MAKE THE MOVE TO WHAT MOVES YOU
MAKE THE MOVE TO WHAT MOVES YOU
Your satisfaction is our top priority! We will take the time to listen to your needs and desires and help you find your dream home.
We look forward to working with you!
Discuss and analyze your wants and needs against your budget
Educate you about the current market conditions
Guide you to homes that fit your criteria
Coordinate the work of other professionals you’ll need during the process
Negotiate with the seller on your behalf
Make sure all the required paperwork is fully completed, accurate and that deadlines are met
Work with you to resolve any challenges that may arise
1. Crunch the numbers to find out how much you can afford to put down on a new home
2. Get mortgage pre-approval from your local credit union, bank or mortgage broker. Ask them to walk you through the different types of mortgages, interest rates, terms and amortization periods (how long it will take to pay off your mortgage).
You’ll also find out your maximum possible mortgage amount based on your down payment, monthly income and credit score. Tip: Pre-approved financing is more appealing to sellers!
3. Be a inspector. No matter how in love you are with a potential home, think like a discerning home inspector from the
moment you see it.
Inside, look for:
o Musty smells and mould
o Signs of bugs and rodents (termites, mice, rats, etc.)
o Old furnace and wiring
o Water damage (warped or stained floors/walls)
Outside, look for:
o Poor roof condition (peeling or missing shingles)
o Foundation cracks and rotting wood
4. Win the bidding war. Expecting competition? Before making an offer I will provide you with a list of local comparables to make an informed decision on asking price. And boost your odds by offering a flexible closing date.
5. Ask for extras. Totally enamored with that party-ready patio set or reclaimed wood dining table? It can’t hurt to ask! Assume everything is excluded unless formally written in to your offer.
6. Finalize the deal. Accepted offer? You’ll have a few days to get the house appraised, inspected, renegotiate (if necessary based on the reports), and complete your mortgage paperwork along with any other conditions set out on the Purchase and Sales Agreement.
7. Do a walk-through. On your closing date, conduct a final walk-through with your builder or realtor to test:
o Appliances
o Faucets
o Toilets
o Outlets/light fixtures
o HVAC system
o Remote controls (for a garage door, etc.)
Tip: If anything is broken or missing, ask your realtor to negotiate a credit.
Things to Consider When Searching For A Property
Schools and Locations
Public Transportation
Region Admentities
Parks and Recreations
Organized Sports
Restaurants and Shopping Facilities
Dog Parks
Closing Costs
Are a list of charges your lawyer presents to you on the closing date of your home. Many people are surprised at the additional costs over and above the price of the home.
According to the CMHC and Genworth Financial you should have at least 1.5% of the purchase price for closing costs in addition to the down payment (have around 2.5% to be on the safe side). The costs vary among provinces and cities. Below you will find a brief explanation of these costs. Please note these are some of the closing costs you may encounter depending on your specific situation. Use this as a guideline then talk with your lawyer who can provide a more realistic estimate for your situation.
Appraisal Fee
Generally Required with New Homes
An appraisal provides the lender with a professional opinion of the market value of the property. This cost is normally the responsibility of the homeowner and it can cost between $100 - $400.
Home Inspection Fee
Generally Required with Resale Homes
A professional inspection of the home, top to bottom, is for the benefit of the buyer. A home inspection can cost anywhere from $300 - $400 and is well worth the investment. When hiring a home inspector makes sure the inspector has liability insurance just in case they overlook something.
Fire Insurance
Mortgage lenders require a certificate of fire insurance to be in place from the time you take possession of the home. The amount required is generally the amount of the mortgage or the replacement cost of the home. This cost can vary on the property size, amount of coverage, the insurance company and the municipality. The cost can vary anywhere from $500.00 - $2,500.00+ annually for most properties.
Provincial Sales Tax on Mortgage Insurance
If your mortgage is insured, (CMHC or Genworth Financial), you will be required to pay the applicable taxes on the insurance premium on closing. While the insurance premium can be added to the mortgage amount, the tax must be paid at closing.
Land Survey Fee or Title Insurance Fee
A recent survey of the property is usually required by lenders. If one is not available the cost can range between $600 - $900+ for a new survey. In lieu of the survey most lenders today will accept title insurance which can cost considerably less.
Legal Costs and Disbursements
Lawyers and notaries charge fees for their services involved in drafting the title deed, preparing the mortgage, and conducting the various searches. Disbursements are out-of-pocket expenses incurred during the process such as registrations, searches, and supplies.
Land Transfer Tax
Most provinces charge a land transfer tax payable by the purchaser. The amount varies depending on the province. Land transfer tax is based on the purchase price. First time home buyers purchasing a new or re-sale home may be entitled to a refund.
Land Transfer Tax Calculation
$0-$55,000 x .005%
$55,000 – $250,000 x .01%
$250,000–$400,000 x .015%
$400,000–Purchased Price x .02%
Eg. Purchased Price $700,000
$ 55,000 X .005 = $ 275.00
$195,000 X .01 = $ 1,950.00
$150,000 X .015 = $ 2,250.00
$300,000 X .02 = $ 6,000.00
Total Land Transfer Tax $10,475.00
New Home Warranty
In most provinces new homes are covered by a new home warranty program. The cost to the purchaser for this warranty is approximately $600 and should the builder default or fail to build to an agreed-upon standard the fund will finish or repair the deficiencies to a maximum amount. For more information on Ontario new home warranty visit http://www.tarion.com.
HST
HST is payable on the purchase of a newly constructed homes only. If you are purchasing a new home make sure you know who pays this, you or the builder. On the offer the purchase price will say "Plus HST" or "HST Included" and who gets any HST rebates. Many builders have included this cost into the purchase price so the buyer does not have to come up with it at closing.
Closing Adjustments
An estimate should be made for closing adjustments for bills the seller has prepaid such as property taxes, utility bills, and other charges. Any bills after the closing date are the responsibility of the purchaser. A lawyer will let you know what they are once the various searches have been completed.
Copyright © 2018 Angie Smith Real Estate - All Rights Reserved. Not intended to solicit properties currently listed for sale. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA. I am a Broker licensed to trade in residential and commercial real estate in Ontario. The out of province listing content on this website is not intended to solicit a trade in real estate. Any consumers interested in out of province listings must contact a person who is licensed to trade in real estate in that province.
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