The terminology used in the real estate world can sometimes be confusing or overwhelming. For that reason, we have created a small glossary of real estate terms that you may see throughout your real estate transaction. Never hesitate to ask your REALTOR® for further explanation should there be a term or point that you don’t fully understand.
Amortization: The length of time over which the entire debt will be repaid.
Closed mortgage: A closed mortgage cannot be paid off, in whole or in part, before the end of its term (unless a certain amount is stipulated). Closed mortgages often limit prepayment privileges.
Conventional mortgage: A conventional mortgage is a loan of up to a maximum of 80% of the lending value of the property. Mortgage insurance isn’t usually required for this type of mortgage.
Curb appeal: Is the term that describes how attractive a home looks from the street or first impression of the exterior of the home.
Easement: Is a legal right-of-way where someone else has the right for access to or over another person’s land for a specific purpose, such as a driveway or public utilities.
High-ratio mortgage: In contrast to a conventional mortgage, a high-ration mortgage is a loan higher than 80% of the lending value of the property. This type of mortgage often has to be insured (for example by CMHC).
Land survey: Is a document which shows the specific property lines and boundaries on a piece of property. The survey will also show the location of any buildings on the property and make note of any easements.
Net worth: Is your financial worth at a point in time. This is calculated by subtracting your total liabilities from your total assets.
Open mortgage: provides flexibility in prepayment privileges, usually allowing you to pay part or additional lump sum payments before the end of the mortgage term.
REALTOR®: Is a trademark name for real estate representatives who are members of an organization of persons engaged in selling and buying real estate. In Canada, REALTORS® are members of the Canadian Real Estate Association.
For a list of more terminology, please check out the Canadian Mortgage & Housing Corporation Web site at http://cmhc.ca/en/co/buho/hostst/hostst_011.cfm
For any real estate assistance in the Oakville, Burlington, Milton area contact Mary at firstname.lastname@example.org