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BUYING
What
investment allows you to have the best RRSP you could ever have,
provides shelter, pride of ownership and at the end tax free
money
or retirement income via reverse mortgage?
YOUR HOME!!! Steps to Buying a
Home: FINANCING -
Most buyers need to obtain a mortgage when purchasing a home.
The mortgage you need to qualify for is the amount of the Purchase
less the amount of Down Payment you are applying. There are
two types of mortgages: 1. Conventional which requires
you to have 25% of the Purchase price and thus no more than 75% of
the purchase price for the mortgage; 2. High-Ratio
Mortgage is above the 75% mentioned earlier.
FIND YOUR DREAM HOME -
Purchasing a home is probably the biggest investment decision that
you will ever make. You definitely would want a team of
professionals to assist you. A Mortgage Lender, a Lawyer, a
Home Inspector are a few professional people to aid you in a safe
purchase. And, who is able to help you find your home and help
you contact all the others? A professional Real Estate
Salesperson.
YOUR SALESPERSON -
Selecting a professional real estate salesperson provides you
with someone who can help you find the right house - remember the
three words of real estate: Location, Location, Location -,
negotiate the offer and assist you with financing, inspections and
all relevant aspects of the purchase. The salesperson, now,
has access to the MLS or Multiple Listing Service and is able to
find the area and the best house for you. It is best that you
select one and only one salesperson to work for you. It used
to be that it was best to select a salesperson who 'worked the
area'; but, that is really not the case anymore. A good
salesperson can obtain all the data regarding the neighbourhood, the
current 'For Sales' and the 'Solds' in a very short time.
How much will it all cost?
Deposit - this is an amount that you need to
have ready when you make an offer to purchase. If your offer
is accepted by the seller then your cheque will be cashed within 48
hours.
Down Payment - This is the amount of cash or
equity that you placing against the property purchase (this includes
the Deposit)
Inspection Fees - These are fees that you may
pay to have someone inspect the home you are planning to purchase.
ie: Home Inspector and/or Pest Inspector.
Financing Fees - Your lending institution may
require appraisal fees, application fees
Condominium - You may pay for documents that you and your
lawyer will approve that is prepared by the Condominium Corporation.
You may have to pay for up to 3 months maintenance fees on closing.
Land Registration Fees- Land Transfer Tax, Deed
Registration and other government fees.
Legal Fees and Adjustments - Your Lawyer's basic fee + his disbursements
(Land Transfer Tax, Deed Registration etc) and any amounts that the
seller has pre-paid past the closing date (realty taxes, water,
oil).
Survey - You may be required by the mortgage
lender to provide a suitable survey. This may be obtained from
the Seller but such may not be up-to-date- enough for the Lender
Title Insurance - Most purchasers are buying Title Insurance that
protects you. Talk to your lawyer about the fees and
protection.
Service Hook-Up Fees - In some areas you
may have to pay the utility company a fee or deposit in order to
have their service available.
Miscellaneous - In some situations you may need water
or soil tests. Other expenses for the purchase and move are:
Do you need to buy appliances, outside equipment such as snow
shovels, gardening equipment; painting and fix-ups;
Moving - You should have available funds for moving
THE OFFER PROCESS -
Once you know how much a home you can buy and have found the
home, then you are ready to prepare an Agreement of Purchase and
Sale. This process is handled by your salesperson. The
offer consists of how much you are willing to pay for the property
and when you want close the deal or take possession. The offer
may contain 'conditional' clauses. These conditional clause
are usually in the form of you doing something or checking something
and if it is satisfactory to you then you will continue with the
'deal'. There are normally two conditions: financing and home
inspection. Once you are sure that you have the financing and
that the home inspection reveals no major deficiencies then you
'waive' or remove the conditions on the offer and you then have a
firm and binding agreement. GET READY FOR
POSSESSION -
Start preparing for you move well ahead of the closing date.
Mailing address change, telephone activation, utilities, and movers
should be contacted and arrangements made for the day of closing.
In the case of apartments you should check with the Supervisors in
order that you would have an elevator reserved.
CLOSING -
This is the day that you gain possession of your home.
Normally, the Seller has until 6:00pm of that day to be completely
out of the house. At which point you should have the keys and
access to the property.
JOHNSTON & GREEN REAL ESTATE LTD. - Brokerage
976 Coxwell Ave, Toronto, Ontario M4C 3G5
Off: 416-429-5118 - Fax: 416-429-1013
E-Mail: info@johnstonandgreen.ca
(The comments contained on this
site are for information purposes only and do not constitute legal
advice.)
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