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Mortgage and Real Estate Glossary

Alberta Equity's glossary contains hundreds of terms. With this tool, you can click or search through the largest real estate and mortgage glossary in Canada!

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Looking at the economy as a whole, particularly the interaction of its various components with one another.
Maintenance Fee
A periodic assessment that residents pay to their homeowners or condominium association to pay for maintenance and repair of common areas.
Manufactured Housing
Factory-built home that can be placed temporarily or permanently upon land. Styles vary from modest trailers to dwellings that look like site-built houses.
Expressed as percentage points, the amount that a lender adds to an index to arrive at the final interest rate. For example, if the index is 9 percent and the margin 2.75 percent, the final interest rate is 11.75 percent.
Marital Deduction
For estate tax and gift tax purposes, a deduction that allows you to transfer assets to your spouse tax-free.
Market Conditions
Factors that affect the sales of homes in an area, such as interest rates, the unemployment rate, home appreciation, weather and time of year.
Market Value
Also known as "Fair Market Value." The estimated value of a property which a seller could expect to receive under normal conditions.
A credit card issued by MasterCard International which is distributed by many financial institutions around the world. Card holders borrow money against a credit line and pay it back with interest if the balance is carried over from month to month.
The date on which the principal balance of a loan becomes due and payable. It also marks the date when a bond pays off its principal.
Maximum Financing
A mortgage made on a property in which the lender's lowest permissible down payment has been made.
Meals and Entertainment
Expenses that are deductible in your business may include meals and entertainment, such as the cost of taking a client to a restaurant and a sporting event. These expenses, however, are only partially deductible (50 % in Canada)
Mechanical Systems
A house's heating, cooling, plumbing and electrical apparatus.
Median Price
In a given area, the amount paid for a house in which half of the houses in that area sell for less and half sell for more.
A method of resolving a dispute using a neutral party (a "mediator") who actively works to resolve the differences. A mediator cannot make a binding decision, as opposed to an arbitrator, who can.
Merged Credit Report
A summary of one's credit history from the big two credit bureaus: Equifax and Trans Union.
Metes and Bounds
A surveyor's legal description of a parcel of land, defined by measurements and angles.
Looking at the individual parts of the economy, with emphasis given to the market process and how it works.
Mileage Allowance
The number of miles, specified in a lease, that a car may be driven over the life of the lease.
Mileage Limitation
see "Mileage Allowance."
Mill Rate
In reference to property taxes, a unit of taxation is a set ratio made by the city or municipal district.
Minimum Average Balance to Avoid Fees
The balance in the account from day-to-day must average this amount when calculated. If the account balance falls below this amount you will be subject to the monthly charge and/or per usage transaction charges.
Minimum Balance to Avoid Fees
The balance in the account from day-to-day must average this amount when calculated. If the account balance falls below this amount you will be subject to the monthly charge and/or per usage transaction charges.
Minimum Balance to Open an Account
The minimum initial deposit required to open the account described.
Minimum Monthly Balance
The least amount of money that has been in a bank account during the whole month.
Minimum Payment
The minimum amount a cardholder can pay to keep the account from going into default. Some card issuers will set a high minimum if they are uncertain of the cardholder's ability to pay. Most card issuers require a minimum payment of 3 to 5 percent of the outstanding balance.
Mint Condition
A term describing a building or item that's just like new.
Mixed-income Housing
A neighborhood whose residents earn widely varying wages and salaries.
A change in terms of the loan agreement.
Monetary Policy
The ability of the Bank of Canada to influence the economy through changes in short-term interest rates and the money supply.
Money Factor
A leasing term that expresses the cost of borrowing. It is similar to the interest rate paid on a conventional car loan, but it is expressed as a difficult-to-understand fraction. To convert the money factor to a recognizable interest rate, multiply it by 24. For example, a money factor of .00345 x 24 = 9 percent interest. The money factor is negotiable, and consumers who lease a new car should look for a money factor close to the current interest rate charged for new-car loans.
Money Laundering
Popular term used to describe the process whereby criminals conceal illicitly acquired funds by converting them into seemingly legitimate income. While the term refers to the proceeds of organized crime generally, it is now most often associated with financial activities of drug dealers who seek to launder the large amounts of cash generated from the sale of narcotics.
Money Market Account
A bank account that restricts the type and number of certain withdrawals and which earns interest similar to that paid by money market funds.
Money Market Funds
A mutual fund that invests in short-term debts.
Money Market Mutual Fund
A mutual fund that invests in short-term debt instruments such as Treasury bills, commercial paper, and large CD's. Also referred to as money market fund (MMF).
Monthly Periodic Rate
The interest rate factor used to calculate the interest charges on a monthly basis. The factor equals the yearly rate divided by 12. See also "Periodic Rate."
Mop and Glow
A term used inside the car industry to refer to add-ons, especially paint sealant, that do little to add to the value of a car, but a great deal to add to the dealer's profit.
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.
Mortgage Acceleration Clause
A provision of a loan agreement that lets a lender demand payment of the full balance under specified circumstances, such as sale of the property, default or refinancing. Not commonly used in Canada and/or Canadian lenders.
Mortgage Banker
One who finds financing for the general public through one institution's guidelines and products.
Mortgage Broker
One who finds clients perspective lenders at generally no cost. Mortgage Brokers have a special relationship with lenders and can offer their clients the best rates and service. CanEquity goes through great lengths to ensure you are serviced by the best Mortgage Brokers in Canada.
Mortgage Disability Insurance
A disability insurance policy which will pay the monthly mortgage payment in the event of a covered disability of an insured borrower for a specified period of time.
Mortgage Insurance
In Life insurance, a policy covering a mortgagor from which the benefits are intended (1) to pay off the balance due on a mortgage upon the death of the insured, or (2) to meet the payments on a mortgage as they fall due in the case of his death or disability. Also called "Mortgage Redemption Insurance."
Mortgage Lien
A legal claim against a mortgaged property which must be paid when the property is sold.
Mortgage Life Insurance
A term policy that pays off the mortgage if the borrower dies. See also "Mortgage Insurance."
Mortgage Rate
The interest rate on a mortgage loan.
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.
The lender in a mortgage transaction.
The borrower in a mortgage transaction.
Motivated Buyer
A prospective buyer who has a strong reason to buy, and quickly.
Motivated Seller
A home seller who has a strong reason to sell quickly, possibly because of an upcoming relocation or an impending default on a loan.
Move-in Condition
A house that is ready for a new occupant.
Move-up Buyer
One who is selling a house to buy a more expensive house.
Moving Expenses
Expenses incurred when you moved in connection with your job and are deductible if they are the reasonable costs of moving yourself, your family and your possessions. You can no longer deduct the cost of meals while moving.
Stands for Manufacturer's Suggested Retail Price. It represents the manufacturer's recommended selling price for a vehicle and each of its options.
A building with more than four residential units.
Multiple Listing Service (MLS)
A database provided by the Board of Realtors that lists all properties in an area for sale or lease, excluding properties that are being sold directly by their owners without the aid of a real-estate agent.