims against it in the form of liens, caveats, charges, etc. It basically …
Bridging Loan
A bridging loan is a short term loan to help finance a shortage of funds to purchase a property due to the time lag that exist between an owner selling an …
Term
The term of a mortgage is the period of the loan where it’s monthly payment is calculated. Sometimes also called a tenor or tenure, it is generally …
Simple Interest
Simple interest refers to interest rates on loan products that do not charge interest on interest via compounding. For most consumers, this should be the …
Retail Bank
A retail bank is a bank that lends money to the general public of consumers. Some of the products they sell include: Mortgages Personal loans Credit cards Car …
Break Even Point
The break even point of a housing loan refers to how long a borrower must retain a loan for interest savings to equal the initial fees and costs. Break even …
Payment Period
The payment period of a housing loan is the period in which a borrower is supposed to make payment towards it. In most cases, the payment period is one month. …
No-Change Scenario
A no-change scenario is an illustration of how floating or variable rate home loans will look like on an amortization schedule assuming index rates will not …
