Mortgage Defintions Flashcards
CMHC
Canada mortgage housing Corp.
Mortgage loan insurance
LTV 80% or more to be insured under them
Real estate act
The legislation governing residential real estate, commercial ,property management,condominium management,& mortgage broker licenses
APR
Annual percentage rate
LTV
Loan to Value
Ex. Borrowed $400000 vs $500000
Appraised or asking whichever is lower
DTI
Debt(all debts)to Income
HELOC
Home Equity line of credit
HVAC
Heating,ventilation, air conditioning
RECA
Real estate council of Alberta
AMBA
Alberta mortgage brokers association
Voice of mortgage brokers, information, pre-licensing education, services
NOA
Notice of assessment
Tax line 150 for net income
TDS
Total debt service
FinTrac
Financial transactions and reports analysis center of Canada
Prevents money laundering and terrorist financing activities
Fixed rate mortgage
Interest rate stays the same over the term of the mortgage
Which act governs the practices of mortgage brokers in Alberta
Alberta real estate act
Key components of code of ethics for mortgage broker
Acting in best interest of clients
Main advantage of a variable rate mortgage
Potential for lower interest rates over time
How is mortgage insurance typically paid in Canada
Added to the mortgage principal and paid over the mortgage term
Which type of mortgage product allows the borrower to change from a variable rate to a fixed rate without penalty
Convertible mortgage