Income
Collected when an applicant is a salaried employee.
What is a job letter, pay stub and 2 years of T4s if applicable.
GDS
What is gross debt service?
An insurance program which allow borrowers to have a down payment of less than 20%.
What is CHMC?
A loan that is secured by real property
What is mortgage?
This is the highest credit score you can achieve, according to the credit reporting agencies.
What is 900?
What a self employed borrowers income is verified with (A lender.)
What is two years tax returns?
PIT
What is principal, interest and taxes?
The minimum downpayment percentage on a $1,200,000 purchase.
What is 20%?
This calculation is done by dividing the amount of the mortgage by the value or price of the home.
What is Loan to Value (LTV)?
Reducing a loan with payments covering principal & interest is called this, from the Latin for "dead"
What is amortization?
Statement of Pension, retirement, annuity, and other income.
What is a T4A?
AVM
What is automated valuation model?
Funds need to be seasoned in an account for.
What is 90 days?
Expenses incurred by buyers when purchasing real estate. These costs are in addition to the price of the property and are usually paid at closing.
What is closing costs?
A borrower wants to get equity from their home but they do not want to refinance their existing mortgage.
What is a second mortgage or home equity loan?
Income needed for a $600,000 condo purchase.
TRICK QUESTION. We don't know the down payment to calculate this.
WACC
What is weighted average cost of capital?
The minimum down payment for a $800,000 purchase.
What is $60,000?
The amount your property is currently worth, minus the amount of any existing mortgages on your property.
What is equity?
A short-term interim loan for financing the cost of building a home. The lender disburses funds to the builder at periodic intervals as work progresses
What is a construction loan?
CRA issued document that shows all amounts posted and charged to your account for a particular reporting and/or non-reporting period.
What is Statement of Account?
PPSA
What is personal property security act?
Number of units until a residential property is looked as a commercial.
What is a property may be deemed to be commercial as soon as you get beyond a four-plex?
A process of deciding whether to make a loan based on your credit reputation, income, debt, appraised value of the house and other factors.
What is underwriting?
Residents purchase stock in a corporation that owns a structure; each stockholder is then entitled to live in a specific unit of the structure and is responsible for paying a portion of the loan
What is a co-op?