Buying a home is such an exciting milestone — but let’s be honest, it also comes with a whole new language. If you’ve ever found yourself nodding along while secretly thinking “what does that even mean?”, you’re not alone.
To help make your buying journey smoother (and a lot less intimidating), here’s a warm, easy-to-understand guide to the most common real estate terms you’ll hear in Alberta. Think of this as your little cheat sheet — one you can revisit anytime.
Pre-Approval vs. Pre-Qualification
Pre-Qualification is a quick estimate of what you might afford.
Pre-Approval is the real deal — a lender reviews your finances and gives you a clear budget.
Why it matters: A pre-approval makes your offer stronger and helps you shop with confidence.
Fixed vs. Variable Mortgage Rates
A Fixed-Rate Mortgage gives you the same interest rate the entire term.
A Variable-Rate Mortgage can move up or down depending on the market.
Think of it like this: fixed is stable and predictable, variable can offer savings but comes with some movement.
Deposit
This is the money you put down once your offer is accepted, showing you're committed. It’s held in trust and eventually goes toward your down payment.
Conditions
These are the “just to be safe” steps built into your offer. The most common are:
Financing — making sure the bank signs off on everything
Home inspection — so you know exactly what you’re buying
Condo document review (for condos)
Conditions give you the chance to do your due diligence without pressure.
Condition Date
This is your deadline to either remove your conditions or walk away from the deal. A very important date — and one your realtor keeps a close eye on for you.
Chattels vs. Fixtures
Chattels: Items that aren’t attached (appliances, curtains, etc.).
Fixtures: Items that are attached (light fixtures, built-ins, etc.).
If you love something you see, make sure it’s written into the contract.
Real Property Report (RPR)
An RPR is a detailed map of the property showing boundaries and structures.
In Alberta, sellers typically provide this, and it’s an important safety check to make sure everything is compliant.
Title Insurance
A one-time insurance policy that protects you from surprises like boundary issues or missing permits. It can sometimes be used instead of an updated RPR.
Closing Costs
These are the extra expenses that come up right before or on possession day, such as:
Legal fees
Title insurance
Home insurance
Property tax adjustments
Most buyers budget around 1–3% of the purchase price.
Possession Day
The best day of all. The funds are transferred, the keys are released, and the home officially becomes yours. Time to celebrate.
CMHC Mortgage Insurance
If your down payment is under 20%, your mortgage will need to be insured.
This allows buyers with as little as 5% down to enter the market — a huge help for first-time buyers.
Buyer Brokerage Agreement (BBA)
This is the agreement between you and your realtor that outlines the relationship and expectations. In Alberta, signing a BBA is required before submitting an offer.
MLS®
The MLS® system is the hub of real estate listings — accurate, up-to-date, and used by realtors across the province.
Appraisal
An unbiased estimate of a property’s value, usually required by lenders. It helps ensure the home you’re buying is priced fairly.
Amortization vs. Term
Amortization: The total length of time it will take to pay off your mortgage.
Term: The length of your current mortgage agreement (often 1–5 years).
At the end of each term, you’ll renew until the mortgage is paid off.
Final Thoughts
Buying a home should feel exciting, not overwhelming. Understanding these key terms will help you feel more prepared, more confident, and more empowered throughout the process.
And of course — you never have to figure this out alone. A great realtor will guide you every step of the way, translate the jargon, and make sure you feel supported from your first showing to possession day and beyond.
If you ever have questions or want to chat about the next steps in your buying journey, I’m always here to help.