Glossary of Terms
Understanding the Language of Real Estate and
Mortgages
When you’re navigating a move, mortgage and real estate transaction, sometimes the terminology alone can feel overwhelming – especially for first time buyers, or if it has been a while since the last time you bought or sold a home.
This glossary was created to give you clear, plain-language
definitions of real estate and mortgage terms used in Alberta and British Columbia, so you can make confident, informed decisions every step of the way.
Real Estate Terminology
Agreement of Purchase and Sale [Purchase Contract]
The legal contract outlining the price, conditions, and terms agreed upon by the buyer and seller.
Appraisal
An independent estimate of a property’s market value, often required by lenders.
As-Is Sale
A property sold in its current condition, without any representations or warranties from the seller. The buyer assumes all risks associated with buying this type of property.
Chattels [Also known as ‘Unattached Goods’]
Moveable items included in a sale, such as appliances, window coverings, or light fixtures.
Closing Date / Completion Date
The day ownership officially transfers from seller to buyer, funds are exchanged and keys are released to the buyer.
Comparative Market Analysis [CMA]
A report prepared by a REALTOR® comparing similar properties to help determine fair market value.
Conditions [Subjects]
Requirements that must be met for a sale to proceed [e.g., financing, inspection].
Condominium / Strata [Condo]
A property where you own your unit but share ownership of common areas.
Condo Fees / Strata Fees
Monthly fees covering maintenance, insurance, and shared amenities.
Deposit
Money provided by the buyer to show commitment, held in trust until closing or returned to the buyer if conditions are not satisfied.
Disclosure Statement
A document outlining known issues or material facts about a property.
Dual Agency
When one REALTOR® represents both buyer and seller [rules vary by province].
Equity
The difference between the home’s market value and what is owed on the mortgage.
Freehold
Ownership of both the building and the land it sits on.
Fixtures
Items permanently attached to a property [e.g., built-in cabinetry].
Holdback
Funds retained after closing until specific conditions are met.
Land Title / Title Search
Legal record showing ownership, liens, or restrictions on a property.
Listing Agreement
Contract between a homeowner and REALTOR® authorizing the property to be marketed.
MLS® [Multiple Listing Service]
A cooperative tool REALTOR’S® use to market properties and serve their clients needs.
Municipal Compliance Report
Accompanies the Real Property Report [survey] the report is evidence that the seller’s property complies with municipal by-laws and regulations.
Possession Date
The day the buyer physically takes possession of the home.
Property Taxes
Annual municipal taxes based on assessed property value.
Real Property Report [RPR]
A legal survey showing buildings and boundaries – accompanies the Municipal Compliance Report.
Strata
The legal structure governing condominiums and shared ownership properties.
Title Insurance
Protects buyers and lenders from title defects or ownership issues.
Canadian Mortgage & Financing Terms
Amortization Period
The total length of time it takes to pay off a mortgage [often 25–30 years].
Blended Payment
Mortgage payments combining both principal and interest.
Bridge Financing
Short-term financing used when buying before selling an existing home.
Closed Mortgage
Limits how much you can prepay without penalties.
CMHC Insurance
Mortgage default insurance required for low down payments.
Conventional Mortgage
A mortgage with at least 20% down payment.
Down Payment
The upfront amount paid toward the purchase price.
Fixed-Rate Mortgage
Interest rate remains the same for the term.
Variable-Rate Mortgage
Interest rate fluctuates with market conditions.
Interest Rate
The cost of borrowing money, expressed as a percentage.
Mortgage Pre-Approval
A lender’s conditional approval for a specific loan amount.
Open Mortgage
Allows full repayment at any time without penalties.
Porting a Mortgage
Transferring an existing mortgage to a new property.
Principal
The original amount borrowed, excluding interest.
Prepayment Penalty
A fee for paying off a mortgage early.
Term
The length of time the mortgage agreement is in effect [e.g., 5 years].
Total Debt Service (TDS)
The percentage of income used for housing and other debt obligations.
We're Here to Help You Understand
At Next Home Hub, we work closely with our real estate buyers and seller to help you understand all of the pieces of the puzzle. Whether you’re buying your first home, your next home, relocating to another province, or downsizing, we can help you speak the language of real estate and mortgages.
You deserve guidance that is clear, compassionate, and completely in your corner.
Next Home Hub | Trusted Guidance for Life's Biggest Moves.
Next Home Hub | Trusted Guidance for Life's Biggest Moves.
Ready to get started? Let’s connect.
Ready to get started? Let’s connect.