A maximum credit limit allowed by a bank to a borrower, as long as the borrower maintains an acceptable balance on account or has a good credit rating. The credit line will vary from time to time according to the changing circumstances of the borrower or the bank.

The ratio of the principal amount of the loan to the lending value of the property.

Rate of interest on a loan is raised periodically during the term of the loan so as to encourage early repayment.

Borrower pays back interest only on the loan and there is no amortization until later or until the end of the term. This may occur when a purchaser wishes to resell property after a short period or if he wishes to build up enough income from the property before amortization.

The annual percentage amount charged in return for borrowing funds.

Short-term financing to help a buyer bridge the gap between the closing date on the purchase of a new home and the closing date on the sale of the current home.

Incapable of being recalled or revoked; unchangeable, unalterable.

A legal procedure whereby the lender eventually obtains ownership of the property after the borrower has defaulted on payments.

A mortgage loan wherein the stipulated repayments repay the loan in full by its maturity date.

Gross household income is the total salary, wages, commissions and other assured income, before deductions, by all household members who are co-applicants for the mortgage.