Real estate transactions come with their own vocabulary, and some of the most important terms are specific to Ontario rather than universal across Canada. Here’s a quick-reference glossary of terms you’re likely to encounter, explained in plain language — with links to where they come up in practice.
Financing terms
Amortization period — The total length of time it will take to pay off your mortgage in full, typically 25 to 30 years. See renting vs. buying for an example of how amortization affects a monthly payment.
Down payment — The portion of the purchase price you pay upfront, not financed through your mortgage. Minimums vary: as little as 5% for an owner-occupied home, but 20% for a non-owner-occupied investment property — covered in more detail in 5 essential steps for buying an investment property.
Mortgage pre-approval — A lender’s conditional commitment to lend you a certain amount, based on your financial information, before you start house-hunting. The first step in key steps to buying a house.
CMHC insurance — Mortgage default insurance required for down payments under 20% on an owner-occupied home, provided by the Canada Mortgage and Housing Corporation or a private insurer. Not available on investment properties.
GDS / TDS ratio — Gross Debt Service and Total Debt Service ratios — the percentage of your gross income lenders allow toward housing costs (GDS) and toward housing plus all other debt (TDS) when qualifying you for a mortgage.
Transaction terms
Conditional offer — An offer to purchase that includes one or more conditions (such as financing or home inspection) that must be satisfied before the deal becomes firm.
Firm offer — An offer with no conditions, or one where all conditions have been satisfied or waived.
Closing date — The date ownership of the property officially transfers to the buyer. See key steps to buying a house for what happens between offer acceptance and closing.
Title search — A review of public records to confirm the legal ownership of a property and identify any liens or encumbrances.
Multiple representation — A situation, permitted in Ontario under certain conditions, where one real estate brokerage represents both the buyer and seller in the same transaction. Each party’s interests must still be disclosed and managed fairly.
Listing terms
MLS® — The Multiple Listing Service®, a cooperative system used by REALTORS® to share information about properties for sale. Browse current listings to see it in action.
Days on market (DOM) — The number of days a property has been actively listed for sale. Current averages by city are tracked in our Hamilton and Burlington market reports.
Comparable sales (comps) — Recently sold properties similar in size, condition, and location, used to help estimate a home’s market value — the basis for the average price data in our market reports.
Property terms
Survey — A legal document showing the boundaries, dimensions, and any easements on a property.
Zoning — Municipal rules governing how a property can be used (residential, commercial, mixed-use, etc.) and what can be built on it.
Status certificate — Required when buying a condo, this document from the condo corporation confirms its financial health, reserve fund, any pending legal action, and building rules. Relevant if you’re considering a condo in Burlington’s or Hamilton’s condo segment.
Ontario-specific terms
Land Transfer Tax (LTT) — A provincial tax owed on closing, calculated on a tiered scale based on purchase price, typically working out to roughly 1–2% of the price for homes in this corridor’s typical range. It applies anywhere in Ontario, including Hamilton, Burlington, Ancaster, Dundas, Waterdown, and Stoney Creek — only Toronto adds a second, municipal LTT on top.
First-time home buyer rebate — A rebate of up to $4,000 against Ontario’s land transfer tax for qualifying first-time buyers, which fully offsets the LTT on homes up to roughly $368,000 and partially offsets it above that.
Tarion New Home Warranty — Mandatory warranty coverage on newly built homes purchased from a registered Ontario builder, covering defects for periods ranging from one to seven years depending on the issue. It does not apply to resale homes.
MPAC assessment — The assessed value the Municipal Property Assessment Corporation assigns to every Ontario property for property tax purposes, updated on a multi-year cycle. It’s a tax tool, not a real-time market value — your home could be worth considerably more or less than its current MPAC assessment.
Have a term you’d like explained?
If you come across a term that isn’t covered here, send me a message — I’m happy to walk through anything that’s unclear as part of your buying or selling process, or request a free home valuation to see how these terms apply to your own property.