Variable rate mortgage: A mortgage for which payments are fixed, but whose interest rate changes in relationship to fluctuating market interest rate. If mortgage rates go down, a larger portion of the payment is applied to the principal. Principal: The mortgage amount initially borrowed or the portion still owing on the mortgage. Interest is calculated on the principal amount. Assessed Value: The value of a property, set by the B.C. Assessment Authority, and used by the local municipality for the purposes of calculating property tax.
High-Ratio Mortgage: A mortgage that exceeds 75 per cent of the loan-to-value ratio; must be insured by either the Canada Mortgage and Housing corporation (CHMC) or a private insurer to protect the lender against default by the borrower who has less equity invested in the property.
Adjustment Date: The day from which all calculations of interest, tax adjustment, utility bill adjustment (if applicable) are made to the credit of either the buyer or the seller. This is usually (but not always) the same as the possession date.
Appraised Value: An estimate of a property’s market value, used by lenders in determining the amount of the mortgage.
Rights of Way: Are indicated on title at the Land Title Office; often for use of utilities or city or municipality in order to make repairs to pipes, etc.; no permanent structure may be built on a right of way.
Mortgage Prepayment Penalty: Is a feed paid by the borrower to the lender in exchange for being permitted to break a contract (a mortgage agreement); usually three months’ interest, but it can be higher or it can be he equivalent of the loss of interest to the lender.
Conventional Mortgage: A first mortgage issued for up to 75 per cent of the property’s appraised value or purchase price, whichever is lower.
Condominium Common Property, or Common Elements: The portions of a condominium development owned in common (shard) by the unit owners, e.g.: pool exercise room, lobby, etc. A strata fee is charged to every unit owner for the use of the common property.
Having an experienced and reliable Notary Public can assist you in acquiring your home in the best possible and informative and legal way bearing in mind the taxes or costs implications.
A Notary Public, Certified Canadian Immigration Consultant and Mediator/Arbitrator, Editha Corrales Nelson’s preferred areas of practice are Canadian Immigration, Conveyancing, Powers of Attorney, Wills Preparation, International Legal Documents, Affidavits, Letters of Invitation, Statutory Declarations, Drafting of Business Contracts and other notarial services. For an appointment, please call: 604-777-2757.
The following should not be construed as providing legal advice and information in this column is intended only as a general guide and should not be applied to specific circumstances without further consultation. For more information on the subject, contact Editha Corrales Nelson at 604-777-2757
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