Glossary of terms

These are some of the words or terms used in a real estate transaction in Canada.

Amortization period: The actual number of years it will take to pay back your mortgage loan.

Appraised value: An estimate of the value of the property, conducted for the purpose of mortgage lending by a certified appraiser.

Assets:What you own or can call upon. Often used in determining net worth or in securing financing.

Assumability: Allows the buyer to take over the sellers mortgage on the property.

 

Assumption Agreement:

A legal document signed by a buyer that requires the buyer assume responsibility for the obligations of an existing mortgage. If someone assumes your mortgage, make sure that you get a release from the mortgage company to ensure that you are no longer liable for the debt.