Reference · Fraser Valley

Real estate terms, explained plainly.

Buying your first condo or townhouse in the Fraser Valley means running into a lot of shorthand: PTT, FHSA, Form B, GDS and TDS. Each term below links to the full FRIVE guide that covers it in depth, with sources.

Written and reviewed by Michael Goering, BC-licensed REALTOR®

Money & mortgage

CMHC premium (mortgage default insurance)(CMHC premium)
The insurance premium you pay when your down payment is under 20%. It protects the lender, not you, and the rate depends on exactly how much you put down. Full guide →
Insured vs. uninsured mortgage
The line sits at 20% down. Below it, your mortgage is insured and you pay a CMHC-style premium. At or above it, no premium, but different qualifying rules apply. Full guide →
GDS and TDS ratios(GDS / TDS)
The two debt-service ratios lenders use to decide what you qualify for: GDS covers housing costs against income, TDS adds in your other debts. Whichever ceiling is lower usually decides your number. Full guide →
Pre-qualification vs. pre-approval
A pre-qualification is a rough estimate with no documents checked. A pre-approval holds a rate and involves a credit pull. They sound alike but aren't the same number. Full guide →
Blend and extend
A way to change a mortgage mid-term by folding today's rate into your existing one and resetting the term, often without the penalty a full break would trigger. Full guide →
Interest rate differential (IRD)(IRD)
The formula lenders use to calculate the penalty for breaking a fixed-rate mortgage early. It can be far larger than the simple three-months'-interest penalty buyers often expect. Full guide →
HELOC (home equity line of credit)(HELOC)
A line of credit secured against the equity you've built in your home after you own it. Useful for some move-up buyers, but it comes with its own qualifying rules and risks. Full guide →

Programs & taxes

Property Transfer Tax (PTT)(PTT)
A provincial tax paid on closing when you register a property in BC. First-time buyers and buyers of qualifying new builds can get a full or partial exemption depending on the purchase price. Full guide →
First Home Savings Account (FHSA)(FHSA)
A registered account that combines an RRSP-style tax deduction on contributions with TFSA-style tax-free withdrawals, as long as the money goes toward a qualifying first home. Full guide →
GST on a new home(New-home GST)
New builds in BC carry 5% federal GST that resale homes don't. A federal rebate can offset some or all of it for qualifying first-time buyers, depending on the purchase price. Full guide →
Speculation and Vacancy Tax(SVT)
A provincial tax that applies in Abbotsford, Mission, and Chilliwack (among other BC regions). Most owner-occupiers owe nothing, but everyone in a covered area must still file a declaration every year. Full guide →
BC Home Flipping Tax
A tax on the profit from selling a BC property within two years of buying it, in effect since January 1, 2025. It applies to sellers, but it's worth knowing before you buy if there's any chance you'll need to sell early. Full guide →
Foreign buyer ban
Canada's restriction on residential purchases by non-Canadians, currently extended through the end of 2026, with exemptions for several categories of newcomers and permanent residents. Full guide →
Small-Scale Multi-Unit Housing (SSMUH)(SSMUH zoning)
BC's provincial zoning law allowing multiple homes on lots that used to be zoned for a single detached house, now in effect across Surrey, Langley, Abbotsford, and the rest of the Fraser Valley. Full guide →

Offer & closing

Deposit vs. down payment
The deposit is paid early, as a show of good faith, and held in trust. The down payment is the full amount you put toward the purchase price at closing. The deposit usually becomes part of the down payment. Full guide →
Subject removal
The point in a BC deal where your conditions (financing, inspection, and so on) are satisfied or waived and the contract becomes firm. Your deposit is committed once subjects are removed. Full guide →
Home Buyer Rescission Period(Rescission period)
A legislated 3-business-day window after an accepted offer where a BC buyer can walk away for any reason, for a fee equal to 0.25% of the purchase price. It runs alongside, not instead of, your subject conditions. Full guide →
Appraisal gap
The shortfall when a lender's appraisal comes in below your purchase price. You typically need to cover the difference in cash, since the mortgage is based on the lower of the two. Full guide →
Title insurance
A one-time policy, usually bought at closing, that protects against fraud, undisclosed liens, and survey problems affecting your ownership. Full guide →
Buyer agency agreement
The document that formally makes a REALTOR® your agent, with duties of loyalty and confidentiality attached. Before you sign it, an agent showing you homes owes you far less. Full guide →
Dual agency ban
BC has banned one agent from representing both the buyer and seller in the same deal since 2018. A narrow designated-agency exception exists within the same brokerage. Full guide →
Assignment sale
Buying someone else's presale contract before the building is finished, stepping into their spot rather than buying from the developer directly. Comes with its own GST and consent rules. Full guide →
Joint tenancy vs. tenancy in common
The two ways co-buyers hold title in BC. Joint tenancy passes a deceased owner's share automatically to the survivor; tenancy in common lets each owner will their share to whoever they choose. Full guide →

Strata & ownership

Strata depreciation report
A long-term repair and funding forecast every larger BC strata must keep current. It's the closest thing a buyer gets to seeing a building's future repair bill before making an offer. Full guide →
Contingency reserve fund (CRF)(CRF)
A strata's savings account for large, irregular repairs, funded by a legal minimum of 10% of the annual operating budget each year. A thin CRF can signal a special levy is coming. Full guide →
Form B (Information Certificate)(Form B)
A snapshot of a strata unit's financial and legal status: fees, reserve fund balance, any levies, and parking. The strata must provide it within 7 days of a request. Full guide →
Form F (Certificate of Payment)(Form F)
Confirms an owner doesn't owe money to the strata. Generally required to transfer title, so a missing or problematic Form F can hold up closing. Full guide →
Leasehold vs. freehold
In a freehold strata you own the land under the building; in a leasehold, you don't, and the lease has an expiry date. The distinction can be easy to miss on a listing but changes a lot about the purchase. Full guide →

General information only. These definitions summarize BC law and lending practice as of 2026 and aren't legal, tax, or mortgage advice. Rules and thresholds change, confirm current details with a lawyer, accountant, or mortgage broker before relying on them. See our strata guide for everything condo and townhouse ownership, or the first-time buyer guide for the money side of a purchase.

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