A loan by a lender (mortgagee) to a property owner (mortgagor) where the property itself is provided as security (collateral).

Amortization Period

The amount of time it takes to pay back the entire mortgage.

Assignment of Mortgage

The transfer of ownership of a mortgage from one mortgagee to another.

Assumption of Mortgage

The act of assuming liability for an existing mortgage on a property by the purchaser of that prop-

Closed Mortgage

This type of mortgage has a fixed term. There is a penalty imposed if the mortgagor wishes to discharge this loan before the end of its term.

Discharge

To pay off the entire mortgage loan.

Mortgagee

The lender of money for a mortgage loan.

Mortgagor

The borrower of money for a mortgage loan who takes responsibility for its repayment.

Open Mortgage

This type of mortgage has a fixed term. There is no penalty imposed if the mortgagor wishes to discharge this loan before the end of its term.

Second and Third Mortgages

Mortgages registered secondly and thirdly on a title after the first mortgage. These mortgages have second and third call on funds if the mortgage goes into default and the property must be sold. These are sometimes known as equity loans.

"Taking Back" a Mortgage

When the vendor decides to become a mortgagee for his property, this is known as "taking back" a mortgage.

Term

The prescribed length of time during which the mortgage agreement exists. At the end of each term  a new term can be negotiated at the rates of interest current at the time of negotiation.