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!
- Laddering
- Staggering deposits into investments such as CDs in order to vary and better the rate of return.
- Land
- Includes only the ground or soil, but everything which is attached to the earth, whether by course of nature as trees and herbage, or by the hand of man, as houses and other buildings. It includes not only the surface of the earth but everything under it and over it. Condominium Acts do divide land horizontally thereby limiting the vertical ownership.
- Land Contract
- An agreement for sale of property in which the buyer takes possession while making payments, but the seller holds title until full payment is made.
- Land Title
- The legal document conveying title to a property.
- Land Titles System
- This is a system of land registration under which the registrar or master of titles passes on the validity of the instrument, determines its legal effect, and the Government guarantees title.
- Large Value Transfer System (LVTS)
- System being created by the Canadian Payments Association that will settle large value payments, possibly $50,000 and over, at the central bank on a same-day basis
- Late Charge
- A fee imposed on a borrower for not paying on time
- Late Payment
- A sum a borrower sends to a lender that is received past the date when it was due.
- Latent Defect
- A deficiency in a piece of property that can't be seen easily, such as termite damage or the presence of dangerous levels of radon.
- Lead Lender
- A financial institution which heads up a financial consortium or syndicate to provide funds for a mortgage.
- Lease
- A written agreement in which the property owner allows a tenant to use property in exchange for rent, and for a specified period. Or, a written agreement in which a car dealer allows a consumer to use a vehicle in exchange for payments for a specified period.
- Lease Extension
- The continuation of an existing lease, at the original monthly payment, usually on a month-by-month basis.
- Lease Option
- A written agreement in which an owner allows an individual to use a property in exchange for rent, and also gives that individual the right to buy the property for a specified price within a specified period
- Leasehold
- An estate or interest in an estate in real property held by virtue of a lease for a term of years. A leasehold is considered personal property.
- Leasehold Mortgage
- A mortgage given by a lessee on the security of his leasehold interests in the land.
- Legal Description
- A way of identifying a piece of property in writing that is acceptable to a court.
- Legal Mortgage
- The written geographical description of a property as described in the land register.
- Lender
- The bank or mortgage company offering the loan.
- Lending Value
- The property value for mortgage purposes. Usually the lesser of appraised value or sale price.
- Lessee
- The person who signs a lease.
- Lessor
- The person who grants a lease.
- Letter of Credit
- A letter authorizing a person or company to draw on a bank or stating that the bank will honour the credit up to the stated amount.
- Letter of Intent
- A formal notification that a buyer intends to buy property. It is not legally enforceable.
- Level Payment
- The method of repayment where periodical payments of principal and interest are made in such a way that the payments remain constant in amount.
- Leverage
- The use of a small amount of cash and a large loan to buy something.
- Leveraged Property
- A property financed with mortgage debt.
- Liabilities
- A borrower's debts and legal obligations.
- Liability Insurance
- A policy that protects owners against claims by other parties of negligence, personal injury or property damage
- Lien
- A legal hold or claim of a creditor on the property of another.
- Lien Holdback
- The practice of mortgagees withholding 15 percent of mortgage monies advanced on new construction. This holdback is usually for a period of time equal to that statutory period in Mechanics' Lien Acts for the registration of lien claims.
- Lien Waiver
- A document in legal form signed by persons or firms which have lien rights, waiving those rights.
- Line of Credit
- A commitment by a financial institution to lend up to a specified maximum amount to a customer during a specified period of time.
- Liquid Assets
- Cash and other property that can be converted quickly and easily into cash.
- Liquidation
- A sale of a debtor's property, with the proceeds to be used for the benefit of creditors.
- Liquidity
- The ability to convert assets to cash quickly, without significant losses.
- Lis Pendens
- A legal document giving notice that an action or proceeding is pending in the courts which affects the title to the designated property.
- Listing Inventories
- The dwellings for sale in a given market.
- Live-work Space
- A dwelling, such as a loft, in which the occupant both lives and conducts business.
- Load-bearing Wall
- Any exterior wall, and any interior wall that supports its weight and the weight of other parts of the building above it.
- Loan Application
- A document in which a prospective borrower details his or her financial situation to qualify for a loan.
- Loan Application Fee
- A sum charged by a lender for accepting a document in which a prospective borrower details his or her financial situation to qualify for a loan.
- Loan Commitment
- A lender's promise to advance a specific sum on specific terms.
- Loan Processing
- The steps taken by an institution lender from the time a request for a loan application is received to the time the loan is approved or denied, including taking the application, credit investigation, evaluation of the loan and other steps.
- Loan Servicing
- Supervising a loan after it has been made. This could involve collecting payments, keeping accounting records, computing interest and principal, etc.
- Loan Term
- The period specified in the promissory note for a borrower to pay a loan, such as a mortgage. Most conventional mortgages have a loan term of 5 or 10 years.
- Loan-to-Value (LTV)
- The ratio of the principal amount of the loan to the lesser of the purchase price of the property or the property's appraised value. You may see this expressed as an 80% loan, or 80% LTV.
- Local Improvement Charge
- A fixed annual charge levied against specific real property for a specific period by a municipality which amortizes the capital costs of local improvements such as sewers, paved roads, etc. This charge is in addition to real estate taxes.
- Local Taxes
- In addition to federal and provincial taxes, those taxes imposed by local municipalities (such as a city or a county) for its government services.
- Lock
- A lender's guarantee that the mortgage rate quoted will not change for a specific period. The borrower wants the lock to stay in effect until closing.
- Lock-in
- A lender's guarantee that the mortgage rate quoted will not change for a specific period. The borrower wants the lock to stay in effect until closing.
- Long-term Capital Gain or Loss
- Your profit or loss from the sale of a capital asset that you held for more than 12 months. See also "Short-term Capital Gain or Loss."
- Long-term Liabilities
- Money that you owe over a period longer than 12 months, such as mortgages, bank loans and other obligations.
- Loss Payable Clause
- An insurance policy provision for payment of a claim to someone, other than the insured's interest in the insured property.
- Low-doc Loan
- A mortgage that requires less verification of income or assets (or both) than a conventional loan. These low-documentation loans are designed for the entrepreneur or self-employed, for recent immigrants with money in foreign countries or for borrowers who cannot or choose not to reveal information about their incomes. You need a substantial down payment, excellent credit history and will usually pay a higher interest rate.
- Low-documentation Loan
- A mortgage that requires less verification of income or assets (or both) than a conventional loan. Low-documentation loans are designed for the entrepreneur or self-employed, for recent immigrants with money in foreign countries or for borrowers who cannot or choose not to reveal information about their incomes. You need a substantial down payment, excellent credit history and will usually pay a higher interest rate.
- Low-down Mortgages
- Mortgages with a low down payment, usually less than 10 percent.
- Low-down-payment Loan
- A mortgage or loan in which the buyer puts down a small down payment and borrows a very high percentage of the purchase price.
- Lowball Offer
- A way-below-market bid a buyer makes on a property or item.
