66 terms explained in plain language, with the French term and a link to the tool or guide that goes further.
A
Amortization period(Période d’amortissement)
The total time it would take to pay off the mortgage in full with regular payments, often 25 years. A longer amortization lowers the payment but adds interest. Learn more
Appraisal(Évaluation (par le prêteur))
An estimate of a home’s market value, usually ordered by the lender before it approves the mortgage. A low appraisal can mean a larger down payment. Learn more
Assignment sale(Cession de contrat)
Selling your right to buy a home that is not yet built to someone else before closing. The builder’s agreement may limit it, and the profit is usually taxed as business income. Learn more
B
Bank of Canada policy rate(Taux directeur de la Banque du Canada)
The rate the Bank of Canada sets eight times a year. Banks move their prime rate with it, which moves variable mortgage and line of credit rates. Learn more
Blend and extend(Mélange et prolongation)
Combining your current mortgage rate with today’s rate and starting a new term, often to avoid a prepayment penalty or to borrow more. Learn more
An investing method: buy a property below its value, renovate, rent it out, refinance to take your money back out, then repeat with the next property. Learn more
C
Capital cost allowance (CCA)(Déduction pour amortissement (DPA))
The tax deduction for the wear of a rental building over time. Claiming it lowers tax now but can be taxed back as recapture when you sell. Learn more
Capital gain(Gain en capital)
The profit when you sell a property for more than you paid plus costs. Half of the gain is taxed, unless the principal residence exemption covers it. Learn more
Capitalization rate (cap rate)(Taux de capitalisation)
A rental property’s net operating income for a year divided by its price. It compares properties before financing. Learn more
Car lease(Location d’auto)
Paying to use a car for a set term and distance, then returning it or buying it at its residual value. Learn more
Cash flow(Flux de trésorerie)
What a rental property leaves you each month after rent comes in and the mortgage, tax, insurance, repairs and other costs go out. Learn more
Closed mortgage(Prêt hypothécaire fermé)
A mortgage you cannot pay off early, beyond its prepayment privileges, without a penalty. It usually has a lower rate than an open mortgage. Learn more
Closing costs(Frais de conclusion)
Costs paid on closing day on top of the down payment: land transfer tax, legal fees, title insurance, adjustments and more, often 1.5% to 4% of the price. Learn more
Co-ownership(Copropriété indivise)
Buying a home with family or friends. Owners can hold title as joint tenants or tenants in common; a written agreement sets who pays what and what happens if someone leaves. Learn more
Commission(Commission)
What the seller usually pays the real estate brokerages when the home sells, often a percentage of the price, plus GST or HST. Learn more
Comparative market analysis(Analyse comparative de marché)
An estimate of a home’s value from the prices of similar homes that sold nearby recently, adjusted for differences. Learn more
Conditional offer(Offre conditionnelle)
An offer that becomes binding only once conditions such as financing or an inspection are met or waived by set dates. Learn more
Condo fees(Frais de copropriété)
The monthly amount each owner pays the condo corporation for shared costs such as insurance, upkeep and the reserve fund. Learn more
Consumer Price Index (CPI)(Indice des prix à la consommation (IPC))
Statistics Canada’s measure of how prices change. Its 12-month change is the inflation rate. Learn more
D
Debt service ratios (GDS and TDS)(Ratios d’endettement (ABD et ATD))
GDS is your housing costs divided by gross income; TDS adds your other debt payments. Lenders cap both, at the stress test rate. Learn more
Deposit(Dépôt)
Money paid with an accepted offer to show good faith, held in trust and credited to the price on closing. Learn more
Down payment(Mise de fonds)
The part of the price you pay yourself. The minimum is 5% of the first $500,000, 10% of the rest up to $1,500,000, and 20% at $1,500,000 or more. Learn more
F
First Home Savings Account (FHSA)(Compte d’épargne libre d’impôt pour l’achat d’une première propriété (CELIAPP))
An account for first-time buyers: contributions are tax-deductible and a qualifying withdrawal to buy a home is tax-free. $8,000 a year, $40,000 in total. Learn more
Fixed rate(Taux fixe)
A mortgage rate that stays the same for the whole term, so the payment does not change until renewal. Learn more
Freehold(Pleine propriété)
Owning the home and the land it sits on outright, without a condo corporation or shared common areas. Learn more
G
GST/HST new housing rebate(Remboursement de TPS/TVH pour habitations neuves)
A partial refund of the GST, or the federal part of the HST, on a newly built or substantially renovated home, with a larger rebate for first-time buyers. Learn more
H
Home Buyers’ Plan (HBP)(Régime d’accession à la propriété (RAP))
Lets first-time buyers withdraw up to $60,000 from their RRSPs to buy a home, then repay it over 15 years. Learn more
Home equity(Valeur nette de la propriété)
Your home’s value minus what you still owe on it. It grows as you pay down the mortgage and as prices rise. Learn more
Home equity line of credit (HELOC)(Marge de crédit hypothécaire)
A line of credit secured by your home that you can borrow from, repay and borrow again, usually at prime plus a margin. Learn more
Home inspection(Inspection préachat)
A visual check of a home’s condition by an inspector, often a condition in the offer, before the purchase becomes firm. Learn more
House flipping(Revente rapide (flip))
Buying a home to renovate and resell quickly. Since 2023, a profit on a home owned under 12 months is generally taxed as business income. Learn more
Housing starts(Mises en chantier)
The number of new homes on which construction began, counted by CMHC each month and often shown as a yearly rate. Learn more
I
Interest rate differential (IRD)(Différentiel de taux d’intérêt)
A prepayment penalty based on the gap between your rate and the lender’s current rate for the time left in your term. Lenders calculate it differently. Learn more
J
Joint tenancy and tenancy in common(Tenance conjointe et tenance commune)
Two ways to share title. Joint tenants own the whole together and the survivor takes it all; tenants in common each own a share they can leave in a will. Learn more
L
Land transfer tax(Droits de mutation immobilière)
A provincial tax, and in Toronto and Montréal also a municipal one, paid by the buyer on closing. In Quebec it is often called the welcome tax. Learn more
Loan-to-value ratio(Ratio prêt-valeur)
The mortgage divided by the home’s value. It sets whether insurance is needed and how much you can borrow when you refinance. Learn more
Insurance the lender requires when your down payment is under 20%. It protects the lender, not you; the premium is usually added to the mortgage. Learn more
A lender’s statement of how much it may lend you and at what rate, held for a set time. It is not a final approval. Learn more
Mortgage renewal(Renouvellement hypothécaire)
Signing a new term at the end of the current one. It is the best time to switch lenders, since there is no prepayment penalty. Learn more
Mortgage stress test(Test de résistance hypothécaire)
Lenders must check that you could still pay at a higher rate: your contract rate plus 2%, or 5.25%, whichever is higher. Learn more
Mortgage term(Terme hypothécaire)
The length of your current mortgage contract, often five years, after which you renew. The amortization is usually longer. Learn more
N
Net proceeds from a sale(Produit net de la vente)
What the seller keeps after the mortgage payout, commission, legal fees and any penalty are paid. Learn more
Non-resident speculation tax(Impôt sur la spéculation pour les non-résidents)
Ontario’s 25% tax on homes bought by foreign nationals and foreign corporations, on top of land transfer tax. Toronto adds 10%, and British Columbia and Nova Scotia have their own taxes on foreign buyers. Learn more
O
Ontario Trillium Benefit(Prestation Trillium de l’Ontario)
Ontario’s monthly payment that combines the energy and property tax credit, the Northern Ontario energy credit and the sales tax credit. Renters count 20% of their rent; you apply on form ON-BEN with your tax return. Learn more
Open mortgage(Prêt hypothécaire ouvert)
A mortgage you can pay off at any time without a penalty, at a higher rate than a closed one. Learn more
Optional home insurance coverage for water that enters from the surface, such as rivers, lakes, heavy rain or snowmelt. Sewer backup is a separate add-on. Learn more
P
Porting a mortgage(Transfert du prêt hypothécaire)
Moving your mortgage, with its rate and term, to a new home when you sell, if your contract allows it. Learn more
Prepayment penalty(Pénalité de remboursement anticipé)
What you pay to break a closed mortgage early: often three months’ interest, or the interest rate differential on a fixed rate. Learn more
Prepayment privileges(Privilèges de remboursement anticipé)
The extra amounts a closed mortgage lets you pay each year without a penalty, such as a lump sum or a higher payment. Learn more
Prime rate(Taux préférentiel)
The rate banks use to price variable mortgages and lines of credit. It moves with the Bank of Canada policy rate. Learn more
Principal residence exemption(Exemption pour résidence principale)
Removes the capital gain on the home you live in, for each year it was your principal residence. You report the sale on your tax return. Learn more
Property assessment(Évaluation foncière)
The value a provincial or municipal assessor gives your property for property tax. You can ask for a review if you think it is wrong. Learn more
Property tax rate (mill rate)(Taux de taxe foncière)
The rate a city applies to your assessed value to set your property tax, sometimes expressed per $1,000 of value. Learn more
R
Recapture and terminal loss(Récupération de la DPA et perte finale)
When you sell a rental building for more than its undepreciated capital cost, the CCA you claimed comes back into income as recapture; if it sells for less and no property is left in the class, the difference is a deductible terminal loss. Learn more
Refinancing(Refinancement)
Replacing your mortgage with a larger or different one, often to borrow against your equity. Most lenders allow up to 80% of the home’s value. Learn more
Registered Retirement Savings Plan (RRSP)(Régime enregistré d’épargne-retraite (REER))
A retirement account: contributions lower your taxable income and withdrawals are taxed. Also used for the Home Buyers’ Plan. Learn more
Rent increase guideline(Taux d’augmentation des loyers)
The most a landlord can raise rent on most units in a year in provinces with rent control, such as Ontario and British Columbia. Learn more
Rental vacancy rate(Taux d’inoccupation locative)
The share of rental units that are empty and available, measured by CMHC each fall. A low rate means a tight rental market. Learn more
Reserve fund(Fonds de réserve (fonds de prévoyance))
Savings a condo corporation keeps for major repairs and replacements, such as roofs and elevators, funded from condo fees. Learn more
S
Special assessment(Cotisation spéciale)
A one-time charge to condo owners when the reserve fund cannot cover a repair. Check the condo documents for any planned before you buy. Learn more
Status certificate (Ontario) and Form B (BC)(Certificat d’information (Ontario) et formulaire B (C.-B.))
Documents from the condo corporation showing fees, the reserve fund, legal actions and planned special assessments, which a buyer reviews before the offer is firm. Learn more
An account where investment growth and withdrawals are tax-free. Room adds up each year from age 18, and withdrawals come back the next year. Learn more
Title insurance(Assurance titres)
A one-time policy that protects the owner or lender against problems with the title, such as fraud, liens or survey errors. Learn more
Trigger rate(Taux déclencheur)
On a variable mortgage with fixed payments, the rate at which the payment only covers the interest and nothing goes to the principal. Learn more
V
Vacancy tax(Taxe sur les logements vacants)
A yearly tax some cities, such as Toronto and Vancouver, charge on homes left empty for more than six months of the year. Learn more
Variable rate(Taux variable)
A mortgage rate set as prime plus or minus a margin, so it moves when the Bank of Canada changes its policy rate. Learn more