Real Estate Glossary: 50 Terms Every Calgary Home Buyer Should Know

Buying a home comes with a language of its own. Here are the terms you'll hear most often in Calgary, explained in plain language.

A

Amortization — The total length of time it takes to pay off your mortgage in full, assuming regular payments. In Canada the most common amortizations are 25 years, or up to 30 years for some insured mortgages.

Appraisal — A professional, unbiased estimate of a home's market value prepared by a licensed appraiser. Your lender will usually order one to confirm the home is worth what you're paying before approving the mortgage.

Assessed Value — The value the City of Calgary assigns to your property for property-tax purposes. It is not the same as market value — assessments lag the market and are calculated in bulk, so don't use them to set an offer price.

B

Bare Land Condo — A condominium where you own the land your unit sits on, not just the airspace inside the walls. Very common for Calgary townhome complexes. You still share responsibility for common areas like roads and visitor parking through the condo corporation.

Basement Suite / Secondary Suite — A self-contained living unit inside a single-family home, with its own kitchen and bathroom. Calgary has specific rules for legal suites (separate entrance, ceiling height, safety requirements) — always confirm a suite is registered with the city before paying a premium for it.

Bridge Financing — A short-term loan that covers the gap when your new home's purchase closes before your old home's sale closes. Interest rates are higher than a regular mortgage, so it's a backup plan, not a strategy.

C

Certificate of Title — The official Alberta Land Titles document that proves who owns a property and lists any registered claims against it, like mortgages or liens. Your lawyer pulls this before closing.

Chattels — Movable personal property included in the sale, such as the fridge, washer and dryer. Unlike fixtures, chattels aren't automatically part of the house — they must be listed in the contract.

Closing Costs — The one-time costs of completing a purchase, paid on or before possession day. In Calgary, budget roughly 1.5–3% of the price for legal fees, title insurance, inspections and related costs.

Closing Date — The day ownership legally transfers to you and you get the keys. In Alberta this is also called possession day, and it's typically at noon.

CMHC Insurance (Mortgage Default Insurance) — Insurance that protects the lender (not you) if you default, required in Canada whenever the down payment is under 20%. The premium is added to your mortgage. It's provided by CMHC or private insurers like Sagen.

Comparables ("Comps") — Recently sold homes similar to the one you're considering, used to judge fair market value. Good comps are in the same community, sold within the last 90 days, and similar in size and condition.

Condominium (Condo) — A form of ownership where you own your individual unit plus a shared interest in the building's common property (hallways, roof, amenities). Calgary has apartment-style condos and townhome-style condos.

Condo Fees — Monthly payments to the condo corporation covering shared expenses like insurance, maintenance and the reserve fund. Always check what the fees cover, the reserve fund balance, and whether a special assessment is coming before you buy.

Condo Documents — The package every buyer should review: bylaws, financial statements, reserve fund study, meeting minutes and insurance. In Alberta, sellers must provide these on request, and your offer should include time to review them.

Conventional Mortgage — A mortgage with a down payment of 20% or more, which means no CMHC insurance is required. Lower borrowing costs, but a bigger upfront cash requirement.

Counter-Offer — The seller's written response to your offer that changes one or more terms (usually price). It cancels your original offer, and you can accept, reject or counter back.

CREB (Calgary Real Estate Board) — The professional association for Calgary-area realtors. CREB operates Pillar 9, the MLS System used for Calgary listings, and publishes the monthly market statistics.

D

Dower Rights — An Alberta-specific law: a married person cannot sell or mortgage the family homestead without their spouse's written consent, even if only one name is on title. Your lawyer handles the dower paperwork at closing.

Down Payment — The cash portion of the purchase price you pay upfront. Minimums in Canada are 5% on the first $500,000 and 10% on the portion above that; 20% avoids CMHC insurance.

E

Easement — A registered right for someone else to use part of your land for a specific purpose, like a utility company accessing power lines. Easements stay with the property when it sells.

Encumbrance — Any registered claim or liability on a property's title, such as a mortgage, lien or caveat. Your lawyer reviews all encumbrances before closing to make sure nothing unexpected survives the sale.

Equity — The portion of the home you truly own: current market value minus the mortgage balance owing. It grows as you pay down the mortgage and as the home appreciates.

F

Firm Offer — An offer with no conditions attached. Once the seller accepts, both sides are bound. Most Calgary buyers avoid firm offers unless they've already arranged financing and waived inspection deliberately.

Fixtures — Items permanently attached to the home — light fixtures, built-in shelving, bathroom vanities — which automatically stay with the house unless the contract says otherwise.

G

GDS / TDS Ratios — The two affordability tests Canadian lenders use. Gross Debt Service (housing costs ÷ income) should be under about 32%, and Total Debt Service (housing + all other debts ÷ income) under about 40%.

H

High-Ratio Mortgage — Any mortgage with less than 20% down. It requires CMHC (or equivalent) insurance, and the amortization is capped at 25 years.

Home Inspection — A professional, visual examination of the home's structure and systems, usually costing around $500 in Calgary. Most buyers make their offer conditional on a satisfactory inspection.

I

Interest Rate — Fixed vs Variable — A fixed rate stays the same for the whole term; a variable rate moves with the lender's prime rate. Fixed gives payment certainty, variable has historically cost less over time but carries more risk.

L

Land Title — Alberta's system for registering property ownership. Every change of ownership, mortgage and lien is recorded at an Alberta Land Titles office.

Land Transfer Tax — A tax charged on property purchases in some Canadian provinces. Alberta has no land transfer tax, which saves Calgary buyers thousands compared to buyers in Ontario or BC.

Legal Description — The official identifier of a property's boundaries (lot, block and plan numbers in Calgary), used on title documents instead of the street address.

Lock-In / Rate Hold — A lender's guarantee to hold a quoted mortgage rate for a set period, typically 90–120 days, while you shop for a home. It protects you if rates rise.

M

MLS System / Pillar 9 — The platform where realtors list and share properties for sale. In the Calgary region, the system is called Pillar 9, operated by CREB. Public sites show a portion of this data; your realtor sees all of it.

Mortgage Broker — A licensed professional who shops your mortgage application across multiple lenders to find the best rate and terms, usually at no cost to you (lenders pay the commission).

Mortgage Term — The length of your current rate contract (commonly 5 years fixed in Canada), which is different from amortization. At the end of each term you renew, often at a new rate.

O

Offer to Purchase — The written contract in which you propose to buy a home, including price, deposit, conditions and closing date. Once the seller signs, it becomes a binding agreement.

Open House — A scheduled public viewing of a listed home, no appointment needed. A good chance to compare homes and neighbourhoods, but serious buyers should always book a private showing too.

P

Pillar 9 — See MLS System. Pillar 9 is the name of the MLS platform serving Calgary and much of Alberta.

Possession Date — The day you take legal possession of the home — same as the closing date in Alberta. Plan movers, insurance and utility transfers around noon on this day.

Pre-Approval — A lender's conditional commitment for a mortgage amount based on your income, debts and credit. It usually includes a rate hold and tells sellers you're a serious, qualified buyer.

Prepayment Privileges — The amount you're allowed to pay extra on your mortgage each year without penalty (often 15–20% of the original balance, plus lump sums). Using them shortens your amortization and saves interest.

Principal — The amount of money you borrowed, not counting interest. Each mortgage payment is split between principal repayment and interest.

Property Tax — An annual tax levied by the City of Calgary, based on your home's assessed value and the municipal tax rate. Lenders often collect it monthly with your mortgage payment.

Q

Qualifying Rate / Stress Test — Federal rules require you to qualify at the higher of your contract rate plus 2%, or the benchmark rate (5.25% at time of writing). You don't pay this rate — it just proves you could handle higher payments.

R

Real Property Report (RPR) — A legal survey showing the lot, the house and structures on it, and whether everything complies with city setback rules. In Calgary, sellers traditionally provide a current RPR with municipal compliance.

S

Subject Conditions — Clauses in your offer that must be satisfied before the deal becomes firm — typically financing, home inspection and condo document review. If a condition isn't met by its deadline, you can walk away.

T

Title Insurance — A policy that protects you and your lender against title problems like fraud, unknown liens or survey errors. Most Calgary buyers purchase it at closing for a few hundred dollars.

Townhome — A multi-level attached home sharing walls with neighbours. In Calgary most townhomes are bare land condos, meaning you own your lot and pay condo fees for shared areas.

V

Variable Rate Mortgage — A mortgage whose interest rate rises and falls with the lender's prime rate. Payments may stay fixed with the interest portion fluctuating, depending on the product.

W

Walk-Through — A final visit to the property shortly before possession to confirm it's in the agreed condition and any included items are still there.

Z

Zoning — The City of Calgary's land-use rules (like R-C1 or R-CG) that dictate what can be built on a property. Zoning matters if you ever want a secondary suite, a rebuild or a home business.