Whether you’re thinking of buying or selling your home, or just like to be informed on the market, these are 10 real estate terms you should definitely familiarize yourself with.
Amortization – The number of years it takes to repay the entire amount of a mortgage.
Assessment – The value of a property, set by the local municipality, for the purposes of calculating property tax.
Closed Mortgage – A mortgage that cannot be prepaid, renegotiated or refinanced during its term.
CMA– Comparative Market Analysis or Competitive Market Analysis. A CMA is a report that shows prices of homes that are comparable to a subject home and that were recently sold, are currently on the market or were on the market, but not sold within the listing period.
Down Payment – The part of the purchased price of a property that the buyer pays in cash and does not finance with a mortgage.
Equity – A homeowner’s financial interest in a property. The difference between the value of the property and the amount owing (if any) on the mortgage.
Foreclosure – A legal process by which the lender takes possession and ownership of a property when the borrower doesn’t make (“defaults on”) the mortgage obligations.
Multiple Listing Service® (MLS) System– A system for relaying information to REALTORS® about properties for sale.
REALTORS® – Real Estate Professionals who are members of a local real estate board and the Canadian Real Estate Association. Only these professionals can call themselves REALTORS®.
Variable Rate Mortgage– A mortgage for which payments are fixed, but whose interest rate changes in relationship to fluctuating market interest rates. If market rates go up, a larger portion of the payment goes to interest. If rates go down, a large portion of the payment is applied to the principal.
