GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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62% - Often

Secondary Mortgage Market


Synonyms:mortgage aftermarket, mortgage equity exchange, mortgage equity market
Filed Under: financial-banking, investments, mortgages
Tags: banking, investment, mortgage
 

Definition of secondary mortgage market

secondary mortgage market
1. This market refers to mortgage loans that are bundled together and sold as securities to investors. This process enables more potential home buyers to obtain mortgages because more money is freed up for lending.

Related Terms and Acronyms:

  • asset-backed securities (ABS)   Securities backed by a pool of assets.
      ➥  Financial security made up of a bundle of assets.
  • Canadian Depository for Securities Limited   Agency responsible for the automatic processing and clearing of all securities transactions in Canada.
  • issuer   A legal entity that develops, registers, and sells securities including stocks, bonds and derivatives.
  • mortgage-backed securities   Securities backed by mortgage debt.
  • portfolio lender   A company that underwrites mortgage loans and keeps them on the books instead of selling them on the secondary market.
  • secondary market   A market where financial instruments such as stocks, bonds, options and futures are bought and sold to investors.
  • securities/investment dealer   One who acts as the agent for another party to buy and sell securities and other investments; also an underwriter.
  • security   A tradable financial implement that represents ownership, the rights to ownership or debt.

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