Real Estate Canada National Real Estate Network
Welcome to Toronto Ontario
Monday, January 22, 2018
When it’s time to think about buying a home, it is important you find yourself reliable
and experienced Buyer Representation. Your buyer’s representative does more than just
find people houses and investment properties; they assist you in every aspect of finding
and buying a home! Your agent has aligned themselves with reliable professionals to assist
you with your plans. Mortgage Brokers, Lawyers, Home Inspectors, Painters, Movers,
Renovators etc. You’ll have everything you need to make your next purchase the best
one ever! There is no charge for this service. From start to finish - having proper
representation and friendly helpful advice is priceless.
Buyer Agency when you want the Best
Closing Costs and Other Surprises
Pre-approved Mortgages and Where to Start
Multiple Offers - Don’t be Scared
Government Assisted Programs
Deposits and Downpayments
Moving Assistance A-Z
Terms of an offer
Closing Costs and Other Surprises
|On the day of closing, buyers should be
prepared to have extra money on hand to cover closing costs:
Land Transfer Costs
This is a provincial tax levied when title to land is transferred. It is payable by the
Purchaser upon the registration of every transfer of land. (i.e. on closing day) The
calculation of this tax on a single family home is as follows:
$55,001 - $250,000
$250,001 - $400,000
$400,001 - and up
Lenders will require that the home is protected against perils such as fire before the mortgage
loan is advanced. Home Insurance must be arranged and in place in order to close your home.
Federal & Provincial Taxes
Typically, resale homes are exempt from GST. A home that is classified as
‘Extensively Renovated’ may be subject to GST. GST is payable on the fees paid
to real estate agents, mortgage brokers, appraisers, lawyers fees etc.A new home is
not exempt from GST even if the home is in an individual’s name! The GST may be paid
by either the builder or the buyer, depending on what is negotiated at the time of
A professional home inspector may be employed by either the seller, prior to marketing the
home for sale, or the buyer, prior to 'firming up' the offer. An inspection is done to
ensure that no major deficiencies exist at the time of selling or buying. It is also a
wonderful education for the buyers to "learn" about their new home and some of the
maintenance they can expect to look after. A list of reputable Home Inspectors is available.
More on Home Inspections
Remember the costs incurred with:
(redirection of mail)
Paid by both Seller and Buyer:
A lawyer will charge a fee for his/her service plus pass on to the client all costs
that are incurred in the process. A partial list of these items is as follows:
| Registering transfer & mortgage
Obtain tax certificate
Get utility arrears certificate
Estoppel certificate. (Condo)
Manage closing day
Courier, photocopying etc.
The funds required to complete the transaction will include adjustments for prepaid expenses.
For example, if a vendor had paid the property taxes for the entire year, the new purchaser
would owe the vendor that prepayment. Other such adjustments are as follows:
Oil Furnaces are typically filed on closing and the buyer pays for the full oil tank as an
adjustment on closing.
The purchaser will benefit from any other costs which the vendor has paid. Another way to explain is to simply say that the purchaser pays for all expenses
of the home starting from (and including) the day of closing Moving Costs
If you are hiring a professional mover, be sure to obtain a couple of quotes well in advance. Whether hiring professionals or calling on favours from friends and family, Remember:
boxes, packing tape, packing foam, labels
dolly and truck rental fees
|A pre-approved mortgage is a 'conditional'
approval of your mortgage request. Your pre-approval mortgage should be a written contract
signed by the lending institution, describing the amount of the loan and the rate of
interest you will be charged. In a volatile interest market, it is great to have a
guaranteed rate. If the rates go up, you are guaranteed the rate on your pre-approval.
If the rates go down you receive the lowest rate at closing. Most banks will guarantee
rates for 60 - 120 days.
Important facts about pre-approved mortgage guarantees:
This is a guarantee from the bank to you, not from you to the bank
They are usually conditional upon your credit rating, receiving letters of employment
They may be conditional upon the bank doing an appraisal
Always read the fine print on the bottom
All pre-approved mortgages have expiry dates
|A multiple offer occurs when there is more than one offer
on a single home at one time. Often the term 'bidding war' is used to describe this
situation. We understand the prospect of having to blindly bid on a home can be a
frightening prospect. In today's market, we are seeing a substantial increase in
this phenomenon. However, there are things that an educated and prepared buyer can
do to make it easier:
There are other important factors within an offer that are not necessarily about money!
Myth: You cannot be pressured into paying more for a home than you want to. Take
control and take a shot!
|A home inspection is traditionally done
after the home has been purchased. The purchaser often has 2-3 days to hire a qualified
home inspector to go through the home in detail. The inspection can take from 2 - 4 hours
and includes a detailed analysis of the home's 5 major systems:
A good inspector offers you a
written report at the time of the inspection detailing any deficiencies and/or
positive qualities found in the home. The purpose of the home inspection is to give
the buyer an overall blueprint on the condition of the home and it often helps the
buyer plan what is to be done next. Remember, even a renovated home must be maintained
on a regular basis. It is not done for the purpose of renegotiating the offer, unless
something completely unexpected turns up.
The cost of a home inspection can
range from $350 - $550 and is paid for by the purchaser. Under certain conditions
and in some parts of the city, a termite inspection may be important. More on Home Inspections
Put our Agents to working finding that perfect
home for you. Buyer services are free. To find out more.
Note: This page is provided for information only and does represent all of the
possible issues that may arise. Contact a reputable Realtor or Realtor Association in your
area. Real Estate Canada Network or it's owners assume any liability to it's completeness