 You can never be over-prepared for what you are about to embark on.
This guide will try to walk you through the steps that you need to take in order to ensure that you don't overlook anything.
Determine Your Budget
This is probably the most important thing to do that everyone at least partially overlooks. It is difficult to adapt your budget to compensate for a new payment, especially if it is more than what you are presently paying. Completing this step will tell you how much you can afford to pay and help you know how much you have for a downpayment. If you are renting right now, you could use the Rent vs Own Calculator to guide you. If you don't have a downpayment today, there are still ways to purchase a home.
Pre Qualify
All you need to do here is just go to the affordability calculator on this site. If you have had any serious credit problems, you will need to speak to us directly so that we ensure of your prequalification amount. As well, you should have a good idea of what you have to put as a downpayment. If you are planning to use your RRSPs for your downpayment, you need to find out about the rules on taking them out without paying income tax.
Pre-Approval
Okay, so you know your upper limits, now if still want to buy, just apply online. If you are not comfortable about that, just contact us and we will be glad to meet you at either your home or our office. There are certain general documents that we will require and we will also review your credit history to ensure your pre-approval.
Speak with a real estate sales associate
You are buying a home, so there is no cost to deal with them. Tell them everything about what you want to do. They will give you detailed information about the area you are looking to purchase in and the homes available on the market.
Find YOUR HOME
This can take some time, but once you found it, let us know immediately who your real estate agent is and supply us a copy of your offer to purchase. The seller will probably request a deposit on the purchase of the home. This amount is usually between $1000 and $5000. This deposit will make up part of your downpayment.
Get a Lawyer
A solicitor or notary will review your offer to purchase and handle the closing of your file. As soon as you have chosen one, let us know. A lawyer will:
- Check and OK the purchase and sale agreement.
- Do a title search , verifying the vendor actually owns the property and is free of any hidden liabilities or obligations.
- Draw up and review your mortgage(s) and register it.
- Work out the adjustments
- Calculating who owes who for such expenses as municipal tax that may be paid by one but should be shared by both.
- Arrange the payment of the provincial land transfer tax, the eight-per-cent tax on chattels that come with the property, and if necessary, a survey of the property.
- Register the deed, the document that verifies you are the new owner.
- Obtain a tax certificate, zoning compliance certificate, execution certificate, water and other utility certificates, and, if it’s a condominium, a status certificate.
Get Your Home Inspected
Once you buy a home, you're on your own to maintain it, repair it, anticipate problems and pay the bills. This is why it's best to know as much as you can about potential problems before you make the commitment to buy. One of the best ways to understand about a home's condition, habitability and safety is to hire a professional home inspector.
Appraisal Conducted
At this time we will need to arrange final approval of the property for the lender. They may require us to obtain an independent appraisal, or high-ratio insurance.
Approval received and rate locked in time begins
Generally a lender with guarantee a rate for a period of time prior to closing. The standard is up 90 days. Generally if rates drop between this point and closing, you will still benefit from that drop. At this time it is also good to review all the mortgage features that are available and compare them with your approval to see if it best meets your needs. It is also a time to consider mortgage life insurance or look at increased term insurance.
Sign commitment
This commitment lets the lender know that you have agreed to use them for mortgage financing and that their conditions are acceptable to you. It is now time to start collecting the required documentation if not already done at the pre-approval stage.
Closing Date
At closing, you will sign all the legal documents and pay any necessary closing costs such as legal fees and the rest of your downpayment.
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