Glossary
The home & real estate glossary
Clear, in-depth definitions of the 63+ terms every homeowner and buyer should know — from mortgages and equity to maintenance and resale.
A
- Buying & sellingAgreement of purchase and saleAn agreement of purchase and sale is the binding contract that sets out the terms of a home purchase.
- FinancingAmortizationAmortization is the total length of time it takes to pay off a mortgage in full through regular payments.
- Home & sellingAppreciationAppreciation is the increase in a property's value over time, driven by the market and improvements.
B
- FinancingBridge financingBridge financing is a short-term loan that covers the gap when your new home closes before your old one sells.
- Home & maintenanceBuilding permitA building permit is municipal approval to construct, renovate, or alter a structure to meet safety and zoning codes.
- Buying & sellingBuyer's agentA buyer's agent is a real estate professional who represents the buyer's interests throughout a home purchase.
C
- TaxesCapital gains taxCapital gains tax may apply to the profit you make when you sell a property that isn't your principal residence.
- Buying & sellingClosingClosing is the final step of a home purchase, when ownership officially transfers and funds change hands.
- Buying & sellingClosing costsClosing costs are the one-time fees and taxes you pay to finalize a home purchase, on top of the down payment.
- Buying & sellingComparative market analysis (CMA)A CMA is a real estate agent's estimate of a home's value based on recent sales of comparable nearby properties.
- Buying & sellingConditionsConditions are requirements in an offer that must be met for the sale to proceed — like financing or inspection.
- Legal & insuranceCondo feesCondo fees are recurring payments that cover shared building costs, amenities, and contributions to the reserve fund.
- Home & sellingCurb appealCurb appeal is how attractive a property looks from the street — a key factor in first impressions and resale value.
D
- Buying & sellingDays on marketDays on market (DOM) is how long a property has been listed for sale before it sells or is taken off the market.
- FinancingDebt service ratioDebt service ratios measure how much of your income goes toward housing and total debt — key to mortgage approval.
- Legal & insuranceDeedA deed is the legal document that transfers ownership of a property from one party to another.
- Buying & sellingDepositA deposit is money a buyer puts down with an offer to show good faith, applied toward the purchase at closing.
- FinancingDown paymentA down payment is the portion of a home's price you pay upfront, with the rest covered by a mortgage.
E
- Legal & insuranceEasementAn easement is a right for someone to use part of your property for a specific purpose, such as utilities or access.
- Legal & insuranceEncroachmentAn encroachment is when a structure illegally intrudes onto a neighbouring property or beyond a boundary.
- Home & maintenanceEnergy efficiencyEnergy efficiency is how well your home uses energy — affecting your comfort, your bills, and your environmental footprint.
- Legal & insuranceEscrowEscrow is a neutral third-party arrangement that holds funds or documents until the conditions of a deal are met.
F
- Buying & sellingFair market valueFair market value is the price a home would sell for between a willing buyer and seller in an open market.
- FinancingFixed-rate mortgageA fixed-rate mortgage keeps the same interest rate for the entire term, so your payments stay predictable.
- Buying & sellingFixtures and chattelsFixtures are items attached to a home that usually stay; chattels are movable items that may or may not be included.
- FinancingForeclosureForeclosure is the legal process by which a lender takes possession of a home after the owner defaults on the mortgage.
H
- Buying & sellingHome appraisalA home appraisal is a professional, unbiased estimate of a property's market value, often required by lenders.
- FinancingHome equityHome equity is the share of your home you actually own — its value minus what you still owe on your mortgage.
- FinancingHome equity line of credit (HELOC)A HELOC is a revolving line of credit secured by your home equity that you can borrow from as needed.
- Buying & sellingHome inspectionA home inspection is a professional assessment of a property's condition, uncovering issues before you buy.
- Legal & insuranceHome insuranceHome insurance protects your property and belongings against losses like fire, theft, and certain types of damage.
- Home & maintenanceHome maintenanceHome maintenance is the routine care that keeps a home safe, efficient, and holding its value over time.
- Home & sellingHome stagingHome staging is the process of preparing and presenting a home to appeal to the most buyers when selling.
- Home & maintenanceHome warrantyA home warranty covers repairs or replacement of certain systems and appliances, or defects in a newly built home.
L
- TaxesLand transfer taxLand transfer tax is a one-time tax paid when property ownership changes hands, usually by the buyer at closing.
- Legal & insuranceLienA lien is a legal claim against a property for an unpaid debt, which can prevent a sale until it's resolved.
- Buying & sellingListing agreementA listing agreement is the contract between a seller and their agent to market and sell the home.
M
- FinancingMortgageA mortgage is a loan used to buy a home, secured by the property itself, repaid with interest over a set term.
- FinancingMortgage default insuranceMortgage default insurance protects the lender if a borrower can't repay, and is usually required when the down payment is under 20%.
- FinancingMortgage pre-approvalA pre-approval is a lender's conditional commitment to lend you a set amount, based on your finances, before you shop for a home.
- FinancingMortgage renewalMortgage renewal is when your mortgage term ends and you negotiate a new term for the remaining balance.
- FinancingMortgage stress testThe mortgage stress test checks whether you could still afford your payments if interest rates were higher.
- Home & maintenanceMovingMoving is the process of relocating your belongings to a new home — best planned well in advance of possession.
- Buying & sellingMultiple Listing Service (MLS)The MLS is a database real estate professionals use to list and share properties for sale.
P
- Buying & sellingPossession dateThe possession date is the day you officially take ownership and get the keys to your new home.
- FinancingPrepayment penaltyA prepayment penalty is a fee charged for paying off or breaking a mortgage earlier than your contract allows.
- FinancingPrime rateThe prime rate is the benchmark interest rate lenders use to set rates on variable products like HELOCs and variable mortgages.
- FinancingPrincipalPrincipal is the original amount of money you borrow — separate from the interest you pay to borrow it.
- TaxesProperty assessmentA property assessment is a government estimate of your home's value, used to calculate your property taxes.
- Legal & insuranceProperty disclosure statementA property disclosure statement is a seller's declaration of known issues or defects with a home.
- Legal & insuranceProperty surveyA property survey is a precise map of a property's boundaries, structures, and any encroachments or easements.
- TaxesProperty taxProperty tax is an annual tax charged by your municipality based on your home's assessed value.
R
- FinancingRefinancingRefinancing means replacing your current mortgage with a new one — often to get a better rate, change terms, or access equity.
- Legal & insuranceReserve fundA reserve fund is money a condo or strata sets aside for major future repairs and replacements.
- FinancingReverse mortgageA reverse mortgage lets older homeowners borrow against their equity without monthly payments, repaid when they sell or move.
T
- Legal & insuranceTitleTitle is the legal right to own and use a property — distinct from the deed, which is the document that transfers it.
- Legal & insuranceTitle insuranceTitle insurance protects you against losses from defects in a property's title, such as liens, fraud, or boundary issues.
- Home & maintenanceTotal cost of ownershipTotal cost of ownership is the full cost of owning a home over time — not just the purchase price, but everything after.
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