Sometimes in the Real Estate world there are terms used that the average person may not know, so let’s look at a few of them.
Amortization: The period of time it takes to reduce a debt to zero when payments are made regularly. Amortization periods are 15, 20 or 25 years.
Chattels: Articles of moveable personal property (ie: dishwasher, fridge dehumidifier)
Closing Costs: Various costs and expenses with closing a real estate transaction. Such costs can include paying for title insurance or appraisal fees. It is important to remember these costs are over and above the purchase price of the property.
CMHC: Is an acronym for Canadian Mortgage and Housing Corporation. A crown corporation that administers the National Housing Act for the Federal government and it encourages the improvement of housing and living conditions for all Canadians. CMHC also creates and sells mortgage loan insurance products typically requires when a borrower has less than 25% equity or down payment and it must be paid in advance (or it can be added to the mortgage)
Comparative Market: An approach for estimating the value of a property by comparing the sales price of similar properties that have sold.
Conditional Offer: An offer that is subject to specified conditions such as financing. There is usually a time period that the condition must be met.
Conveyance: The process of transferring an interest in land from one person to another by way of a transfer document.