Entering Oshawa's real estate market can feel like stepping into a world with its own language. From abbreviations to industry-specific terms, understanding the jargon is crucial for making informed decisions. In this blog post, we'll demystify Oshawa's real estate language with a buyer's glossary, empowering you with the knowledge to navigate the market with confidence.
MLS (Multiple Listing Service):
A centralized database used by real estate professionals to share property listings. Accessible to realtors and, in part, to the public, the MLS provides comprehensive information about homes for sale.
CMHC (Canada Mortgage and Housing Corporation):
A government-backed organization that provides mortgage loan insurance for high-ratio mortgages. CMHC insurance is often required for buyers with a down payment of less than 20%.
Appraisal:
An assessment of a property's value is conducted by a qualified appraiser. Lenders use appraisals to ensure that the property's value aligns with the loan amount.
Closing Costs:
Additional expenses beyond the property's purchase price that buyers incur during the closing process. This may include legal fees, land transfer fees, and other miscellaneous costs.
Condo Fees (Strata Fees):
Monthly fees are paid by condo owners to cover shared expenses, such as maintenance of common areas, amenities, and building insurance.
Down Payment:
The initial payment made by the buyer towards the purchase of a property. Down payment requirements vary, but a common standard is 20% of the property's purchase price.
Pre-Approval:
The process by which a lender assesses a buyer's financial situation to determine the maximum mortgage amount they are eligible for. Having a pre-approval strengthens a buyer's position in negotiations.
Escrow:
A financial arrangement where a third party holds and regulates the transfer of funds and property between the buyer and seller. Funds are typically released when all conditions of the sale are met.
Title Insurance:
Insurance that protects the buyer and lender against losses related to the property's title or ownership. It helps cover legal expenses in case of title-related issues.
Amortization:
The gradual repayment of a mortgage loan over time. It includes both principal and interest payments.
Home Inspection:
An assessment of a property's condition conducted by a qualified home inspector. It provides the buyer with insights into potential issues before completing the purchase.
Counteroffer:
A response from the seller to the buyer's initial offer, suggesting changes to the terms, such as price, closing date, or conditions.
Closing Date:
The date on which the buyer takes possession of the property, and the legal transfer of ownership occurs.
Lien:
A legal claim against a property, typically as security for a debt. Liens must be resolved before the property can be sold.
Gentrification:
The process of urban renewal involving the transformation of a neighborhood to attract more affluent residents, often resulting in increased property values.
Open House:
A scheduled period during which a property for sale is open for potential buyers to view without appointments.
Walkability Score:
A numerical measure of how easy it is to walk to amenities and services from a particular property. Higher scores indicate greater walkability.
Navigating Oshawa's real estate market becomes more accessible when armed with the knowledge of common terms and concepts. This buyer's glossary is a valuable resource to help you decode the language of real estate, making your journey as a homebuyer in Oshawa more informed and empowered.
Colleen Steffl
Colleen started her sales career with an International News Agency in Europe selling Advertising. She has continued to rise early, dig deep, and built a solid sales career with 15 years dedicated to real estate sales. She has worked in all areas of real estate sales: buyers, sellers, investors, commercial, land development, and new construction.
