Mortgage Terms and Definitions

These are the standard terms and definitions used in Ontario mortgage contracts:

1st Mortgage: Is the first mortgage registered on the title of a property

2nd Mortgage: Second mortgage registered on the title of a property

3rd Mortgage: Third mortgage registered on the title of a property

Assignment of mortgage: Transferring of a mortgage from one lender to another

Charge of a Mortgage: Document that demonstrates there is a financial obligation registered against the title of a property

Chattel: Personal possessions, movable belongings and other assets not thought of as fixtures

Collateral Mortgage: Promissory note secured by a lien on real estate for the total amount available and may be different than the amount advanced

Conventional Mortgage: Mortgage not exceeding 80% of the value of the real estate

Discharge of Charge on a Mortgage: Document indicating a debt has been paid and removed from the title of a property

Down Payment: Amount of money supplied to the vendor from the purchaser not included in the mortgage

Equity Take-Out: Removal of equity by refinancing real estate

Interest Rate: Rate at which borrowing costs, a fee paid to the lender for providing money is derived

Mortgage: Providing of real property to a lender as security on a loan

Mortgagee: Is the lender

Mortgagor: Is the borrower

Payment: Periodic amount, required to be paid to the lender in relation to a mortgage contract

Personal Property: Everything owned that is not real property typically not fixed in its location – see Chattel

Real Property: Land and buildings located on it that are permanent

Self-Insured Lender: Mortgage lender that does not use standard default insurance but charges a similar to what one would pay for default insurance.

Standard Charge Terms: Terms and Conditions of the mortgage contract, such as legal procedures available to the lender regarding default

Term: Amount of time before the mortgage agreement must be paid back or renegotiated

Title: Term that refers to the ownership of a property and includes details of everyone having a financial interest in the property registered at the Land Titles Office