Posted by Maryann Quenet on Monday, May 5th, 2025 10:33am.
Navigating the world of real estate in Canada can be challenging, especially with the myriad of terms and jargon involved. Whether you're a first-time homebuyer, a seasoned investor, or considering selling your property, understanding these terms is crucial. This comprehensive guide breaks down essential real estate terminology in simple language, ensuring you're well-equipped to make informed decisions.
The process of paying off a loan, like a mortgage, over time through regular payments. In Canada, the typical amortization period is 25 years.
An evaluation of a property's market value, usually conducted by a certified professional. Lenders often require an appraisal before approving a mortgage.
The value assigned to a property by a municipal assessor for taxation purposes. This value may differ from the market value.
A real estate professional who represents the buyer's interests during a property transaction. They assist in finding suitable properties, negotiating offers, and navigating the buying process.
Expenses incurred during the finalization of a real estate transaction. These can include legal fees, land transfer taxes, and home inspection costs.
A condition is a contingency in a purchase agreement that must be met for the sale to proceed. Common conditions include financing approval and satisfactory home inspections.
The initial payment made when purchasing a property. In Canada, the minimum down payment ranges from 5% to 20%, depending on the property's price.
The difference between a property's market value and the outstanding mortgage balance. As you pay down your mortgage, your equity increases.
A mortgage with an interest rate that remains constant throughout the loan term, providing predictable monthly payments.
An examination of a property's condition, typically conducted before purchase. It helps identify potential issues or repairs needed.
A tax levied when a property changes ownership. In Ontario, buyers pay this tax, and in cities like Toronto, an additional municipal land transfer tax applies.
An evaluation by a lender determining how much they're willing to lend you, based on your financial situation. It strengthens your position when making offers.
A formal proposal to buy a property, outlining the price and terms. Once accepted, it becomes a binding agreement.
An annual tax paid to the municipality, based on the assessed value of your property. These funds support local services like schools and infrastructure.
A review of public records to confirm a property's legal ownership and identify any claims or liens. It's essential to ensure a clear title before purchasing.
Understanding these terms is just the beginning. Navigating the real estate market requires expertise and guidance. That's where The Johnson Team comes in.
As a leading real estate agency in Toronto, The Johnson Team is renowned for its deep market knowledge, personalized service, and innovative marketing strategies. Whether you're buying your first home or selling a property, their team of dedicated professionals is here to ensure a seamless and successful experience.
Don't navigate the real estate journey alone. Reach out to The Johnson Team today and let them help you achieve your real estate goals.