What You Should Know Prior to Buying Your Dream Home!
It is my standard practice when you use my service to guide you through such process!
q Check zoning, building regulations and municipal plans for the area. They may affect any plans you may have for additions or renovations.
q Estimate the resale potential of the house. This is an important consideration, especially if you may need to relocate again soon.
q Drive through the area and evaluate the level of essential services. Check transportation and shopping facilities. Look at the proximity and types of schools in the area.
q Carefully examine all aspects of the house's construction, including plumbing, wiring and foundation walls. Bring along an expert if you feel unable to assess these properly.
q We have seen more and more clients exercising a house inspection company to look at the home in detail. Ask your Realtor for the name of a reputable firm. Costs vary but are in the range $300-$400, The Inspection provides a level of comfort which can be well worth the cost.
q Try to determine what repairs you may be faced with over the coming years. Check the condition of the roof, capacity of electrical services, age of furnace and driveway paving. If you think your space needs may change, look for renovation potential- size of lot, exposure, room layout and so on.
q Consider all expenditures you may have to make over and above actual purchase cost; repairs, furniture, landscaping, and renovations, decorating and moving.
Once your offer has been accepted the work has just begun. Future steps include arranging monthly mortgage payments and property taxes, finding the right insurance coverage, transferring your utilities and arranging for your move, among others. Be prepared for unexpected costs such as legal and survey costs, appraisal fees, land transfer tax and be aware of increased monthly costs like water, gas and electricity bills, especially when moving into a larger one.
Additional Cost You should be aware of:
q DEPOSIT: The deposit is part of the Purchase Price but you need it the day your offer is
accepted. In Toronto, five to ten percent is the expected amount. Not everyone has the
money in an accessible account so a split deposit - part now and the rest at a later date
is often acceptable.
q HOME INSPECTION: A home inspection has become standard in the freehold and condominium townhouse purchase. The inspection costs between $250 and $350 for most houses but increases with the cost of the house over $300,000. The companies that we recommend all charge a base price of $300 to $400
q HOUSE INSURANCE: The house must be insured prior to closing. The annual premiums are fluctuating. Many insurance companies won't insure or charge an extra premium for houses with less than 100 amps service or with the old style "knob and tube" wiring, which is present in many older homes. The insurance companies are changing the rules all the time. Shop for a good insurance broker early in the process.
q SURVEY: A survey that shows the lot dimensions and the location of any structures is good to have but is no longer mandatory to get a mortgage. Title Insurance can protect you from the problems that a survey might find. The usual cost of a survey is between $1,000 & $1,200 (occasionally more).
q MORTGAGE COSTS: There is usually an interest adjustment calculation to adjust for the time between your closing date and the date that the mortgage company wants you to make your regular payments, usually the 1st of the month. The costs of arranging a new mortgage which can include application and appraisal fees. and CMHC premium etc., based on Conventional or CMHC insured Mortgage. With most second mortgages and some first mortgage too, there is a brokerage fee and/or Lender?s involved. The amount depends on the size of the mortgage. Get a firm quote.
q LEGAL FEES: You need a lawyer to search the title and cover all the legal matters. Rates vary greatly, starting at about $450.00. This amount is for the lawyer's time. In addition you must pay for the disbursements that the lawyer pays on your behalf. The disbursements are often equal to or greater than the lawyer's fee. Get a quote !
q TITLE INSURANCE: Title insurance is a standard part of your legal package and should be included in the quote from your lawyer.
q REAL ESTATE TAXES: If the Vendor has paid the City Taxes in advance, you must reimburse him. This is part of the "adjustments".
q OIL: If the property is heated with oil, convention dictates that the Seller must fill the tank for closing and then you reimburse him on closing. NB: If you are switching to gas then make sure that your lawyer and the Seller know well in advance of closing so the tank isn't filled. This is part of the "adjustments 
q GST: Good news!! There is no GST payable on resale homes unless the owner has been carrying on a business in the home and applying for tax credits, in which case the GST is the Seller's responsibility.
q LAND TRANSFER TAX : The Buyer needs to pay the Land Transfer Tax as applicable, Payable on closing. Its calculation is a multi-tiered formula shown as above, It is a major expenses on closing the purchase. LAND TRANSFER TAX Payable on closing. It is a multi-tiered formula:
q CLOSING ADJUSTMENTS : Then there are closing adjustments with the seller; Realty-Taxes, rental income, condominium maintenance, and some utility charges.
Avoid any surprises by having choosing me as your real estate professional, I will guide you through the necessary steps. Rely on my expert advice to keep you well informed and prepared. It's just one more way that I will starve to take the anxiety out of buying your dream home. Count on my Experience and Outstanding Performance.
You may have many questions to be answered. Please browse all the other links and respective pages to justify more facts and findings to your advantage at time of your buying or selling a Real Estate in Canada.
If You are a New Comer to Canada or First Time Buyer: CMHC-The Newcomer's Guide to Canadian Housing and Buying Step by Step are the most informative sources for New Immigrants and First Time Buyers when buying a home in Canada. Please contact me for a copy of the Guide or Download the .pdf file. Please Click: New.Immigrant.Housing-Guide + HomeBuying.StepByStep
I F Y O U A R E B U Y I N G: Please Click: Buyers_Page : Property_Buyers_Requisition
I F Y O U A R E S E L L I N G : Please Click: Sellers_Page : Property_Sellers_Requisition
