If you plan to buy or sell, chances are you will run into real estate terminology. If you aren’t the most familiar with real estate definitions, you aren’t alone!
Here are a few common real estate terms to improve your real estate purchasing experience so that you can feel confident when the time comes.
Closing Costs: Additional fees that you need to pay on the closing date of your new home. This includes legal fees, Property Transfer Tax, and disbursements that are payable on completion day.
Counteroffer: This is when you make an offer on a home, and the seller doesn’t accept but makes a counteroffer instead. This meaning that the original offer was rejected and replaced with another one and changes are made to its terms. A specific time limit will be given in which the counteroffer is accepted or rejected.
Equity: Equity is the difference between the market value of your home and how much you owe on your mortgage or is owed to the lender.
Subject Removal: A period in which all conditions, otherwise known as subject clauses, must be satisfied in order for the deal to become official. These subjects might include an inspection, subject to financing, approving strata documents, just to name a few.
Variable-Rate Mortgage vs Fixed-Rate Mortgage: A fixed mortgage is a loan where the set rate of interest doesn’t change and the mortgage payments will stay the same. A variable mortgage is a loan with an interest rate that can change and monthly payments can change frequently.