All | “ A C D E H I L M P R S T
There are currently 5 names in this directory beginning with the letter C.
Cash Flow
Cash flow is the difference in cash available at the end of a period vs the beginning of the period. If there is more cash at the end than there was at the beginning the cash flow is deemed “positive” and if there is less cash available at the end the cash flow is “negative”. Or, simply put, if income exceeds expenses there is “positive” cash flow and if expenses exceed income over a period of time, there is “negative” cash flow. Positive cash flow is desirable and prolonged negative cash flow can cause financial hardship and should be avoided. Cash flow can only be improved by either increasing income and/or reducing expenses.
Closing Date
This is the final step in executing a mortgage transaction. The closing date is determined as follows:
  1. Purchase: Determined during the negotiation phase of a purchase transaction.
  2. Refinance: Decided by the borrower
  3. Renewal: The closing date is the mortgage renewal date.
The Closing Date is often also known as the Funding date. It is the date on which the mortgage lender funds the mortgage and interest on the loan is charged from this date. On the closing date of a purchase transaction, the ownership of a property is transferred to the buyer. Closing a mortgage past the agreed funding date can have severe financial and legal consequences.
Collateral Mortgage
There are two ways that a mortgage lender can register a mortgage loan with the land title or registry office at your local city:
  1. Mortgage Charge – The mortgage is registered at the exact mortgage balance on the closing date.
  2. Collateral Charge – This is registered under the Personal Property Security Act (PPSA) of Canada and can only be registered or discharged from that lender. It cannot be transferred to a different lender, not even on the maturity date of the mortgage. Some lenders will register a collateral charge at 100% or even higher against a property. Lenders often use collateral mortgages to “force” loyalty on borrowers and these products can have dire financial, legal and other consequences. Collateral mortgages are complex mortgage products and although re-advanceable for future borrowing they also have significant risks and should be thoroughly investigated to make sure the specific product is suitable before entering into a mortgage agreement with a lender.
Construction
Construction is far more complex and involves a lot more than renovations on a property. Work on a property is normally deemed to be construction if one or all of the following occurs: 1. The square footage of the home is changed 2. The shape of the home is changed through remodeling 3. The roof is lifted 4. Substantial structural changes Financing for construction work is fundamentally different and more risky than all other mortgage financing and has to be approved by a mortgage lender before the project is started. It is essential that borrowers thoroughly understand all the aspects of construction and construction financing before starting a project.
Conventional Mortgages
These are mortgages where the borrower has a down payment equal to or more than 20% of the property’s financed value. These mortgages can be divided into two groups:
  1. Insurable Conventional Mortgages – These are mortgage defined to be insurable by the Canadian federal government. The criteria for a mortgage to be insurable include, but are not limited to: max 25-year amortizations, principal and secondary residences below $1M in value, switches and purchases only etc.
  2. Uninsurable Conventional Mortgages - These are mortgage defined to be uninsurable by the Canadian federal government. The criteria for a mortgage to be uninsurable include, but are not limited to: amortization periods of more than 25 years, single-family rental properties, principal and secondary residences above $1M in value, refinances etc.