Glossary

An adjustable rate mortgage is one that is reviewed at set intervals and then adjusted based on any changes to the lender's prime rate – their lowest available interest rate. This means, if the prime rate drops, your monthly mortgage payments decrease as well. On the flip side, if the prime interest rate increases, than you are on the hook for higher monthly payments too. These adjustments can often take place without much warning, and may happen as often as eight times per year.

The Alberta Farm Fuel Benefit Program allows eligible producers to receive a 9-cent-per-litre provincial fuel tax exemption on the purchase of dyed gasoline and diesel.

The length of your mortgage.

All condominiums must have a yearly meeting where unit owners have the chance to review the books, elect board members, and discuss important issues.

This is someone who is licensed as an associate, but is not qualified to run their own brokerage. They are always employed by, or associated with, a licensed broker and brokerage.

These are people who have completed all the requirements to become a broker, but have decided to work as an associate in someone else's brokerage.

This is where a certain amount of money is taken out of your account each month and transferred into savings or investments.

Using this method, you pay exactly half your normal monthly amount every two weeks – every 14 days. Since there are 52 weeks in a year, you actually end up making 26 payments, or the equivalent of 13 monthly payments in a year. This means that every year, you get the benefit of making an interest free payment directly to your mortgage principal, helping to pay it down faster. Overall, using this method with a 25-year amortization can mean paying off your mortgage 4 to 5 years ahead of time, and saving tens of thousands of dollars in interest.

A board of directors (also known as the board) is a group of individuals that run a condominium corporation. Board members are usually elected each year by the unit owners.

This is a person who is licensed and authorized to operate a brokerage that trades in real estate. There is only one broker per office, and that person has full responsibility for everything that takes place there.