Every term, explained.

A secondary self-contained unit on a property — a basement apartment, laneway or garden suite. Many Ontario municipalities now permit them; they can add rental income but need permits and must meet fire/building code.

Pro-rated reimbursements calculated at closing — typically property tax, utilities and condo fees the seller prepaid for periods after your possession date. Your lawyer settles them on the Statement of Adjustments.

How much home your income, debts and down payment support. Most Ontario lenders cap housing costs at roughly 32–39% of gross income (GDS) and total debt at about 40–44% (TDS).

The binding contract that sets out price, deposit, closing date, conditions, chattels and fixtures. In Ontario it's usually built on the OREA standard form plus schedules.

The full number of years to pay off a mortgage (commonly 25, sometimes up to 30). A longer amortization lowers each payment but increases total interest paid.

A lender-ordered estimate of a home's market value, used to confirm the purchase price supports the loan. Distinct from a home inspection, which assesses condition.

Overdue mortgage payments not yet brought current. Prolonged arrears can lead a lender to start power-of-sale proceedings.

The sale of a pre-construction purchase contract to a new buyer before the building closes/registers. Usually requires builder consent and may carry an assignment fee.

A mortgage a buyer can take over from the seller, keeping its existing rate and terms — subject to lender approval. Useful when the existing rate beats current rates.

A software-generated estimate of a home's value from recent comparable sales and property data. Summitly's Zara AVM returns a range and confidence read — try it at /sell/instant-valuation.

A lender serving borrowers who don't fit big-bank (A-lender) criteria — self-employed, bruised credit or unusual income. Rates and fees are higher; often a bridge back to prime.

A large lump sum owed at the end of a loan term after smaller periodic payments. Rare in standard Canadian residential mortgages but seen in some private and commercial financing.

Multiple buyers competing on the same home, usually on a set offer date, which can push the final price above asking. Common in tight, low-inventory markets.

A single mortgage covering more than one property, sometimes used by investors or builders. A 'partial discharge' clause lets individual properties be released as they sell.

Renewing early by blending your existing rate with a current one and extending the term — a way to avoid a full break penalty while changing your rate or borrowing more.

Short-term financing that covers the gap when your new home closes before your old one sells, letting you use the equity from the pending sale for the new purchase.

A strong offer submitted before a scheduled offer date to pre-empt competition. Sellers can accept, counter or wait for the offer date — it's their choice.

Paying upfront to lower a mortgage's interest rate, sometimes offered by builders on new construction. Weigh the upfront cost against the interest saved over the term.

A written contract between a buyer and a brokerage setting commission, term and scope. Ontario's rules generally require a written representation agreement before an offer.

An income property's net operating income divided by its price, expressed as a percentage — a quick yardstick for comparing rental investments before financing.

Tax on the profit when you sell a property that isn't your principal residence (e.g. an investment or secondary home). A portion of the gain is included in income and taxed at your rate.

The money left from rent after mortgage, taxes, insurance, condo fees, maintenance and vacancy. Positive cash flow means the property pays for itself and then some.

An income property's annual pre-tax cash flow divided by the actual cash invested (down payment plus closing and initial costs) — a measure of the return on money you actually put in.

A notice registered on title that a lawsuit affecting the property is underway. It clouds title and typically must be resolved before a clean sale can close.

Movable, unattached items (fridge, stove, washer) that only stay with the home if the contract lists them. Contrast with fixtures, which are attached and stay by default.

Everything paid on top of the price to complete a purchase — land transfer tax, legal fees, title insurance, inspection, appraisal and disbursements. Budget roughly 1.5–4% of price.

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

Mortgage default insurance (from CMHC, Sagen or Canada Guaranty) required when the down payment is under 20%. The premium is a percentage of the loan and is usually added to the mortgage.

Someone who supports a mortgage application with their income and credit. A co-signer usually goes on title and shares ownership; a guarantor backs the loan without being on title. Both are on the hook if payments are missed.

Property used for business — retail, office, industrial or multi-residential (5+ units). Financing, leases, valuation (often income-based) and due diligence differ substantially from residential.

In commercial leases, the tenant's share of costs to operate shared areas (cleaning, security, landscaping, repairs). A key line to verify when reviewing a net lease.

The shared parts of a condo (lobbies, hallways, amenities, grounds) owned collectively and maintained by the corporation through condo fees.

An agent's pricing analysis using recent comparable sales, active listings and market trends to estimate what a specific home should list or sell for.

An offer subject to conditions (financing, inspection, status-certificate review) that must be satisfied within a set time or the deal ends and the deposit is returned.

Monthly fees condo owners pay for common-element upkeep, building insurance, management and the reserve fund. What's covered varies — check the status certificate.

A condo corporation's disclosure package — financials, reserve fund, rules, special assessments and litigation. Your lawyer reviews it before you waive a condo condition.

A mortgage with at least 20% down, so no default insurance is required. Contrast with an insured (high-ratio) mortgage.

A statutory rescission window (commonly 10 days for new pre-construction condos in Ontario) during which a buyer can cancel the purchase and recover their deposit.

How long a listing has been active. Elevated DOM relative to the local norm can signal over-pricing or condition issues — and negotiating room.

Rolling higher-interest debts (credit cards, loans) into a mortgage or HELOC at a lower rate, often via refinancing. Lowers monthly cost but secures unsecured debt against your home — use with discipline.

The registered legal instrument that transfers ownership of a property. In Ontario it's registered electronically through the land registry (Teraview) by your lawyer.

Failing to meet mortgage obligations, usually by missing payments. Prolonged default can lead a lender to enforce its security through power of sale in Ontario.

The shortfall when a property sells for less than the mortgage and costs owed — for example after a power of sale. The borrower can remain liable for the deficiency.

A zoning measure of how much building floor area is allowed relative to lot size. Higher permitted density can add development value; it's central to land and pre-construction feasibility.

Money submitted with an offer (often around 5%) held in trust and applied to the purchase on closing. It can be forfeited if you back out for non-condition reasons.

Out-of-pocket charges a lawyer pays on your behalf — title search, registration, software and courier fees — billed in addition to their legal fee.

The upfront cash toward the purchase. Federal minimum: 5% of the first $500,000, 10% of the portion from $500,000 up to $1.5 million, and 20% on homes priced at $1.5 million or more (since December 15, 2024). 20% or more avoids mortgage default insurance.

When one brokerage represents both buyer and seller in the same deal. It must be disclosed and consented to in writing, and limits the advice each side receives.

A registered right for someone else (a utility or neighbour) to use part of your land — for example a shared driveway or utility access. Flagged in the title search.

When a structure (fence, deck, garage) crosses onto a neighbouring property or an easement. Resolved with a survey, title insurance or an encroachment agreement.

Any claim or restriction registered against a property — a mortgage, lien, easement or restrictive covenant — that can affect title. Your lawyer reviews all encumbrances.

The share of your home you actually own: current market value minus the outstanding mortgage and any other loans secured against it.

Funds or documents held by a neutral third party until agreed conditions are met. Your deposit sits in trust between offer acceptance and closing.

Another name for a condo status certificate used in some jurisdictions — a corporation's statement of a unit's fees, rules and financial standing.

The price a willing buyer and willing seller would agree on, neither under pressure, with full information. The benchmark appraisals and CMAs try to estimate.

A registered account for first-time buyers: contributions are tax-deductible and qualifying withdrawals for a home are tax-free with no repayment. Can be combined with the HBP.

A clause giving you a few business days after acceptance to confirm final mortgage approval. Protects your deposit if the lender won't fund that specific property.

An offer with no conditions. Once accepted it's binding and you must close — only advisable after all due diligence (financing, inspection) is already done.

A mortgage whose rate and payment stay the same for the whole term. Predictable, but breaking early can trigger a large Interest Rate Differential (IRD) penalty.

Items attached to the home (light fixtures, built-ins, garage-door opener) that stay with it by default unless the contract excludes them. Contrast with chattels.

Full ownership of the land and the building on it, with no condo fees but full maintenance responsibility. Most detached, semi and freehold townhomes are freehold.

Selling privately without a listing agent to save the listing-side commission. You take on pricing, marketing, showings, negotiation and disclosure yourself.

A detached secondary dwelling in a backyard (garden suite) or facing a rear lane (laneway suite). Increasingly permitted in Toronto and other Ontario cities as gentle-density housing, subject to bylaws and permits.

Housing costs as a share of gross income — mortgage, property tax, heat and half of condo fees. Lenders typically cap it around 32–39%.

A signed letter confirming that down-payment money is a genuine gift (not a loan) from an immediate family member. Lenders require it when family funds are used.

In a gross lease the landlord covers most operating costs; in a net lease the tenant pays some or all (taxes, insurance, maintenance). 'Triple net' (NNN) shifts all three to the tenant — common in commercial retail.

A property's price divided by its gross annual rent — a fast, rough screen for comparing income properties before deeper analysis.

A revolving line of credit secured against your home equity, letting you borrow, repay and re-borrow up to a limit. Often used for renovations or a down payment on a second property.

A municipal designation protecting a property's historic character. It can restrict alterations and demolition and add approval steps, so confirm any designation before planning renovations.

Money withheld at closing until a condition is met — for example, a construction-lien holdback on a new build or funds pending completion of a repair.

A program letting first-time buyers withdraw from their RRSP tax-free for a home, repayable to the RRSP over 15 years or the shortfall is added to income.

A professional assessment of a home's condition — structure, roof, electrical, plumbing, HVAC. Usually done under an inspection condition before waiving on a resale home.

The items an offer specifies stay with the home (inclusions — e.g. appliances) or are removed by the seller (exclusions — e.g. a chandelier). Listing them prevents disputes at closing.

A high-ratio mortgage (under 20% down) carrying default insurance. The premium is added to the loan; rates are often lower than uninsured because the lender's risk is covered.

A method lenders use to calculate the penalty for breaking a fixed mortgage early, based on the gap between your rate and current rates for the remaining term. Can be sizable.

On a new condo, the period when you can move in before the building registers and your mortgage funds. You pay a monthly occupancy fee that doesn't reduce your mortgage.

Real estate bought to earn income or appreciation rather than to live in. Financing rules, down-payment minimums and tax treatment differ from a principal residence.

A co-ownership form with a right of survivorship — if one owner dies, their share passes automatically to the surviving owner(s). Common between spouses.

A provincial tax on the purchase price, tiered by value; Toronto adds a second municipal LTT. First-time buyers can claim rebates. Estimate it with the /buy/closing-costs calculator.

You own the building but lease the land long-term. Uncommon in Ontario and often harder to finance than freehold or condo ownership.

A use or structure that was legal when built but no longer complies with current zoning (e.g. a triplex in an area later zoned for duplexes). It can usually continue but may not be expanded — verify with the municipality.

A legal claim registered against a property for an unpaid debt (taxes, a contractor's work, a judgment). It must usually be cleared before or at closing.

The agent representing the seller. They owe their duties to the seller — a buyer's own agent represents the buyer's interests.

The mortgage amount as a percentage of the property value. Under 80% LTV (20%+ down) avoids default insurance; higher LTV means an insured mortgage.

The end of your current mortgage term, when the balance must be renewed, refinanced or repaid. Distinct from the amortization, which is the full payoff horizon.

Approval from a municipal Committee of Adjustment to deviate slightly from zoning rules (setback, height, coverage). Needed for many additions and secondary suites; neighbours can object.

The Multiple Listing Service used by REALTORS®, operated in the GTA by the Toronto Regional Real Estate Board (TRREB) — the backbone of active listings and sold data.

A lender that only does mortgages (no branches or chequing accounts), often accessed through a mortgage broker and frequently competitive on rate.

How long it would take to sell all active listings at the current sales pace. Roughly under 4 months favours sellers; over 6 favours buyers.

A licensed professional who shops multiple lenders to find a borrower a mortgage, rather than offering a single institution's products. In Ontario, brokers are FSRA-regulated.

The length of your current mortgage contract (often 1–5 years), after which you renew, refinance or repay. Distinct from amortization, the full payoff period.

An income property's revenue minus operating expenses (before mortgage and income tax). NOI drives commercial valuation and the cap rate calculation.

The CRA's annual summary of your reported income and taxes. Lenders often request recent NOAs to verify income, especially for self-employed borrowers.

An Ontario tax on residential purchases by certain foreign buyers, charged on top of land transfer tax. Rules and rebates are specific — confirm current details before buying.

The monthly charge during a new condo's interim-occupancy period — roughly the builder's carrying cost (interest, estimated taxes and common expenses). It does not pay down your mortgage.

Municipal sign-off that a newly built or substantially renovated home is safe and legal to occupy. On new builds it gates when you can move in during the closing process.

A pre-set date on which a seller reviews all offers at once, often used to create competition. Buyers may try to pre-empt it with a bully offer.

A mortgage you can pay off or refinance anytime without penalty, usually at a higher rate. Useful if you expect to sell or repay soon.

The Ontario Real Estate Association's standard Agreement of Purchase and Sale — the base contract most Ontario resale offers are built on, plus schedules.

Transferring your existing mortgage and its rate to a new property when you move, avoiding a break penalty. Subject to re-qualification and lender rules.

The date you take physical possession and receive keys — usually the closing date, but occasionally negotiated separately (e.g. with a rent-back to the seller).

A freehold home that shares a small common-elements condo (private road, visitor parking, landscaping) with a modest monthly fee — 'freehold with a fee.'

Ontario's common lender remedy after default: the lender sells the property to recover what's owed. Buyers of power-of-sale homes should use a lawyer and expect as-is terms.

A lender's conditional commitment based on verified income and credit, usually with a held rate. Stronger than a pre-qualification when making offers, but still conditional on the property.

Buying a home before it's built, funded by staged deposits, with occupancy often years out. Offers a brand-new home and potential appreciation, with timeline and cost uncertainty.

The walkthrough of a newly built home before closing where the buyer documents deficiencies and incomplete items with the builder — the basis for warranty claims under Ontario's new-home warranty program.

A quick, unverified estimate of what you might borrow based on numbers you provide. Good for early budgeting; not as strong with sellers as a full pre-approval.

The extra you can pay toward principal each year (lump sums and/or higher payments) without penalty. Bigger privileges mean faster, cheaper payoff.

The benchmark lending rate banks set, which variable mortgages and HELOCs move with. It shifts as the Bank of Canada changes its policy rate.

The amount you borrowed (or still owe), separate from interest. Each mortgage payment splits between principal and interest.

The rule that generally shelters the capital gain on the home you live in from tax when you sell — a key reason a principal residence is taxed differently from an investment property.

The value the Municipal Property Assessment Corporation assigns your property, used to calculate property tax. It is not the same as market value.

An annual municipal tax based on your property's assessed value and the local tax rate, funding city services. Prorated between buyer and seller at closing.

The higher rate lenders must use to test whether you can afford a mortgage — the greater of the 5.25% minimum qualifying rate or your contract rate plus 2 percentage points.

A lender's guarantee to hold a quoted rate for a set period (often up to ~120 days) while you shop, protecting you if rates rise before you buy.

Replacing your existing mortgage with a new one — to access equity, change terms or consolidate debt. Breaking mid-term may trigger a penalty.

Signing a new term at maturity when your current term ends. Shopping around at renewal (not just signing the lender's first offer) often saves money.

An arrangement where a tenant rents with an option (or obligation) to buy later, with part of the rent often credited toward the purchase. Terms vary widely and warrant legal review — the details decide whether it's a fair deal.

A condo corporation's savings for major future repairs (roof, elevators, garage). A healthy reserve reduces the risk of surprise special assessments.

A registered condition limiting how a property can be used or built on (e.g. materials, fencing, no further subdivision). It runs with the land and binds future owners — your lawyer reviews these on title.

A loan for older homeowners that converts home equity into cash with no required payments until you sell or move. Interest compounds and erodes equity over time.

A contractual right allowing a party to match an offer before the owner sells to someone else. Sometimes attached to parking, lockers or co-ownership arrangements.

A deal where an owner sells a property and immediately leases it back, freeing capital while continuing to occupy it. More common in commercial than residential.

An additional loan secured against a home that already has a first mortgage. It ranks behind the first, so it carries higher rates to reflect the added risk.

A self-contained rental unit within a house. Legalizing one requires meeting zoning, fire and building code (separate egress, fire separation) — an unpermitted unit is a liability and financing risk.

The minimum distance a building must sit from a lot line, set by zoning. Setbacks govern where you can build additions, decks and garden suites — a minor variance may be needed to reduce them.

Municipal approval to divide one parcel of land into separate lots. Required before you can sell or build on a split portion.

A drawing showing how a development sits on its land — buildings, parking, landscaping, access. Municipal site-plan approval is a key step in pre-construction and land development.

Recently sold, similar nearby homes used to gauge fair value. The most reliable pricing input — more than list prices or online estimates alone.

A one-time charge condo owners pay when a major cost exceeds the reserve fund. The status certificate should disclose any pending or planned assessment.

The closing document your lawyer prepares showing the purchase price, deposit, and prorated credits/debits (taxes, fees) to determine the final balance due.

The federal requirement to qualify borrowers at the greater of the 5.25% minimum qualifying rate or the contract rate plus 2 percentage points. You pay your contract rate but must afford the higher one on paper. Uninsured straight switches to a new lender at renewal are exempt.

A drawing showing a property's boundaries, structures and any encroachments or easements. Title insurance is often used in place of a current survey.

Ontario's new-home warranty program: builders must be licensed (HCRA) and new homes carry defined deposit protection and warranty coverage administered through Tarion.

Housing costs plus all other debt payments as a share of gross income. Lenders typically cap it around 40–44%.

A co-ownership form where each owner holds a distinct, transferable share and there is no automatic survivorship — a share passes through the owner's estate.

The legal ownership of a property. A clear title, free of undisclosed liens or defects, is what your lawyer confirms before closing.

A one-time policy protecting against title defects, fraud, encroachments and certain survey issues. Most lenders require it and it often replaces a new survey.

Your lawyer's review of a property's ownership history and registered encumbrances (liens, easements) before closing to confirm clear title.

On some variable mortgages, the balance limit (often the original principal) at which the lender requires action — a lump-sum payment, higher payments or conversion — after the trigger rate is passed and the balance grows.

On a variable mortgage with fixed payments, the rate at which your payment no longer covers the interest — prompting a payment increase or amortization change.

A regulated account where a brokerage or lawyer holds client money (like your deposit) separately from its own funds until it's properly disbursed at closing.

The lender's assessment of your income, credit, down payment and the property to decide whether — and on what terms — to approve the mortgage.

A condition that the property be empty of occupants and the seller's belongings on closing. Important when buying a tenanted home you intend to occupy.

A mortgage whose rate moves with the lender's prime rate, so cost (and often payment) can rise or fall. Usually a smaller break penalty than fixed.

Permission to depart from a zoning requirement. A 'minor variance' handles small deviations; larger changes need a zoning amendment. Both add time and approval risk to a project.

Financing where the seller lends part of the purchase price to the buyer. Rare in residential; more common in commercial or non-traditional deals.

The document signed to remove a condition (financing, inspection) once satisfied, making that part of the offer firm. After all waivers, the deal is binding.

A 0–100 rating of how many daily errands can be done on foot from an address. A quick lifestyle signal, not a valuation input.

A final visit shortly before closing to confirm the home's condition matches the agreement (included items present, no new damage, vacant if required). Raise issues with your lawyer before closing, not after.

Summitly's home-value AVM: a value range, price-per-square-foot band and confidence read from recent comparable sales, in seconds. Try it at /sell/instant-valuation.

Municipal rules governing how a property may be used or built on (residential, commercial, mixed). Confirm zoning with the municipality before any non-standard use or development.

A formal change to a property's zoning approved by council, needed when a proposed use or density exceeds what current zoning allows. More involved than a minor variance and central to redevelopment.