Amortization Period: The total length of time required to repay a mortgage in full, based on the agreed payment schedule and interest rate.

Appraised Value: An estimate of a property’s market value prepared by a qualified appraiser, often for mortgage-financing purposes.

Assumable Mortgage: A mortgage that may be transferred from the seller to the buyer, subject to the terms of the mortgage and the lender’s approval.

Balanced Market: A market in which the supply of available properties is generally in balance with buyer demand. Prices tend to remain stable, and neither buyers nor sellers have a significant advantage.

Buyer’s Market: A market in which the supply of available properties exceeds buyer demand. Homes may take longer to sell, and buyers generally have greater negotiating power.

Closed Mortgage: A mortgage with restrictions on repayment before the end of the term. Additional payments may be permitted, but exceeding the mortgage’s prepayment privileges may result in a penalty.

Conventional Mortgage: A mortgage generally equal to 80% or less of the property’s purchase price or appraised value, whichever is lower. Mortgage loan insurance is usually not required.

Conveyancing: The legal process of transferring ownership of a property from one party to another.

Down Payment: The portion of the purchase price paid by the buyer that is not financed through a mortgage.

Equity: The difference between a property’s current market value and the total amount owing on mortgages or other debts secured against it.

High-Ratio Mortgage: A mortgage exceeding 80% of the property’s purchase price or appraised value, whichever is lower. Mortgage loan insurance is generally required, subject to applicable eligibility requirements.

Interest Rate: The percentage charged by a lender for borrowing money.

Maturity Date: The date on which the mortgage term ends. At that time, the remaining balance must generally be repaid, renewed, or refinanced.

Mortgagee: The lender or financial institution that provides the mortgage funds.

Mortgage Insurance: Insurance that protects the lender if the borrower defaults on the mortgage. It is generally required for high-ratio mortgages.

Mortgage Life Insurance: Optional insurance that may repay some or all of the outstanding mortgage balance if an insured borrower dies, subject to the policy’s terms and conditions.

Mortgagor: The borrower who obtains a mortgage secured against a property.

Open Mortgage: A mortgage that allows the borrower to repay some or all of the outstanding balance at any time without a prepayment penalty.

Portability: A mortgage feature that may allow a borrower to transfer an existing mortgage, including its rate and terms, to another property, subject to lender approval.

Pre-Approved Mortgage: A conditional indication from a lender of the mortgage amount a buyer may qualify for, based on a preliminary review of the buyer’s finances. Final approval remains subject to verification and acceptance of the property.

Prepayment Privileges: The additional payments a borrower may make toward the mortgage principal without incurring a penalty, subject to the mortgage agreement.

Property Transfer Tax: A provincial tax that may be payable when an interest in real property is registered in a buyer’s name. The amount and available exemptions depend on current B.C. regulations.

Principal: The amount borrowed or the portion of the mortgage balance still owing, excluding interest.

Refinancing: Replacing or renegotiating an existing mortgage, often to change its amount, interest rate, payment schedule, or other terms.

Renewal: The process of arranging a new mortgage term when the current term expires and a balance remains outstanding.

Second Mortgage: An additional mortgage registered against a property behind the first mortgage. It commonly carries a higher interest rate because it presents greater risk to the lender.

Seller’s Market: A market in which buyer demand exceeds the supply of available properties. Homes may sell more quickly, and sellers generally have greater negotiating power.

Strata Fee: A regular payment made by strata-property owners to help cover shared expenses such as building insurance, maintenance, repairs, management, and contributions to the contingency reserve fund.

Term: The period during which the conditions of a mortgage agreement, including its interest-rate arrangements, remain in effect. At the end of the term, the mortgage may be renewed, refinanced, transferred, or repaid.

Title: The legal ownership of a property and the registered interests affecting it.

Variable-Rate Mortgage: A mortgage with an interest rate that may change during the term based on movements in the lender’s reference rate. Depending on the mortgage, payments may remain fixed or change when rates fluctuate.

Vendor Take-Back Mortgage: Financing provided by the seller to the buyer for all or part of the property’s purchase price, secured by a mortgage registered against the property.