A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
C
Canada Mortgage and Housing Corporation (CMHC)
The National Housing Act (NHA) authorized Canada Mortgage and Housing Corporation (CMHC) to operate a Mortgage Insurance Fund which protects NHA Approved Lenders from losses resulting from borrower default.
Certificate of Location or Survey
A document specifying the exact location of the building on the property and describing the type and size of the building including additions, if any.
Certificate of Search or Abstract of Title
A document setting out instruments registered against the title to the property, e.g. deed, mortgages, etc.
Closed Mortgage
A mortgage may be an open or closed mortgage. An open mortgage usually charges a higher interest rate but may be paid off at any time without penalty while a closed mortgage may not be paid off during the term without penalty. Be careful as some mortgages may not be paid off even with a penalty before the maturity date. See also Prepayment Penalty and Maturity Date.
Closing Costs
Expenses, in addition to the purchase price of the home, that are payable on completion date.
CMHC or GEMICO Insurance Premium
Mortgage insurance insures the lender against loss in case of default by the borrower. Mortgage insurance is provided to the lender by CMHC or GEMICO and the premium is paid by the borrower.
Commitment Letter
Written notification from the lender to the borrower that approves the mortgage request and which should include the amount of the mortgage, interest rate, payment and all terms and conditions.
Completion Date
The date on which your purchase will complete and money will change hands between you and the sellers.
Conditional Offer
An offer to purchase subject to conditions. These conditions may relate to financing, or the sale of an existing home. Usually a time limit in which the specified conditions must be satisfied is stipulated.
Conventional Mortgage
A mortgage loan up to a maximum of 75% of the purchase price is referred to as a conventional mortgage. Any mortgage in excess of 75% must be insured against default. See High Ratio Mortgage.
