S&L / Savings & Loans

A financial institution that invests funds of its clients in mortgages, loans and other interest bearing investments. It may also offer checking and banking services to its clients.

S&P / Standard & Poor's

Standard & Poor is a company that estimates risks for investing in corporate and private stocks. It also supplies investment community with data on: stocks, mutuals, corporate bonds, municipal bonds, securities, etc. Standard & Poor's is usually referred to as S&P and it provides info such as: credit rating, investment research, data, valuations, risk management. Standard & Poor's was started back in 1860 and is owned by McGraw-Hill.

Sale-leaseback / Sale leaseback

An arrangement where seller leases an asset that was sold. For example, Alex sold his condo to Ron and then leased it from him.

Sale-Buyback / Sale Buyback

When the owner sells property to an investor and then buys it back.

Sales Contract / Sales Agreement

Written agreement to either sell or buy property, specifying terms, conditions, price and other details.

Sales Tax

Tax applied to the property being sold. Newly built properties must pay GST (Gross Sales Tax), while residential resale can avoid it. Current GST rate is 5%.

Savings Rate

Interest rate expected on an investment. For example you invested in a mutual fund. You expect your interest rate return to be 6-7%.

Scheduled Mortgage Payment

Mortgage payment that must be paid on a specific date or within specific period of time.

Schedule I Banks

Refers to Canadian or offshore banks operating in Canada, where each share holder does not own more than 10% of bank shares.

Schedule II Banks

Refers to Canadian or offshore banks operating in Canada, where one share holder owns more than 10% of banks shares.

Schematic Designs

Structural planning of buildings’ mechanical systems that include electricity, plumbing, heating, air conditioning.

Seasonal Unemployment

Work that provides opportunities for one part of the year. For example: roofing(summer), farming, etc.

Sealed Bid

A method of bidding on property, where each participant submits a bid which is disclosed at pre-determent place and time. The highest bidder wins. For example, Jessica, Julia and Silvo are bidding on a property. Each one of them submits a bid, but does not know the amount submitted by others. At a set date all bids are disclosed and whoever had the highest one wins.

Second Mortgage

Mortgage taken by borrowers while original loan used to finance property is still in effect. Second mortgage has secondary priority, meaning that in case borrower cannot pay for the first mortgage, second mortgage will not get any proceeds from sale of the property until the first one is paid off. Second mortgages are used to finance big purchases, such as education, new cars, renovations, vacations, etc. Second mortgages are usually home equity loans and debt consolidation loans. Second mortgages have higher interest rates and do not permit large amounts of money.

For example, Ron had a mortgage on his property for 10 years. His property is worth $300.000 and at the moment he owes $210.000 to the bank. Ron’s son is going to the university and Ron needs money to finance it. He can get a second mortgage (home equity loan) for that purpose, with his property as collateral, for $90.000. Part of that mortgage can be used to finance education, with other to buy new car and finance vacations.

Secondary Mortgage Market

Market for mortgage lenders, investors and mortgage aggregators (securitizers), where new mortgages are sold and bought. Secondary Mortgage Market is extremely huge and is a primary revenue source for mortgage lenders. Once lender gives a new mortgage, he has rights to sell it to other lenders and investors for profit. Borrowers cannot block lenders from doing it and are usually unaffected.

Second-to-die Insurance / Dual-Life Insurance / Survivorship Insurance

A type of insurance that insures 2 people (usually married) where proceeds are paid only after both of them die. This type of insurance is usually taken by the parents for the benefit of their children. In case both of them die due to an accident or natural death, their kids will get a monetary benefit.

Secondary CD / Secondary Certificate of Deposit

Secondary CD is a Certificate of deposit sold on a secondary market. Investors on a secondary market buy CDs that original CD investor wants to cash in before maturity.

Certificate of Deposit: Savings method where person looking to save money and garner interest on it can buy financial papers called Certificate of Deposit. Certificate of deposit limits withdrawal of money for a fixed period of time. You can also say that your money is frozen. For example, Ron has $10.000 and wants to get some interest on it. He can get a Certificate of Deposit for $10.000 for one year at 5% interest. After 1 year time Ron would get back 10.500($10,000 * 1.05).  CDs smaller then 100.000 are called “small CDs”, while those larger than $100.000 are called “jumbo CDs” or “large CDs”

Secure Option ARM

A type of payment option in an adjustable rate mortgage that offers fixed interest rate period. Just like regular ARM(adjustable rate mortgage) Secure Option ARM has introductory period, but it also has fixed rate periods after it.  For example, in option ARM rates change every month after introductory rate(teaser rate), while in Secure Option ARM interest rate may change only once in 6 or 12 months.

Secure Socket Layer / SSL

Online method of securing valuable information over the internet. Information such as address, credit card numbers, SIN, etc. SSL is used in online forms and shopping carts.

Secured Card / Secured Debt / Secured Loan / Secured Credit Card

A type of credit card backed by savings account. Secured Card is given to people with little or no credit history and to people with bad credit. In order to get it, you need to have certain amount of money on the savings account. For example, Julia has no credit history and wants to get a credit card for $1000 dollars. She must show her bank that she has $1000 and provide it as collateral.

Mortgages Canada Secured Credit Card Application

Security / Securities

Contract that can be valued and sold. Securities can be anything: mortgages, stocks, notes, bonds, futures, warrants, rights, patents, etc. For example, lender gave Ron a mortgage for $100.000. In order to get it, Ron signed a contract. Lender can then sell that mortgage on a secondary market to other investors.

Securities Investment Dealer

Dealer that buy securities in large quantities and sells it to other investors for profits.

Securities: Contract that can be valued and sold. Securities can be anything: mortgages, stocks, notes, bonds, futures, warrants, rights, patents, etc. For example, lender gave Ron a mortgage for $100.000. In order to get it, Ron signed a contract. Lender can then sell that mortgage on a secondary market to other investors.

Security Deposit

Money paid upfront to protect a product or a service provider. For example, landlords require one month advance payment for rent in case renter moves out without payment or does damage to the property.

Security Freeze

Security Freeze is a block on your credit score and credit report. The assumption that mortgage lenders make is that since you got a new mortgage you will not be getting another one for a while; hence they freeze your credit report to protect it from fraudsters who may try to get another mortgage in your name.

Self-Amortizing Mortgage

Mortgage which is fully paid over a period of time. Usually 10 to 30 years. Most mortgages are Self-Amortizing Mortgages as they can be both fixed and variable.

Self Certification / Self Income Certification / Special Status / Non Status / Stated Income

A type of mortgage where applicant certifies his/her income as opposed to getting employer’s note or some business tax statements. To cut to the point – what you say (believable) is the income that goes on mortgage papers, without any real background check. Self Certification mortgages have higher interest rates and require larger down payments.

Self-Employed Person

Person who owns a business or is a freelancer.

Self-Employment Tax

Tax imposed on self employed people.

Self-Employed Person: Person who owns a business or is a freelancer.

Self-proving Will

In case person did not have a will, Self-proving will allows court to accept it as a regular will. Self proving will requires two or more witnesses agreeing on the statement that the will pushed in court is indeed a will of that person. Witnesses are put under a threat of being jailed if found to be lying and are under a sworn statement.

Seller's Agent / Seller Broker

Agent who represent seller of real estate property. It is the job of seller’s agent to do all the paperwork associated with sale of the property as well to find buyers.

Seller Carryback / Seller Financing / Carryback Loan / Seller Transfer Back / Seller Take-back

Seller Carryback or a carryback loan is a loan that is financed by the seller of the real estate property. For example, owner of the condominium may fully finance the mortgage, if his company has enough funds.

Seller Contribution

A contribution to the borrower by seller of the property. It may be in form of down payment, help with closing costs and any other assistance.

Seller Concessions

An agreement with the seller to take care of some of the fees associated with real estate and mortgage transaction. Those fees may be.

• Appraisal fees
• Origination fees
• Inspection fees
• Processing fees
• Attorney's fees
• Taxes
• Discount points
• etc.

Amount allowed by lender is up to 6% of the total house price. So if house value is $100.000 seller may help up to $106.000.

Seller's Market / Seller Market

A market where there is a high demand for certain types of properties, but limited amount available. In that case seller may increase the price, since buyers will still go for it.

Senior Loan

Mortgage that is in the first priority position. Senior Loans are first mortgages on the property. All other mortgages after it(debt consolidation, home equity) are secondary loans. Suppose George has a regular mortgage (Senior Loan) and a home equity loan. In case he cannot pay for any of the two, Ron will face foreclosure, where lenders will move in to sell the property in order to recover money that was borrowed. When property is sold, Senior Loan will be first one to be paid back, while second loan will be paid back only when Senior Loan is satisfied.

Separate Return

Tax return by a married person, but filed separately from the spouse.

Semi-custom Home / Semi Custom Home

House with a pre-determined layout. The layout cannot be changed while small features can be added, such as custom floors, different window types, roof color, pavement, etc.

Semi-commercial / Semi Commercial Property

This is a type of property that has partly commercial and partly private usage. Semi-commercial property may contain shopping mall and offices on lower floors, while having private condominiums on upper floors.

Serious Delinquency

Mortgage that is 90 days(3 month) past due.

Semi – Monthly Payment / Semi Monthly Mortgage Payments

Mortgage payments made twice a month. Usually on 1st and on the 15th. Semi – Monthly mortgage payments are different from bi-weekly mortgage payments, that require payments twice a month a well.

Servicing

Every mortgage has to be serviced and administered. Monthly bills need to be sent out, payments collected, balance updated, interest rates updated. Mortgage Servicing also keeps track of the late payments, penalties, escrow account, insurance and taxes.  

Servicer / Servicing Agent

Person/Company in charge of mortgage servicing.

Servicing: Every mortgage has to be serviced and administered. Monthly bills need to be sent out, payments collected, balance updated, interest rates updated. Mortgage Servicing also keeps track of the late payments, penalties, escrow account, insurance and taxes.  

Servicing Released

An agreement where mortgage lender is no longer responsible for mortgage servicing.

Servicing: Every mortgage has to be serviced and administered. Monthly bills need to be sent out, payments collected, balance updated, interest rates updated. Mortgage Servicing also keeps track of the late payments, penalties, escrow account, insurance and taxes.  

Servicing Retained

In order to understand term “Servicing Retained” term you must understand secondary mortgage market and servicing.  

Secondary Mortgage Market: market for mortgage lenders, investors and mortgage aggregators (securitizers), where new mortgages are sold and bought.

Servicing: Every mortgage has to be serviced and administered. Monthly bills need to be sent out, payments collected, balance updated, interest rates updated. Mortgage Servicing also keeps track of the late payments, penalties, escrow account, insurance and taxes.  

Servicing Retained: When lenders sell mortgages on secondary mortgage market, they can pass servicing to other lenders, companies specializing in mortgage servicing or keep it to themselves. Servicing Retained is the serving of a mortgage loan that stayed with the original lender even though the mortgage itself was sold to another lender or investor.

Servicing Transfer

In order to understand term “Servicing Transfer” term you must understand secondary mortgage market and servicing. 

Secondary Mortgage Market: market for mortgage lenders, investors and mortgage aggregators (securitizers), where new mortgages are sold and bought.

Servicing: Every mortgage has to be serviced and administered. Monthly bills need to be sent out, payments collected, balance updated, interest rates updated. Mortgage Servicing also keeps track of the late payments, penalties, escrow account, insurance and taxes.  

Servicing Transfer: When lenders sell mortgages on secondary mortgage market, they can pass servicing to other lenders, companies specializing in mortgage servicing or keep it to themselves. Servicing Transfer is the serving of a mortgage loan that transfer to the new lender or to a specialized mortgage servicing company.

Service Charge

Fee charge for not meeting a minimum balance on the bank account. For example, if your bank account goes below $100 you may be charged a Service charge. It is a charge that has no substantial meaning and is more of a money maker to the banks. Service charge is not high.

Settlement

Another name for closing.

Closing: In real estate and mortgage world, closing refers to completion of real estate or mortgage transaction. For example Ron signs a final document on the mortgage, meaning that he is closing the mortgage transaction.

Settlement Points

Each Bank in Canada records and sends its balances to the central in Ottawa(Bank of Canada) in order to adjust its balances with it. Central Bank then calculates how much money each individual bank owes to the central bank.

Settlement Statement / Settlement Sheet

Statement sent to both seller and buyer of real estate specifying exact amount of money required from both parties to complete the transaction.

Share / Stock / Shares / Stock

Partial ownership in a corporation. Imagine your company as an apple pie. You sliced the company into pieces and sold it to individuals. Apple pie pieces can be called your company’s shares(stocks). Individuals investors can buy stocks(shares) from your company, gaining partial ownership of the whole pie.

Whenever your company makes profits, you must share it with the shareholders, according to the stock amount. Suppose you made a $1.000.000. If one shareholder owns 10% and another one 3%, you must give one them 10% and 3% of the $1.000.000 earned.

Share Certificate / Certificate of Stock / Stock Certificate

Document that states and legally confirms that particular individual or company owes a certain amount of shares in another company.

Share(Stock): Partial ownership in a corporation. Imagine your company as an apple pie. You sliced the company into pieces and sold it to individuals. Apple pie pieces can be called your company’s shares(stocks). Individuals investors can buy stocks(shares) from your company, gaining partial ownership of the whole pie.

Shared-appreciation Mortgage / Share Appreciation Mortgage

A type of mortgage where lender offers below market interest rate in exchange for profits from sale of the property in the future.

Shared-equity Partnership / Shared Equity Partnership

An agreement, where two related or completely unrelated people purchase and share property. Both of the buyers are equally responsible for the payments. If one fails to pay, both are held accountable.

Short Sale

Real estate property sale where the sale amount is less than the money owed on the mortgage. Some lenders allow this instead of going into foreclosure. For example, George cannot pay for the mortgage and is selling his house. He owes $150.000, but sold it for $130.000. Lender allows George off the hook, since foreclosure is expensive and lengthy.

Short Tax Year

Recorded tax year lesser than 12 month, as a result of new company start-up.

Short-term Bond Fund

Mutual fund that focuses on short term investments.

Mutual Fund: As an individual you have a choice of investing in stocks or bonds(there are more terms, but to keep it easy we left them out). You can do so by browsing stocks and bonds yourself and simply investing in what you like and what you think will generate return.

Mutual Funds bring large numbers of investors together and diversify their investments. A large number of investors will get together (for example 100) and create a mutual fund, combining their money. They will hire people to manage their money and invest all of their money into different companies, buying different stocks and bonds.

This minimizes risks associated with investment and increases chances for making profits. Mutual fund managers can look at different stocks, see which are doing good, not so good and bad. Invest a portion in a good stock, in a young company and so forth.

To make it easy for individuals to join mutual funds, all they have to do is buy mutual fund papers, simply known as mutual funds. Rest of the job is done for them.

Short-Term Capital Gain or Loss

Profit or loss from an asset that was held for one year(12 month) or less. For example, you bough stocks from Microsoft and then sold it six month later. Whether you made money or lost money is your short-term capital gain or loss.

Short-term Liabilities / Short Term Liabilities

Money that must be paid within 12 months period. This includes: credit card balance, wages, salaries, taxes, insurance, etc.

Simple Interest / Simple Interest Loan / Simple Interest Mortgage

Interest rate calculated assuming that your mortgage principal does not go up(like with negative amortization loan). Simple Interest formula:

Simple Interest = Principal x Interest x Loan Duration.

Simple Interest Biweekly Mortgage

A bi-weekly mortgage plan where biweekly mortgage payments are immediately applied to the mortgage principal as soon as they are received. This differs from a regular bi-weekly plan, where payments are withheld until full monthly amount is collected.

Bi-weekly Mortgage: With a biweekly mortgage, you pay half of your monthly payments every two weeks. The idea is the following.

There are 52 weeks in a 360 day year. Since biweekly mortgage is paid every two weeks, you will make 26 half payments in year. Twenty six weeks(26) equals to 13 months, meaning that with biweekly mortgage, you will make 13 months worth of payments in a calendar year, shortening mortgage term.

Single agency

When real estate agent or mortgage broker represents only one party.

Single File Mortgage Insurance

Insurance paid by lender, but recovered in interest rates. For example, TD Bank gave Aaron a mortgage with mortgage insurance on it. Aaron’s lender pays for that insurance, but charges higher interest rates as a result.

Sinking Funds / Sinking Reserves

A type of fund that reaches a certain amount at a certain date. For example Ron wants to buy a house in 3 years and estimates that he’ll need $5000 for down payment. He sets up a sinking fund at 5% and it calculates that after 3 years of $129 monthly deposits that fund will have $5000 needed.

Silent Second / Silent Second Mortgage

Second mortgage placed on a property, to help finance first mortgage. Silent Second Mortgages are unrecorded and first mortgage lenders do not know about their presence. Silent Seconds are usually illegal.

For example you want to buy a house which is $300.000, but only have $10.000 for down payment. Lender requires $50.000, so to satisfy requirements you take a Silent Second Mortgage for $40.000, that lender doesn’t know about. In that case lender assumes that your down payment is $50.000 while it is only $10.000.

Site Work

Property with ongoing works construction and other works on it.

Sitting Tenant

Person who rents property which he/she is going to buy.

Small and Medium-sized Enterprises / SMEs / Small and Medium Businesses

Business with 250 or less employees.

Social Insurance

Government program designed to assist elderly, disabled and unemployed people. Social Insurance is mandatory and also provides basic benefits as a right. Most employers do not hire people without social insurance.

Social Insurance Number / SIN  

Government of Canada assigns Social Insurance Numbers to individual tax payers as a way to track down on tax payments. By lay individuals must provide SIN to banks and other financial institutions.

Society for Worldwide Interbank Financial Telecommunication / SWIFT

Provides communication between banks and offers safe and easy way of conducting electronic transactions. SWIFT also produces software for banks and financial institutions. It operates in over 208 countries and connects over 8.000 members.

Soft Inquiry

Note on person credit report stating that someone asked for a copy of the credit report. This may be a credit card company, lender, bank, etc.

Sole Proprietorship

Business that is not incorporated and only has one owner. There are 3 primary types of businesses: corporation, partnership and sole proprietorship.

Spec Home / Speculation Home / Home or Built on Spec / Speculative Builder / Speculative Developer

Home built before the buyer is found, with the assumption that one will be found later on.

Special Assessment

Tax charged by local government (municipal) to property owners for the benefits provided with new general improvements. For example, government put a paved road near houses making an improvement where everyone benefits. It will send out special assessment charging a one time flat fee for it.

Special Deposit Account

Rehabilitation Mortgages require special deposit account from which they take money for repairs, upgrades and renovations.

Rehabilitation Mortgage: Mortgage that help finance repairs, renovation and upgrades on a property before sale of that property.

Special Forbearance

Special Condition offered by lenders, where lender lowers or suspends mortgage payments for a set period of time. This may be due to circumstances such as accidents, natural disasters, etc., in order to give borrower some time to recover.

Specific Performance / Spec Performance

Legal action which requires party who breached a contract to follow the contract of face penalties. For example, George signed a contract to sell his house to Romney. George’s daughter came along and wanted to buy the house, so George offered Romney to cancel the contract. Romney was not happy about it and decided to sue George for Specific Performance.

Square Footage

Measurement of living space in real estate property. The more space(Square Footage) there is, the more expensive the property.

1 foot             = 0.35 m (30.48 cm)
1 square foot = 0.09 m2

Stabilized Operating Property

Income generated from commercial property which is stable at different seasons. For example office rentals, usually represent stabilized operating property, since income is quite stable all four seasons.

Stagflation

Word that economists fear. Stagflation is a long period of time with high inflation rate, high unemployment rate and generally crumbling economy, both in housing and credit markets.

Stamp Duty

Charge for processing documents. It required a physical stamp to indicate that documents were processed, but nowadays the process is digitized and does not require physical stamp.

Standard Card

Basic credit card offered by credit card companies. It has lesser limit and less features as other cards, such as gold and platinum. Standard card is usually given to customers with no or low credit score, to help them establish credit.

Standby Commitment

Promise by lender to provide required sum of money on agreed date and time. Lenders charge a standby commitment fee for this. For example, Ron is buying a house from Rand and will be signing documents on Monday, which will require transfer of money to the seller. With Standby Commitment lender will guarantee the transfer, to make purchase possible.

Standard Deduction

This is a flat tax break given to tax payers. It minimizes time of dealing with tax return, since it does require taxpayer to record every conceivable purchase. The break is somewhat equal as filling each item separately.

Standard Deviation

Measurement that shows risk associated with an investment, such a stock, mutual fund, bond.

Standard Payment Calculation

Monthly mortgage payment calculation, based on initial interest rate and initial loan balance, assuming that the balance will not grow and that the interest rates will not change.

Standard Variable Rate

Adjustable (Variable) mortgage interest rate offered by lenders. Standard Variable Rate is linked to an index that determines market prices. This Index may be determined by the Bank of Canada, London InterBank(LIBOR) or other central financial institution.

Starter Home

Home that is relatively small and inexpensive, usually bought by first time home buyers.

Statement

Detailed mortgage report sent to borrowers detailing: balance, interest rates, fees, past charges, past payments, frequency, payment dates, escrow account, etc.

Statement of Adjustments

A document detailing price of real estate property including all associated fees, such as: legal fees, property taxes, commissions, deposit, transfer taxes, etc. Statement of Adjustments ensures that both parties can see all the fees and are agreeing to the final price.

Stated Assets

Mortgage document that does not require borrower to verify stated assets, such as bank accounts, savings, cars, etc.

Statute

When law is passed by parliament and is signed by the prime minister it becomes Statute. When law is passed by legislature and signed by a governor it becomes Statute as well.

Status

Term referring to borrowers’ credit report score, income, assets and available down payment. People with good credit and higher income hold higher status, while opposite is true of people with low income and bad credit.

Statute of Frauds

Requirement that certain contracts must be in written form to be enforceable by court, such as mortgages, real estate transactions, marriage, etc.

Statute of Limitations

Law that limits the use of rights to a set period of time. For example, Kate sold her house to Ron, but did not mention that it has structural damage. 5 Years later Ron found it out and decided to file a suit against Kate, but Statute of Limitations did not allow him to, since the limit is 2 years. In that case if he found out about the flaw within 2 years, he could file a suit, but not after 5 years. Statute of Limitations may differ in different situations. 

Step Down Lease

Lease where monthly payments decrease with time.

Step Up Lease

Lease where monthly payment increase with time.

Step-rate Mortgage

Mortgage where monthly payments are low in first few years, but go up with time. This may be due to “teaser” interest rates, which are usually lower than actual interest rates and are valid for a few years.

Steering

Illegal practice of showing prospective buyer neighborhoods where residents are predominantly of buyer’s ethnicity. It is illegal unless buyer requests it. For example, John is from China and wants to look at some houses. His real estate agent may purposefully show John neighborhoods where Chinese are predominant.

Stockholder's Equity

The amount of stocks that investors own in a company. For example, you sell your company’s stock on the market. You have 3 investors, who each bought 10% of the total shares. The Stockholder's Equity is 30%.

Strata

Strata is the land that is owned by all individual unit owners, while separate apartments are privately held. For example, in a condominium complex tennis courts, swimming pools and other parts of the building are owned by all residents, while individual condos belong to one family or one owner.

Straight Purchase

Home purchase where buyer gives new-home builder a deposit when construction begins and pays the rest when its finished. For example, Ron is buying new house which will be built in 2010. He gives his home builder a deposit(to show he is serious) and waits until construction is finished to pay the rest.

Streamlined Refinancing

Quick Refinancing method that requires less paperwork from the borrower. Streamlined Refinancing is quicker and cheaper as cash out or home equity refinancing.

Structural Report / Engineering Report

Report detailing condition of the property, its structural integrity, stability, costs for repairs(if needed), maintenance, etc.

Stop Date

Date when balloon payment is due in a balloon mortgage.

Balloon Mortgage: Mortgage that has regular monthly payments, but does not get paid in full by the end of a term. At the end of a term, balloon mortgage requires a large sum of money.

Student Loan

Loan given to students for education in college or university. Student loans are usually 10 – 15 years in length.

Subject to Confirmation / Reserve Auction

Auction that does not sell until bids reach certain amount. For example house has a starting auction price of $0, but a reserve price of $200.000, meaning it will not sell until bids reach or go over $200.000 mark. Reserve price stays unknown to the bidders.

Sub-prime Borrower / Subprime Borrower

A borrower with bad or less then perfect credit report. Sub-prime Borrowers get higher interest rates, since banks assume they’re taking more risks.

Sub-prime Mortgage / Subprime Mortgage

Mortgage given using lowered requirements. For example, mortgage with no down payment, or mortgage that accepts bad credit, etc.

Subprime Credit Card / Sub-prime Credit Card

Credit card given to people with no or bad credit history. Sub prime credit cards usually require collateral and in some cases have higher interest rates

Subagent

Agent who finds a buyer for real estate property.

Subcontractor

Company or a person who enters into a contract and does part of the job performed by a contractor. For example, general contractor is tasked with the job of building a bridge. General contractor may find subcontractors, one to dig the fundament, another to poor concrete and so on.

Subdivision

Land divided into lots suitable for construction of new homes.

Subject Property

Property being compared against other properties. For example, in appraisal, inspector looks at other, similar properties in order to estimate value. Property being inspected is called subject property.

Subordinate Loan / Subordinate Financing

Mortgage with lower priority. This includes second and third mortgages. For example, Ron got a home equity loan. Since it is a second mortgage it has lower priority. In case Ron cannot pay for the first mortgage and goes into foreclosure (lender selling property to recover money), home equity mortgage will be repaid only when the first mortgage is paid in full.

Suburban

Areas outside towns and cities that are unpopulated.

Subsidy Mortgage

Mortgage paid in part by the employer. The amount helped is up to the employer.

Subsidized Second Mortgage

A type of mortgage provided to low and moderate income families that has low interest rates and may forgive a set amount of payments.

Support Test

Test required to prove that person can support another person as a dependant. That person must provide food, clothing, transportation and other necessities for a fixed period of time. For example, Ron wants to bring his father from another country. To prove that he is able to support him he will go into support test.

Survey

Plan that shows property boundaries, landmarks, improvements, footage and references.

Swap

An agreement between businesses to exchange assets, shares, or other valuable commodities.

Sweat Equity

Value of the work that the home owner put into the property. This includes renovations, upgrades, repairs, etc.

Syndicated Loans

A large loan where a number of banks combine together to provide it.