A

Adjustment Date
The day from which all calculations of interest, tax adjustments, utility bill adjustments (if applicable) are made to the credit of the either the buyer or seller. This is usually (but not always) the same as the possession date.

Amortization 
The gradual reduction of a debt by means of a regular payment. Repayments of principal and interest in "blended" amounts. The normal amortization period for a mortgage in Canada is 25 years, but can be as short as 5 years or as long as 30 years.

Anniversary
Most lenders allow borrowers to make payments against the principal on the anniversary of the mortgage.

Appraised Value
An estimate of a property’s market value used by lenders in determining the amount of the mortgage.

Approved Lender
A lending institution, authorized by the Government of Canada, to make loans under the terms of the National Housing Act. Only Approved Lenders can negotiate mortgages that require mortgage insurance.

Appreciation
The increase in a property's value over time.

Assessment
A tax or charge levied on property by a taxing authority to pay for improvements such as sidewalks, streets, and sewers.

Assessed Value
The value of a property, set by BC Assessment, and used by the local municipality for the purposes of calculating property tax. 

Assets
What the borrower owns. This could include real estate, savings, vehicles, RRSPs, GICs, stocks, bonds, household goods, etc.

Assumption (of mortgage)
Buyer assuming responsibility of seller's existing mortgage at the interest rate and terms as laid out in the original mortgage documents.


B 

Balanced Market
A market condition where the demand for property equals the supply of available properties for sale. There is typically a good number of homes available to choose from at fair and stable prices. 

Blended Mortgage Payment
A mortgage payment that includes principal and interest. It is paid regularly during the term of the mortgage. The payment total remains the same, although the principal portion increases over time and the interest portion decreases.

Breach of Contract
The failure to fulfill an obligation under a contract.

Bridge Financing
Interim financing to bridge the time gap between the closing date on the purchase of a new home and the closing date on the sale of the current home.

Building Codes
Provincial or locally adopted regulations that control the design, construction, repair, quality of building materials, use, and occupancy of any structure under its jurisdiction.

Buyer’s Market
A market condition where there are a higher number of homes to choose from, than buyers are able to purchase. Houses will typically remain un-sold for longer periods and tend to sell at a lower price, allowing for increased negotiating leverage for buyers.

Buy-down
When the seller reduces the interest rate on a mortgage by paying the difference between the reduced rate and the market rate directly to the lender or to the buyer.


C

Chattel
Articles of personal property such as household goods, furnishings, and fixtures that are not permanently affixed to the house.

Closing
Completion of the real estate transaction when the parties involved agree that all legal and financial obligations have been met and the deed to the property is transferred from the seller to the buyer.

Closing Costs
Expenses in addition to the purchase price for buying and selling a property. Click on this link to see the specific costs:
http://dave-woolacott.myrealpagewebsite.com/costs-of-buying-a-home.html

Closing Date
The date at which the sale of a property becomes final and the new owner takes possession.

C.M.H.C.
Canada Mortgage and Housing Corporation, a Crown Corporation which administers the National Housing Act.

C.M.H.C. Insurance 
If your down payment is less than 20% , you must have mortgage insurance. It insures the lender against the possibility of you defaulting on your mortgage. Canada Mortgage and Housing Corporation is the principal source of mortgage insurance. G.E. Capital also provides mortgage insurance to many of Canada's financial institutions.

Commission
The payment given by the seller of a property to a Real Estate agent for his/her services.The amount is usually a percentage of the sale price and is usually paid at .

Commitment Letter/Mortgage Approval
Written notification from the mortgage lender to the borrower, that approves the advancement of a specified amount of mortgage funds under specified conditions.

Conditional Offer
An Offer to Purchase that is subject to specified conditions, for example, on approved financing or upon an approved home inspection. Conditional offers typically have a stipulated time limit within which the specified conditions must be met.

Condominium Ownership: Shared ownership in a strata-titled property. Owners have title (ownership) to individual units and a proportionate share in the common property

Condominium or Strata Fees 
Payments made by owners of condominiums or townhouses to the property management of a complex that is allocated to pay expenses, such as maintenance, repairs and management costs. 


Common and/or Limited Common Property (Strata)
Lands or improvements on land that are designated for common use and enjoyment by all occupants, tenants or owners. The lobby, a pool, tennis court or common hallways would all be Common Areas in a condominium or townhouse complex

Common Tenancy
The ownership of property by two or more persons, where on the death of one, his share does not automatically go to the other(s) but is credited to his estate

Contingency Reserve Fund
The Strata Property Act defines the CRF as follows:
" … means a fund for common expenses that usually occur less often than once per year or that do not usually occur, as set out in section 92(b)."
Section 92(b) reads:"To meet its expenses the strata corporation must establish, and the owners must contribute, by means of strata fees, to a contingency reserve fund for common expenses that usually occur less often than once per year or that do not usually occur."

Contract of Purchase and Sale
A written statement by which a buyer agrees to purchase, and a seller agrees to sell a particular piece of property according to the terms set forth in that agreement

Conventional Mortgage
A mortgage loan up to a maximum of 80% of the lending value of the home. Mortgage loan insurance is usually not required for this type of mortgage.

Conveyance
The term used to describe the process of transferring the seller’s title to the buyer and indicates all the necessary steps to complete the transfer. This process is usually undertaken by a conveyancing lawyer (or notary) acting for the buyer.

Counter Offer
An offer made by the seller back to the buyer altering one or several terms and/or conditions of the offer as originally written.

Debt Service Ratio to Lump Sum Prepayment

Market Value to Operating Costs

P.I.T.H. (Principal, Interest, Taxes and Heating) to Zoning Regulations