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Damages [back to top]
Compensation or indemnity for loss owing to breach of contract.

Date of Completion [back to top]
The date specified by an agreement of purchase and sale, when the purchaser is to deliver the balance of money due and the vendor to deliver a duly executed deed.

Debt Service [back to top]
The amount of principal and interest payments made under a mortgage.

Debt-Service Ratio [back to top]
The percentage of the borrower's gross income that will be used for monthly payments of principal, interest, taxes, heating costs and condominium fees.

Deed (Certificate of Ownership) [back to top]
The document signed by the seller transferring ownership of the home to the purchaser. This document is then registered against the title to the property as evidence of the purchaser's ownership of the property.

Default [back to top]
Failure to fulfill an obligation; failure to make monthly mortgage payments as agreed, or to meet certain other terms of a mortgage agreement.

Deferred Income [back to top]
An accounting method of dealing with income that is received but not included in a statement of earnings as normal earnings.

Deficiency [back to top]
An insufficient payment, often relating to an amount recovered under a power of sale or foreclosure action.

Demand Note [back to top]
Payment is made on demand, usually within a few days notice to the borrower.

Deposit [back to top]
Payment of money or other valuable consideration as pledge for fulfillment of contract.

Depreciated Reproduction Cost [back to top]
Appraisal method by which the cost of replacing a structure, minus depreciation, gives the depreciation reproduction costs.

Depreciation [back to top]
A loss in value due to any cause.

Discharge of Mortgage [back to top]
A document executed by the mortgagee, and given to the mortgagor when a mortgage loan has been repaid in full before, at, or after the maturity date.

Disclosure Statement [back to top]
A statement contained in a consumer credit transaction in order to disclose complete credit terms and interest rates.

Discount [back to top]
Reduction in product price or cost of a service. A discount if the difference between the nominal face value of a loan and actual cash received by the borrower because interest is paid at the beginning of a loan based on the sum to be repaid at maturity.

Discounted Cashflow Analysis [back to top]
This is a method of analysis that calculates the true value of an investment in terms of the present value, i.e. what the investment ifs worth now, although it is spread over a number of years. To compensate for future earnings a discount factor is added in so that a real comparison can be made between an investment with quick return and one that is placed over a number of years.

Discounted Loan [back to top]
The face value of the loan minus the interest or discount charged by the lender is the amount actually advanced to a borrower.

Dominant Tenement [back to top]
The estate which derives benefit from an easement over a subservient estate, as in a Right-of-Way.

Double-Up [back to top]
This feature (not offered by all lenders) allows you to double up your mortgage payments anytime without penalty. This feature is often associated with the ability to "skip" an equivalent number of payments. This can be used either to accelerate the pay-off of a mortgage (as it is an enhanced prepayment privilege) or to manage a volatile cash flow. For example, commission-based individuals such as Realtors could "double-up" with each commission cheque, and "skip" during low cash flow periods.

Dower Interest [back to top]
A wife's interest in the lands of her husband accruing to her by virtue of the marriage.

Down Payment [back to top]
The amount of cash paid towards the purchase transaction by the buyer of a home. This is also known as the purchaser's initial "equity" in the property, but is used by a lender to judge the personal commitment to the property. For example, a lender considers that, if a buyer saved the down payment, or received it as a gift from a loved one, they will be far more committed to maintaining the property value and making the mortgage payments than if they acquired it for "no money down".

Downside Leverage [back to top]
Occurs where the debt service on a mortgage exceeds the yield on an investors' property, thereby reducing cash flow.

Drawee [back to top]
The person, bank, or corporation on whom a bill, note or cheque is drawn from and from whom payment is expected by the payee or his assignee.

Drawer [back to top]
The person or corporation who writes a cheque or note for payment to a third party. In the case of a bill of exchange, the drawer is the creditor and is usually the payee.