Canadian Property
Purchase - An Overview
Buying a
house can be an exciting, if somewhat daunting experience! You
will want to answer all kinds of questions.
Typical
One-Time Expenses
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|
Initial
Deposit |
When
submitting offer |
$1000-$5000 |
|
Mortgage Application & Appraisal Fee |
When
arranging financing |
$150-$235 |
|
Home
Inspection (optional) |
Acceptance
of Conditional offer |
$200-$400 |
| Home
and Property Insurance |
Closing
and On-going |
$300-$500 |
|
Legal Fees |
Closing |
$400-$600 |
| Legal
Disbursements |
Closing |
$400-$700 |
|
Mortgage
Interest Adjustment (if Applicable) |
Closing |
Varied |
|
Adjustments for Fuel, Taxes Etc |
Closing |
$100-$900 |
|
Land
Transfer Tax (Ontario) |
Closing |
various |
|
Property Survey if not provided |
Closing |
$700 &
up |
|
Moving
Expenses |
Date of
Move |
$200 & up |
|
Mortgage Insurance (if applicable) |
Closing
|
Varied |
Typical
monthly costs incurred with home ownership include mortgage
payments, maintenance, insurance, condo fees, property taxes and
utilities.
Understanding
Market Conditions
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The real estate
market is always changing. It helps to understand how market
conditions can affect your position as a buyer. Your realtor can
provide you with current real estate market conditions and
explain their impact.
Pre-Approved Mortgage
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Qualifies you for a mortgage before you start shopping. You
know exactly how much you can spend and are free to make a
"firm" offer when you find the right home.
Finalising Your Mortgage
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Once
you've found the home you want to purchase, there are some
documents you'll probably be asked for in order to finalize your
financing. They will include:
- A copy of the real estate listing
of the property. If the home is still to be built, the
mortgage lender will need to see the architect's or
builder's plans and details on lot size and location.
- A copy of the offer to purchase or
the building contract, if this document has been prepared.
- Documents to confirm employment,
income and source of down payment (if not provided at
pre-approval).
If you have a Pre-Approved Mortgage, it's
a simple matter of finalizing a few details.
The Main Elements of an Offer
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1. Price Depending on local market
conditions, your choice of representation, your opinion of
value and market information we provide, the price you offer
may be different from the seller's asking price.
2. Deposit
The Deposit shows your good faith
and will be applied against the purchase of the home when
the sale closes.
3. Terms
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.
4. Conditions
These might include "subject to
home inspection", "subject to you obtaining financing" or
"subject to you selling your property".
5. Inclusions and Exclusions
These might include appliances and
certain fixtures or decorative items, such as window
coverings or mirrors.
6. Closing or Possession Date
Generally, the day the title of
the property is legally transferred and the transaction of
funds finalised unless otherwise specified.
When it comes time to
make an offer, we can provide current market information and
assist you in drafting your offer.
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 can guide you through this process.
Offer to Purchase is a legal
document which specifies the terms and conditions of your offer
to purchase the home. The offer can be "Firm" or
"Conditional".
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
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A legal professional is there
to represent your interests and to process the legal
documentation required. Your Realtor can provide you with the
names of legal professionals who specialize in real estate. The
legal process differs from province to province. Your legal
professional will advise you on the steps to be taken before the
keys to your new home are presented to you.
Have the Home Inspected
(Optional but Recommended)
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Having the property inspected
by a qualified home inspector may give you the added confidence
that you've made the right decision. When the procedure is
complete, you will likely receive a full written report plus
estimated costs for any necessary repairs.
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