Before you start...
1. See a bank for Pre-Approval Mortgage.
2. Ensure you have access to 5% Downpayment.
3. Ask about RRSP withdrawl without penalty.
4. Discuss Purchase Agency Representation/ Open Houses.
5. Make a "must" and a "wish" list of home requirements.
6. Try not to see houses above your budget.
7. Plan to see at least 5-10 houses to become educated on value.
8. Discuss the purpose of a "Home Inspection".
9. Ask about current market conditions.
10. Decide on 1st and 2nd choice of neighbourhood.
11. Try to make this fun...but remember, this is the biggest purchase you will make, so don't be rash about it!
Costs...
1. Land Transfer Tax (approx. 4% of purchase price). Ask about exceptions and rebates.
2. Real Estate fees NONE, paid by the Seller.
3. Deposit: 5-10% required at time of offer.
4. Home Inspection (approx. $350-$450 houses only).
5. Legal fees (approx. $1200-$1600).
6. Mortgage and appraisal fees (can be waived).
7. Taxes (GST only applies to new construction HST comes into effect July 2010.
8. Discuss the difference between Title Insurance and Survey $500-$1200.
9. Moving costs range from $75-$100 per hour.
10. House insurance (required by mortgage holder $400).
11. Included in legal fees are adjustments for utilities taxes etc. and are handled by the lawyers.
12. House Warming Party! (optional)
The Offer Process...
1. You've seen the perfect property.
2. Decide on an offer price.
3. Ensure Bank approval has been obtained in writing.
4. Know your maximum price.
5. Plan a Home Inspection.
6. If multiple offers are expected, do a Pre-Inspection.
7. Ensure funds are available for the deposit Internet banking may take 3 days certified).
8. Draw up an offer with a price, deposit, closing date, irrevocable (time deadline for vendor) special clauses (survey, # of visits, what is included, inspection clause, mechanics in good working order, status certificate for condos).
9. Read over and sign offer, provide deposit cheque.
10. Stand by and we'll keep you informed.
