Bridging – Highly advisable and a great way to reduce stress on moving day! You avoid closing two homes on the same day, thereby giving you some breathing room, and a lot less stress for your lawyer. The bank will loan you (bridge) the down payment to close on the new property. When you close on your current home, the bank is then paid back.
Down payment vs. Deposit - Down payment refers to the entire amount of money that you will be putting down to purchase your home. It is often expressed as a percentage of the total sale i.e. 5% down or 20% down. The deposit is an amount that you offer to the Seller as “consideration” with the offer. It is often 5%, but depending on market conditions, it may be advisable to offer more.
Term vs Amortization – The term is the duration of your mortgage agreement, at your agreed interest rate, and is typically a shorter period of time. The amortization refers to the life of the loan – the amount of time required to reduce your mortgage debt to zero. A typical amortization is 25 years.
Chattels vs. Fixtures – If you can pick it up and walk away with it, or unplug it, it is likely a chattel. A fixture is built-in, affixed by screws or nails, and not easily removed. Common confusion lies in things like mirrors, window air conditioners, and window coverings. To avoid misunderstanding, best practice is to write it into the agreement.
Closing – This is a fixed day written into the Agreement of Purchase and Sale that both parties have agreed to transfer title to the property from Seller to Purchaser.
Title – This refers to a formal, legal document that serves as proof of ownership. On closing day, title is transferred from seller to buyer and documented in the Land Titles System.
Elfs – Small fictional characters that assist Santa at Christmas time...except in real estate where agents use this term to refer to Electric Light Fixtures!!
Bully Offer – An offer that comes in prior to the date set for offers. In a competitive market, an eager buyer may choose to have their offer presented to the seller earlier than the date specified on the listing. In areas where inventory is scarce, prices are rising quickly, and buyers have missed opportunities, this scenario is more prevalent.