Mortgage Glossary: N

Mortgage Glossary

Nominal Interest Rate Or a Nominal Rate of Interest

Refers to an interest rate that has not been adjusted for inflation. It is the stipulated interest rate in the home loan contract, which may differ from the true interest rate.


Someone who lives outside of the country, and is not considered a resident for tax purposes


Refers to the National Home Builders Registration Council

Negative Amortization

Also known as “deferred interest”, negative amortization refers to an increase in the bond debt (or loan balance), which occurs as a result of paying monthly instalments which fall short of covering the interest due.

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