Real estate, defined
Real estate terms, in plain English.
56 real estate terms, each with a 20-second video from Greg Campbell, then the Ontario rules, real examples, common questions and official sources. From amortization to zoning.
A
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Amortization
Amortization is the total time it takes to pay off your mortgage, usually 25 or 30 years in Canada.
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Appraisal
An appraisal is an independent opinion of what a home is worth, usually ordered by the lender before it funds your mortgage.
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Assessed value
Assessed value is the value your municipality uses to calculate property tax. It isn't what your home would sell for.
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Assignment sale
An assignment sale is when the original buyer of a home that isn't built yet sells their purchase contract to someone else before closing.
B
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Bridge financing
Bridge financing is a short-term loan that covers the gap when you buy your next home before the sale of your current one closes.
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Bully offer
A bully offer, which RECO calls a pre-emptive offer, is an offer made before the seller's scheduled offer date to try to buy the home before other buyers can compete.
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Buyer representation agreement
A buyer representation agreement (BRA) is your contract with a brokerage that sets out who represents you, what services you'll get, how long it lasts and what you'll pay.
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Buyer's agent
A buyer's agent is a registered real estate salesperson or broker whose brokerage represents you, the buyer, under a written buyer representation agreement.
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Buyer's market
A buyer's market is when there are more homes for sale than active buyers, so buyers have the leverage on price and terms.
C
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Closing costs
Closing costs are the one-time costs due on closing day on top of your down payment, like legal fees, land transfer tax, title insurance and adjustments.
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CMHC insurance
CMHC insurance is mortgage default insurance. It protects the lender, not you, and it's required in Canada when your down payment is less than 20% of the price.
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Comparative market analysis (CMA)
A comparative market analysis compares a home with similar properties that recently sold nearby to estimate its market value.
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Conditional offer
A conditional offer only becomes binding once specific conditions are met or waived, like financing, a home inspection or the sale of your current home.
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Condominium
A condominium is a home where you own your unit outright and share ownership of the common areas, like the lobby, roof and gym, with the other owners.
D
E
F
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Firm offer
A firm offer has no conditions, so once it's accepted, the deal is legally binding.
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Fixed vs variable rate
A fixed rate stays the same for your whole term. A variable rate moves with your lender's prime rate, which follows the Bank of Canada.
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Fixture vs chattel
Fixtures are attached to the home and normally stay. Chattels are movable items and normally go with the seller, unless the agreement says otherwise.
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Foreclosure
Foreclosure is a court process where a lender takes ownership of a home after the borrower defaults on the mortgage, ending the borrower's right to the property and any equity in it.
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Freehold
Freehold means you own the home and the land it sits on outright, with no condo corporation and no monthly maintenance fees.
G
H
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Holdback
A holdback is money kept back in trust at closing until something agreed in the deal is done, like an unfinished repair.
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Home inspection
A home inspection is a professional review of a property's condition, from the roof and foundation to the furnace, plumbing and electrical, before your purchase is final.
I
L
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Land transfer tax
Land transfer tax is a one-time provincial tax you pay when you buy property in Ontario, based on the purchase price.
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Lien
A lien is a legal claim registered against a property because someone is owed money.
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Listing agreement
A listing agreement is a seller representation agreement: your contract with a brokerage to market and sell your home, setting out the services, the fees and how long it runs.
M
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Market value
Market value is the most likely price a home would sell for in an open, competitive market, between a willing buyer and a willing seller who both know the facts and aren't under pressure.
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MLS® Home Price Index (HPI)
The MLS® Home Price Index (HPI) tracks the price of a typical, or benchmark, home in an area over time, so changes reflect the market rather than a shift in which homes happened to sell.
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Mortgage broker
A mortgage broker shops your mortgage to several lenders to find the rate and terms that fit you.
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Mortgage stress test
The mortgage stress test checks that you could still afford your payments if rates rose. You qualify at the higher of your contract rate plus 2%, or 5.25%.
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Mortgage term
Your mortgage term is the length of your current rate agreement with your lender, usually one to five years.
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Multiple representation
Multiple representation is when one brokerage, or one designated agent, represents more than one client with competing interests in the same deal, such as the buyer and the seller, or two buyers bidding on the same home.
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Mutual release
A mutual release is a signed agreement in which the buyer and seller both agree to end a deal.
N
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Net operating income (NOI)
Net operating income is a rental property's income minus its operating expenses, before mortgage payments.
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New home warranty
In Ontario, a new home warranty is the protection that comes with every newly built home under the Ontario New Home Warranties Plan Act, backed by Tarion, covering defects for set periods after possession plus deposits and delayed closings.
P
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Power of sale
Power of sale is when a lender sells a property after the owner defaults on the mortgage, without going to court.
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Pre-approval
A mortgage pre-approval is a lender's estimate of how much you can borrow, based on your income, debts and credit, usually with a rate held for about 90 to 130 days.
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Property tax
Property tax is an annual bill from your municipality, based on your home's MPAC assessed value, not what you paid for it.
R
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REALTOR®
REALTOR® is a trademark that identifies real estate professionals who are members of the Canadian Real Estate Association (CREA).
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RECO
RECO, the Real Estate Council of Ontario, is the provincial regulator that registers real estate agents and brokerages and enforces Ontario's Trust in Real Estate Services Act, 2002.
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Refinancing
Refinancing means replacing your current mortgage with a new one, often to borrow against your equity, change your rate or consolidate debt.
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Rent-to-own
Rent-to-own is an arrangement where you rent a home with an option to buy it later, with part of your rent credited toward the purchase.
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Reserve fund
A reserve fund is money a condo corporation sets aside for major repairs and replacements, like the roof, elevators, windows and parking garage.
S
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Seller Property Information Statement (SPIS)
A Seller Property Information Statement (SPIS) is an optional form a seller can fill out to answer questions about the home's condition and history, based on what they know.
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Seller's market
A seller's market is when buyer demand outpaces the homes for sale, so prices climb, homes sell fast and bidding wars are common.
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Status certificate
A status certificate is a package from the condo corporation showing its financial and legal health, including the reserve fund, budget, lawsuits and any special assessments.
T
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Title
Title is your legal ownership of a property, as shown on the government land register. Before you close, your lawyer searches it to confirm the seller can sell and that no hidden liens or claims come with the home.
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Title insurance
Title insurance protects you against covered problems with your ownership, like title fraud, hidden liens or survey and zoning issues.
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Total debt service ratio (TDS)
Your total debt service ratio is the share of your gross income that goes to housing costs plus every other debt: car loans, credit cards, lines of credit and student loans.
U
V
Z
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General information for Ontario, checked October 2026. Not legal, tax or mortgage advice. Rules and programs change, so confirm details with your lawyer, lender or the program before you rely on them.
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