| Abatement |
A reduction or decrease in amount or worth. |
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| Amortization period |
The number of years it will take to pay back your mortgage. |
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| Anniversary |
Many mortgage products allow you to make payments against the principal on the anniversary of the mortgage. |
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| Appraisal |
The process of determining the value of a property. |
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| Assumability |
Allows the buyer to take over the seller's mortgage on the property. |
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| Closed mortgage |
A set payment schedule to repay a mortgage |
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| Closing cost |
Costs in addition to the purchase price of a property and which are payable on the closing date. Examples include legal fees, land transfer taxes, and disbursements. |
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| Closing date |
The date on which the buyer takes possession of the property |
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| Common Areas |
Land or improvements designated for the use and benefit of all residents, property owners and tenants |
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| Conditional offer |
An offer to buy property subject to conditions such as loan approval. |
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| Condominium fee |
A fee paid by the condo owner to help pay building expenses.
Examples of that would be snow removal or lawn care |
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| Convertible mortgage |
A mortgage that you can change from short-term to long-term |
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| Conveyance |
The transfer of title to real property by means of a written instrument such as a deed or an assignment of lease |
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| Conveyance Tax |
A tax imposed on the transfer of property (land transfer tax) |
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| Deed |
A legal document, signed by both parties, that transfers the ownership of property |
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| Deposit |
Money offered by a prospective buyer as an indication of good faith in entering into a contract to purchase; earnest money; security for the buyer's performance of a contract. |
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| Default |
Failing to abide by the terms of a loan |
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| Down payment |
The buyer's cash payment toward the property; the difference between the purchase price and the mortgage loan. |
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| Easement |
Certain rights that a property owner might have over someone else’s property |
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| Encroachment |
The unauthorized extention of the boundaries of land |
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| Equity |
The difference between your home's value and the money you owe. |
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| High-ratio mortgage |
A mortgage that exceeds 75% of the home's appraised value |
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| Income Property |
Property purchased primarily for the purpose of earning income. Income property can be commercial, industrial or residential |
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| Inspection |
Having a home inspected by a third party get a better idea of the condition of the property |
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Interest rate |
The percentage which is charged for the use of borrowed money |
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| Joint tenancy |
A form of property ownership by two or more persons in which the joint tenants have one and the same interest, arising by one and the same conveyance |
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| Land transfer tax |
A fee paid to the municipal and/or provincial government for the transferring of property from seller to buyer. |
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Legal fees and
disbursements |
Legal costs associated with the sale or purchase of a property. |
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| Lien |
Money owed to a creditor, supplier or contractor. |
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| Maturity date |
The date at which you are done repaying your loan and may have the option of renewing it |
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| Mortgage |
A loan that is taken out in order to buy property |
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| Mortgage broker |
A company that offers mortgages from several different financial institutions |
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| Mortgage insurance |
Protects the lender against any losses if the borrower is unable to repay the mortgage |
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| Mortgage life insurance |
Pays off the mortgage in the even that the borrower should die. |
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| Mortgage rate |
The percentage interest that you pay on top of the loan principal |
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| Mortgagee |
The lender. (Usually a bank) |
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| Mortgagor |
The borrower. (Usually the home owner) |
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Open mortgage |
Allows payments to be made at any time to repay the money owed |
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| Power of sale |
The right of a mortgagee to force sale of the property without judicial proceedings should default occur |
| Principal |
The dollar amount borrowed or owing on a loan. |
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| Property survey |
A legal description of your property and its location and dimensions (usually required by your mortgage lender). |
| Purchase Agreement |
A legally binding agreement that defines the price, closing date and items that are included with the purchase of the house |
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| Renewal |
Renegotiation of a mortgage loan at the end of a term for a new term. |
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| Right-of-way |
The right or privilege to pass over a designated portion of the property of another |
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| Sales taxes |
Taxes applied to the purchase cost of a property. Some properties are exempt from sales tax and some are not. For instance, residential resale properties are usually GST exempt, while new properties require GST |
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| Service charges |
Extra costs incurred such as hydro, gas, phone, etc. |
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| Survey |
A document that shows the boundaries of the property and specifies encroachments, easements, and the placement of buildings on the property |
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| Title |
Legal ownership in a property |
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| Title Search |
An examination of public records to determine and confirm a property's legal ownership, and find out what claims are on the property |
