V

V refers to the variable(adjustable) rate. If the letter V is displayed after the interest rate on a document, that means that the mortgage has variable interest rate.

Vacancy / Vacancy Percent / Vacancy Percentage

Number of unoccupied units, expressed as a percentage to the total number of units. For example, apartment has 1000 units. 648 are occupied, meaning that 352 are vacant. Vacancy rate will be:

1000 / 648 * 100 = 68.4%

100% - 68.4% = 31.6% vacancy

Vacation Home Mortgage / Vacation Loan

Second mortgage that finances second property, reserved for vacations. For example, you live in Toronto, but want a vacation home in Quebec City. You can get a vacation mortgage without extracting equity from your first house.

Lenders do not like Vacation Home Mortgages, since they see risks. You will need a big down payment, show cash for at least 3 month of first mortgage payments and at least 6 month worth of payments for a second mortgage. Good credit and savings are also essential.

Value Fund

Mutual fund that primarily invests in undervalued stock. In employs a number of formulas and looks at number of factors to determine if its undervalued.

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.

Valid

In real estate Valid means that property has legal force. If property is valid it means it can be binding by law. For example, Ron’s property is valid. He can leave it to his kids, sell it or assign a Title of Trust.

Valuable Consideration

Type of payment that can be demanded from the person who promised something, but did not honor it. The payment can be in form of money, assets, extension of time and other benefits. For example, George promised Ron a piece of land if he married Joanne. Ron married Joanne, but never received his land. He sue George with Valuable Consideration.

Valuation

The act of estimating price of the property through the process of appraisal.

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.

Valuation Fee

Same as appraisal fee.

Appraisal Fee is a fee charged for appraisal services.

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.

Variable Rate Mortgage / Variable Interest Mortgage

Variable Rate Mortgage is a mortgage with a variable interest rate. The interest rate is adjusted in predetermined intervals of time, according to the mortgage plan(every month, every year, etc.). The interest rate may go up and down and is determined by the market. For example, I have a $100.000 variable rate mortgage that adjusts every six month. My initial interest is 6%, but after six months, my interest rate will be adjusted for another six months. Rate will be dictated by the market and may go up or down.

In order to secure against overly high interest rates, lenders offer caps. Caps set maximum limits on interest rates. For example, if I have 6% rate, my cap may be 9%, meaning no matter the market, my rate will no be higher then 9%.

Variable Rate / Variable Interest Rate

Interest rate that goes up and down, together with market prices. For example, if index price went up, so will the variable rate, if the index price went down, so will the variable interest rate.

Index: In mortgage context index refers to the interest rate from which the rate for an adjustable rate mortgage is calculated. As index changes, so do the rates in an adjustable rate mortgage.

Vendor

In real estate, Vendor refers to the person or a company selling the property.

Vendor Take Back / Vendor Take Back Mortgage

Where vendor(seller) helps or provides financing of the property in order to sell it. For example, Gorko corporation finished building new houses. In order to sell them, it provided mortgages to the buyers.

Verbal Agreement

Spoken agreement, that is legally binding just like a written agreement. It may be very hard to prove verbal agreement in court, hence all transactions require written agreements.

Verification of Deposit / VOD

Verification of Deposit is a request mailed to borrower’s bank in order to verify that the bank account exists.

Verification of Employment / VOE

Verification of Employment is a request sent to the workplace, in order to verify that the person is employed.

Verification of Mortgage / VOM

The process of getting information about borrower’s mortgage, such as:

• Payment history
• Amount
• Rate
• Missed Payments
• Terms
• Balance

Verification of Rent

The process of getting information about tenant’s rent:

• Monthly Payment
• Period Lived
• Payment History
• Complaints

Vested / Vested Right

Something that cannot be taken away by anyone, even if person does not own it yet. For example, individual retirement fund.

VISA

Most popular credit card in the world. Issued by most banks.

Void

Something that has no legal force or was deprived of it.

Voidable

Something that can be cancelled at a later date. For example, two people enter into a voidable contract, meaning that each one of them can break it at any time without any consequences.

Voluntary Compliance

An assumption that tax payers will comply with any laws and pay their taxes on their own will.

Voluntary Lien / Voluntary Claim

Voluntary legal agreement, where one party allows another party some rights. For example - a mortgage. As a borrower, you allow your lender to have right to your property in case you don’t pay.*-