Frequently Asked Questions
The interest of the owner in a property over and above all claims against the property. It is usually the difference between the market value of the property and any outstanding encumbrances.
The percentage of the borrower’s gross income that will be used for monthly payments of principal, interest, taxes, heating costs and condominium fees.
The process of determining the value of the property, ususally for lending purposes. This value may or may not be the same as the purchase price of the property.
The legal contract made between a lender and a borrower that uses property as collateral to secure the loan.
A mortgage loan secured against an asset with a pre-exisiting mortgage (first mortgage).
The loan amount divided by the appraised value of the security pledged.
The fees paid to a lender upon funding of a mortgage. These fees vary by deal, but can include amounts for the cost of an appraisal, preperation of documents, registering the mortgage and other application costs.
Mortgage that requires the borrower to pay interest only on the principal in monthly installments for a fixed period of time.
Mortgages are legal transactions, and therefore require the invovement of a solicitor by both parties (borrower and lender). Given the typical timeframes for these professionals, funding of a loan can generally take place within 2 weeks.
Apart from the time required by solicitors, the largest variable in the process is the timeliness with which a borrower provides the information required for the underwriting process.
We evaluate the merits of each deal on an individual basis using our professional experience, and extensive industry knowledge.
Because we do not use prespecified “checklists” in lending decision, and are able to make decisions locally we are able to employ discretion to each loan.