Personal Finace

Premium: How much you pay for an insurance policy(monthy, semi-annually, annually)

Policy: A written contract or certificate of insurance.

Beneficiary: The person who will recieve the insurance money.

Insurer: The company providing the insurance.

Amortization Period: The length of time in years that you will need to pay off a mortgage.

Equity: The portion of the value of your property that you own.

Interest: The cost of borrowing money.

Principal: The amount you initially borrow.

Unpaid Balance: The portion of the value of your property owned to the finacial instition.

Closed Mortgage: A mortgage which does not allow payments on the principal.

Fixed-Rate Mortgage: A mortgage with the interest rate locked in for the specified period of time.

Open Mortgage: A mortgage that allows additional payments on the principal.

Variable-Rate Mortgage: A mortgage where the interest rate may change from month to month.

Gross Dept Service Ratio(GDSR): A formula used by most financial institutions to determine whether or not you can afford the property you
have selected.

Metro: With the reference to homeowners's insurance, this means a location within city limits.

Protected: With the reference to homeowners's insurance, this means a location within 300 meters of a fire hydrant.

Semi Protected: With reference to homeowners's insurance, this means a location with in 8km of a firehall.

Unprotected: With reference to homeownsers's insurance, this means a location more than 8km from the firehall.