Glossary Of Real Estate Terms

Amortization

The period of time required to reduce a debt to zero when payments are made regularly.  Amortization periods are most often 15, 20, or 25 years long.

Closing Costs

Costs, in addition to the purchase price.  Includes transfer fees, disbursements, legal fees etc. that are payable on the closing date.

Closing Date

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

CMHC

Canada Mortgage and Housing Corporation.  A Crown corporation that administers the National Housing Act. CMHC also creates and sells mortgage loan insurance products.

Conditional Offer/Conditions of Sale

An Offer to Purchase that is subject to specifications including: approval of mortgage, selling of buyer’s house, etc. There is usually a time limit for which the specifications must be met.

FHLI

First Home Loan Insurance.  This is a CMHC product of particular value to first-time-home-buyers.  It allows qualified buyers to purchase a home with as little as 5% down.

Total Debt Service/Ratio

The percentage of gross annual income required to cover all payments for housing and all other debts, such as car payments.

For additional Real Estate Terms please visit: http://www.remax.ca/cgi/frame.cgi?number=5600

Or Contact Brian Rogers.