Amortization
The total length of time over which your mortgage is paid off. In Canada, the standard amortization is 25 years for insured mortgages (under 20% down). Longer amortization means lower monthly payments but more interest paid over the life of the loan.
Appraisal
A professional assessment of a property's market value conducted by a licensed appraiser. Lenders often require an appraisal to confirm the home is worth what you're paying before approving your mortgage. In Alberta, a typical appraisal costs $300–$600.
Assessed value
The value assigned to your property by the City of Calgary for property tax purposes. This is different from market value — assessed values are updated annually and may be higher or lower than what your home would sell for.
Benchmark price
CREB's measure of a typical home price in a given area, adjusted for size, age, and features. Unlike average or median prices, the benchmark price filters out the distortion of very high or very low sales. The May 2026 Calgary residential benchmark is $570,500.
Bridge financing
A short-term loan that allows you to purchase a new home before your current home sells. Your lender essentially lends you the equity in your current home temporarily. Typically available for 30–90 days and carries a higher interest rate than a standard mortgage.
CMA (Comparative Market Analysis)
A detailed report prepared by a realtor comparing a home to recently sold properties with similar features, size, and location. The CMA is the foundation of listing price recommendations and offer decisions. Shanna provides a full CMA at no cost as part of every listing consultation.
CMHC insurance
Canada Mortgage and Housing Corporation mortgage default insurance — required for all purchases with less than 20% down payment where the purchase price is under $1.5M. The premium ranges from 2.80% to 4.00% of the mortgage amount and is added to your loan. It protects the lender, not the buyer.
Closing costs
Expenses beyond the purchase price paid at closing. In Alberta, these typically include legal fees ($1,500–$2,000), title insurance ($200–$400), home inspection ($500–$700), property tax adjustments, and moving costs. Budget 1.5–4% of the purchase price for closing costs.
Completion date
The date title of the property transfers from seller to buyer — also called the possession date. This is when your lawyer exchanges funds and you receive keys. In Alberta, completion and possession are typically the same day.
Condition
A clause in a purchase offer that must be satisfied before the offer becomes firm and binding. Common conditions include financing (subject to mortgage approval) and home inspection. Once conditions are removed in writing, the deal is firm.
CREB
Calgary Real Estate Board — the professional association for Calgary realtors and the authoritative source for Calgary market statistics. All statistics Shanna references come from CREB's official monthly releases.
Days on market (DOM)
The number of days a property has been listed for sale on MLS® before receiving an accepted offer. In Calgary's current market, the average DOM is approximately 22 days. Homes on the market significantly longer than average may signal overpricing or condition issues.
Deposit
An amount paid by the buyer upon acceptance of an offer — typically 1–5% of the purchase price in Calgary. The deposit is held in trust and applied to the purchase price at closing. If the deal collapses due to conditions not being satisfied, the deposit is typically returned. If the buyer walks away after conditions are removed, the deposit may be forfeited.
Down payment
The amount of the purchase price you pay upfront, not borrowed. Minimum down payment in Canada ranges from 5% (under $500K) to 20% (over $1M). Putting 20% or more down avoids CMHC insurance.
Equity
The difference between your home's current market value and the outstanding balance on your mortgage. If your home is worth $700,000 and you owe $450,000, you have $250,000 in equity. Equity grows as you pay down your mortgage and as the property value increases.
Escalation clause
A clause in an offer that automatically increases your bid by a set amount above competing offers, up to a maximum. Used in multiple offer situations to remain competitive without simply guessing a final number. Shanna can advise when this strategy makes sense.
FHSA (First Home Savings Account)
A registered account allowing first-time buyers to contribute up to $8,000/year ($40,000 lifetime) toward a home purchase. Contributions are tax-deductible. Withdrawals for a qualifying first home are tax-free. Introduced in 2023 and one of the best financial tools available to first-time buyers.
Firm offer
A purchase offer with no conditions — or one where all conditions have been satisfied and removed in writing. A firm offer is legally binding on both parties. Once firm, neither buyer nor seller can back out without legal consequences.
Fixed-rate mortgage
A mortgage where the interest rate is locked in for the full term (typically 1–5 years). Your payment stays the same for the entire term regardless of Bank of Canada rate changes. Provides certainty but may mean you miss out if rates fall significantly.
GDS (Gross Debt Service ratio)
The percentage of your gross monthly income that goes toward housing costs (mortgage payment, property taxes, heating). Lenders typically limit GDS to 39%. This is one of the two key ratios used to calculate how much mortgage you qualify for.
GST on new homes
New home purchases in Canada are subject to 5% GST on the purchase price. This is a significant cost often overlooked in new construction budgeting — on a $700,000 home, that's $35,000. Resale homes are not subject to GST. A partial rebate may apply for homes under $450,000.
HBP (Home Buyers' Plan)
A federal program allowing first-time buyers to withdraw up to $35,000 per person from their RRSP tax-free for a home purchase. Must be repaid to the RRSP over 15 years or the amount is added to taxable income. Combined with FHSA, couples can access up to $150,000+ for a down payment.
Home inspection
A professional assessment of a property's condition by a licensed home inspector. Covers structure, foundation, roof, electrical, plumbing, HVAC, and more. Typically costs $500–$700 and takes 2–3 hours. Shanna attends every inspection and interprets findings for her clients — including what's negotiable and what's a red flag.
Land title transfer fee
Alberta's small fee for registering the transfer of title — much smaller than the land transfer tax charged in most other provinces. On a $750,000 home, this fee is approximately $400–$600. Alberta has no provincial land transfer tax.
Listing price
The price at which a property is offered for sale on MLS®. The listing price is a strategic decision — priced too high, the home sits; priced right, it generates competition. Shanna uses a detailed CMA to recommend the optimal listing price for every property.
MLS® (Multiple Listing Service)
The database used by realtors across Canada to list and search properties. Access to MLS® is restricted to licensed realtors — consumer sites like Realtor.ca display a subset of MLS® data. Shanna's MLS® access through Sotheby's provides full access to all active listings and sold data.
Months of supply
The number of months it would take to sell all current active listings at the current rate of sales. Below 2 months = strong seller's market. 2–4 months = balanced market. Above 4 months = buyer's market. Calgary's overall supply as of May 2026 is 3.12 months.
Mortgage term
The length of your current mortgage contract — typically 1–5 years in Canada. At the end of the term, you renew at the current rate (which may be higher or lower). The term is different from the amortization period — most mortgages have a 25-year amortization with multiple 5-year terms.
Possession date
The date you receive keys and can move in — when legal title transfers to you. In Alberta, this is typically the same as the completion date. Standard possession periods in Calgary are 30–90 days from an accepted offer, though this is negotiable.
Pre-approval
A conditional commitment from a lender for a specified mortgage amount, based on your income, down payment, and credit. Different from pre-qualification — pre-approval requires full documentation and provides a rate hold for 90–120 days. Essential before making offers in a competitive market.
Prime rate
The benchmark interest rate Canadian banks use to set variable mortgage rates and lines of credit. Currently approximately 4.45% (as of mid-2026), following the Bank of Canada's overnight rate of 2.25%. Variable mortgage rates are typically expressed as Prime + or Prime minus a percentage.
Sale-to-list ratio (SLR)
The percentage of homes that sell at or above their asking price. An SLR above 100% means homes are selling above asking — a sign of strong demand. Below 95% typically indicates buyer negotiating power. In Strathcona Park, 37.5% of homes sell above asking price.
SNLR (Sales-to-New-Listings Ratio)
A measure of market balance — the percentage of new listings that sell within a given period. Above 60% = seller's market. 40–60% = balanced market. Below 40% = buyer's market. Calgary's overall SNLR as of May 2026 is 51%.
Stress test
The federal mortgage qualifying requirement that tests your ability to handle higher rates. You must qualify at the higher of your contract rate + 2% or 5.25% minimum. This effectively reduces maximum purchase price by 15–20% compared to qualifying at your actual rate. Use Shanna's Stress Test Calculator to see exactly how it affects your buying power.
TDS (Total Debt Service ratio)
The percentage of your gross monthly income that goes toward all debt payments — housing costs plus all other loans, credit cards, and lines of credit. Lenders typically limit TDS to 44%. Along with GDS, this determines your maximum qualifying mortgage.
Title
The legal document that proves ownership of a property. In Alberta, title is registered with the Land Titles Office. When you buy a home, your lawyer transfers title from the seller's name to yours and registers your mortgage against the title.
Title insurance
Insurance that protects against defects in a property's title — such as fraud, encroachments, or undisclosed liens. Typically costs $200–$400 as a one-time premium at closing. Most Calgary real estate lawyers recommend it as standard practice.
