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MARGIN OF SAFETY
A measure of the extent to which a loan is protected by property values of operating income. In the case of a mortgage, the margin of safety is the excess of equity (at fair market value) above the outstanding amount of the loan.
MARKETABLE TITLE
A title which a court of equity considers to be so free from defect that it will enforce acceptance by a purchaser.
MATRIMONIAL HOME
Any property in which a person has an interest and that is or has been occupied by the person and his or her spouse as their family residence. Condominiums, co-operatives, and leasehold interests can be matrimonial homes.
MATURITY DATE
The last day of the term of the mortgage agreement. A mortgage loan must then be paid in full or the agreement renewed.
MECHANICS LIEN
A claim against the state or interest of the owner in a property for labour, services, or materials supplied to it.
METES AND BOUNDS
A system of land description whereby all boundary lines are set forth by use of terminal points and angles -mete referring to a limit or limiting mark, and bounds referring to boundary lines.
MIXED USE DEVELOPMENT
A large scale real estate project which is developed for a number of uses. An example of mixed use development is a shopping centre complex.
MORATORIUM
Legislation enacted to assist debtors by postponing or suspending their contractual payments.
MORE OR LESS
Term often found in a property description intended to cover slight, unimportant or insubstantial inaccuracies to which both parties are willing to assume risk.
MORTGAGE
The legal pledge of real estate as security for a loan.
MORTGAGE BANKER
More prominent in the USA as principals of mortgage funds.
MORTGAGE BOND
A bond issued by corporations and secured by a mortgage on their property.
MORTGAGE BROKER
A person who originates real estate loans and allocates mortgage funds. These funds are placed on behalf of others, through negotiation of lenders and borrowers for the best possible arrangement and satisfaction of all concerned. Licensed in most provinces by the Ministry of Financial Institutions. Could also be known as an underwriter, correspondent or investment dealer in a mortgage transaction.
MORTGAGE COMMITMENT
A formal indication by a lending institution that it will grant a mortgage loan on property, in a certain specified amount and on certain specified terms.
MORTGAGE DEBENTURE
Synonymous with mortgage bond.
MORTGAGE LOAN
An agreement by which sum of money is borrowed and a promise to repay is given, wherein as a further security the borrower gives to the lender a conveyance or charge on property which he owns.
MORTGAGE NOTE
A promissory note executed in favor of the lender giving him an encumbrance or lien on the borrower's property. A mortgagor is usually personally liable on the note.
MORTGAGE PORTFOLIO
Several mortgages held by a mortgagee, lender or broker en bloc.
MORTGAGE POSTPONEMENT
The process whereby a mortgagee may permit the borrower to renew or replace an existing mortgage that falls due prior to the maturity date of the subject mortgage.
MORTGAGEE
The lender.
MORTGAGEE IN POSSESSION
A mortgagee goes into possession by entering into actual occupation of, or by obtaining the receipt of the rents of the mortgaged premises.
MORTGAGING OUT
Term applied to a mortgage which exceeds the current value of the property on which it is secured. This type of mortgage may be obtained on improvable property where the security is based on future value and future earnings which are expected to exceed construction costs.
MORTGAGOR
The Borrower.