GO BACK    ASK THE BROKER

Mortgage Dictionary

"I"

ICI Properties


Investment, commercial, and industrial properties.

Illegal Contract


A contract that requires criminal acts and is thus void. The parties involved have no standing in court.

Illiterates


In law, an illiterate refers to an individual who cannot read or speak English. Illiterate individuals are bound to an agreement if they understand its nature. However, if it is fraudulently interpreted by another party, then the contract is void. May not neccesary be a person that was born or live outside Canada.

Immovable Property


The term used for real property (as opposed to personal property) in civil law.

Incapacity


Refers to the inability of people to make or engage in certain binding dispositions of their rights, such as entering into contracts.

Income Property


Real property that is used, or is capable of being used, for the production of annual income through leasing of the property.

Income Statement


Summarizes the findings of calculations between a company's revenues and expenses. The income statement can be reported annually, quarterly or monthly. The income statement is generally broken down as follows:

Incorporated Companies


A form of business ownership in which the business is set up as a separate legal entity under the laws of the jurisdiction it operates in (provincial and/or federal). When an incorporated company is a party to a contract it is important to determine if the company exists, and if it has the capacity to become a party to the contract.

Indefeasible


That which cannot be forfeited or done away with.

Independent Mortgage Brokers Association of Ontario (IMBA)


A volunteer-based organization serving independent mortgage professionals in Ontario.

Industrial Property


Property that contains units that are designed for manufacturing, production and warehousing.

Inflation


A general increase in the price level of goods and services.

Ingress


Going in; right of entrance.

Injunction


An order of a court of equity prohibiting an act or compelling an act to be done.

Insanity


Categorized as a form of Incapacity which means that such individuals cannot engage in contractual agreements. If insanity occurs after entering a binding agreement, contracts can be cancelled or, if sanity is regained, a reasonable time is allowed to rescind a contract.

Instrument


A formal written legal document.

Insurable Interest


An interest of such a nature that the occurrence of the event insured against would cause financial loss to the insured. Such interests, for example, may be that of an owner, a lender, a lessee or a trustee.

Insurable Value


The term is used conventionally to designate the amount of insurance that may be carried on destructible portions of a property to indemnify the owner in the event of loss.

Intangible Assets


Non-physical goods that have value to a business. Most common forms are business goodwill or legal rights to market a product.

Interest


An amount, expressed as a percentage, which a borrower agrees to pay on borrowed money, at a certain frequency as per an agreement with the lender.

Interest Accruing Loan


In this type of loan no payments on interest or the principal are paid until the end of the term. Only when the mortgage contract has expired are the payments due.

Interest Adjustment


The process of calculating compound interest payable on the amount borrowed between the day the loan is disbursed and the day the amortization period starts.

Interest Adjustment Date


The date from which interest is calculated at the rate and compounded at the frequency set out in the mortgage contract. It is normally the first day of the month following the closing of the mortgage transaction.

Interest Factor


The decimal equivalent for an interest rate on a unit amount for a certain period of time, calculated as the interest rate divided by the number of days in a year, times the number of days accrued.

Interest Only Loan


A loan in which the borrower only pays regularly scheduled payments on the interest to the lender and the principal remains the same during the life of the loan. The principal is repaid in full at the end of the loan=92s term.

Interests Less than Estates, or Interests Less than Full Ownership


These describe the situation when a fee simple owner divides ownership according to the kind of use permitted or restricted upon the land.

Interest Plus Specified Principal Loan


Also known as a straight-line principal reduction loan. In this type of loan an equal amount of principal is repaid at every interest compounding period in addition to the interest that must be paid for that period.

Interest Rate


Interest rate is the percentage charged on outstanding loan balances.

Interest (Unities)


All joint tenants must have the same interest (extent, nature, duration) in the land.

Interim Financing (ConstructionFinancing)


Interim loans are used to provide construction financing until the permanent loan can be funded.

Internal Rate of Return


That rate at which the present worth of all present and future investment costs equals the present worth of all present and future investment benefits.

Intoxication


see Insanity. This is another form of incapacity in contract law.

Investment Property


Property which is rented out to individuals who do not own the property, and pay rent to the owner of that property. The opposite of an owner occupied property.

Invitation to treat


It is an action by one party inviting others to make an offer. It is not a contract. An invitation to treat may be seen as a request for expressions of interest.

TOP OF PAGE    GO BACK   




- Mortgages: Residential Commercial and Industrial

- Investments/Income Properties, Construction Loans

- Refinancing, Debt Consolidation, Lines of credit

-Bankruptcy? Challenging credit? Self-employed? No SIN? No verifiable income? Need private mortgage?


MOBILE: 416 602 75 14