Vancouver Real Estate Glossary

A metric that measures how quickly available homes are selling in a market, calculated by dividing the number of homes sold in a period by the total inventory. A high absorption rate indicates a seller's market; a low rate signals a buyer's market.

The date used to calculate the division of prepaid or owing expenses (such as property taxes, strata fees, and utilities) between buyer and seller. In BC, the adjustment date is typically the same as the completion date.

A provincial zone that protects agricultural land from development. Approximately 5% of BC's total land area is designated ALR. Building restrictions on ALR land are strict, and removing land from the ALR requires an application to the Agricultural Land Commission.

The total period over which a mortgage is repaid through scheduled payments. In Canada, the maximum amortization for insured mortgages is 25 years (30 years for first-time buyers purchasing new builds as of late 2024). Longer amortization lowers monthly payments but increases total interest paid.

A professional assessment of a property's market value conducted by a licensed appraiser, usually required by the lender before approving a mortgage. If the appraisal comes in below the purchase price, the buyer may need to increase their down payment or renegotiate.

An independent provincial agency that determines the assessed value of every property in British Columbia each year. The assessed value is used to calculate municipal property taxes and may differ significantly from market value.

A standardized price indicator used by Canadian real estate boards that represents the price of a "typical" home in a given area, adjusted for property attributes. Unlike average or median prices, benchmark prices filter out distortions from luxury or low-end sales.

BC legislation enacted in 2023 that requires municipalities to allow multi-unit housing on single-family lots. Depending on lot size and transit proximity, up to 3, 4, or 6 units may be permitted. This policy aims to increase housing supply across Metro Vancouver.

A short-term loan that helps homeowners cover the gap when they purchase a new property before selling their existing one. Bridge loans in Canada typically carry higher interest rates and are meant to last only a few weeks to months.

A licensed real estate agent who represents the buyer in a transaction. In BC, a buyer's agent owes fiduciary duties to the buyer, including loyalty, confidentiality, and full disclosure of material information.

A market condition where housing supply exceeds demand, giving buyers more negotiating power. Typically characterized by more than 6 months of inventory, longer days on market, and prices trending below asking.

A measure of a rental property's return, calculated by dividing annual net operating income by the property's purchase price. In Metro Vancouver, residential cap rates typically range from 3% to 5%, reflecting the region's high property values relative to rents.

A legal notice registered against a property's title indicating that a lawsuit affecting the property is underway. A CPL warns prospective buyers that the property is subject to a legal dispute.

The various fees and expenses paid on top of the purchase price when completing a real estate transaction. In Vancouver, these typically include Property Transfer Tax, legal fees, title insurance, home inspection, appraisal, and GST on new builds.

Insurance required by federally regulated lenders when the buyer's down payment is less than 20% of the purchase price. Provided by CMHC, Sagen, or Canada Guaranty, the premium (ranging from 2.8% to 4% of the mortgage) is added to the loan balance. Available for properties up to $1.5 million.

A small secondary dwelling built in the backyard of a single-family lot, typically accessed from the rear lane. Vancouver has allowed laneway houses since 2009, and they are a popular way to add rental income or multigenerational living space.

A report prepared by a real estate agent that estimates a property's market value by comparing it to similar recently sold, active, and expired listings in the area. In Vancouver, a CMA considers location, size, age, condition, strata fees, and recent market trends.

The date when legal ownership of a property transfers from the seller to the buyer. In BC, this is when the buyer's lawyer or notary registers the title transfer at the Land Title Office and the purchase funds are released to the seller.

Clauses written into an offer to purchase that must be satisfied before the sale becomes firm. Common subjects in Vancouver include financing approval, home inspection, title review, and strata document review. Buyers typically have 5 to 10 business days to remove subjects.

The number of days a property is listed for sale before going under contract. Low DOM indicates strong demand, while high DOM may signal overpricing or reduced buyer interest. In a balanced Vancouver market, the average DOM is around 20 to 30 days.

A comprehensive document prepared by an engineering firm that assesses the physical condition and remaining lifespan of a strata building's major components (roof, plumbing, elevator, etc.) and provides a long-term funding plan. BC strata corporations are required to obtain one unless owners vote to opt out.

The portion of the purchase price paid upfront by the buyer. In Canada, the minimum is 5% on the first $500K, 10% on the portion between $500K and $1.5M, and 20% on any amount above $1.5M. For a typical $800K Vancouver condo, the minimum down payment is $55,000.

A situation where one agent or brokerage represents both the buyer and seller in the same transaction. In BC, dual agency is now prohibited — agents must act as either a buyer's agent or a seller's agent, never both, to avoid conflicts of interest.

A legal right allowing someone other than the owner to use a portion of the property for a specific purpose, such as utility access or a shared driveway. Easements are registered on title and transfer with the property.

A municipal tax levied by the City of Vancouver on residential properties that are unoccupied for more than six months per year. The current rate is 5% of the property's assessed value. Homeowners must submit an annual declaration to confirm occupancy status.

The difference between a property's current market value and the outstanding mortgage balance. Equity builds over time through mortgage payments and property appreciation. Homeowners can access equity through a home equity line of credit (HELOC) or refinancing.

Canada's financial intelligence agency that monitors real estate transactions to detect money laundering and terrorist financing. Real estate agents and brokerages are required to verify client identity and report suspicious transactions to FINTRAC.

A set of provincial and federal programs designed to help first-time buyers. In BC, these include the First Time Home Buyers' Program (PTT exemption for homes up to $500K, partial exemption up to $525K), the federal First Home Savings Account (FHSA), and the Home Buyers' Plan (HBP) allowing RRSP withdrawals up to $60,000.

A mortgage where the interest rate remains constant for the entire term (typically 1 to 5 years in Canada). Fixed rates provide payment certainty but are usually slightly higher than variable rates. Most Canadian homebuyers choose fixed-rate mortgages.

Federal legislation (Prohibition on the Purchase of Residential Property by Non-Canadians Act) that restricts non-citizens and non-permanent residents from purchasing residential property in Canada. Originally enacted in 2023 and extended through 2027, with certain exemptions for work permit holders and refugees.

The most complete form of property ownership, where the owner holds full rights to the land and any structures on it indefinitely. Detached houses and some townhouses in Vancouver are held as freehold.

A zoning metric that controls building density by defining the maximum total floor area permitted relative to the lot size. For example, an FSR of 0.7 on a 4,000 sq ft lot allows up to 2,800 sq ft of building floor area. FSR is a key factor in Vancouver development feasibility.

A lending metric that measures the percentage of gross income needed to cover housing costs (mortgage payments, property taxes, heating, and 50% of strata fees). Lenders typically require a GDS ratio below 39%.

The real estate board serving Metro Vancouver (formerly known as REBGV, the Real Estate Board of Greater Vancouver). GVR publishes monthly market statistics, including sales volumes, listings, and benchmark prices that are widely referenced in market analysis.

A revolving credit facility secured against the equity in your home. In Canada, you can borrow up to 65% of your home's appraised value (minus the mortgage balance). HELOCs offer flexible borrowing at rates lower than unsecured credit.

A professional examination of a property's physical condition, including structure, roof, plumbing, electrical, HVAC, and more. In Vancouver's competitive market, some buyers waive inspections to strengthen their offer, though this carries significant risk.

A statistical tool developed by the Canadian Real Estate Association (CREA) that tracks changes in home prices over time by measuring the price of a "typical" property. The MLS HPI uses benchmark methodology and is considered more accurate than simple averages.

The total number of properties currently available for sale in a given market. Inventory levels relative to sales volume determine whether the market favours buyers or sellers. Metro Vancouver typically has 8,000 to 15,000 active residential listings at any given time.

The BC government registry that maintains official records of property ownership, mortgages, liens, easements, and other charges. All property transfers must be registered at the Land Title Office to be legally effective.

A form of property ownership where the owner holds rights to the building or unit but not the underlying land, which is leased from a landowner (often a First Nation, the city, or a university). Several Vancouver neighbourhoods — including parts of UBC and Musqueam land — have leasehold properties with lease terms of 99 years.

A contract between a seller and their real estate brokerage that authorizes the agent to market and sell the property. In BC, the standard listing agreement specifies the listing price, commission rate, marketing plan, and term length.

A cooperative system used by Canadian real estate boards that allows agents to share property listings. The MLS is the primary platform where homes are marketed to buyers and agents, and the source of official sales data used in market reports.

A measure of market balance calculated by dividing the total active listings by the number of sales in the most recent month. Below 4 months generally indicates a seller's market, 4 to 6 months a balanced market, and above 6 months a buyer's market.

A licensed professional who arranges mortgage financing on behalf of borrowers by shopping rates across multiple lenders. In BC, mortgage brokers are regulated by the BC Financial Services Authority (BCFSA) and are compensated by the lender, not the borrower.

A federal requirement that all mortgage applicants must qualify at the higher of their contract rate plus 2%, or the Bank of Canada's qualifying rate (currently 5.25%). This ensures borrowers can handle potential rate increases.

The length of time your mortgage contract and interest rate are in effect, typically ranging from 1 to 5 years in Canada. At the end of each term, the mortgage must be renewed or refinanced. This is distinct from the amortization period.

A situation where more than one buyer submits an offer on the same property. In Vancouver's competitive market, multiple-offer scenarios are common for well-priced properties. The listing agent must disclose the existence (but not details) of competing offers to all parties.

A residential building containing 3 to 6 units on a single lot, typically built to look like a large house. Under BC's Bill 44, multiplexes are now permitted on most single-family lots across the province, opening new development and investment opportunities.

The amount a seller takes home after deducting all costs associated with the sale, including real estate commissions, legal fees, mortgage payout penalties, outstanding property taxes, and any required repairs or credits.

A municipal planning document that sets the long-term vision for land use, housing, transportation, and community development. Vancouver's OCP guides zoning decisions and identifies areas designated for future growth and densification.

The formal legal document used to make an offer on a property in BC. It includes the purchase price, deposit amount, completion and adjustment dates, included items, and any subjects. Once accepted by the seller, it becomes a binding contract.

Transferring your existing mortgage (including its rate and terms) from your current property to a new one. Porting avoids prepayment penalties and lets you keep a favourable rate. Not all mortgages are portable — check your lender's policy.

A conditional commitment from a lender for a specific mortgage amount, typically valid for 90 to 120 days. A pre-approval involves a credit check and income verification, giving buyers confidence about their budget and signalling seriousness to sellers.

The purchase of a condo or townhouse unit before or during construction, based on floor plans and a developer's disclosure statement. Pre-sales in Vancouver often require a 5% to 20% deposit and carry completion timelines of 2 to 4 years.

A corporation that a licensed BC real estate agent can form to receive their commission income. PRECs offer tax-planning advantages, including income deferral and income splitting. When you see "PREC" after an agent's name, it indicates they operate through a corporation.

A form where the seller discloses known defects and issues with the property, including water damage, structural problems, pest infestations, and environmental hazards. In BC, sellers are not legally required to provide a PDS, but most buyers expect one.

A provincial tax paid by the buyer when property changes hands in BC. The rate is 1% on the first $200K, 2% on the portion from $200K to $2M, 3% on the portion from $2M to $3M, and 5% above $3M. First-time buyers may qualify for an exemption on homes up to $500K.

A mandatory 3-business-day cooling-off period for residential real estate purchases in BC, introduced in 2023. Buyers who rescind during this period must pay a penalty of 0.25% of the purchase price to the seller.

A key market indicator calculated by dividing total sales by total active listings. A ratio below 12% suggests a buyer's market, 12% to 20% a balanced market, and above 20% a seller's market. GVR publishes this metric monthly for the Metro Vancouver area.

A market condition where buyer demand exceeds housing supply, giving sellers the upper hand. Characterized by less than 4 months of inventory, multiple offers, short days on market, and properties selling at or above asking price.

A provincial tax targeting property owners who do not pay income tax in BC or leave homes vacant. The rate is 2% for foreign owners and satellite families, 0.5% for Canadian citizens and permanent residents who are not BC tax residents. Principal residences and long-term rentals are exempt.

The process of furnishing and decorating a property to make it more appealing to potential buyers. In Vancouver, professional staging can cost $2,000 to $5,000 for a condo and $4,000 to $10,000 for a house, but well-staged homes often sell faster and for higher prices.

A form of property ownership in BC where individual units within a building or complex are privately owned, while common areas (lobbies, hallways, amenities) are shared. Strata owners pay monthly fees and are governed by a strata corporation and bylaws.

Monthly contributions paid by strata unit owners to cover shared expenses including building insurance, maintenance, contingency reserve fund, utilities, and amenity upkeep. In Vancouver, strata fees typically range from $0.30 to $0.80 per square foot per month.

The individual legal title held by a strata unit owner. Each unit has its own strata title that can be independently bought, sold, or mortgaged. The strata plan, filed at the Land Title Office, defines unit boundaries and common property.

The process of waiving the conditions (subjects) in an accepted offer, making the contract firm and binding. In Vancouver, subject removal typically happens within 5 to 10 business days. Once subjects are removed, the buyer's deposit becomes non-refundable if they fail to complete the purchase.

An insurance policy that protects homeowners and lenders against losses arising from defects in title, such as fraud, forgery, encroachments, or survey errors. In BC, title insurance is a one-time premium (typically $200 to $500) paid at closing.

An examination of the Land Title Office records to confirm legal ownership and identify any registered charges, liens, easements, or encumbrances on a property. In BC, your lawyer or notary conducts this before completion.

A lending metric that measures the percentage of gross income required to cover all debt obligations, including housing costs, car loans, credit cards, and student loans. Lenders typically require a TDS ratio below 44%.

A multi-level residential unit that shares one or two walls with adjacent units but has its own ground-level entrance. In Vancouver, townhouses are available as freehold, strata, or bare-land strata, and are popular with families seeking more space than a condo at a lower price than a detached home.

A mortgage where the interest rate fluctuates with the lender's prime rate, which follows the Bank of Canada's overnight rate. Variable rates are often lower than fixed rates initially but carry the risk of payment increases if rates rise.

Municipal regulations that determine what can be built on a parcel of land, including building type, density (FSR), height, setbacks, and permitted uses. Vancouver's zoning bylaws are key to understanding development potential and property value.