Buying a Home

The purchase of a home likely represents the single largest investment you will make. We understand and appreciate this and that is why we always pay very careful attention to your particular requirements. We will guide you through every step of the buying process. We encourage you to make full use of our real estate expertise on an on-going basis and we are always available to provide advice and assistance.

Below are a few issues to be considered before embarking on a new purchase.

The Buyer Agency Agreement

A government initiative designed to protect you the consumer, this document is presented as a standard pre-printed form produced by local governing bodies and generally addressed prior to viewing homes. It's purpose is to clearly establish and define the Buyer Agency Relationship, which guarantees you our undivided attention and commitment to fulfilling your real estate needs. In short, it means that we are retained to act in your best interest, while you agree to utilize our services exclusively for a specified period of time. This agreement is an industry-wide requirement.

Financing Your Purchase

The placement of mortgage funds has become a highly competitive business offering consumers a wide variety of choices and there are many options beyond the standard posted rates at your particular bank. People generally purchase a new home only five or six times in their life with several years passing between each purchase. How can you be expected to stay current with all the new mortgage products and options that become available, such as Variable Rate or Line of Credit mortgages. We will assist you through the entire process from pre-approval to final placement of the mortgage. For today's lending rates, please visit Canadian Mortgage Rates.

A Home Inspection

We strongly recommend a home inspection be completed prior to the final purchase. Qualified home inspectors belong to a reputable industry association, carry errors and omissions insurance and freely present credentials and references. In addition to industry standard qualifications, many home inspectors have a professional engineering degree. We work with home inspectors on a regular basis and are happy to make recommendations. The cost is generally $300 to $500 depending on the scope of work.

The Deposit

A deposit cheque is submitted at the time of presenting an offer to purchase and usually certified the day following successful negotiations. Deposit amounts vary, but usually range between $5,000 and $30,000 depending on the purchase price and closing date. A good rule of thumb is 5% of the purchase price.

Legal Fees

Once a purchase has been successfully negotiated you will need legal services to complete the transfer of title. Fees vary according to the lawyer selected and it is advisable to shop around, being sure that the price quoted includes all costs such as disbursements for title searches, obtaining documents and incidental charges. Prices generally start around $600.00 plus GST for an uncomplicated purchase and increase depending on the services required. If you do not have a lawyer, we can recommend several to choose from.

Land Transfer Tax

Land transfer tax is payable through your lawyer at the time of closing. The formula is as follows:

Purchase price x 1% minus $275 for purchases between $55,000 and $250,000

Purchase price x 1.5% minus $1525 for purchases between

$250,000 and $400,000

Purchase price x 2% minus $3,525 for purchases over $400,000.

It is important to note there is NO GST is applicable on resale homes, however new homes and commercial properties are subject to this tax.

Closing Adjustments

As a rule, the balance due on closing is the difference between the sale price and the amount of your deposit. However there are a few items which need adjusting. These could include a portion of property taxes the seller has prepaid, the cost of filling the oil tank of an oil heated home, or a proportionate share of monthly condominium fees in the case of a mid month closing date. These adjustments are calculated and disbursed by your lawyer.

Home Insurance

You will need to provide your lawyer with a certificate of insurance prior to closing. This is a mortgage company requirement before providing financing on the home. Costs vary from company to company starting at approximately $400 and depend greatly on the insurance options specified. We recommend that you get several quotes.