AGREEMENT OF PURCHASE AND SALE
(APS) – Is a legal contract that obligates a buyer to buy and a seller to sell a product or service. APSs are found in all types of businesses but are most often associated with Real Estate deals as a way of finalizing the interests of both parties before closing the deal.

CANADIAN MORTGAGE AND HOUSING CORPORATION
(CMHC) – is a Crown corporation of the Government of Canada established through the 1944 National Housing Act, which provides Mortgage Forfeiture Insurance to Institutional Lenders, which is paid by the Borrower. CMHC will provide will typically provide insurance on a purchase price of less than $1 million and a minimum down payment of 5% of the purchase price.

COMMON ELEMENT CONDOMINIUM CORPORATION
(CECC) – There are no condominium “units” and it consists of specific common elements, which may include roads, parking facilities, a clubhouse, a marina,etc. These common elements are tied to a separate property called a ‘parcel of tied land’ (or “POTL”s). The POTL could be a town home or detached home, and doesn’t have to be contiguous to the CECC property, as long as it’s within the same land registry division.

COMMON AREAS
In a Condominium, in addition to ownership of your unit, it also includes interests in a common area in a building or on land, shared by all unit owners, and you have a right to access (e.g. pools, gym, party rooms, etc.).

FREEHOLD PROPERTY
Is outright ownership of the property and land on which it stands. A freehold estate in land (as opposed to a leasehold) is where the owner of the land has no time limit to his period of ownership.

INTEREST RATES
Fixed Rate: A fixed rate will not change for the term of the mortgage. This type carries a slightly higher rate but provides the peace of mind associated with knowing that interest costs will remain the same.

Variable Rate: The interest rate you pay will fluctuate with the rate of the market. Typically may not change the overall amount of your mortgage payment, but does change the portion of your monthly payment that goes towards paying interest costs or paying your mortgage (your principal repayment). So, if interest rates go down, you end up repaying your mortgage faster. If interest rates go up, more of the payment will go towards the interest and less towards repaying the mortgage. This option means you may have to be prepared to accept some risk and uncertainty.

Protected Variable Rate: The interest rate of the mortgage has a maximum rate determined in advance. Even if the market rate goes above the determined maximum rate, you will only have to pay up to that maximum.

LAND TRANSFER TAX
(LTT) – When you buy land or an interest in land in Ontario, you pay Ontario’s land transfer tax. Land includes any buildings, buildings to be constructed, and fixtures (such as light fixtures, built-in appliances and cabinetry). The City of Toronto also imposes a separate LTT in addition to the Province of Ontario.

PITH
Stands for Principal, Interest, Taxes and Insurance. It is the Monthly Housing Costs associated with a Mortgaged Home.

PARCEL OF TIED LAND
(POTL) – See Common Element Condominium Corporation (CECC)

TITLE INSURANCE
A unique Insurance coverage that protects you against hidden title hazards that may threaten your financial investment in your home.