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Canadian Financial, Real Estate and Mortgage Glossary
How often this word is used
50% - Moderately
50% - Moderately
|Synonyms:||extent of time, length of action, period, predefined duration, time|
|Filed Under:||financial-banking, insurance, investments, legal-contracts, mortgages|
|Tags:||banking, contract, insurance, investment, legal, mortgage|
Definition of term
- 1. A limited or set period of time.
- 2. When dealing with a mortgage, term refers to the length of time in which a borrower agrees to pay back the lender. The interest rate and payment schedule is also predetermined. The interest rate typically stays constant during the term unless otherwise specified in the loan agreement. For example, a five year fixed rate mortgage has a term of five years.
Related Terms and Acronyms:
- conventional mortgage A mortgage that is not insured or guaranteed by CMHC or GE Capital.
- guaranteed investment certificate (GIC) An investment that pays a set rate of interest over a fixed period of time.
A program that calculates the costs involved in a mortgage or determines what kind of mortgage a person can qualify for.
➥ CanEquity's mortgage calculator has been rated number one by the Globe and Mail.
- mortgage renewal A renewal as it pertains to the mortgage industry is defined as having an existing mortgage term end and signing a new term to continue.
- period of indemnity The amount of time where insurance benefits are required to be paid by an insurance policy.
- pre-computed loan With a pre-computed loan, the interest owed over the life of the loan is calculated using a standard amortization table. After signing for this type of vehicle loan, the borrower is obligated to pay back principal plus the full amount of interest that will accrue over the entire term of the loan.
- principal The original balance of money lent on an outstanding loan and fees, excluding interest. Also the remaining balance of a loan, excluding interest.
- remaining term The time it will take to pay off the rest of an instalment loan as scheduled.
- term loan (TL) A loan intended for medium-term or long-term financing to supply cash to purchase fixed assets such as machinery, land or buildings or to renovate business premises.
- yearly renewable group term insurance A group insurance policy that is annually reviewed to keep premiums manageable.
More Related Terms and Acronyms
- amortization — Definition
- amortization period — Definition
- amortization schedule — Definition
- amortization table — Definition
- amortization term — Definition
- fixed instalment — Definition
- insurance renewal — Definition
- loan term — Definition
- lock-in — Definition
- lump sum payment — Definition
- porting — Definition
- promissory note (PN) — Acronym
- term deposit (TD) — Acronym
- term life insurance — Definition
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