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Real Estate Glossary and Terms

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Realty Terms beginning with G

GE Capital
GE Capital is the new CMHC alternative in the Canadian Mortgage Marketplace. GE Capital like CMHC provides banks/lenders with mortgage insurance. Not to be confused with life or property insurance. In the event of default or foreclosure, GE Capital assumes the responsibility of the property and reimburses the bank/lender the entire mortgage amount. This insurance is required generally when you have less than 25% equity or down payment. This insurance is paid by the property owner in advance but usually added to the mortgage amount. See also "CMHC."

Grace Period
Refers to the interest-free time that lenders allow between the transaction date and the billing date if card users do not carry a balance. The standard grace period is typically between 20 and 30 days. If there is no grace period, finance charges accrue immediately at the time of purchase. Those who carry a balance on their credit cards have no grace period.

Gross Debt Service Ratio (GDS)
The percentage of annual gross income of the mortgagor that is required to maintain annual mortgage payments, property taxes and hydro.

Gross Income

Annual income including overtime that is regular or guaranteed. The income may be from one source or multiple sources. Salary is generally the principal source, but other income may qualify if it is significant and stable.