Homebuying Step by Step: Your Guide to Buying a Home in Canada
Survey (or “certificate of location”): A document that shows the legal boundaries and measurements of a property, specifies the location of any buildings and states whether anyone else has the right to cross over the property for a specific purpose. Sustainable neighbourhood: A neighbourhood that meets the needs of the residents while also protecting the environment. Title: A document that gives the holder legal ownership of a property. Title insurance: Insurance against losses or damages that could occur because of anything that affects the title to a property (for example, a defect in the title or any liens, encumbrances or servitudes registered against the legal title to a home). Total debt service (TDS) ratio: The percentage of a person or household’s gross monthly income that goes to pay the mortgage principal and interest, property taxes and heating costs, plus all other debt obligations such as car payments, personal loans or credit card debt. To qualify for a mortgage, the borrower’s TDS ratio must be at or below 40%.
Townhouse (or “row house”): A townhouse is one of several similar single-family homes that are joined side by side and share common walls. Universal design (or “FlexHousing TM ”): An approach to housing that encourages the design and construction of homes that can be easily and inexpensively modified to keep pace with changes in the needs, mobility or lifestyle of the occupants. Variable interest rate mortgage: A mortgage where the interest rate fluctuates based on the current market conditions. The payments will generally remain the same, but the amount of each payment that goes toward the principal or the interest on the loan changes as interest rates fluctuate. Vendor: The seller of a property. Vendor take-back mortgage: A type of mortgage where the seller, not a bank or other financial institution, finances the mortgage loan for the buyer.
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