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!
- Rate
- Percentage a borrower pays for the use of money, usually expressed as an annual percentage.
- Rate Cap
- A limit on how much the interest rate can change, either at each adjustment period or over the life of the loan.
- Rate Hold
- The amount of time that a lender will guarantee a loan's interest rate. Once you've locked in the interest rate on a loan, the lender will guarantee that rate for a certain period of time, usually between 60 and 120 days. In order to lock-in your interest rate with CanEquity.com, please fill out our easy to use online mortgage application.
- Rate Index
- A table of yields or interest rates being paid on debt (such as Treasury notes or bank deposits) that is used to determine interest-rate changes for adjustable-rate mortgages and other variable-rate loans.
- Rate Lock-in
- A written agreement in which the lender guarantees the borrower a specified interest rate, provided the loan closes within a set period of time.
- Ratio
- Comparison of two figures used to evaluate business performance, such as debt/equity ratio and return on investment.
- Real Estate
- Land and the buildings and other improvements on it. See also "Real Property."
- Real Estate Agent
- A person who is licensed to represent a buyer or seller of land and the buildings and other improvements on it.
- Real Estate Attorney
- A lawyer who specializes in the transfer of land and buildings and property tax issues.
- Real Estate Broker
- A person who is licensed to represent a buyer or seller of land and the buildings and other improvements on it and collect commissions for the work. Most brokers have agents working for them and collect a portion of their commissions in exchange for providing office space, marketing and other overhead.
- Real Property
- Permanent, non-movable property, such as land and buildings. See also "Real Estate."
- Realtor
- A real estate broker or an associate holding active membership in a real estate board.
- Realty
- See "Real Estate."
- Rebate
- A manufacturer's reduction on the price of a car as an incentive to buyers. Rebates appeal to people with no credit or less-than-perfect credit who cannot qualify for the lowest-rate loan. A rebate may also appeal to first-time buyers who don't have a lot of cash for a down payment or another car to trade in.
- Rebate Card
- This is a credit card that allows the customer to accumulate cash, merchandise or services based on card usage.
- Recession
- A prolonged period (popularly defined as two successive quarters) in which economic activity shrinks.
- Recognized Gain or Loss
- The amount of gain or loss you report for income tax purposes. You may be able to defer recognizing gain or loss on certain property exchanges, such as like-kind exchanges.
- Reconciliation
- Checking all bank account papers to make sure that the bank's records and your records agree.
- Reconveyance
- The transfer of title to the borrower after a mortgage has been paid fully.
- Refinancing
- The repayment of a mortgage with another mortgage. Homeowners typically refinance to take advantage of lower interest rates or to transform equity into cash. You can use the equity in your home for vacations, home improvements (such as renovations) and for consolidating debt. CanEquity has access to some of the best refinance products available on the Canadian market.
- Refund
- The excess of your withholding and estimated tax payments for the year that you paid over your tax liability. The Federal Government then issues a refund if you have paid more taxes over the year for your tax bracket. This is issued as a tax refund.
- Regional Bank
- A bank with a primary market in a regional or metropolitan area but takes deposits from throughout the province in which it is located. Usually called a Credit Union in Canada.
- Registered Education Savings Plan
- Education savings plans that grow tax free until a child is ready to pursue a post-secondary education, at which time the money is withdrawn to help finance the costs.
- Registered Retirement Savings Plan (RRSP)
- A savings plan introduced by the federal government to encourage Canadians to save money for retirement. The investment and the interest earned on it is sheltered: it will not be taxed as long as it is left in the plan.
- Reliction
- An increase in the amount of land that occurs when a river or sea permanently withdraws.
- Relocation Benefits
- Money and other consideration that an employer gives to employees who move or are transferred at the company's behest. Can include reimbursement for packing and moving, house-hunting trips, and temporary housing and storage.
- Relocation Company
- A business that specializes in providing help to employees who move for their employer.
- Remaining Balance
- Unpaid principal on a loan.
- Remaining Term
- The time it will take to pay off the rest of an installment loan as scheduled.
- Rent Loss Insurance
- Hazard insurance that pays for a loss in rental value or rental income if damage causes the property to become unfit for habitation.
- Repayment Period
- In a home equity line of credit, that portion of the life of the loan that follows the draw period. During the repayment period, the borrower cannot take out any more money, but must pay down the loan.
- Repayment Plan
- Modification of an existing loan after the borrower has been delinquent. Often used when the borrower misses payments but the lender does not foreclose.
- Replacement Cost
- The amount one would have to pay to rebuild and refurnish with materials and items of similar value.
- Replacement Reserve Fund
- Money that is set aside by a homeowners association or condominium board to replace common property, such as playground equipment.
- Repossession
- The taking back of property after a borrower has stopped making payments.
- Resale Value
- The sales price that would be negotiated by a willing seller and buyer for an existing home or property.
- Rescission
- Cancellation of a contract by agreement of the parties.
- Reserve Fund
- Money that a homeowners or condominium association sets aside for major repairs and capital improvements.
- Reserves
- Formerly required to be maintained by the bank in accordance with Bank Act regulations. The reserves were once required but they have been phased out.
- Resident Alien
- A person who is a legal permanent resident, but not a citizen, of Canada.
- Residual Value
- The amount agreed upon to represent the value of the car at the end of a lease.
- Restructured Loan
- A mortgage in which basic terms — such as interest rate, term and monthly payment — have been changed to prevent foreclosure. Not a normal practice in Canada.
- Rests
- The periodical balancing of an account made for the purpose of converting interest into principal, and charging the party liable thereon with compound interest.
- Retail Banking
- Those activities and services that a bank provides for individual customers such as savings accounts, personal loans, cheque cashing and RRSPs.
- Retained Earnings
- All the profits or losses that you've accumulated from prior years and from this year's income statement, less dividends paid to you.
- Return
- Any increase in value or in income you earn on an investment.
- Return on Investment
- The profit an investment generates, expressed as equity divided by cash flow.
- Reverse Mortgage
- A loan that allows an older homeowner to convert built-up equity into cash. The loan comes due when the owner dies, sells the house or moves out.
- Revolver
- A term credit card issuers use for card holders who roll over part of the bill to the next month, instead of paying off the balance in full each month. About seven out of 10 cardholders revolve the debt.
- Revolving Credit
- A line of credit that does not have a specified repayment schedule but may require a minimum payment to cover interest and contribute to paying off principal. Typical of credit card loans, chequing account cash reserve or overdraft accounts that have pre-approved lines of credit.
- Revolving Line of Credit
- An agreement to lend a specific amount to a borrower, and to allow that amount to be borrowed again once it has been repaid. Most credit cards offer revolving credit.
- Right of First Refusal
- An agreement by an owner to give another party an opportunity to buy the property before it is offered to anyone else.
- Roll In
- To include certain closing costs, such as origination and settlement fees, in the mortgage. Rolling in the fees results in lower out-of-pocket closing costs and higher monthly payments. See also "Roll-in Loans."
- Roll Over Mortgage
- Mortgage loan where the interest rate is established for a specific term. At the end of this term, the mortgage is said to "roll-over" and the borrower and lender may agree to extend the loan. If satisfactory terms cannot be agreed upon, the lender is entitled to be repaid in full. In this case, the borrower may seek alternative financing.
- Roll-in Loans
- A refinancing loan that rolls any closing costs or fees into the loan. These programs best serve people who have a reasonable amount of home equity, want to reduce their overall interest expense, and plan to stay in their homes.
- Royalty Income
- Payment for the use and exploitation of certain kinds of property, such as artistic or literary works, patents and mineral rights.
