BUYING A HOME

IS ONE OF THE BIGGEST FINANCIAL INVESTMENTS AND DECISIONS YOU WILL MAKING!!!!!

Legally: Must be 19 years old.

Prior to considering a real estate purchase: Ask yourself if you are emotionally and financially capable of buying & Maintaining & living in a home of your own.

HOW TO GO ABOUT IT

1) Analyze your wants and needs (put your needs ahead of your wants)

2) QUALIFICATION - USE A REALTOR OR NOT?
- How much can you afford to pay? GET PRE-QUALIFIED!
- See a Banker, Mortgage Broker or Realtor for pre-qualifications.
- Most purchasers usually cannot afford to pay cash for a home so they
have to borrow money. This is called a mortgage and so they have to
borrow money. This is called a mortgage and it is defined as a
temporary transfer of property to a creditor as a security for the
repayment of the debt.
- To qualify for a mortgage you need to meet two main requirements:
a) you have to have a minimum of 5% down payment (there are some exceptions that you don't even need a down payment)
b) your ability to pay back the loan (a secure income)
- There are different types of mortgages and it is best to discuss these
options with your loans officer; however, if your down payment is less
than 25% it is called a "High Ratio" mortgage and if your down payment
is 25% or more it is called a "Conventional" mortgage.
- USE A REALTOR - this is not intended to be a pitch for Realtors but
rather an insight into the function of a Realtor - Do not shy away
from Real Estate Agents (find a Realtor you feel comfortable with
and one you feel will best tend to your wants and needs (work hard to
find what you are looking for).
- Your Realtor should be considered as your real estate investment broker
just as you would use your stockbroker for buying on the stock market.
- Realtors are conversant with current market prices.
- Realtors are bonded and are responsible for representations made to
Purchasers.
- Real Estate Agents are affiliated with the MULTIPLE LISTING
SYSTEM (MLS) meaning that any salesperson can show you anything
on the market listed for sale including Exclusive Listings.
- Look at "For Sale by Owners" as well as listed properties through your agent because you want to see the entire market of properties available in your price range prior to making your decision.

3) NOTE ALL THE COSTS OVER AND ABOVE YOUR DOWN PAYMENT
-Appraisal- professional opinion of value of what the property is worth
(Approx. cost $350).
- Survey - proper dimensions of property with respect to how the
buildings are situated on it (Approx. cost $350).
- Legal Fees - Transfer of property to your name & drafting of mortgage
& all adjustments re: taxes/utilities (for drafting a mortgage your legal
fees usually run 1% or mortgage amount.)
- Provincial Purchase Tax - tax on purchase price on real property is paid
to government - 1% on first $200,000 and 2% thereafter (IF THIS IS
YOUR FIRST HOME AND IT WILL BE YOUR PRIMARY RESIDENCE YOU
MAY QUALIFY FOR NOT PAYING ANY PURCHASE TAX).
-Service Fees - from financial institutions (CHMC).
- Goods & Services Tax (GST) - 5% tax on sale price on brand new totally
renovated homes. Be aware the Vendor (the owner of the home) pays
GST of 5% on their real estate commission but it is the purchaser's
responsibility to pay GST on the purchase price if it is applicable.
- Insurance - Homeowner's insurance needs to be in place prior to
moving in & this should always be a subject on any offer you make.

4) TIME TO LOOK FOR A HOME:
- Stay within your price range (don't go 20% higher than price range)
- Location - buy in a good location in regard to resale value and what
suits your needs best.
- Structure - make sure there are no major structural defects: if you like
a particular home it is recommended to get a home inspection report
from an independent inspector, especially if you are not familiar with
construction (approximate cost is $300. to $400.)
- Don't Buy the First you see until you see others (shop & compare)
DON'T BE AFRAID TO ASK QUESTION!!!!!
- Always take a second look at a house before making an offer (USE
A CHECKLIST TO BE MORE THOROUGH).
- Check to see if there are any Restrictive Covenants or Easements
on the property - Check property taxes.

5) READY TO MAKE AN OFFER:
- ALL OFFERS ON REAL ESTATE ARE REQUIRED BY LAW TO BE IN
WRITING.
Always get a professional to write up your offer whether it be a
real estate agent, lawyer or notary public.
- In order to have a contract the Seller (owner) must accept the offer
- If you require financing and are not sure of something with regards to the
property you want to buy, MAKE YOUR OFFER "SUBJECT TO" being
satisfied with whatever it is that you are unsure of.
- Make your offer based on comparative properties that have recently sold and
and that are presently available for sale.
- Include all items, which are to be purchased with the home and remember that
initially you purchase land and buildings and NOT chattels.

THERE IS NEVER A PERFECT HOUSE! Be cautious not to "discount" a price
Because the house isn't exactly what you want.

Buyer Checklist - Before you buy a home, make sure you check out the information found on this checklist

Canadian mortgage calculator - Check this link to calculate your mortgage payment.