Canadian property glossary
Owning, renting, and buying in Canada comes with a lot of jargon, and most of it is Canada-specific. Here are 53 of the terms that come up most, from the LTB and the T776 to the stress test and Tarion, each explained in plain English with the details that actually matter.
Tenancy & Leases
Above-Guideline Increase(AGI)
A rent increase above the annual cap, allowed only with approval.
Assignment and Subletting
Two different ways a tenant can hand their unit to someone else.
Landlord and Tenant Board(LTB)
Ontario's tribunal that resolves residential landlord-tenant disputes.
Last Month's Rent Deposit(LMR)
The one legal rent deposit in Ontario, applied to the final month.
N12 Notice(Notice for Landlord's Own Use)
Ontario notice to end a tenancy for the owner's or buyer's own use.
N4 Notice(Notice to End a Tenancy for Non-payment of Rent)
Ontario's notice a landlord serves when rent is unpaid.
Rent Increase Guideline
The maximum annual rent increase allowed for rent-controlled units.
Residential Tenancies Act(RTA)
The provincial law that governs most residential rentals.
Residential Tenancy Branch(RTB (British Columbia))
British Columbia's body for resolving residential tenancy disputes.
Standard Lease(Residential Tenancy Agreement (Form 2229E))
The government lease form most private Ontario tenancies must use.
Screening & Credit
Credit Report
A record of how someone has managed credit, held by a credit bureau.
Credit Score
A number, usually 300 to 900, summarizing credit risk.
Guarantor(Co-signer)
Someone who agrees to cover the tenant's obligations if the tenant does not.
Hard vs Soft Inquiry
Two kinds of credit check, only one of which can affect your score.
Protected Grounds(Human rights in housing)
Personal characteristics a housing decision may not be based on.
Rent-to-Income Ratio
Rent as a share of income, a common but legally limited screening tool.
Rental Application
The form and information a prospective tenant submits to be considered.
Tenant Screening
Checking a rental applicant's income, references, and credit, within the law.
Taxes & Finance
Capital Cost Allowance(CCA)
Depreciation you can claim on a rental building, with a catch on sale.
Capital Gain
The taxable profit when you sell a property for more than its cost.
Capital vs Current Expense
Whether a cost is deducted now or over years changes your tax.
Capitalization Rate(Cap Rate)
A property's net operating income as a percentage of its price.
GST/HST Small-Supplier Threshold
The $30,000 revenue threshold; you must register once you exceed it.
Principal Residence Exemption(PRE)
Why selling your own home is usually tax-free, and when it isn't.
Recapture (of CCA)
Previously claimed depreciation added back to income when you sell.
Section 216(Non-resident rental tax election)
How a non-resident landlord can be taxed on net rather than gross rent.
T776(Statement of Real Estate Rentals)
The CRA form individuals use to report rental income and expenses.
Mortgage & Buying
Amortization
The total time to pay a mortgage to zero, versus the shorter term.
Closing Costs
The one-time costs beyond the down payment to complete a purchase.
CMHC Mortgage Default Insurance
Insurance required when you put less than 20% down.
First Home Savings Account(FHSA)
A registered account for a first home: deductible in, tax-free out.
Fixed vs Variable Rate
A locked rate and payment versus one that moves with prime.
HELOC(Home Equity Line of Credit)
A revolving line of credit secured against your home's equity.
Home Buyers' Plan(HBP)
Borrowing from your own RRSP for a first-home down payment.
Interest Rate Differential(IRD)
The penalty formula that can make breaking a fixed mortgage costly.
Land Transfer Tax(LTT)
A provincial (and sometimes municipal) tax paid when you buy property.
Mortgage Broker
A licensed intermediary who shops many lenders for your mortgage.
Mortgage Pre-Approval
A lender's conditional commitment, and a rate hold, before you shop.
Mortgage Renewal
Renewing your mortgage at the end of a term, and whether to switch.
Mortgage Stress Test(Minimum Qualifying Rate (MQR))
Qualifying at a higher rate than you'll actually pay.
Trigger Rate
The rate at which a fixed-payment variable stops paying down principal.
New Build & Warranty
Certificate of Completion and Possession(CCP)
The document whose possession date starts a new home's warranty.
Home Construction Regulatory Authority(HCRA)
The body that licenses Ontario's new-home builders and vendors.
Home Inspection
An independent check of a home's condition before you buy.
Major Structural Defect(MSD)
The serious structural problem covered by the seven-year warranty.
Pre-Delivery Inspection(PDI)
The builder walkthrough that records a new home's condition before possession.
Tarion
The administrator of Ontario's new-home warranty program.
Property & Ownership
Buyer's Agent vs Listing Agent
Who each agent works for, and the duties they owe their client.
Condo vs Freehold
Owning a unit with shared elements versus owning the whole property.
Property Manager
A person or company that operates a rental on the owner's behalf.
Real Estate Commission
The negotiable fee, usually paid by the seller and split between agents.
Secondary Suite(Basement apartment / accessory dwelling unit)
A self-contained second unit within a house.
TRESA(Trust in Real Estate Services Act, 2002)
Ontario's real estate law, overhauled in 2023, that sets how agents represent you.
General information only, not legal, tax, or financial advice. Rules change and vary by province; confirm the current details with the relevant authority before you rely on them.