Amortization Period: The total time, typically 15 to 30 years, over which a mortgage is paid off through regular payments.

Appraisal: An evaluation of a property’s market value, typically conducted by a certified appraiser. This is important for lenders to assess the amount they are willing to lend.

Closing Costs: Fees and expenses that buyers incur at the closing of a real estate transaction, including legal fees, land transfer tax, and inspections.

Conditional Offer: A purchase agreement that includes specific conditions to be fulfilled before the deal can proceed (e.g., obtaining financing or a satisfactory home inspection).

Down Payment: The initial amount paid upfront for a home is typically expressed as a percentage of the purchase price.

Land Transfer Tax: A tax the buyer pays when purchasing a property in Ontario, calculated based on the purchase price.

Mortgage Pre-Approval: This is a process where a lender assesses a buyer’s financial situation and determines how much they are willing to lend before the home search begins.

Offer to Purchase: A formal proposal to buy a property, which outlines the terms and conditions, including the price and closing date.

Real Estate Agent or REALTOR®: A licensed professional representing buyers or sellers in real estate transactions, helping with negotiations and paperwork.

Title Insurance protects buyers and lenders from potential disputes over property ownership and any existing claims against the property.

Home Inspection: A thorough examination of a property’s condition, usually conducted by a professional inspector, to identify any issues before finalizing the purchase.

Severance Is dividing a single piece of land into two or more separate parcels, often requiring municipal approval.

Zoning: Local government regulations dictate how properties in specific areas can be used (e.g., residential, commercial, industrial).

Deposit: A sum of money the buyer provides to the seller as part of the purchase agreement, indicating a serious intent to buy.

Home Warranty: A service contract that repairs or replaces specific home components and systems (such as appliances, plumbing, and electrical systems) in a particular period after purchase.

Equity: The difference between the market value of a property and the outstanding balance of any mortgages or loans secured against it.

Open House: An event where the property is available for potential buyers to view without an appointment, typically hosted by the seller’s agent.

Financing Conditions are clauses in an offer that make the purchase contingent upon the buyer obtaining financing from a lender.

Chattels: Movable personal property that can be included or excluded in the sale of a home, such as furniture or appliances.

Condominium: A type of property ownership where individuals own their unit and share ownership of common areas with other unit owners, often managed by a condo corporation.

This glossary can help demystify the home-buying process in Ontario, making it easier for buyers to navigate their options and understand key terms.