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Balance Due On Completion [back to top]
The amount of money the purchaser has to pay to the vendor to complete the purchase after all adjustments have been made.
Balloon Payment [back to top]
The final mortgage payment at the end of the term that pays the outstanding loan in full.
Blend and Extend [back to top]
A closed mortgage that can be "opened" for the purpose of extending the term; many lenders will blend the penalty for breaking the mortgage (usually an interest rate differential, or IRD) with the rate for the new extended term.
The main idea of the "blend and extend" is to enable the mortgagee to obtain a lower rate and protect against future mortgage rate increases.
Blended Payment [back to top]
Payments consisting of both a principal and an interest component, paid on a regular basis (e.g. weekly, biweekly, monthly) during the term of the mortgage. The principal portion of payment increases, while the interest portion decreases over the term of the mortgage, but the total regular payment usually does not change.
Breach of Contract [back to top]
Failure to fulfill an obligation under a contract; breaching confers a right of action on the party whose rights under the contract have been breached.
Bridge Financing [back to top]
A loan required by a builder so as to obtain funds during the period between a permanent commitment and a construction loan.The lender will usually require a permanent mortgage commitment to the full amount of the construction loan plus a hold back provision that states that only the floor amount will be funded at the completion of construction.
Broker [back to top]
An individual with a "broker" designation may establish a sole proprietor practice or set up a corporation called a brokerage. For brokers, the corporation becomes the agent or broker and the individual is considered a registered real estate salesperson employed by the corporation. When you list your property or sign a buyer agency agreement, you enter into a contract with the brokerage, not the salesperson.
Building Codes [back to top]
Regulations established at the municipal, provincial or federal government level to provide structural requirements for building construction.
Buy-down [back to top]
Buy-down is a payment to the lender at the time of funding for purposes of reducing the interest rate during the term of the mortgage; often used as marketing features by new home builders, particularly on high ratio second mortgages.
Buyer's Agent [back to top]
A Realtor who is engaged contractually to act on behalf of the buyer or seller. In most cases, the Realtor acts on behalf of the sellers and is paid out of the proceeds of the sale. A Buyer's Agency Agreement allows a Realtor (with full disclosure to the sellers or their agent) to negotiate on behalf of the buyer with no legal conflict of interest. In this case, the seller still pays the Buyer's Agent fees but this is always specified in the agreement and acknowledged in the Offer to Purchase.