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Mortgage Dictionary

"E"

Easement(Servitude)


A right enjoyed by one landowner over the land of another.

Economic Life


The estimated period over which it is anticipated that a property or asset may profitably be used.

Economic Obsolescence


A loss of value over time resulting from external determinants such as heavy traffic, crime and unfavourable non-residential land uses.

Effective Gross Income (Income Property)


The annual income from a property, if fully leased, less an annual allowance for vacancies and bad debts.

Effective Interest Rate (for Mortgages)


The actual rate that the borrower must pay on a loan after the effects of compounding are considered. It is also known as the true rate. It differs from the nominal nterest rate.

Egress


Going out (access to exit).

Electronic Funds Transfer (EFT)


The automatic transfer of funds from one account to another. Mortgage repayments can be made electronically directly to the lender.

emili by CMHC


The automated mortgage insurance evaluation system of the Canada Mortgage and Housing Corporation (CMHC).

Empirica Score


The name given to the credit score published by TransUnion. See also Beacon Score.

Encroachment


An improvement such as a wall, fence, or building that intrudes illegally upon another's property.

Encumbrance


Outstanding claim or lien recorded against property, or any legal right to the use of the property by a person who is not the owner.

Equity (for Mortgages)


The difference between lending value (the purchase price or market value) and indebtedness.

Equity


A court system that applied the principle of equity to decisions, emphasizing fairness and de-emphasizing technicalities.

Equity Financing Lending


Investment in the equity in leveraged or unleveraged real estate by investors. These investors are usually institutional and may or may not have provided the mortgage financing.

Equity of Redemption


The right of a borrower to repay a loan that was in default and retain possession of the property.

Error and Omissions Insurance


Insurance for professionals with respect to claims regarding mistakes and absences that occur when acting on behalf of a consumer.

Escrow


Securities, instruments, money or other property = deposited by two or more people with a third person, to be deivered on performance of a certain event.

Estates


An abstract legal right. Estates are interests and rights of ownership.

Estoppel Certificate


Legal certificate usually issued by a condominium corporation. It indicates details of the project and is given to the lender / purchaser or tenant. Delivery of the certificate prevents anyone from claiming a different set of facts at a later date.

Excel by Genworth Financial Canada


The automated mortgage insurance evaluation system of Genworth Financial Canada.

Existing Mortgage


A mortgage loan that is already in-place when the property is being sold. The buyer may have the option oftaking over assuming the mortgage or taking out a new one,depending on whether or not the mortgage is assumable.

Expandability


This is a feature available in some mortgages. It allows the borrower to increase or expand the principal on a first mortgage at the lender's agreed upon interest rate.

Expert Software


This software, offered by Filogix, dominates the electronic mortgage delivery system market in Canada.

Expropriation


Expropriation involves taking private property for public use, with fair compensation to the owner, through the exercise of the right of eminent domain.

Extended Coverage Endorsement


An endorsement that may be attached to fire insurance policies. It generally includes coverage against the peril of windstorm, hail, explosion, riot, civil commotion, damage by aircraft or vehicles and smoke.

Extension Agreement


An agreement extending a loan past the original maturity date.

Extent of Title


The quantitative factors that determine and affect ownership of land. They include boundaries, improvements, area of land, etc. See chain of title.

Exculpatory Clause


A clause in a contract holding one party harmless in the event of some default.

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