Buyer's Guide

Be Aware of Any Problems Before You Buy!

*Fact: The average home buyer spends 15-20 minutes walking through a house before making a decision whether or not to make the largest purchase of his/her life.

Why not ask questions like:

  • Is the home structurally sound?
  • Is the electrical service adequate for my needs?
  • Is the home well insulated?
  • Are there termites?
  • Are there hidden repair costs that will surface after the purchase?
  • What are my priorities in terms of renovation and repair?

Result:

  • You will become an informed purchaser.
  • You will reduce the risks of home ownership.
  • You will increase your Peace of Mind.

What Will the Home Inspection Service Do?

Go over every nook and cranny of the house to discover its true condition.

This includes:

  • Exterior
  • Structure
  • Heating
  • Insulation
  • Roof
  • Electrical
  • Plumbing
  • Interior

And will tell you:

  • Improvements needed
  • When you should do them

What You Can Do?

  • Select a Qualified Home Inspector
  • Attend the inspection personally
  • Learn about the technical features of the house
  • Discuss any concerns or plans for change

Step by Step Buying Process

  1. Meet with your D.F.H. sales professional, John Smith.
  2. Conduct an in-depth qualifying analysis to determine the price range of the property that best suits your needs.
  3. Review the features and amenities you desire in a home.
  4. View the most desirable properties in your price range selected from our extensive inventory of available properties.
  5. When you have selected the home you want to own, we prepare a Contract of Purchase and Sale.
  6. Engage in the process of negotiation with the Seller.
  7. When the Contract of Purchase and Sale is acceptable to both parties, we insure that copies of all documents are available to both parties and their solicitors.
  8. If a mortgage is required, we can assist in the mortgage application and mortgage approval process.
  9. When the transaction becomes a binding agreement, you solicitor searches title to determine:
    1. An accurate description of the lawful use of the property
    2. Restrictions as to the insurability of the property
    3. Encumbrances, liens, easements, restrictions, encroachments, or other claims registered on title (e.g. mortgages, rights of way, etc)
  10. Your solicitor makes requests to the seller's solicitor within a pre-determined date set out in the Contract of Purchase and Sale
  11. Your solicitor verifies financing commitments with the lenders
  12. When all searches are satisfied, the solicitors arrange with the lenders for the transfer of funds from the lenders
  13. You arrange insurance coverage to commence from the date of closing
  14. Your solicitor contacts the tax department to determine amounts for closing adjustments
  15. You are responsible for ensuring all utility bills (hydro, water, garbage collection if applicable) are up to date and advising your solicitor if they are not so that adjustments can be made at closing.
  16. You meet with your solicitor to review and sign the closing documents (mortgage, deeds declarations, undertaking, etc.)
  17. Solicitors for both parties exchange documents, funds and register all documents on title
  18. The keys are releasable to you on possession date at 12:00 noon.

How I Work For You

  1. Tell me your most important considerations in selecting a home
  2. I will then search for homes by:
    1. Computer on a daily basis
    2. Reviewing all changes to the listing database on a daily basis
    3. Reviewing all other real estate office listings
    4. Reviewing "cancelled" and "expired" listings that may be available
    5. Contacting other real estate colleagues who may know of suitable listings I will gladly make appointments to show you those that interest you.

Whether You Find a Home By...

  1. Seeing an ad in the paper
  2. Driving by a "FOR SALE" sign
  3. Visiting a open house
  4. Hearing about a home for sale from a friend or neighbour

Call me and we'll set the wheels in motion.

Summary of Home Buying Process...

Briefly:

  1. Selecting homes
  2. Viewing homes
  3. The contract
  4. Earnest money deposit
  5. Closing
  6. Possession - YOU get the keys!

The Myth of the "Dream House" Don't be a Victim...

Reality:

By the time the average person reaches the age of 55, he/she will have changed homes about 6 times!! Buy what you can afford now and get into the market. Allow the equity in your home to grow. You will have the money to buy that Dream House when it comes along. Don't Let Your Opportunity Pass You By!!

Introduction to Mortgages...

What is a Mortgage? A mortgage is an interest in property provided by the borrower as security for a loan. The borrower (Mortgagor) receives funds. The lender (Mortgagee) has an interest in the property until the loan is repaid. Sources of Mortgage Funding: Chartered Banks Life insurance companies Loan companies Mortgage brokers Sellers Trust companies Credit Unions Finance companies Private placements.

Types of Mortgages:

  • Conventional Loan - cannot exceed 75% of the appraised value of the property.
  • High Ratio Loan - can exceed 75% of the appraised value and must be insured if arranged through a bank or trust company.
  • CMHC Loan - can go up to 95% for qualified buyers Lenders are insured against loss by Canada Mortgage and Housing Corporation Insurance fee is payable by buyer and is on a scale.
  • Collateral - A loan secured by a Promissory Note and then further secured by means of a mortgage on the property.

Summary of Closing Costs

  • Survey - If the seller does not provide you with an acceptable survey and a new one is required, it will cost approximately $350 and up
  • Mortgage Appraisal - The lending institution may need an appraisal on a new mortgage. This will cost approximately $175 but many banks discount this fee
  • Legal Fees - Legal fees vary according to the lawyer. Make sure you ask what the fee includes. This will cost approximately $500 and up PLUS disbursements. (I can provide a list of lawyers)
  • Disbursements - There will be other costs which the lawyer will have to pay on your behalf, i.e. registration fees, photocopies, couriers, etc. Approximately $250 and up.
  • Statement of Adjustments - Buyer and Seller are each responsible for their share of taxes, fuel, and utilities.
  • Home Insurance - Home insurance varies from one insurance company to another. Contact your broker for rates.
  • Mortgage Application - A processing fee is charged by some brokers.
  • Purchase Transfer Tax - 1% up to $200,000 and 2% above $200,000 except for first time buyers who qualify.
  • GST - Most residential re-sale homes are exempt from GST unless they are substantially renovated. However, most SERVICES involved with the transaction will be subject to GST, e.g.
    • Lawyer's fees
    • Appraisals
    • Processing fees
    • Home Inspections
    • Moving costs
    • Real estate fees

Costs associated with purchasing property vary. This is a general guide only.

Approximate example for a $200,000 purchase:

Survey* $350.00 (if required)
Legal* 500.00  
Home Inspections* 265.00 (if required)
Disbursements* 250.00  
Insurance* 350.00  
Mortgage Application* 150.00 (if required)
Mortgage Appraisal* 200.00 (if required)
  $1795.00  
GST* 125.65  
  $1910.65  

Purchase Transfer Tax of $2000.00 would be payable for current homeowners in the example. This tax is not payable by first time home buyers who qualify. Your lawyer of notary will advise you on this matter.