Our Buying Guide:
The Key to Buying your Home
Buying a home can be both exciting and sometimes overwhelming. This guide outlines the steps we follow to make your search is a successful one.
Determine What You Can Afford
Purchasing a home involves one-time costs and monthly expenses. The largest one-time cost is the down payment, which typically represents between 5 – 25% of the total price of the property.
In addition to the actual purchase price, there are a number of other one-time expenses that you might be expected to pay for. These are outlined below.
Obtain a Pre-Approved Mortage
A pre-approved mortgage protects you against interest rate increases while you look for your new home.
We will help you find the right home and if you wish, refer you to some excellent mortgage specialists to help you secure the best possible financing.
Once you’ve found the home you want to purchase you’ll require the following in order to confirm financing:1 A copy of the real estate listing of the property.
Typical One-Time Expenses
|Mortgage Application & Appraisal Fee (if applicable)||When you apply|
|Property Inspection (optional)||At inspection|
|Property Survey (sometimes provided by seller)||Closing|
|Land Transfer Tax or Property Purchase Tax
(in Quebec within 3 months following signing)
|Mortgage Interest Adjustment & Take Over Fee (if applicable)||Closing|
|Adjustments for Utilities, Property Taxes, etc.||Closing|
|Mortgage Insurance (and Application Fee if applicable)||Closing|
|Home and Property Insurance||Closing & Ongoing|
Typical monthly costs incurred with home ownership are mortgage payments, maintenance, insurance, property taxes and utilities - and in the case of a condominium, monthly condo fees.
The Major Elements of an Offer
Depending on local market conditions, your opinion of value, and marketing information that we provide you, the price you offer may differ from the seller’s asking price.
The deposit shows your good faith and will be applied against the purchase of the home when the sale closes. Together, we can determine the appropriate amount for your deposit.
This includes the total price offered and the financing details. You may arrange your own financing or ask to assume the seller’s mortgage, especially if it has an attractive interest rate.
These might include “subject to home inspection”, “subject to buyer obtaining financing” or “subject to buyer selling their property, etc.
Inclusions and Exclusions
These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors.
Closing or Possession Date
Generally, the day the title of the property is legally transferred and the transaction of funds finalized unless otherwise stated.
How to Make an Offer
When it comes time to make an offer, we can provide current market information and will assist you in drafting your offer at your chosen offer price and terms.
We will communicate your offer, sometimes known as an Offer To Purchase*, to the seller, or the seller’s representative, on your behalf. Sometimes there may be more than one offer on a property coming in at the same time. We have a lot of experience dealing with multiple offer situations and can guide you through this process.
*Offer To Purchase: a legal document which specifies the terms and conditions of your offer to purchase the home. The offer can be Firm or Conditional.
Firm Offer To Purchase
Usually preferable to the seller, because it means that you are prepared to purchase the home without any conditions. If the offer is accepted, the home is yours.
Conditional Offer To Purchase
Means that you have placed one or more conditions on the purchase, such as “subject to home inspection”, “subject to financing”, or “subject to sale of buyer’s existing home”. The home is not sold until all the conditions have been met. In the province of Quebec, this is referred to as a “Promise to Purchase”.
Acceptance of the Offer
Your Offer to Purchase will be presented as soon as possible. The seller may accept the offer, reject it, or submit a counter-offer. The counter-offer may be in reference to the price, the closing date, or any number of variables. The offers can go back and forth until both parties have agreed or one of you ends the negotiations.
Hire a Legal Professional
A legal professional is there to represent your interests and to provide the legal documentation required. We can provide you with the names of legal professionals who specialize in real estate in order for you to choose the lawyer whose style best suits your needs.
The legal process differs from province to province and your legal professional will advise you on the steps that must be taken before the keys to your new home are presented to you.
Have the Home Inspected (optional)
We consider this to be a best practice. Having the property inspected by a qualified home inspector will give you the added confidence that you’ve made the right decision (costs vary). When the procedure is complete, you may wish to ask for a full written report plus estimated costs for any necessary repairs.