Real Estate Definitions
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Half-bath A bathroom that does not contain a shower or a bathtub. The room simply contains a toilet and a sink. Hazard Insurance An insurance policy that provides coverage against physical damage to a property from natural disasters such as fire or other hazards. Depending on the location of a property, lenders may also require flood insurance or policies that cover windstorms (hurricanes) or earthquakes. Hectare An area equal to 100 meters by 100 meters. high-ratio mortgage A mortgage that exceeds 75% of the property's appraised value or purchase price, whichever is less. A high-ratio mortgage must be insured against default by CMHC or Genworth Financial. Historic Preservation A process to protect buildings with historic value or significance from destruction or extensive renovation. Historic Structure A structure or building that is recognized by the Canadian Government and is registered as a historical structure. Hold Back A dollar amount that is withheld by the lender during construction of a home to ensure construction is satisfactory at every stage. The amount of hold-back is typically equivalent to the estimated cost to complete the construction. Holding Period Refers to the length of time a capital asset is owned. Assets held for one year (12 months) or less are short-term and those owned for more than a year are considered long-term properties. Home Banking A method used to access one's bank accounts using a telephone to transfer funds, pay bills, and make account inquiries. Home Equity The portion of a property's value that the mortgage borrower owns outright. Essentially, it is the difference between the fair market value (selling price) of the home and what is left owing on all mortgages. Home Equity Debt Debt secured by your home. Home Equity Line of Credit An open-ended loan, paid as revolving debt, that is backed by the equity in a property. Home Equity Loan A loan that can replace or be added to the first mortgage. This type of loan is generally used when a home owner wants to make renovations to the property. Home Inspection Prior to purchasing a property, the buyer should request that an inspection or examination be conducted. This inspection involves an impartial third party who examines both the visible structure and the internal systems such as heating, water, electrical, etc. The actual sale of the property often depends on the outcome of the home inspection. home insurance An insurance policy promising reimbursement for losses relating to one's home, its content and use. Home Office A room or area within a home or other structure on a property that qualifies as a tax deduction because it is used for business purposes. Home Warranty A guarantee on the workmanship or construction of a home including the functionality of some appliances. The warranty also pays for some repairs within a specified period. Homeowner's Association An elected group that governs a subdivision or planned community. The association collects fees from the home owners to maintain common areas and enforce covenants, conditions, and restrictions set by the developer and the association. Homeowner's Insurance An insurance policy that includes hazard coverage, coverage for loss or damage to property, as well as coverage for personal liability and theft. Homeowner's Insurance Binder A document accompanying a homeowner's insurance policy that verifies the property is properly insured. Homeowner's Warranty A guarantee on the workmanship or construction of a home including the functionality of some appliances. The warranty also pays for some repairs within a specified period. Household Income The total combined income of all members within a household. Housing Discrimination The illegal practice of discriminating against buyers or renters of dwellings on the basis of race, colour, religion, national origin, sex, family status, or disability. |
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