Calgary Real Estate Guide
Calgary Real Estate Glossary
Plain-language definitions for every term you'll encounter buying, selling, or investing in Calgary real estate — no jargon, no confusion.
Calgary Real Estate Terms A–Z
32 terms every Calgary buyer, seller, and investor should know — defined in plain Canadian English.
Absorption Rate
The rate at which available homes sell in a specific market during a given time period. A high absorption rate (below 4 months of supply) indicates a seller's market; above 6 months indicates a buyer's market.
Amortization
The process of paying off a mortgage over time through regular payments. Common Canadian amortization periods are 25 years (default for insured mortgages) or up to 30 years for uninsured mortgages.
Assessed Value
The value assigned to a property by the City of Calgary for property tax purposes. Assessment value is based on market conditions as of July 1 of the prior year and may differ from market value.
Bridge Financing
A short-term loan that allows a buyer to close on a new home before selling their existing home. Bridge financing covers the gap between the two transaction dates.
CAP Rate (Capitalization Rate)
A real estate investment metric: net operating income divided by purchase price. A 5% cap rate means a property generates 5% annual return before financing costs.
CMHC
Canada Mortgage and Housing Corporation — the federal Crown corporation that provides mortgage default insurance for high-ratio mortgages (less than 20% down payment).
Condo Fee
Monthly payment by condo unit owners to the condo corporation covering shared expenses: building insurance, common area maintenance, management fees, and reserve fund contributions.
Condition
A term in a real estate contract making the agreement conditional on a specific event — typically financing approval, satisfactory home inspection, or condo document review.
Days on Market (DOM)
The number of days a property has been listed for sale on MLS. Extended DOM (30+ days in a normal market) may indicate overpricing or a property issue.
Development Permit
An application to the City of Calgary to develop, change the use of, or redevelop a property. Required for additions, secondary suites, renovations exceeding certain thresholds, and new construction.
Equity
The difference between a property's market value and the outstanding mortgage balance. Equity grows as the mortgage is paid down and as market values increase.
FHSA (First Home Savings Account)
A registered savings account for first-time home buyers — contributions are tax-deductible (like an RRSP) and withdrawals for a qualifying home purchase are tax-free. Maximum lifetime contribution: $40,000.
Fixed-Rate Mortgage
A mortgage where the interest rate is locked for the term (typically 1–5 years). Monthly payments remain constant regardless of market rate changes.
Freehold
Full ownership of a property and the land it sits on — the most complete form of property ownership. Contrasted with leasehold (where land is rented) or condominium ownership.
GDS Ratio (Gross Debt Service)
A lender qualification metric: the percentage of gross income required to cover housing costs (mortgage, property tax, condo fee, heat). Canadian lenders typically cap GDS at 39%.
Home Inspection
A professional examination of a property's physical condition by a qualified inspector. A standard Calgary home inspection covers structure, roof, mechanical systems, insulation, and more.
HBP (Home Buyers' Plan)
A federal program allowing RRSP holders to withdraw up to $35,000 tax-free ($70,000 per couple) to purchase a first home. Amounts must be repaid within 15 years.
Land Transfer Tax
A tax imposed on real estate purchases in most Canadian provinces. Alberta has no provincial land transfer tax — a significant buyer advantage versus Ontario or BC.
Legal Description
The precise legal identification of a property using lot, block, and plan numbers as registered with Alberta Land Titles. Used in all legal documents and title transfers.
Lien
A legal claim against a property for unpaid debts — contractor liens, utility liens, or mortgage defaults. A title search reveals all registered liens before purchase.
MLS (Multiple Listing Service)
The cooperative database used by REALTORS® to list and search properties for sale. CREA's MLS is Canada's national listing platform; CREB is Calgary's local board.
Mortgage Stress Test
The federal requirement (OSFI B-20) that mortgage applicants qualify at the greater of 5.25% or the offered rate plus 2% — testing ability to handle rate increases.
Net Operating Income (NOI)
For investment properties: gross rental income minus operating expenses (property tax, insurance, management, maintenance) before mortgage payments. Used to calculate cap rate.
New Home Warranty
Alberta's mandatory warranty on new homes: 1 year materials and labour, 2 years mechanical systems (HVAC, plumbing, electrical), 10 years structural defects.
OSFI
Office of the Superintendent of Financial Institutions — the federal regulator that sets mortgage qualification rules, including the stress test, for federally regulated lenders.
Possession Date
The date a buyer takes legal ownership of and physical access to a property. In Alberta, possession typically occurs at noon on the closing date.
Property Disclosure Statement (PDS)
A seller's written disclosure of known issues with a property. In Alberta, PDS is commonly used but not legally mandatory. Buyers should always have a home inspection regardless of PDS.
Reserve Fund
Money set aside by a condo corporation for major future repairs and replacements (roof, parkade, elevators). A healthy reserve fund is a key indicator of a well-managed condo building.
RRSP
Registered Retirement Savings Plan — a registered investment account with tax-deductible contributions. First-time home buyers can withdraw up to $35,000 through the Home Buyers' Plan.
Title Insurance
Insurance protecting buyers and lenders from losses due to title defects, fraud, survey errors, and certain encroachments. Standard in Alberta real estate transactions.
TDS Ratio (Total Debt Service)
A lender qualification metric: total monthly debt payments (housing + all other debts) as a percentage of gross income. Canadian lenders typically cap TDS at 44%.
Variable-Rate Mortgage
A mortgage where the interest rate fluctuates with the Bank of Canada's prime rate. Payments may be fixed or variable depending on the lender and product.
WETT Inspection
Wood Energy Technology Transfer inspection — a professional inspection of wood-burning fireplaces, stoves, and inserts. Required by most Calgary lenders and insurers when a property has wood-burning appliances.
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