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)
An Ontario rent increase above the annual guideline, allowed only with Landlord and Tenant Board approval on set grounds.
Assignment and Subletting
Two ways an Ontario tenant can let someone else take over the unit: permanently by assignment, or temporarily by sublet.
Landlord and Tenant Board(LTB)
The Landlord and Tenant Board is the Ontario tribunal that resolves residential tenancy disputes and decides evictions.
Last Month's Rent Deposit(LMR)
In Ontario, the only rent deposit a landlord may take: up to one period's rent, applied to the last rent period and earning yearly interest.
N12 Notice(Notice for Landlord's Own Use)
Ontario's N12 ends a tenancy because the landlord, a family member, a caregiver or a buyer plans to move into the unit.
N4 Notice(Notice to End a Tenancy Early for Non-payment of Rent)
Ontario's N4 is the notice a landlord gives when rent is unpaid. For notices given from September 21, 2026, it allows 7 days.
Rent Increase Guideline
The yearly cap on rent increases for rent-controlled units. In Ontario it is 2.1% for 2026 and 1.9% for 2027.
Residential Tenancies Act(RTA)
The provincial law that sets the rules for residential rentals, such as Ontario's Residential Tenancies Act, 2006.
Residential Tenancy Branch(RTB (British Columbia))
The Residential Tenancy Branch runs British Columbia's tenancy dispute resolution and administers the Residential Tenancy Act.
Standard Lease(Residential Tenancy Agreement (Form 2229E))
Ontario's mandatory government lease form for most private residential tenancies signed on or after April 30, 2018.
Screening & Credit
Credit Report
A credit bureau's summary of your credit history, including accounts, payment record, inquiries, collections and bankruptcies.
Credit Score
A three-digit number, usually 300 to 900 in Canada, that estimates how likely you are to repay borrowed money.
Guarantor(Co-signer)
A person, often a parent, who promises to pay the rent if the tenant does not. Human-rights law limits when landlords may require one.
Hard vs Soft Inquiry
A hard inquiry is a credit check for a lending decision that can lower your score; a soft inquiry, like checking your own credit, does not.
Protected Grounds(Human rights in housing)
Personal characteristics, such as race, disability or receipt of public assistance, that a landlord cannot use to refuse or treat a renter unfairly.
Rent-to-Income Ratio
Rent as a share of an applicant's income. In Ontario, using it as a cut-off is illegal outside subsidized housing.
Rental Application
The form and documents a prospective tenant submits to be considered for a rental, limited by privacy and human-rights law.
Tenant Screening
How a landlord assesses a rental applicant's income, references, rental history and credit, within human-rights and privacy law.
Taxes & Finance
Capital Cost Allowance(CCA)
Tax depreciation a landlord can claim on a rental building and other depreciable property, spread over years and recaptured on sale.
Capital Gain
The profit when you sell capital property such as a rental for more than its adjusted cost base plus selling costs; one-half is taxable.
Capital vs Current Expense
How the CRA decides whether a rental cost is deducted in full this year or added to the property's cost and claimed over several years.
Capitalization Rate(Cap Rate)
A property's annual net operating income divided by its value or price, used to compare income properties without the effect of financing.
GST/HST Small-Supplier Threshold
Businesses with $30,000 or less in taxable revenue generally do not have to register for GST/HST; short-term rentals can push you over.
Principal Residence Exemption(PRE)
The rule that usually makes the gain on selling your own home tax-free, as long as you report the sale and designate the property.
Recapture (of CCA)
Capital cost allowance claimed in earlier years that is added back to income when a rental sells for more than its undepreciated cost.
Section 216(Non-resident rental tax election)
An election that lets a non-resident landlord pay Canadian tax on net rental income instead of the default 25% withholding on gross rent.
T776(Statement of Real Estate Rentals)
The CRA form individuals file with their personal return to report rental income, deductible expenses and capital cost allowance.
Mortgage & Buying
Amortization
The total time it would take to pay off your mortgage at your current rate and payment, usually much longer than your rate term.
Closing Costs
The one-time fees beyond your down payment needed to complete a home purchase, often 1.5% to 4% of the price.
CMHC Mortgage Default Insurance
Insurance that protects your lender if you stop paying, and is usually required when your down payment is less than 20% of the price.
First Home Savings Account(FHSA)
A registered account for first-time buyers: deductible contributions of $8,000 a year up to $40,000, and tax-free withdrawals for a home.
Fixed vs Variable Rate
A fixed rate stays the same for your whole mortgage term, while a variable rate moves up or down with your lender's prime rate.
HELOC(Home Equity Line of Credit)
A revolving line of credit secured by your home, usually at a variable rate, capped at 65% of the home's value by federal rules.
Home Buyers' Plan(HBP)
A program that lets first-time buyers withdraw up to $60,000 from their RRSPs tax-free for a home, repaid over 15 years.
Interest Rate Differential(IRD)
A prepayment penalty formula based on the gap between your mortgage rate and current rates, charged when you break a mortgage early.
Land Transfer Tax(LTT)
A tax buyers pay when property changes hands, set by the province, with Toronto adding its own municipal tax on top.
Mortgage Broker
A licensed professional who compares mortgages from several lenders and arranges one for you, and is usually paid a commission by the lender.
Mortgage Pre-Approval
A lender's review of your income, debts and credit that estimates how much you may borrow and often holds a rate for 60 to 130 days.
Mortgage Renewal
Signing a new term for your remaining balance when your mortgage term ends, with the option to negotiate or switch lenders.
Mortgage Stress Test(Minimum Qualifying Rate (MQR))
A federal rule that makes you qualify for a mortgage at a higher rate than your contract rate, to show you could handle higher payments.
Trigger Rate
The interest rate at which a fixed payment on a variable-rate mortgage covers only interest, so nothing goes toward the principal.
New Build & Warranty
Certificate of Completion and Possession(CCP)
The Tarion warranty certificate your builder provides at possession, recording the date that starts your warranty clock.
Home Construction Regulatory Authority(HCRA)
Ontario's regulator that licenses new-home builders and vendors and runs the public Ontario Builder Directory.
Home Inspection
A buyer-hired, visual check of a home's condition and major systems, with licensing rules that vary from province to province.
Major Structural Defect(MSD)
The most serious structural problem in a new Ontario home, covered by Tarion's seven-year warranty from the date of possession.
Pre-Delivery Inspection(PDI)
The builder-led walkthrough before possession of a new Ontario home that records its condition on Tarion's PDI Form.
Tarion
The not-for-profit that administers Ontario's new-home warranty, covering defects for up to seven years and protecting deposits.
Property & Ownership
Buyer's Agent vs Listing Agent
A listing agent represents the seller and a buyer's agent represents the buyer, and in Ontario each owes full duties only to their own client.
Condo vs Freehold
Condo owners hold a unit plus a share of common elements and pay fees, while freehold owners hold the whole lot and handle all upkeep.
Property Manager
A person or company paid to run a rental or condo for an owner, handling tenants, rent, repairs and records, with licensing set by each province.
Real Estate Commission
The negotiable fee a brokerage earns for helping you buy or sell, with the amount and who pays it set out in your written agreement.
Secondary Suite(Basement apartment / accessory dwelling unit)
A self-contained second home inside a house or on its lot, with its own kitchen and bathroom, that must meet zoning, building and fire rules.
TRESA(Trust in Real Estate Services Act, 2002)
Ontario's law for real estate agents and brokerages, whose main consumer rules took effect on 1 December 2023 and are enforced by RECO.
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.