Mortgage Glossary – T
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Term – The actual length of time for which the money is borrowed. The term can go anywhere between one month to 40 years. At the end of the term, the loan may be renegotiated as to the interest rate, payments and amortization period.
Title – A freehold title gives the holder full and exclusive ownership of land and buildings for an indefinite period of time.
Total Debt Service Ratio (TDSR) – The ratio of total annual income relative to a borrowers total payments. GDS payments plus other debts such as bank loans, finance company loans, credit card payments, car payments etc; most lenders prefer this not to exceed 42%. If your credit score is above a 680 beacon score however, you are eligible for a 44% TDSR, without having to factor in a Gross Debt Service (See GDSR).
Transfer – A legal document which is signed by both the vendor and purchaser, transferring ownership. This document is registered to change ownership, and a certificate of title is issued, by the Land Titles Office.