There are many terms in the finance industry that you may never have heard before, we’ve put together this section to help you understand them. With our focus on educating our clients, we want you to feel comfortable to discuss and understand everything. If you have questions about mortgage terms or anything else that you don’t fully understand, please don’t hesitate to contact us.
Accredited Mortgage Professional (AMP)
Accredited Mortgage Professional (AMP) is a professional designation created the by Canadian Association of Accredited Mortgage Professionals. It is essentially a designation that demonstrates commitment to ongoing education and ethical behaviour in the mortgage industry.
‘Adjustment Date’ is most commonly used in real estate transactions, where the adjustment date refers to the agreed-upon date on which certain costs such as property taxes and interest will be adjusted between the buyer and the seller.
Line of Credit (LOC)
A Line of Credit is an arrangement between a financial institution (usually a bank) and a customer that establishes a maximum loan limit. The borrower can draw down from the line of credit at any time, as long as he or she does not exceed the maximum set in the agreement. These payments are usually interest only.
Payment Matching is the concept of ensuring that what ever you pay today (monthly cash-flow) for your mortgage and liabilities will be the same after you restructure your debt into one combined mortgage payment.
A readvancable mortgage allows you to instantly borrow funds back in the form of a LOC (line of credit) with each mortgage payment. Essentially the principle portion of the payment opens into an available LOC for your use.