Glossary

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A

Amortization

The period of time, most often 15, 20 or 25 years, required to reduce a debt to zero when payments are made regularly.



Appraisal

A process for estimating the market value of a particular property.



Approved Lender

A lending institution authorized by the Government of Canada through CMHC to make loans under the terms of the National Housing Act. Only Approved Lenders can negotiate mortgages which require mortgage loan insurance.



Assumption Agreement

A legal document signed by a home buyer that requires the buyer to assume responsibility for the obligations of a mortgage by the builder or the original owner.



 

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