Chapter 1, Exploration 5

• Market value - the age and deterioration of the items are reflected in the appraisal.
• Replacement value - with reference to insurance policies, it means stolen or damaged items are replaced with new items.
• Tenant's package policy - insurance policy that protects renturs from loss of contents of their rental unitsor personal belongings.
• Metro - with reference to homeowner's insurance, this means a location within city limits.
• Protected - with reference to homeowner's insurance, this means a location within 300 metres of a fire hydrant.
• Semi-protected - with reference to homeowner's insurance, this means a location within 8 km of a fire hall.
• Unprotected - with reference to homeowner's insurance, this means a location more than 8 km from a firehall.

Chapter 1, Exploratin 4

• Gross dept service ratio - A formula used by most financial institutions to determine whether or not you can afford the property you have selected.

Calculating Morgage Payments Exp.2 (Chapter1)

• Amortization period - the length of time in years that you will need to pay off a morgage.
• 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 owed to the financial institution.
• Closed mortgage - a mortgage which does not allow payments on the principal.
• Fixed-rate mortgage - a mortgage with the interest rate locked in for a specified period of time.
• Open mortgage - a mortgage that allows additional payments on the principal.
• Variable-rate mortgage - where the interest rate may change from month to month.

Personal Finance Vocabulary (Chapter 1)

• Beneficiary - the person who will receive the insurance money.
• Insurer - the company providing the insurance.
• Policy - a written contract or certificate of insurance.
• Premium-how much you pay for an insurance policy (monthly, semi-annually, or annually).