Thinking About Buying Your First Home?

The legal relationship where a licensed agent (or brokerage) agrees to represent a client (buyer or seller) in a transaction, acting on their behalf with a fudiciary duty to protect and promote their best financial interests, loyalty, confidentiality, and to disclose all relevant information.

The number of years it takes to repay the entire amount of the financing based on a set of fixed payments.

Represents their homebuyers and their interests in the transaction, the listing agent represents the seller and their interests. 

Someone who has signed a formal representation agreement with an agent to have their best interests represented

Costs associated with the "closing" of a deal in addition to the purchase price and financing costs. Can include; property taxes, Insurance, land transfer tax, inspection costs, gst/hst, legal fees, etc. 

A condominium (condo) is a form of property ownership where you own a private unit (like an apartment, townhouse, or even detached house) but share ownership and costs for common areas (hallways, roofs, amenities) with other owners, managed by a condomiunium corporation through monthly fees.

A condition or clause in a real estate contract that specifies certain events must occur or certain conditions must be met before the contract is legally binding.

Someone who recieves services from an agent (or brokerage) but has no representation agreement and is not owed fudiciary duties

An upfront payment made by the buyer to the seller at the time the offer is accepted. Held in trust until the deal closes and the deposit is applied to the purchase price.

The amount of money paid upfront on the purchase price of the property. Must be a minimum of 5% of purchase price, down payments below 20% are subject to mortgage loan insurance. 

The market value of your home minus any outstanding debt owed on the home. (How much of the home you actually "own")

A fixed mortgage rate garauntees a rate of interest for a set priod of time. Typically 5 years (Your mortgage term). When your term ends you must either renew for a new term or renegotiate with the same lender or with a different one. 

A legal remedy used by a mortgage lender when a borrower stops meeting their payment obligations. After prolonged default, the lender can seize and sell the property, often through a court process or auction to recover the outstanding loan balance.

A mortgage issued when the buyer provides a down payment of less than 20% of the purchase price. These mortgages must be insured through a mortgage insurer, with the minimum allowable down payment in Canada being 5%.

A government program that permits first-time buyers to borrow up to $60,000 from their RRSPs to buy or build a home, without immediate tax consequences. The withdrawn funds must be repaid over a maximum of 15 years.

A protection plan that covers certain defects or failures in a home for a specified time period. New construction homes are generally required to include warranty coverage, while optional warranty programs may also be available for resale properties, depending on the province.

A tax paid by the buyer when ownership of a property is registered with the province. The amount is based on the purchase price and varies by jurisdiction. Many provinces offer rebates to first-time buyers to reduce or eliminate this cost.

An early assessment by a lender that outlines how much you may be eligible to borrow, subject to final conditions. It helps buyers shop confidently and often includes a temporary interest rate hold.

A legally binding proposal to purchase a property, typically submitted in writing. Offers often include conditions such as financing approval or a satisfactory home inspection, which must be fulfilled before the deal becomes firm.

The ability to move an existing mortgage, including its interest rate and terms, from one property to another when buying a new home, subject to lender approval.

The process of replacing an existing mortgage with a new one, often to obtain better terms, access built-up equity, or restructure debt. Refinancing may result in penalties depending on the mortgage contract.

An insurance policy that protects buyers and lenders against financial losses arising from title-related issues, such as undisclosed liens, boundary problems, or fraud. While optional, it is commonly recommended during a purchase.

A mortgage with an interest rate that changes in response to movements in the lender’s prime rate. While payment amounts may stay constant, the allocation between interest and principal can fluctuate over time.