Mortgage loan: A loan that is collateralized against a residential property granted for the purpose of constructing, purchasing or renovating a house for owner occupier or investment purposes. It also includes loans granted for the purchase or the development of land for these purposes.
Collateral: Property upon which the residential real estate loan is secured.
Collateral Management: All tasks and processes within granting of mortgage loans where collateral is involved, e.g. appraisal and constitution of collateral; confirmation of its legal existence and enforceability.
Debt Burden Ratio: Ratio of debt burden to income.
Down payment: Up-front payment from the buyer for a portion of the purchase price, which reduces the value of the loan against the property.
Equity: Difference between the appraised value of the property and the total claims held against the property.
Loan-to-Value (LTV): The ratio of the amount of the loan outstanding to the appraised value of the residential property.
Property appraisal: a comprehensive assessment of the property characteristics including the determination of the collateral’s value.
Mortgage loan providers: All banks, finance companies and other financial institutions that provide mortgage loans.
Tenor: The initial term length of a mortgage loan.