GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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38% - Moderately

Secured Loan


Synonyms:auto loan, loan with collateral, mortgage
Filed Under: financial-banking
Tags: banking
 

Definition of secured loan

secured loan
1. A type of loan where the borrower must provide collateral in order to borrow the money.

Related Terms and Acronyms:

  • bad credit   Someone who carries a higher credit risk.
  • bridge loan   A loan that "bridges" the gap between the purchase of a new home and the sale of the borrower's current home. The borrower's current home is used as collateral and the money is used to close on the new home before the current home is sold. Some are structured so they completely pay off the old home's first mortgage at the bridge loan's closing, while others pile the new debt on top of the old. They usually run for a term of six months.
  • collateral   Any property pledged as security for repayment of a debt.
  • mortgage (mtg)   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.
  • non-recourse debt   A loan secured by collateral where the borrower is not personally liable.
  • owner occupant   A borrower who resides in the property used as security for the loan.
  • repayment period   In a home equity line of credit, that portion of the life of the loan that follows the draw period. During the repayment period, the borrower cannot take out any more money, but must pay down the loan.
  • secured debt   A debt that is secured by a lien on debtor's property that may be taken by the creditor in case of non-payment by the debtor. A common example is a mortgage loan.
  • security   A tradable financial implement that represents ownership, the rights to ownership or debt.
  • title loan   A loan that uses a car as collateral.

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