Half-bath

Bathroom with no shower or bathtub.

Hammer Price

Price named by the last auction bidder, before item is sold. Since a hammer is used to notify that auction had ended, it is called hammer price.

Hard-Money Mortgage

Mortgage borrowed at high interest rate, usually due to borrowers income or credit problems.

Hard inquiry

A note on individual credit report, indicating that someone asked for a copy of that person’s report. Note usually refers to lenders, banks, credit card companies, car loan companies, insurance companies and other institutions that require personal credit report.

Hazard Insurance

Insurance that protects from natural disasters such as: hurricanes, floods, forest fires, earthquakes, tornadoes, etc.

Hectare

Land Measurement Unit.

1 hectare =
10,000 square meters
107,639 square feet
2.471 acres

High-ratio Mortgage

Mortgage bigger then 80% of property value. Borrowers are required by law to put private mortgage insurance on mortgages exceeding 80% of property’s value. PMI protects lenders in case borrowers do not pay out their mortgage. Once 20% is paid, lenders are required by law to take PMI off.

Canadian Mortgage and Housing Corporation (CMHC) and GE Capital provide PMI in Canada.

High density

Housing which is tightly populated in a specific area.

High-rise

Building higher than 6 stories.

High-LTV equity loan / High Loan to Value Mortgage    

A mortgage that exceeds 125% market value of a property. For example, George has a house which is worth $100.000, but has a mortgage which is $125.000.

Historic Preservation

Act of ensuring that a specific building will not be destroyed or corroded.

Historic Structure

Building registered by Canadian federal government as a historical.

Hold Back

Money held back by the lender in a construction project. This is done to ensure that construction is carried out to lender’s satisfaction. At each construction stage lender will hold back money for the next stage to ensure that the previous stage is adequately completed.

Holding Period

Time period for which an asset, such as real estate, is held. Anything shorter than 12 months is short term asset. Anything longer than 12 months is long term asset. Holding period determines taxes on a property.

Home Appraisal

Home Appraisal is an audit of a property. Appraisal is done to estimate value of the property, possible selling price as well as for taxation estimates.

Home Appreciation

Value of a home, going up or down.

Home Banking

Accessing personal bank account from home by phone or computer.

Home Equity

Home equity is the proportion of a property that belongs to you, not the lender. For example, you bought a house for $200.000. In order to buy it, you made a $30.000 down payment and took a mortgage for $170.000. In that case your home equity is:

Yours: $30.000
Bank’s: $170.000
Total: $200.000

Over 10 years you paid $80.000 to the bank. In that case your equity will be:

Yours: $30.000(down payment) + $80.000 = $110.000
Bank’s: $90.000
Total: $200.000

Since 10 years have passed, house value went up by $50.000. In that case your home equity will be:

Yours: $50.000 + $110.000 = $160.000
Bank’s: $90.000
Total: $250.000

The longer you pay for a mortgage(towards principal) the more equity you own. The longer you live in a house – the more equity you own, since it real estate usually goes up in value.

Home Equity Loan

Loan that is borrowed against the equity of your home(see home equity). It is secured by your property.
Equity: Property value minus all debt.

For example, your house is worth:

$250.000
You own: $175.000
Your lender owns: $75.000

Your home equity is $175.000. You can borrow money against the equity you own in your house, which becomes home equity loan.

Home Equity Debt

Debt against the equity in your house. For example, your house is worth:

$250.000
You own: $175.000
Your lender owns: $75.000

Your home equity is $175.000. You can borrow money against the equity you own in your house, which becomes home equity debt.

Interested in Home Equity Loans? Check out Canada Mortgages http://www.mortgagescanada.ca/index.html

Home Equity Line of Credit / HELOC / Home Equity Line

Home Equity Line of Credit or HELOC is similar to home equity loan, however it gives different terms. For example, you own a house which is
$250.000
You own: $150.000
Your lender owns: $100.000

You can open a credit line against the equity of your house. So if you own $150.000 of your home, you can open a credit line worth $150.000 also known as HELOC. HELOC acts as a regular, everyday line of credit, the difference being - collateral for HELOC is your home.

Interested in Home Equity Line of Credit? Visit Canada Mortgages to find out more. http://www.mortgagescanada.ca/index.html

Home Inspection

Home inspection is conducted by an unrelated third party before sale of a property. Buyers may request home inspection, which will examine the structure, air conditioning, electricity, heating, water, basement, roof, plumbing and other factors to make sure that the house is in good condition and to estimate any repairs that must take place.

Home Insurance / Homeowner's Insurance

Insurance which covers homeowner expenses in cases of: fire, robbery, natural disasters, property damage, etc.

Homeowner's Insurance Binder

Document verifying that owner’s property is properly insured.

Home Office

An office located at home. Many small businesses may operate out of home or from a home office. Area dedicated for a home office is tax deductible.

Home Rule

Power of local government to pass its own land use laws and regulations.

Homeowner's Association

An association of homeowners, formed to manage a condominium, development or a housing area, enforcing certain level of regulations and restrictions.

Homestead

House and land around that house, used for living purposes. For example - a farm.

Homesteading

Refers to the type of lifestyle whereby people choose to live off their land and be self sufficient.

Household Income

Total family income. For example, Ron lives with his wife. He makes $50.000 per year and his wife makes $45.000 per year. Their household income is $95.000 per year.

Housing Bubble

Economic state where home prices become unaffordable to majority of the population.

Housing Expense

The amount it takes to keep up a home. This includes: mortgage payments, hydro, water, insurance, etc.

Housing Expense Ratio

Ratio that measures housing expenses for a particular property and relates it to the income level of a family/individual looking to buy that property. It looks at: mortgage payments, taxes, bills, insurance and other expenses and compares it to available income of the applicant to estimate whether he/she will be able to afford that house.

Housing Investment

Buying a house. Investing available money in a house.

Housing Discrimination

Denial of purchase or rental, due to persons: race, gender, religion, martial status, ethnicity, sex, etc. It is punishable by law.

Housing Counseling Agency

Agencies that counsel individuals on buying/selling property, foreclosures, defaults and other property/mortgage related issues.

Home Warranty / Homeowner's Warranty

Warranty that covers repair and replacement of appliances such as: washing machines, dish washers, electrical systems, plumbing, etc.

HVAC

Heating, Ventilation and Air Conditioning.

Hybrid ARM / Hybrid Financing / Hybrid Adjustable Rate Mortgage

Type of mortgage, fixed for a set period of time, after which it switches and becomes an adjustable rate mortgage. For example, Ron got a Hybrid ARM with 5.7% interest rate. The rate will stay fixed for 4 years(example) after which it will become variable.