Mortgage Application

Definition

• A document or form that is filled out by a prospective borrower to qualify for a loan. The application requires the borrower to provide detailed information about his or her financial situation.

Synonyms
mortgage form, mortgage query, e-mortgage, secure mortgage application, online mortgage, mortgage app, Internet mortgage, home loan application

Alternate Spellings
App

Related Terms and Acronyms

• Closed Mortgage — Definition, Important,
  • Closed mortgages involve a strict repayment schedule of a specific amount with optional limited lump sum payments and payment increases.
• Co-mortgagor — Definition,
  • A party or individual who co-signs for a mortgage loan.
• Combined Loan-to-Value (CLTV) — Acronym, Very Important,
  • The connection between the unpaid principal balances of all the mortgages on a property (first and second usually) and the property's appraised value (or sales price, if it is lower).
  ➥ A term used by mortgage lenders and mortgage underwriters.
• Conventional Mortgage — Definition, Important,
  • A mortgage that is not insured or guaranteed by CMHC or GE Capital.
• Convertible Mortgage — Definition, Important,
  • A mortgage where the borrower has the option at specified times to change the term length.
• Debt Consolidation — Definition,
  • The replacement of multiple loans with a single loan, often with a lower monthly payment and a longer repayment period. It's also called a consolidation loan. CanEquity has access to Canada's best debt consolidation products, for more info about debt consolidation see our debt consolidation page.
• Encryption — Definition,
  • A method for ensuring the privacy and security of a consumer's personal finance information at a bank or financial institution Web site. Encryption is the process of scrambling data so that only the intended receiver can use it. To be effective, encryption needs to be used by both the sender and the receiver. Consumers should make sure it is being used when sending sensitive information. CanEquity uses a encrypted server for all of our online applications.
• Full Income Verification — Definition,
  • A requirement for fully documented proof of income; loans of this type usually offer lower interest rates than no-income or "no-doc" verification loans.
• Gross Debt Service (GDS) — Acronym, Very Important,
  • The total monthly mortgage (or rent) payments, property taxes, utilities and maintenance fees as a percentage of gross monthly income.
  ➥ Used by mortgage lender underwriters to determine one's ability to qualify for a mortgage loan.
• Home Equity Loan (HEL) — Acronym, Very Important,
  • A loan that can replace or be an addition to the first mortgage. Typically used as a home improvement loan.
  ➥ Also known as an Equity Take Out (ETO).
• Lead Lender — Definition,
  • A financial institution which heads up a financial consortium or syndicate to provide funds for a mortgage.
• Loan Application — Definition,
  • A document in which a prospective borrower details his or her financial situation to qualify for a loan.
• 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.
• LPQ Amount — Definition,
  • A term used by CanEquity which is short for Loan, Purchase or Qualification amount.
• 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 Rate — Definition, Very Important,
  • The interest rate on a mortgage loan.
  ➥ You can compare mortgage rates using this website by clicking 'Rates' above.
• Mortgagee — Definition, Important,
  • The lender in a mortgage transaction.
• No Money Down Mortgage — Definition, Important,
  • Available in Canada as a true 100% mortgage financing product.
• Origination Date — Definition,
  • The date on which a loan is funded.
• Origination Fee — Definition,
  • The fee a lender charges to process a loan. It usually includes the cost to prepare loan documents, check a borrower's credit history, inspect the property and sometimes conduct an appraisal. CanEquity will in most cases use a lender who doesn't charge this fee or we will cover the cost in full.
• Pre-approval — Definition,
  • A process that mortgage lenders use to determine how much money they would lend you based on a thorough review of your financial situation. Lenders issue a pre-approval letter which strengthens your position when bidding on a home, as it shows sellers that you will be able to raise funds needed to purchase.
• Pre-Approval Expiry Date — Definition,
  • The date when a pre-approved mortgage expires, often 90 - 120 days after being pre-approved.
• Pre-qualification — Definition,
  • An informal process in which a lender will offer an opinion on how much money you may be able to borrow. This opinion is based entirely on the financial information you provide and is neither binding nor necessarily accurate because lenders have not yet verified your financial information.
• Rate Hold — Definition,
  • The length of time, typically between 60 and 120 days, that a lender will guarantee a loan's interest rate once you are locked in.
• Secure Socket Layer (SSL) — Acronym,
  • A standard form of encryption used over the Internet for e-commerce and banking transactions.
  ➥ Seen as 'https' in a web address (URL).
• Tenure — Definition,
  • The act, fact, or condition of holding something in one's possession such as real estate. A period during which something is held.
• Third-party Originator — Definition,
  • One who takes all or part of the mortgage application and transfers or sells it to a lender.
• Type 'A' Property — Definition,
  • Residential property that is centrally heated and accessible year-round.
• Type 'B' Property — Definition,
  • Property that may not be centrally heated or may only be seasonally accessible.