Modification

Definition

• Altering or making changes to the terms of a loan agreement. For example, many mortgage lenders in Canada will allow you to modify the amortization period from a 10 year to a 15 year at any time during the mortgage term.

Synonyms
change, adjustment, revision

Related Terms and Acronyms

• Acceptance — Definition,
  • A property seller's formal, written approval of a buyer's offer.
• Addendum — Definition,
  • A change made to a contract.
• Agreement of Sale (AOS) — Acronym,
  • A document in which a property's buyer and seller approve the price and other terms of the transfer of title.
• Amortization — Definition,
  • Amortization refers to the process of gradually paying down the principal of a loan. Each payment toward the principal reduces your loan by that amount. This is different than an interest-only loan payment where the principal balance is never reduced. Amortization for a mortgage loan in Canada is normally 25 years, but can be as few as 5 years.
• Breach of Contract (BOC) — Acronym,
  • Failure to abide by terms of a legal agreement without a legal excuse.
• Consideration — Definition,
  • A thing of value that is negotiated as part of a contract.
• Contract — Definition,
  • An agreement between two or more parties that can be enforced by law.
• Non-Cancellable — Definition,
  • A contract or section of a contract that cannot be modified.