Scenario in which a borrower has not made an instalment payment on a loan or credit by the due date stipulated in the agreement. When a payment is missed or delayed, the amount due is considered overdue. This term is often used to describe loans, such as mortgages or credit cards, where failure to make a timely payment can result in penalties, interest on arrears and, in extreme cases, legal action by the creditor to recover the amount owed.
Real estate property that is purchased and used by the owner as their main and permanent residence. This designation indicates that the property is not a secondary, holiday or investment residence, but rather the place where the owner lives on a continuous and regular basis, which is generally beneficial in mortgage-related contexts, as loan conditions are usually more favourable for purchasing this type of property.
Offers of additional products or services that a financial institution can present to borrowers as part of a credit transaction, such as a loan or financing. Said offers are “optional” because the borrower is not required to purchase them in order to obtain approval for the main loan. However, they are presented as complementary options that can provide additional benefits to the borrower. These associated products or services can vary widely and can include, for example, payment protection insurance, life insurance, extended warranty plans for goods purchased with the loan, among others.