New Build Glossary

How quickly homes in a community are selling. A high absorption rate means homes are selling fast — typically a sellers market.

The number of homes sold in a given period divided by the total active inventory, expressed as a percentage. Used to assess supply and demand dynamics in a specific market segment.

A high-level blueprint that shows how a large area of land will be developed — roads, schools, parks, and future neighbourhoods.

A statutory planning document approved by municipal council that establishes land use, infrastructure, and environmental management frameworks for a defined geographic area before detailed development occurs.

A type of ownership where you own your lot and home, but the roads, lanes, and shared areas are owned collectively by a corporation that all owners belong to. You pay monthly fees to maintain those shared areas.

A condominium plan type under the Alberta Condominium Property Act that divides land (not airspace) into individually titled units and common property, governed by a condominium corporation with mandatory fee obligations.

Everything that separates the inside of your home from the outside — walls, roof, windows, and foundation. A failure in the building envelope lets water in and causes serious damage.

The physical separator between the conditioned interior space and the exterior environment, encompassing the thermal barrier, moisture control system, air barrier, and structural shell. Covered under the 5-year Alberta New Home Warranty.

Mandatory mortgage insurance required when your down payment is less than 20%. It protects the lender, not you — but you pay the premium.

Mortgage loan insurance provided by Canada Mortgage and Housing Corporation (or a private insurer) for high-ratio mortgages where the LTV exceeds 80%. The premium (ranging from 0.6% to 4% of the mortgage) is added to the loan principal.

All the fees and costs you pay on top of your purchase price to finalize the sale — legal fees, title insurance, GST, and adjustments for property taxes.

The aggregate of all fees, taxes, and adjustments payable on the possession date, including but not limited to: legal fees, title insurance, GST, prepaid property tax adjustments, new home warranty enrollment fee, and utility connection fees.

A scheduled payment to the builder as your home reaches certain stages of construction. For self-builds or custom homes, you release money from your construction loan at each stage.

A disbursement from a construction mortgage facility upon completion of defined construction milestones (foundation, framing, lock-up, drywall, completion). The lender typically inspects each stage before releasing funds.

A window of time after signing a purchase agreement where you can cancel without penalty. Not all Alberta new build contracts include one — confirm before signing.

A statutory or contractual period following contract execution during which the purchaser may rescind the agreement without financial penalty. Not uniformly required in Alberta new home purchase agreements — presence and duration depend on the contract.

The builder's showroom where you choose your finishes — flooring, cabinets, countertops, fixtures. This is where most buyers accidentally overspend.

A builder-operated selection centre where purchasers choose standard and upgraded interior specifications post-contract signing. Changes are reflected in a design addendum that amends the original purchase agreement.

Anything in your new home that is incomplete, damaged, or not built to the standard agreed upon. You document these at your pre-possession walkthrough.

An item of workmanship, material, or installation that deviates from the specifications in the purchase agreement, applicable building codes, or accepted trade standards. Must be documented in writing and submitted to the builder with a defined remedy request.

A government-assigned score that tells you how energy efficient your home is. A higher rating means a more efficient home with lower utility bills.

A standardized measurement system for home energy performance established by Natural Resources Canada, expressed in gigajoules per year. A lower number indicates better performance (less energy consumed). New Alberta homes typically rate between 55 and 80 GJ/yr.

The most complete form of property ownership. You own both the land and the home on it, with no condo fees or corporation involvement.

A form of absolute ownership in which the titleholder holds the land and all structures in perpetuity, subject only to government restrictions (zoning, easements) and voluntary agreements (HOA, RPR obligations). The most unrestricted form of real property ownership in Canadian law.

A government-registered savings account that lets first-time buyers save up to $40,000 tax-free specifically for a home purchase. Contributions are tax-deductible.

A registered plan under the Income Tax Act allowing eligible first-time homebuyers to contribute up to $8,000 annually (lifetime limit $40,000), with deductible contributions and tax-free withdrawals when used for a qualifying first home purchase.

A partial refund of the 5% GST charged on new homes. The rebate applies to homes priced under $450,000 and can return up to $6,300.

A rebate under the Excise Tax Act that allows purchasers of new residential property to recover a portion of the GST paid. The maximum rebate of $6,300 applies to properties at or below $350,000, phasing to zero at $450,000. Requires primary residence occupancy.

A program that lets first-time buyers withdraw up to $60,000 from their RRSP tax-free to use as a down payment, as long as they repay it over 15 years.

A federal program permitting first-time homebuyers to withdraw up to $60,000 (as of 2024) from registered RRSP accounts for a qualifying home purchase, repayable over 15 years commencing the second year after withdrawal.

A community organization that sets and enforces rules for your neighbourhood — like what colour you can paint your fence or whether you can park an RV in the driveway. You pay an annual or monthly fee.

A non-profit corporation formed by a developer to manage common amenities and enforce architectural and land-use standards within a defined residential community, funded through mandatory assessments on all member properties.

A ventilation system in modern airtight homes that exchanges stale indoor air with fresh outdoor air, while recovering most of the heat so you're not wasting energy.

A mechanical ventilation device that transfers thermal energy from exhausted indoor air to incoming fresh outdoor air via a heat exchange core, maintaining indoor air quality while minimizing heating energy losses. Required in energy-efficient new construction.

A professional inspection of your new home done by someone hired by you — not the builder. They check for construction deficiencies before you take possession.

An independent assessment of a newly constructed home's condition performed by a certified home inspector engaged by the purchaser (not the builder). Typically conducted at the pre-possession walkthrough stage to document deficiencies prior to title transfer.

A detached home where the garage is accessed from a back alley rather than the front street, keeping the front of the home more open.

A single-family residential dwelling configuration in which vehicle access to the attached or detached garage is provided via a rear lane, permitting a reduced lot width while maintaining a pedestrian-friendly streetscape.

An extra charge on top of the base price for a desirable lot — like one backing a park, on a corner, or with a wider frontage.

An additional purchase price component charged by the builder for lots with superior characteristics relative to standard lots in the same community. Common premium drivers include: backing greenspace/pond, corner lot configuration, cul-de-sac position, premium orientation.

The number used to calculate your annual property tax. The city multiplies your assessed home value by the mill rate to determine your tax bill.

The tax rate applied per $1,000 of assessed property value to calculate annual municipal property tax obligations. In Calgary, the residential mill rate is set annually by City Council based on budgetary requirements. Also called the tax rate or levy rate.

A test that determines whether you could still afford your mortgage if interest rates increased by 2 percentage points. You must pass it to get approved for a mortgage in Canada.

A mandatory qualifying rate assessment under OSFI B-20 guidelines requiring insured borrowers to qualify at the greater of their contract rate plus 2% or the published benchmark qualifying rate (5.25% minimum). Applies to all federally regulated lender originations.

A more detailed planning document that outlines exactly where roads, parks, schools, and homes will go in a specific neighbourhood.

A statutory land use planning document that implements the broader Area Structure Plan for a specific neighbourhood, establishing detailed street networks, lot configurations, park and school locations, and servicing requirements.

Mandatory coverage on all new homes in Alberta that protects buyers against construction defects. Coverage periods are: 1 year for workmanship, 2 years for delivery systems, 5 years for building envelope, and 10 years for structural defects.

Coverage mandated under the New Home Buyer Protection Act (Alberta) providing tiered warranty protection: 1-year workmanship and materials, 2-year delivery systems (HVAC, plumbing, electrical), 5-year building envelope, and 10-year structural. Provided through an approved warranty provider.

The day you officially get the keys to your new home and ownership transfers to you.

The contractually specified date on which possession of the property transfers from the vendor (builder) to the purchaser, typically coinciding with the legal closing date. Subject to delay clauses in most new build purchase agreements.

An inspection done before the walls are closed up, while all the framing, wiring, plumbing, and insulation are still visible. The last chance to catch hidden issues.

A construction inspection conducted between the mechanical rough-in and insulation/drywall installation phases, during which structural framing, electrical rough-in, plumbing rough-in, and HVAC ductwork are accessible for visual inspection and correction.

A surveyed diagram showing your property boundaries and the location of all structures on your lot. Required by lenders and municipalities for closing.

A legal document prepared by a licensed Alberta land surveyor showing the boundaries of a property and the location of all visible improvements thereon. Required for municipal compliance and title insurance in Alberta real estate transactions.

A savings account that a condo corporation builds up over time to pay for big future repairs — like repaving a private road or replacing a roof on a shared structure.

A mandatory capital fund maintained by a condominium corporation, funded through owner contributions, designated to cover the cost of major common property repair and replacement items as identified in a Reserve Fund Study.

An unexpected extra charge levied on all condo owners when the reserve fund doesn't have enough money to cover a major repair. Can be thousands of dollars with short notice.

An extraordinary levy imposed on condominium unit owners to fund repair or replacement costs that exceed the reserve fund balance. Typically approved by ordinary resolution at a general meeting, though emergency assessments may be imposed by the board.

Insurance that protects you if a problem with the legal ownership of your home is discovered after closing — like an existing lien or survey error.

An indemnity insurance product that protects the insured against loss arising from title defects, encumbrances, or adverse claims that may not be apparent at time of purchase. Available in owner and lender policies. One-time premium paid at closing.

An optional feature or finish you choose above the builder's base standard — like hardwood instead of carpet, or a larger kitchen island.

A design or specification selection that exceeds the builder's standard inclusions, adding to the purchase price via a design addendum. Upgrades become part of the purchase agreement and are subject to GST. Their contribution to resale value varies significantly.