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Buying or selling in Ontario can feel like speaking a whole new language. With so many forms, conditions, and legal terms, it’s easy to get lost. As someone who works in the field here in Ontario, I’ve pulled together 20 key terms you’ll often see or hear and have explained what they mean.
1. Agreement of Purchase and Sale (APS)
In Ontario, this is the standard legal contract between a buyer and a seller outlining the purchase terms.
2. As‑Is
When a property is being sold “as‑is”, it means the seller isn’t agreeing to make repairs and the buyer accepts the home in its current condition.
3. Assessed Value
This is the value assigned by the municipality (via Municipal Property Assessment Corporation – MPAC) for tax purposes — not necessarily the market value.
4. Appraisal
When a lender or a buyer has a professional evaluate the home’s market value to help determine what the property is really worth.
5. Closing Costs
These are the extra fees you pay at the end of the transaction besides the purchase price. E.g., legal fees, land transfer tax, title insurance.
6. Condition
A clause in the APS that states a condition must be met for the deal to proceed. In Ontario you’ll often hear “subject to” financing, inspection, etc.
7. Down Payment
The upfront cash the buyer puts toward the purchase price. Important in Ontario especially when you’re dealing with mortgage rules, high ratio loans, etc.
8. Equity
The amount of ownership you have in your home, basically: market value minus what you owe on your mortgage.
9. Fixed‑Rate Mortgage
A mortgage where the interest rate stays the same for a set term. Popular for people wanting predictable payments.
10. Variable Rate Mortgage
A mortgage where the interest rate may rise or fall depending on your lender’s prime rate.
There are two types of variable rate mortgages: adjustable payment variable rate — your payment fluctuates with interest rate fluctuations and fixed payment variable rate — your payment is consistent but the percentage that goes toward interest fluctuates with interest rate changes.
11. Home Inspection
Before closing, many buyers in Ontario will hire a home inspector to check the physical condition of the property (roof, foundation, electrical, plumbing). It helps avoid surprises.
12. Listing
When a home is put on the market for sale it will likely be listed on the MLS (Multiple Listing Service) through a real estate brokerage, this is a listing.
13. Mortgage Broker
A licensed professional who helps you find and arrange a mortgage (home loan) that suits your financial situation, often by comparing options from multiple lenders, not just one bank.
14. Offer Deposit
When you make an offer on a home in Ontario, if it's accepted, you will usually be required to make a deposit. The deposit is most commonly required within 24 hours of the acceptance of the offer. It shows you’re serious. Depending on whether or not the conditions are met, the deposit might be returned.
15. Possession Date / Completion Date
On the APS you’ll generally see a “date of completion”, “possession date” or possibly both. The completion date is often referred to as the close or closing and means that the real estate transaction is complete and the ownership of the property has gone from seller to buyer, however, the possession date, the date in which the new owners can move in, can be the same day or sometimes as much as a few days later.
16. Title / Ownership
In Ontario, holding “title” refers to legal ownership of the property. A clean title means there are no legal claims or liens. Buyers must review title documentation.
17. Vendor / Purchaser
Instead of seller/buyer, in Ontario legal documents you’ll often see “vendor” (seller) and “purchaser” (buyer).
18. Vendor Take-Back Mortgage (VTB)
In Ontario you may see this term: when the seller provides mortgage financing to the buyer for a portion of the purchase price.
19. Amortization Period
In Ontario mortgages, this is how long it takes to pay off the mortgage principal plus interest under the payment plan. Mostly 25 years for insured mortgages.
20. Brokerage Commission
In Ontario, the real estate brokerage will charge a commission (often a percentage of the sale price) when a home is sold. Buyers should be aware of how this works and what services are provided.
Final Thoughts
The world of real estate in Ontario doesn’t have to feel confusing. Knowing these 20 terms will put you a step ahead — whether you’re buying, selling or just curious. And remember: you’re not alone. I am here to walk you through each step.
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