Real Estate Buying Terms in Ontario: A-to-Z Glossary
This glossary is designed for buyers in Greater Sudbury and across Ontario. It explains common home-buying terms in clear, plain language.
General information only — not legal, tax, or financial advice. For advice on your specific situation, speak with your lawyer, lender, and other qualified professionals.
A
Agreement of Purchase and Sale (APS)
Also referred to as: Offer, Purchase Agreement, Contract of Purchase and Sale
Definition (Ontario): The primary written contract between a buyer and seller. It sets out the agreed price, closing date, conditions, items included or excluded, and other terms. Once all conditions are fulfilled or waived, it becomes a firm, binding agreement, subject to the wording of the contract and applicable law.
Local example: A buyer in New Sudbury signs an APS to purchase a detached home for $550,000 with a 60-day closing, a financing condition, and a home inspection condition.
Related terms: Conditions Deposit Firm Deal
Amortization Period
Also referred to as: Amortization
Definition (Ontario/Canada): The total length of time it is expected to take to repay your mortgage in full, based on regular payments (for example, 25 years). The amortization period is different from your mortgage term, which is the length of your current mortgage contract.
Local example: A buyer purchasing a townhouse in Valley East chooses a 25-year amortization with a 5-year fixed-rate term to keep payments manageable.
Related terms: Mortgage Fixed-Rate Mortgage Variable-Rate Mortgage
Appraisal
Definition (Ontario): An opinion of a property’s value prepared by a qualified appraiser, often ordered by a lender to help confirm that the purchase price is reasonable given recent comparable sales. Appraisals are one factor lenders may consider when deciding whether to advance a mortgage.
Local example: A lender orders an appraisal on a semi-detached in Minnow Lake after the buyer and seller agree to a $475,000 purchase price.
Related terms: Assessed Value (MPAC) Mortgage Pre-Approval
Assessed Value (MPAC Assessment)
Definition (Ontario): The value assigned to a property by the Municipal Property Assessment Corporation (MPAC) for property tax purposes. MPAC’s assessed value is used by municipalities to help calculate property taxes and may differ from market value or appraisal value.
Local example: A bungalow in Chelmsford is assessed by MPAC at $325,000 for municipal tax purposes, even though recent sales suggest it might sell for closer to $360,000.
Related terms: Property Taxes Closing Costs
B
Balanced Market
Definition (Ontario): A market where the supply of homes and the number of active buyers are relatively even. Prices tend to move more gradually, and buyers and sellers may have similar negotiating power.
Local example: In a particular season, the Greater Sudbury board reports about four to six months of inventory, indicating a more balanced market compared to recent seller’s markets.
Related terms: Multiple Offers Bidding War
Buyer Representation Agreement (BRA)
Also referred to as: Buyer Agency Agreement, Buyer Contract
Definition (Ontario/TRESA): A written agreement that confirms a brokerage is representing you as a client for a purchase or lease. It describes services, obligations, and how the brokerage is to be compensated. Your REALTOR® must explain your options, including choosing to be a self-represented party, before you sign.
Local example: A couple looking for a home in the South End signs a BRA with a Sudbury brokerage so they have clear client representation throughout the search and offer process.
Related terms: APS Self-Represented Party Buyer Experience (Guide)
Bidding War (colloquial)
See also: Multiple Offers
Definition (Ontario): Informal term sometimes used when several buyers submit offers on the same property at the same time. In Ontario, multiple-offer situations must be handled according to TRESA and associated regulations.
Local example: A renovated home near Ramsey Lake attracts seven offers on the same evening, and buyers refer to the situation as a “bidding war.”
Related terms: Multiple Offers Offer Night
Bully Offer (colloquial)
Also referred to as: Pre-Emptive Offer
Definition (Ontario): An offer submitted before a seller’s stated offer presentation time, usually with price and terms the buyer hopes the seller will accept without waiting for other offers. The seller’s brokerage must follow any written offer instructions and TRESA requirements.
Local example: A buyer interested in a South End listing that is “holding offers” for a week submits a strong bully offer on day two to try to secure the home early.
Related terms: Multiple Offers Offer Night Firm Deal
Bridge Financing
Definition (Ontario): Short-term financing from a lender that helps cover the period between buying a new property and receiving the sale proceeds from your current property. Availability and terms depend on the lender’s policies and your financial situation.
Local example: Sellers in Garson buy their next home in the South End with a closing date two weeks earlier than their sale, and their lender provides bridge financing to cover the gap.
Related terms: Mortgage Closing Date
C
Canada Mortgage and Housing Corporation (CMHC)
Definition (Canada): A federal Crown corporation involved in housing policy and programs. CMHC is one of the main providers of mortgage loan insurance on high-ratio mortgages and produces consumer education materials for home buyers.
Local example: A first-time buyer purchasing a condo in Downtown Sudbury with 10% down has a CMHC-insured mortgage arranged through their lender.
Related terms: Mortgage Default Insurance Down Payment
Chattels and Fixtures
Definition (Ontario): Chattels are generally movable items that are not permanently attached (for example, a freestanding fridge). Fixtures are items attached to the property (for example, a built-in cabinet or hard-wired light) and are normally included in the sale unless specifically excluded in the APS. The exact treatment can depend on the wording of the contract and the facts of the situation.
Local example: In a Hanmer bungalow sale, the washer, dryer, and kitchen appliances are listed as included chattels, while the seller excludes a favourite dining-room light fixture in the APS.
Related terms: APS Inclusions & Exclusions
Closing (Completion Date)
Also referred to as: Completion Date, Closing Day
Definition (Ontario): The date when the buyer’s lawyer delivers the balance of funds to the seller’s lawyer, title is transferred, and the buyer is normally entitled to receive the keys. The details are set out in the APS and handled by the lawyers involved.
Local example: A couple buying in Azilda schedules closing for the end of June so they can move after the school year finishes.
Related terms: Closing Costs Final Walk-Through
Closing Costs
Definition (Ontario): The expenses payable on or near closing in addition to your down payment. Examples can include legal fees and disbursements, land transfer tax, title insurance, adjustments for property taxes or condo fees, and lender or appraisal fees, depending on your situation.
Local example: A buyer purchasing a $500,000 home in New Sudbury budgets roughly 1.5–3% of the price for closing costs, including Ontario land transfer tax and their lawyer’s fees.
Related terms: Land Transfer Tax Title Insurance Adjustments
Conditional Offer / Condition Precedent
Also referred to as: Conditional Offer, Condition Clause
Definition (Ontario): A condition precedent is a clause in the APS that must be fulfilled or waived by a specific date (for example, financing approval, home inspection, or status certificate review) for the agreement to become firm. The exact rights and timelines are set out in the condition wording.
Local example: A buyer purchasing in Val Caron includes a five-business-day financing condition and a three-business-day home inspection condition in their APS.
Related terms: Firm Deal Home Inspection Status Certificate
Condominium (Condo)
Definition (Ontario): A form of ownership where you own your individual unit and share ownership of the common elements (such as hallways, roof, parking) through a condominium corporation. The corporation is governed by the Condominium Act and the condo’s declaration, by-laws, and rules.
Local example: A buyer purchases a two-bedroom condo unit in a Downtown Sudbury building with underground parking and shared fitness facilities.
Related terms: Status Certificate Reserve Fund
Cooling-Off Period (New Condos)
Definition (Ontario): A period provided under Ontario law for many new-build condominium purchases where the buyer can, within the allowed time, have their lawyer review the disclosure documents and decide whether to continue with or cancel the agreement, subject to the contract and legislation in effect.
Local example: A buyer reserves a new condo unit in a planned Downtown Sudbury project and uses the cooling-off period to have their lawyer review the disclosure package.
Related terms: Condominium Tarion Warranty
D
Deposit
Definition (Ontario): Money paid by the buyer, usually shortly after the APS is accepted, and held in a real estate trust account (often by the listing brokerage). The deposit forms part of the purchase price on closing. How the deposit is handled if the transaction does not close depends on the APS and any later agreements or court decisions.
Local example: A buyer offering on a home in Flour Mill / Donovan provides a $15,000 deposit within 24 hours of their offer being accepted.
Related terms: APS Firm Deal Trust Account
Down Payment
Definition (Canada): The portion of the purchase price that you pay from your own resources (or permitted gifts) on closing, not including the mortgage amount. In Canada, down payments under 20% typically require mortgage default insurance, subject to lender and insurer rules.
Local example: A first-time buyer purchasing a starter home in Gatchell contributes a 10% down payment and finances the remainder through an insured mortgage.
Related terms: Mortgage Default Insurance GDS / TDS Ratios Gifted Down Payment
E
Easement
Definition (Ontario): A legal right that allows someone else to use part of a property for a specific purpose (for example, utility access, drainage, or a shared driveway). Easements are often registered on title and can affect what an owner can do with that portion of the property.
Local example: A buyer in Copper Cliff learns there is a utility easement along the rear of the lot, which may limit where a future shed could be placed.
Related terms: Title Search Survey
F
Firm Deal (Unconditional Agreement)
Also referred to as: Firm Offer, Firm Sale
Definition (Ontario): When all conditions in the APS have been properly waived or fulfilled and both parties have signed any required documents, the agreement becomes “firm.” At that point, both buyer and seller are generally obligated to proceed to closing, subject to the terms of the APS and applicable law.
Local example: After the financing and inspection conditions are waived on a home in Onaping–Levack, the parties have a firm deal and begin planning for closing day.
Related terms: Conditions Clean Offer Breach of Contract
Fixed-Rate Mortgage
Definition (Canada): A mortgage where the interest rate remains the same for the entire mortgage term (such as 3 or 5 years). Your regular payment amount will stay the same during that term, assuming no other changes to the mortgage.
Local example: A buyer in South End Sudbury chooses a 5-year fixed-rate mortgage for peace of mind about payments as interest rates fluctuate.
Related terms: Variable Rate Mortgage Mortgage Term
Clean Offer (colloquial)
Definition (Ontario): Informal phrase sometimes used to describe an offer with few or no conditions and straightforward terms. Whether an offer is advisable without conditions depends on your risk tolerance and advice from your own professionals.
Local example: In a tight market in New Sudbury, a buyer submits a “clean” offer with no inspection or financing conditions after already doing a pre-inspection and working closely with their lender.
Related terms: Firm Deal Multiple Offers Home Inspection
G
Gross Debt Service (GDS) & Total Debt Service (TDS) Ratios
Definition (Canada): Ratios used by many lenders to help assess whether your income appears sufficient to support your housing costs and other debts. GDS focuses on housing costs; TDS includes housing plus other debt payments. Each lender sets its own guidelines.
Local example: A mortgage professional in Greater Sudbury calculates a buyer’s GDS and TDS to see if they fit the lender’s requirements for a home around the $500,000 range.
Related terms: Mortgage Pre-Approval Down Payment Stress Test
H
Home Inspection
Definition (Ontario): A visual examination of a property’s major components (roof, structure, heating, electrical, plumbing, etc.) by a qualified home inspector. An inspection may help buyers better understand the condition of the home but does not guarantee that defects will not exist.
Local example: Before waiving their condition on a split-level home in Garson, a buyer hires a home inspector who points out items to monitor and potential maintenance in the next few years.
Related terms: Conditions Waiver Fulfillment
HST (Harmonized Sales Tax)
Definition (Ontario): A value-added tax applied to many goods and services. Most resale residential properties are HST-exempt, but HST may apply to some new-build properties, assignment transactions, and professional services involved in a purchase. Treatment of HST depends on the specific transaction and tax rules in effect.
Local example: A buyer of a resale home in West End Sudbury does not pay HST on the purchase price itself but does pay HST on their home inspection and lawyer’s fees.
Related terms: Closing Costs Assignment Sale
I
Inclusions & Exclusions
Also referred to as: Included / Excluded Items
Definition (Ontario): The list of items that are included in the purchase (inclusions) and the list of items that are not included (exclusions). These should be clearly written in the APS to avoid misunderstandings, especially for items that could be considered chattels or fixtures.
Local example: A buyer in Hanmer confirms the APS includes the fridge, stove, and washer/dryer, but excludes a wall-mounted TV and the seller’s custom mirror.
Related terms: Chattels & Fixtures APS
J
Joint Tenancy
Definition (Ontario): A form of ownership where two or more people own property together and, generally, if one owner dies, their interest passes automatically to the surviving owner(s) (right of survivorship). Buyers should discuss ownership options with their lawyer to understand consequences and estate planning considerations.
Local example: A married couple buying in New Sudbury asks their lawyer about joint tenancy versus tenants in common when taking title.
Related terms: Tenants in Common Title Search
K
Key Deposit (common term)
Definition (Ontario): A deposit sometimes requested in some transactions (more common in rentals and some condos) to cover replacement keys/fobs. If used, the amount and return conditions should be clearly documented. For purchases, keys are typically delivered on closing through lawyers as set out in the APS.
Local example: A condo buyer in Downtown Sudbury asks whether the building requires a key/fob deposit and how it is handled.
L
Land Transfer Tax (LTT)
Definition (Ontario): A provincial tax payable on most transfers of real property, calculated as a percentage of the purchase price using brackets set by the Province of Ontario. Some buyers may qualify for available rebates (for example, first-time home buyer programs) subject to eligibility rules.
Local example: A first-time buyer purchasing a $450,000 townhouse in New Sudbury reviews the Ontario land transfer tax payable and asks their lawyer about any available rebates.
Related terms: Closing Costs Adjustments
M
MLS® System (Multiple Listing Service®)
Definition (Canada): A co-operative system operated by real estate boards and associations where participating brokerages share listing information and offer co-operation to one another. Many residential properties listed by REALTORS® in Greater Sudbury are posted on the local MLS® System.
Local example: A buyer searching for homes in Valley East uses an MLS®-powered search tool to view current listings and recent sales.
Related terms: MLS® Smart Search Curated Hot Sheets
Mortgage
Definition (Canada): A loan secured by real property. The lender registers an interest on title (the mortgage charge), and the borrower agrees to make payments according to the mortgage contract. Mortgage products and terms vary by lender.
Local example: A buyer in Long Lake obtains a mortgage through a local credit union to finance part of the purchase of a waterfront property.
Related terms: Mortgage Pre-Approval Fixed Rate Variable Rate
Mortgage Default Insurance
Definition (Canada): Insurance that protects the lender if the borrower defaults on a qualifying high-ratio mortgage. Premiums are usually added to the mortgage amount and are subject to the insurer’s rules and federal regulations.
Local example: A buyer with 5% down on a home in Walden obtains an insured mortgage where the default insurance premium is added to the mortgage balance.
Related terms: CMHC Down Payment
Mortgage Pre-Approval
Definition (Canada): A lender’s or mortgage professional’s preliminary assessment indicating the amount of mortgage financing you may qualify for, subject to conditions and final approval. A pre-approval is not a guarantee of final financing but can be a helpful planning tool.
Local example: Before shopping in New Sudbury, a buyer obtains a pre-approval showing they may be able to purchase up to $600,000, subject to conditions.
Related terms: GDS / TDS Ratios Mortgage
Multiple Offers
Also referred to as: Bidding War (colloquial), Offer Competition
Definition (Ontario/TRESA): A situation where more than one buyer submits an offer on the same property at the same time. Brokerages must handle multiple offers according to TRESA and associated regulations, including rules about offer disclosure.
Local example: A well-priced home in South End Sudbury receives five registered offers on the same evening, and the listing brokerage follows its written offer instructions and TRESA rules.
Related terms: Bidding War Offer Night Bully Offer Clean Offer
N
New Home Warranty (Tarion)
Definition (Ontario): Most newly built homes and condos in Ontario are required to be enrolled in a statutory warranty program administered by Tarion. Coverage and timelines are set by legislation and Tarion rules and typically address materials, labour, and major structural items.
Local example: A family buying a new-build home in a growing subdivision in Valley East reviews the Tarion warranty information to understand what is covered in year 1, year 2, and beyond.
Related terms: Tarion Cooling-Off Period
O
Offer Night (colloquial)
Also referred to as: Offer Presentation Date
Definition (Ontario): Informal term for a date and time set by the seller for reviewing offers. The listing brokerage must follow any written offer instructions in the listing and comply with TRESA and board rules.
Local example: A townhouse listing in Minnow Lake is posted with “Offers to be presented Monday at 6 p.m.” and buyer brokerages prepare for that offer night.
Related terms: Multiple Offers Bully Offer Offer Registration
P
Power of Sale
Definition (Ontario): A remedy available to some mortgage lenders under certain mortgage contracts and laws, allowing them to sell a property when a borrower is in default, without taking title in the same way as a foreclosure. How a specific power of sale is carried out depends on the mortgage and applicable law.
Local example: A bank lists a power-of-sale property in Dowling on the MLS® System after the borrower falls into serious arrears.
Related terms: Mortgage Title Search
Property Taxes
Definition (Ontario): Municipal taxes charged on real property, usually based in part on MPAC’s assessed value and the municipality’s tax rates. Buyers and sellers typically adjust property taxes on closing so each pays their share for the year.
Local example: When a home in New Sudbury closes on July 31, the buyer reimburses the seller for the portion of property taxes already paid from August through year-end.
Related terms: Assessed Value (MPAC) Adjustments Closing Costs
R
Reserve Fund (Condo)
Definition (Ontario): A fund maintained by a condominium corporation for major repairs and replacements of common elements (for example, roofs, windows, parking lots). Reserve fund studies help determine appropriate contribution levels. The status of the reserve fund is summarized in the condo’s status certificate.
Local example: A buyer considering a condo in Downtown Sudbury reviews the reserve fund information in the status certificate with their lawyer.
Related terms: Status Certificate Condominium
S
Status Certificate (Condo)
Definition (Ontario): A package of documents providing key information about a condominium corporation and a specific unit, including financial statements, rules and by-laws, reserve fund details, and notice of certain legal actions. Buyers often make their offer conditional on their lawyer’s review of the status certificate.
Local example: A buyer of a condo in Downtown Sudbury includes a status certificate condition and has their lawyer review the documents before waiving the condition.
Related terms: Condominium Reserve Fund Conditions
T
Tarion Warranty Corporation
Definition (Ontario): The organization that administers Ontario’s new home warranty program. Tarion’s role includes managing enrolment, coverage, and warranty claims for qualifying new-build homes and condos, as set out in applicable legislation and policies.
Local example: A buyer of a new townhome project in Valley East checks Tarion’s website to confirm that the builder and project are registered.
Related terms: New Home Warranty Cooling-Off Period
Title Search
Definition (Ontario): A review of the property’s title records, usually conducted by the buyer’s lawyer, to confirm ownership and identify registered interests such as mortgages, easements, or liens that might affect the buyer’s use or enjoyment of the property.
Local example: Before closing on a home in Copper Cliff, the buyer’s lawyer completes a title search and verifies that existing mortgages will be discharged on closing.
Related terms: Title Insurance Easement
Title Insurance
Definition (Ontario): An insurance product that may protect the insured (buyer and/or lender) against certain covered title-related losses, such as some types of fraud, survey issues, or registration errors, subject to the policy terms and exclusions. Many Ontario buyers now obtain title insurance on purchase.
Local example: A buyer closing on a duplex in Sudbury’s Flour Mill obtains a title insurance policy on the advice of their lawyer and lender.
Related terms: Title Search Closing Costs
Variable-Rate Mortgage
Definition (Canada): A mortgage where the interest rate can change during the term as the lender’s prime rate changes. Depending on the product, payment amounts or the mix between interest and principal may change when the rate changes.
Local example: A buyer in Ramsey Lake chooses a variable-rate mortgage with the expectation that rates might decrease during their term, after discussing risks with their mortgage professional.
Related terms: Fixed Rate Mortgage
V
Vendor Take-Back Mortgage (VTB)
Definition (Ontario): A mortgage loan provided by the seller of the property, rather than (or in addition to) a traditional lender. The terms of a VTB are negotiated between the buyer and seller and set out in the mortgage and APS.
Local example: A seller of a mixed-use building in Downtown Sudbury agrees to hold a VTB on part of the purchase price to help the buyer complete the transaction, on terms reviewed by each party’s lawyer.
Related terms: Mortgage Power of Sale
W
Walk-Through / Final Inspection
Definition (Ontario): A visit to the property shortly before closing, typically arranged through your REALTOR®, to confirm the home appears to be in a similar condition to when you agreed to buy it and that agreed inclusions remain. The APS and any later agreements govern what is required.
Local example: The day before closing on a home in Hanmer, the buyer and their REALTOR® do a final walk-through to make sure appliances and fixtures listed as included are still in place.
Related terms: Closing Chattels & Fixtures
Z
Zoning / Zoning By-Law
Definition (Ontario): Municipal rules that regulate how land and buildings can be used (for example, residential, commercial, industrial), as well as matters such as building height, setbacks, and permitted number of units. Buyers often consult municipal planners or their lawyer to understand zoning for future plans.
Local example: A buyer looking at a large lot in New Sudbury speaks with the City of Greater Sudbury’s planning department to confirm whether zoning would permit a garden suite or secondary unit.
Related terms: Title Search Easement
