When buying a home, it’s important to understand key concepts and terms. While your real estate agent will explain any unfamiliar terms, here’s a helpful glossary to get you started:

Abstract of Title

A complete historical summary of the public records related to the legal ownership of a property, from the first transfer to the present.

Adjustable Rate Mortgage (ARM)

Also known as a variable-rate loan, this mortgage features an interest rate that changes over time based on an index, such as the Treasury index.

Agreement of Sale

Also referred to as a contract of purchase, purchase agreement, or sales agreement, this is a written and signed contract where the buyer and seller agree to specific terms for the property transaction.

Amortization

The process of reducing the principal debt through a schedule of fixed payments made at regular intervals, with a specific interest rate as outlined in the loan document.

Appraisal

A professional appraiser’s estimate of a property’s market value, based on local market data and recent sale prices of similar properties.

Assessed Value

The value placed on a property by municipal assessors for determining property taxes.

Closing

The final step in the property transfer process. On the Closing Date, the buyer inspects and signs all transaction documents, and payments are finalized. Also called Settlement.

Closing Costs

Expenses incurred to complete the real estate transaction in addition to the home price, such as taxes, title insurance, appraisal fees, and legal fees.

Contingency

A clause in the purchase contract outlining specific conditions that must be met by both the buyer and seller before the contract becomes binding.

Counter-Offer

A response to a previous offer, rejecting part or all of it while proposing new terms for negotiation.

Conventional Mortgage

A mortgage not insured or guaranteed by the federal government.

Debt-to-Income Ratio

A measurement of your total debt burden. It’s calculated by dividing your total monthly debt payments, including your mortgage, by your gross monthly income.

Down Payment

The portion of the home price paid by the buyer upfront. Smaller down payments (less than 20%) often require mortgage insurance.

Earnest Money

A deposit paid by the buyer to demonstrate a serious purchase offer. This money is held in escrow and applied to the purchase price upon closing.

Equity

The difference between the property’s market value and any outstanding debts or liens against it.

Easements

The legal right for individuals or groups to access or use a property for specific purposes. Easements are often included in the property deed and may impact property value.

Escrow

Funds held by a neutral third party (the escrow agent) until specific contract conditions are met. Escrow accounts are also used by lenders to pay property taxes and homeowner’s insurance.

Fixed-Rate Mortgage

A mortgage loan where the interest rate remains constant throughout the term of the loan.

Home Inspection

A professional inspection, typically paid for by the buyer, to assess a home’s condition, including its plumbing, heating, wiring, roof, foundation, and more.

Homeowner’s Insurance

A policy protecting both the buyer and lender from risks such as fire, floods, personal property damage, and liability (e.g., visitor injuries).

Lien

A claim or charge on a property used as collateral for debt repayment. If mortgage payments are not made, the lender can claim ownership of the property.

Market Value

The price a willing buyer would pay a willing seller for a property under current market conditions.

Mortgage Insurance

Insurance purchased by the buyer to protect the lender in case of loan default. This is common for loans with down payments less than 20% and can be provided through the FHA or private mortgage insurers (PMI).

Possession Date

The date when the buyer officially takes ownership and can move into the property, usually a few days after the closing date.

Pre-Approval Letter

A document from a mortgage lender stating that the buyer qualifies for a loan of a specific amount, showing the seller that the buyer is serious.

Principal

The amount of money borrowed to purchase a home, excluding interest and additional fees.

Purchase Offer

A written proposal to buy a property. It may be amended during negotiations and, when signed by all parties, becomes a legally binding sales agreement.*

Title

The legal right to own a property. A Title or Deed is often used as proof of ownership. A clear title means no legal defects are associated with the ownership.

Title Insurance

Insurance that guarantees the accuracy of the title search and protects against legal issues with the property’s title.

Truth-In-Lending Act (TILA)

A federal law requiring full disclosure of the total cost of credit for consumer loans.

Title Search

A historical review of all legal documents related to the property’s ownership to ensure there are no issues, claims, or encumbrances against the title.

This glossary is a great starting point for understanding the home-buying process. Your real estate agent is there to help you navigate these terms and ensure a smooth transaction!

Note: The purchase offer and contract procedures vary by region.

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You have purchased your home! Now that your home has been purchased, there are a few more things that need to be taken care of, leading up to possession or closing day. The following is not an all-encompassing list, but it will get you started in the right direction, to help you experience a smooth transition between now and when possession or closing day arrives.

Pre-Possession Steps

1. Organize Documentation:

   • Store all contracts and important paperwork.

   • Ensure you have proof of home insurance before your lawyer appointment.

2. Contact Your Lawyer:

   • Your lawyer should reach out 7-10 days before possession date.

   • If not contacted a week before, call them to set up an appointment.

3. Discuss Property Taxes:

   • Talk to your lawyer about property tax payment options.

4. Arrange Utility and Service Transfers:

   • Make a list of current service providers (utilities, internet, newspaper, etc.).

   • Contact providers to transfer services to the new property.

5. Read Moving Tips:

   • Review the 'Moving Tips' document for advice on planning, packing, and organizing your move.

6. Update Your Realtor:

   • Discuss pre-possession walk-through (if applicable) about a week before closing day.

   • Decide on the process for key exchange on possession day.

Possession Day Steps

1. Expectations on Possession Day:

   • Wait for confirmation from your lawyer that all funds and mortgage details are received by the seller’s lawyer.

   • The seller’s realtor will notify when keys can be released, usually around noon.

This checklist will help ensure a smooth transition to your new home.

Over one million homeowners set to renew their mortgages in 2025 are expected to face substantially higher interest rates, with approximately 85 percent of these fixed-rate loans originating when the Bank of Canada’s rate was 1 percent or lower, according to a recent report from the Canada Mortgage and Housing Corporation (CMHC).

The report highlights that a significant number of fixed-rate mortgages—1.2 million in 2025 and 980,000 in 2026—will soon be up for renewal. For many, these rates will be notably higher than at the start of their loan term, as at least 1.05 million of these mortgages were signed during an era of exceptionally low rates. Currently, the Bank of Canada's rate stands at 3.75 percent.

Economist predict that this renewal wave could increase home listings as financially strained homeowners may choose to sell their properties.

"In late 2024 and early 2025, we expect a noticeable rise in resale listings, outpacing demand growth," said Michael Davenport, an economist at Oxford Economics. "As rates decline and mortgage regulations ease, we’ll likely see a strong boost in housing demand by mid-2025."

In the private lending sector, higher defaults and foreclosures have already led to more distressed property sales, as private loans often have higher interest rates and fewer regulatory protections. The CMHC report reveals that alternative lenders saw an increase in risk in the second quarter of 2024, with the 60-day delinquency rate for single-family homes reaching 5 percent, up from 1.7 percent in late 2022, and foreclosures rising from 1.3 to 3.5 percent over the same period.

For those facing renewals, however, there is some relief. Since June, the Bank of Canada has cut interest rates, currently at 3.75 percent after a series of four reductions from a peak of 5 percent. Another rate cut is anticipated by year’s end, potentially easing mortgage payments for many in 2025.

Without this rapid rate-cutting response, Davenport noted, there could have been a sharper rise in defaults, which might have tipped the economy into a deeper recession.

Source: Toronto Star

Moving into a new home is an exciting fresh start, but the first 90 days are crucial in creating a comfortable, functional, and welcoming space that feels like yours. This guide helps new homeowners transition smoothly, with essential steps and thoughtful touches that make the process enjoyable and stress-free.

1. Creating a Cozy and Personalized Space

• Unpack with Purpose: Focus on setting up key areas first, like the bedroom and kitchen, to make the space feel livable right away.

• Prioritize Comfort: Layering rugs, adding personal decor, and incorporating soft lighting can instantly create a warm atmosphere. Set up spaces that encourage relaxation and socializing—think cozy living rooms and inviting dining areas.

• Bring in Personality: Decorate with items that have personal meaning, like family photos, favorite books, or local art. These small touches bring warmth and a sense of "home."

2. Connecting with the Community

• Meet Your Neighbors: Take the opportunity to introduce yourself to neighbors—whether by hosting a small open house or simply saying hello during a walk. This can lead to meaningful relationships and a support network.

• Attend Local Events: Look up community gatherings, farmers' markets, and local festivals. Not only are these fun, but they also help you learn more about the culture of your new neighborhood.

• Join Community Groups: Many neighborhoods have social media groups or neighborhood watch pages. Joining these can keep you informed about events, local tips, and ways to contribute.

3. Setting Up Essential Services and Utilities

• Get Utilities in Order: Research your local providers for electricity, water, internet, and trash collection. Setting up utilities efficiently helps you get settled faster.

• Consider Smart Home Upgrades: Small investments in energy-efficient or smart home features, like a programmable thermostat or security system, can help streamline your home’s functionality and increase comfort.

• Find Reliable Service Providers: New homeowners often need contractors, landscapers, plumbers, or handypersons. Ask for recommendations from neighbors or check online reviews to find trusted professionals nearby.

4. Exploring Local Amenities and Shops

• Scout Out Essentials: Locate the closest grocery stores, pharmacies, and emergency services, so you know where to go when needed.

• Discover Hidden Gems: Take some time to explore the local coffee shops, restaurants, and specialty stores. Supporting these places helps you become part of the local economy and may uncover unique finds.

• Outdoor Spots and Recreational Areas: Identify parks, trails, and recreational centers nearby. These spaces are perfect for unwinding and provide a great excuse to explore more of the area.

5. Organizing for a Smooth Transition

• Create a Moving Checklist: Ensure that essential tasks, such as updating your address, unpacking systematically, and setting up auto-billing, don’t get overlooked.

• Set Up a Maintenance Schedule: Schedule regular check-ups for your HVAC, plumbing, and other systems to prevent issues and keep your home running smoothly.

• Invest in a Home Toolkit: Having basic tools on hand, like a hammer, screwdriver, and measuring tape, can make handling small fixes much easier.

The first 90 days in a new home is about more than unpacking; build your routine, make connections, and turn your space into a true sanctuary. Taking these steps not only makes settling in smooth but also lays the groundwork for a fulfilling and connected life in your new community.

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Creating a Memorable Buyer Experience

Selling your home, especially if it’s your first time, can seem like a complex journey. With a knowledgeable real estate agent to guide you and some thoughtful preparation, you can transform your home into a buyer’s dream. Beyond staging, there are various steps you can take to ensure your home captures interest right from the first look.

Research shows that homebuyers often form an opinion within few seconds of stepping inside a property. Let’s explore ways to enhance that initial impact and create a lasting impression.

The Exterior: Curb Appeal That Shines

It’s easy to spend a lot of time perfecting the interior of your home, but the exterior is the first thing buyers see. A well-manicured lawn, seasonal flowers, and neatly trimmed bushes can boost curb appeal significantly. Think about adding a welcoming front porch setup with a fresh doormat and maybe even some stylish planters.

Consider giving your house numbers a modern update, power-washing your driveway and walkways, and repainting the front door. These details go a long way toward creating an exterior that feels fresh and inviting to anyone passing by.

Landscaping Ideas to Attract Buyers

Landscaping doesn’t have to be elaborate to add value. Simple additions like fresh mulch, new plants, and lighting can create a polished look. Highlighting trees, flowerbeds, and even pathways with solar or low-voltage lighting can add charm and safety, creating an inviting vibe for evening visits. Consider consulting with a local nursery or landscaping expert for seasonal plants that are easy to maintain and can bring color and life to your outdoor space.

Interior Decluttering: Give Buyers Space to Dream

Inside, a clean and clutter-free space allows buyers to imagine themselves in your home. Pack away personal items and decor, leaving a neutral space that appeals to diverse tastes. Clear counters and tables to create a sense of openness, and limit the number of knick-knacks and furniture to highlight each room’s best features.

A great trick to keep in mind is to streamline storage spaces, such as closets and cabinets, as buyers will want to peek inside. An organized closet and kitchen not only look larger but also send a message of a well-kept home.

Cleaning for Maximum Impact

For a standout showing, clean every nook and cranny. Beyond vacuuming, make sure to dust window sills, wipe down baseboards, and clean windows for maximum brightness. Don’t forget fixtures like light switches, ceiling fans, and even the tops of cabinets, where dust tends to collect. Lingering odors, whether from cooking or pets, can leave a negative impression, so consider scent-neutralizing methods like essential oil diffusers or fresh flowers.

If deep cleaning feels overwhelming, investing in a professional cleaning service can ensure a spotless result, giving buyers the confidence of a well-cared-for home.

Repairs and Mini-Upgrades for Added Value

Before listing your home, address minor repairs like leaky faucets, loose door handles, or cracked grout. Buyers appreciate the appearance of “move-in ready,” so fixing even small issues can make a big difference.

To enhance the interior, think about affordable upgrades like modern light fixtures, new hardware on cabinets, or repainting walls in light, neutral tones. These updates help elevate your home’s appeal without extensive renovations, creating an environment that feels updated and fresh.

Styling: Staging Rooms for a Lifestyle Connection

Staging can go beyond the basics of cleanliness and repair. Consider styling your home to showcase a lifestyle, focusing on spaces that resonate with potential buyers, like an inviting reading nook or a practical yet stylish home office. Subtle touches like cozy throw blankets, curated decor, or strategically placed plants can create warmth and personality. Staging in this way helps buyers envision the comfort, functionality, and possibilities your home offers.

Photography and Virtual Tours: First Impressions Online

With many buyers starting their search online, high-quality photos and virtual tours are essential. Professional photography can highlight your home’s best features, and virtual tours provide an immersive experience, which is particularly valuable for out-of-town buyers. Well-composed shots of each room, emphasizing natural light, can draw viewers in and make your listing stand out. Consider hiring a professional to capture your home’s full potential.

Open Houses: Creating an Inviting Atmosphere

An open house is a unique opportunity to showcase your home’s character. Create an inviting atmosphere by setting the temperature comfortably, using soft background music, and providing light refreshments. Displaying fresh flowers and lighting a few candles can enhance the ambiance, while small touches like a brochure with neighborhood highlights can help potential buyers envision life in the area.

Making the Sale: Final Steps and Beyond

As you approach the final stages of selling, keep your home show-ready, as new buyers may still want to view it. Work with your agent to review offers carefully and negotiate terms that feel right for you. Once your home is under contract, remain available for any last-minute inspections or requests, ensuring a smooth closing.

Selling a home is more than just a transaction; it’s about creating an experience for buyers that speaks to the comfort, convenience, and character they’re seeking. When you prepare your home with care and thoughtfulness, you’re positioning it for success.

Reach out to PK REALTY to make your selling experience seamless

1. Detailed Monthly Statistics for City of Calgary

2. Summary Statistics for Calgary, Chestermere, Airdrie, Cochrane, Okotoks, High River, Strathmore & Canmore

Source: CREB