Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
50% - Moderately


Synonyms:adjustment, change, revision
Filed Under: financial-banking, mortgages
Tags: banking, mortgage

Definition of modification

1. 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.

Related Terms and Acronyms:

  • acceptance   A property seller's formal, written approval of a buyer's offer.
  • addendum   A change made to a contract.
  • agreement of sale (AOS)   A document in which a property's buyer and seller approve the price and other terms of the transfer of title.
  • amortization   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)   Failure to abide by terms of a legal agreement without a legal excuse.
  • consideration   A thing of value that is negotiated as part of a contract.
  • contract   An agreement between two or more parties that can be enforced by law.
  • non-cancellable   A contract or section of a contract that cannot be modified.

Search the Glossary

Home Loan Mortgage Calculator
Compare different payment schedules and mortgage interest rates using our new residential mortgage calculator. Knowing how it all works will help you get the best deal on your home loan. Try it out and tell us what you think.
Home Calculator
Best Rates Countrywide
We do our best to ensure that the best rates advertised on our website are available to Canadians everywhere. Coast to coast, we offer low rate mortgages with flexible options.
Best Rates Countrywide
Mortgage Brokers
With over 75 banks and mortgage lenders to choose from, we have access to the best rates in Canada. Our top rated mortgage brokers are willing and able to find the perfect mortgage product for your situation and get you the lowest rate possible.
Top Rated Mortgage Brokers