Every term, explained.

Pro-rated reimbursements at closing — typically property tax, utilities, and condo fees the seller paid for periods after possession. Your lawyer handles the calculation.

Most Ontario lenders limit housing costs (mortgage + property tax + heat + 50% of condo fees) to 32–39% of gross household income. Total debt servicing tops at ~44%.

The full payback period of your mortgage (20, 25, or 30 years in Ontario). Longer amortization = lower payments but more interest over time.

Lender-ordered estimate of a home's market value. Required if the lender thinks the purchase price is above market or as part of mortgage funding conditions.

Missed mortgage payments that have not been brought current. Three months in arrears is typically when lenders begin power-of-sale proceedings.

A buyer who's bought a pre-construction unit re-sells their contract before closing. Common in GTA condo + townhouse pre-cons; needs developer approval.

Software-generated home value estimate. Summitly's Zara AVM uses recent solds + $/sqft + Confidence verdict. Try it at /sell/instant-valuation.

Written contract between a buyer and a brokerage. Lists commission, term, and exclusivity. Ontario requires the BRA before submitting an offer in most cases.

An aggressive offer submitted before a scheduled offer date. Used by buyers wanting to bypass the bidding war. Sellers can choose to accept, counter, or refuse to entertain.

Mortgage default insurance, required when down payment is under 20% of purchase price. Premium is 2.80%–4.00% of the loan, rolled into the mortgage. Higher down = lower premium.

Everything paid on top of the purchase price to close the deal: LTT, lawyer, title insurance, inspection, appraisal, and disbursements. Budget 1.5%–4% of price. Use the /buy/closing-costs calculator.

The day legal title transfers and you get the keys. Negotiated in the offer; typically 30–90 days after offer acceptance.

An offer with one or more conditions (financing, inspection, status certificate review) that must be satisfied within a set period or the offer falls through.

A condo corporation's current health snapshot: financials, reserve fund, special assessments, rules. Your lawyer must review before you waive a condo condition.

A mortgage with 20% or more down — no CMHC insurance required. Generally lower rates than insured mortgages.

Number of days since a property was listed. High DOM (60+ in a healthy market) may indicate over-pricing or condition issues — often negotiation room.

Funds you put down with your offer (typically 5% of purchase price). Held in the listing brokerage's trust account. Applied to your purchase if the deal closes; forfeit if you back out for non-condition reasons.

Out-of-pocket charges your lawyer pays on your behalf — title search, registration fees, courier, copies. Typically $300–$700.

Cash you pay upfront. Minimum 5% for homes under $500K, 10% on the portion $500K–$999K, 20% for $1M+. 20% avoids CMHC insurance.

A right someone else (e.g. utility, neighbour) has on your land. Common: shared driveways, utility access. Your lawyer flags these in title search.

Funds held by a neutral party (your lawyer, the listing brokerage) until conditions of release are met. Your deposit sits in escrow between offer and closing.

First Home Savings Account. Contribute up to $8K/year, $40K lifetime. Tax-deductible in, tax-free out. Combined with HBP gives up to $100K of liquidity for first-time buyers.

A condition in the offer giving you 5–10 business days to confirm final mortgage approval. Always include unless you're paying cash or already have firm approval.

An offer with no conditions. Once accepted by the seller, it's a binding contract — you must close. Risky unless you've done all due diligence beforehand.

Full ownership of land + building. Detached, semi-detached, and freehold townhouses are freehold. No condo fees; full repair responsibility.

Gross Debt Service ratio: housing costs as a % of gross income. Most lenders cap at 32–39%. Calculated as (mortgage + tax + heat + 50% condo fees) / income.

Withdraw up to $60K from your RRSP tax-free for a first-time home purchase. Repayable over 15 years starting Year 2 after withdrawal.

Monthly condo maintenance fees. Cover building insurance, common-element repairs, reserve fund, sometimes utilities/parking. Read the status certificate to understand what's included.

Mortgage with CMHC, Sagen, or Canada Guaranty default insurance attached. Required for under-20% down. Premium is added to your loan.

Provincial (Ontario) tax tiered from 0.5% to 2.5%. Toronto adds a parallel Municipal LTT on top. First-time buyers get up to $4K provincial + $4,475 Toronto rebate. Use the /buy/closing-costs calculator.

You own the building but lease the land long-term (often 99 years). Far less common in Ontario; mostly First Nations land or specific complexes. Mortgage financing more restrictive.

The realtor representing the seller. Works for the seller's interest. Your buyer's agent represents you and prevents conflicts of interest.

The Multiple Listing Service operated by TRREB (Toronto Regional Real Estate Board) and powered by PropTx software. Backbone of every active GTA listing.

Annual document from CRA confirming your income. Lenders use last 2 years of NOAs for self-employed borrowers.

Ontario Real Estate Association's standard Agreement of Purchase and Sale. The base contract every Ontario offer uses (plus optional schedules).

Forced sale by a lender after a borrower defaults. Properties are often sold at a discount; lenders aren't required to maximize price. Carries some title risk — always use a lawyer.

Lender confirms how much they'll lend at a specific rate, valid 90–120 days. Locks your rate during the search; not a guarantee of funding (final approval after offer accepted).

Buying a unit before the building is built. 5-year deposit structure typical, closing 2–5 years out. Higher risk + potential reward; VIP Platinum access typically 5–8% under public price.

A condo corporation's savings account for major repairs (roof, elevators, parking garage). Always check that the reserve fund is adequately funded — under-funded reserves mean future special assessments.

A one-time charge on top of regular fees when the corporation needs more money than the reserve fund holds. Can range from $5K to $50K+. Status certificate flags any pending special assessment.

Lenders must qualify you at the greater of (a) your contract rate + 2% or (b) 5.25%. You pay the contract rate but must afford the higher one on paper.

Total Debt Service ratio: GDS + all other debt payments (cars, credit cards, student loans). Most lenders cap at 40–44%.

One-time premium (~$300–$500) protecting against title defects, fraud, encroachments, and unknown liens. Recommended; most lenders require it.

Your lawyer reviews the property's legal ownership history, checking for liens, easements, encumbrances. Done before closing.

The seller acts as the mortgage lender. Rare in residential; more common in commercial. Often used for non-traditional borrowers.

Summitly's home value AVM. Returns a value range, $/sqft band, comp count, and confidence verdict (Good Deal / Fair Price / Priced High) in under 3 seconds. Try at /sell/instant-valuation.

Municipal classification (residential, commercial, mixed). Limits what you can build / use the property for. Always confirm with the municipality before purchase for non-standard use.