Low-down Mortgages

Definition

• Loans that allow a low down payment, usually less than 10 percent.

Synonyms
low down payment mortgage, small down payment

Alternate Spellings
lowdown

Related Terms and Acronyms

• Buy-down — Definition,
  • When a borrower or a mortgage broker "buys down" a mortgage rate, they make an upfront payment to the lender in order to lower the mortgage rate. A similar effect can be achieved by making a lump sum payment at the beginning of a mortgage term.
• Down Payment — Definition,
  • The portion of the purchase price a buyer pays, in cash, at the time the loan originates.
• High-ratio Mortgage — Definition, Important,
  • A mortgage in which a borrower places a down payment of less than 20% of the purchase price.
• Loan-to-Value (LTV) — Acronym, Very Important,
  • The ratio of the principal amount of the loan to the lesser of the purchase price of the property or the property's appraised value. This can be expressed as an 80% loan, or 80% LTV.
  ➥ A widely used term in the mortgage brokerage and lending industry, especially by mortgage underwriters.
• Low-down-payment Loan — Definition,
  • A mortgage where the borrower puts down a small amount and borrows a high percentage of the purchase price.
• Maximum Financing — Definition,
  • A loan given for a property where the buyer puts down the lowest allowable down payment possible.
• Mortgage (mtg) — Abbreviation, Important,
  • A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
• Mortgage Broker (MB) — Acronym, Important,
  • One who finds clients perspective lenders at generally no cost. Mortgage Brokers have a special relationship with lenders and can offer their clients the best rates and service. CanEquity goes through great lengths to ensure you are serviced by the best Mortgage Brokers in Canada.
• Mortgage Brokerage — Definition, Very Important,
  • An individual or group who brokers deals between their clients and lenders.
  ➥ CanEquity is a mortgage brokerage.
• Mortgage Insurance — Definition, Very Important,
  • Insurance that protects a lender if a homeowner fails to pay off his or her mortgage.
  • A policy covering a mortgagor from which the benefits are intended (a) to pay off the balance due on a mortgage upon the death of the insured, or (b) to meet the payments on a mortgage as they fall due in the case of his death or disability.
  ➥ CanEquity offers mortgage insurance.
• Mortgage Life Insurance — Definition, Very Important,
  • Insurance that covers the costs of paying off a mortgage if the insured dies or becomes disabled.
• No Money Down Mortgage — Definition, Important,
  • Available in Canada as a true 100% mortgage financing product.
• Total Debt Service (TDS) — Acronym, Important,
  • The ratio of a borrower's total monthly debt payments to his or her monthly gross income. Lenders use this ratio to determine how much of a loan a borrower is qualified for.
• Zero Down Mortgage — Definition,
  • A mortgage product that allows the borrower to financing 100% of their property.