Amortization:

A term that refers either to the gradual paying off of a debt in regular installments over a period of time or to the depreciation of the “book value” (that is, the standard assessed value) of an asset over a period of time.

Appraisal:

The act of estimating or judging the nature or value of something.

Assessment:

The appraisal of property for the purposes of taxation.

Assumable Mortgage:

A type of financing arrangement in which the outstanding mortgage and its terms can be transferred from the current owner to a buyer. By assuming the previous owner's remaining debt, the buyer can avoid having to obtain his or her own mortgage.

Blended Mortgage:

Combined mortgage including the balance on an existing mortgage and the amount of a new mortgage.

Bungalow:

A one-storey house, sometimes with an attic.

Buy-down:

A subsidy for a long-term mortgage offered by a third party, as a builder or developer, to lower interest rates for a buyer in the early years of the loan.

Closing:

The real estate transaction's completion, when the parties involved agree that all legal and financial obligations have been met, and the deed to the property is transferred from the seller to the buyer.

Conventional Mortgage:

A first mortgage issued for up to 75 per cent of the property's appraised value or purchase price, whichever is lower.

Counter-Offer:

An offer or proposal made to offset or substitute for an earlier offer made by another.

Curb Appeal:

The attractiveness of the exterior of a residential or commercial property.

Debt Service Ratio:

The percentage of a borrower's gross income that can be used for housing costs, including mortgage payment and taxes (and condominium fees, when applicable).

Deed:

A legal document that conveys (transfers) ownership of a property to the buyer.

Down Payment:

A type of payment made in cash during the onset of the purchase of an expensive good/service. The payment typically represents only a percentage of the full purchase price.

Making a down payment and then paying the rest of the price through installments is a method that makes expensive assets more affordable for the typical person.

Easement:

A right held by one property owner to make use of the land of another for a limited purpose, as rite of passage.

Encroachment:

An intrusion onto an adjoining property -- such as a neighbour's fence, storage shed or overhanging roof line that partially (or even fully) intrudes onto your property.

Equity:

Home equity is the amount of the home that the homeowners owns free and clear; the current fair market value of the home minus all mortgages or liens against it.

Foreclosure:

Home equity is the amount of the home that the homeowners owns free and clear; the current fair market value of the home minus all mortgages or liens against it.

High Ratio Mortgage:

Mortgage whose amount is greater than 80% of the value of the mortgaged property.

Land Transfer Tax:

Payment to the provincial government for transferring property from the seller to the buyer.

Lease to Own:

An arrangement where an individual enters into a lease agreement with an owner with the inclusion of a clause that typically gives the individual the right, but not the obligation, to purchase the item leased at a predefined price and time. More often than not, a portion of the total rental payment goes toward paying down the value of the item leased in the event that the renter wishes to exercise the option.

Lien:

A lien is a legal claim or a "hold" on some type of property.

Mortgage:

A conveyance of an interest in property as security for the repayment of money borrowed.

Mortgage Insurance:

An insurance policy that protects a mortgage lender or title holder in the event that the borrower defaults on payments, dies, or is otherwise unable to meet the contractual obligations of the mortgage.

Mortgagor:

An individual or company who borrows money to purchase a piece of real property. By granting the lender an interest in the property, which allows it to lend the funds with an accurate assessment of risk, the mortgagor provides the lender with a guarantee for the full repayment of the loan.

Open House:

A scheduled period of time in which a house or other dwelling is designated to be open for viewing for potential buyers.

Prepayment Privilege:

The right given to a debt holder to pay all or part of a debt prior to its maturity or ahead of schedule, usually without risk of penalty

Principal:

The mortgage amount initially borrowed, or the portion still owing on the mortgage. Interest is calculated on the principal amount.

Property Tax:

A tax assessed on real estate by the local government. The tax is usually based on the value of the property (including the land) you own.

Variable-Rate Mortgage:

Is a mortgage loan where the interest rate varies to reflect market conditions.

Zoning:

Government (usually municipal) laws that control the use of land within a jurisdiction.