The process of buying a new home can be a little intimidating because the terms used throughout the process aren't always very easy to understand. If you've found yourself scratching your head after going through some of this process, don't worry: you're not alone! In order to help you parse down what everyone is saying, we've created a new home buyer glossary for you. These are common terms that you should get to know in order to navigate the new home buying process.
Amenities are shared spaces and services that you'll often find included in condominiums, afforded to owners through condo or maintenance fees. These are things like gyms, pools, security, and maintenance services. Similar comforts and conveniences are also available with low-rise homes but are public and open to anyone in the community. These amenities come in the way of parks, schools, sports facilities, and walking trails that require no additional maintenance fees.
Put simply, amortization is the spreading out of payments over time, while also accounting for that time. Every payment made will have a different level of interest and principal borrowed amount. This is because early in the loan the balance owed is higher, which means the amount of interest accrued is also higher. Amortizing formulas figure out what amount is owed each month in order to make sure all the payments add up to the amount borrowed.
Local governments use zoning laws and architectural controls to regulate the construction and design of homes; ultimately making sure that real estate developments happen in an efficient manner. Ontario municipalities use these laws and controls to define things like the size of a home as well as its look and feel. With this planning in place, new communities not only work functionally but aesthetically.
Builders are an integral part of the home-buying process! While the developer focuses on the layout of the community and the amenities that will be available therein, builders are centered around the construction of the homes within the community. They work to create a perfect aesthetic for the new neighbourhood through housing options that reflect the essence of the suburb. Expect builders to meet with potential buyers to walk them through model homes in order to showcase floor plans, interior and exterior styles, and possible upgrade options available.
These are just a few of the terms you'll come across during the home buying process. Be sure to follow Marina Home's blog series for more of these terms so that you can stay confident while going through your next purchase.