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HOME BUYERS GUIDE

The A-Z of the Home Buying Process – FAQ.

Now that you’ve decided to buy a home, and you have asked your yourself these questions … Let’s go ahead and help you find that dream home. The dream home, that meets both your needs and your budget. We will set you up with viewing appointments, and also help bring clarity to the complicated process of buying a home.

RELATED TOPICS

FIRST TIME HOME BUYERS TAX CREDIT
RRSP HOME BUYERS PLAN
LAND TRANSFER TAX REBATE
FIRST TIME HOME BUYER TAX PROGRAMS
FIRST TIME HOME BUYER LOANS

PROPERTY TRANSFER TAX

CLOSING COSTS

The Buying Process is extremely complex and usually confusing for the First Time Home Buyer or Investor.

A core principle of my Real Estate business however, is trust.

Our Clients have the comfort of knowing that we have their best interests at heart at all times. We are committed to helping our buyers find the right property, in the right location, in the right time frame. Whether a two month or two-year process, we will stay connected from beginning to end.

What to Expect – STEP BY STEP

Click on the Links below for more info

YOUR BUYING CONTRACT PACKAGE

WHAT DOCUMENTS ARE IN THE BUYERS CONTRACT PACKAGE?

CONTRACT OF PURCHASE AND SALEVIEW A SAMPLE

DORTS – Disclosure of Representation in Trading Services – VIEW A SAMPLE

PRIVACY – VIEW A SAMPLE

FINTRAC – VIEW A SAMPLE

DISCLOSURE OF REMUNERATION – VIEW A SAMPLE

MAKING AN OFFER

WHAT IS AN OFFER? WHAT TERMS ARE INCLUDED WITH MY OFFER ON THE CONTRACT?

What is an Offer?

Before writing an Offer

SUBJECTS/CONDITIONS

SUBJECT REMOVAL

TERMS OF THE CONTRACT –

CLOSING/POSSESSION –

  • Closing Date

This is usually the date that the legal ownership of the property transfers from the seller to the buyer and, unless otherwise noted, when the funds for the purchase are concluded.

What are closing costs?
Closing costs are the fees for services, taxes or special interest charges that surround the purchase of a home. They include upfront loan points, title insurance, escrow or closing day charges, document fees, prepaid interest and property taxes. Unless, these charges are rolled into the loan, they must be paid when the home is closed.

Who pays the closing costs?
Closing costs are either paid by the home seller or home buyer. It often depends on local custom and what the buyer or seller negotiates.

  • Possession Dates : When the buyer takes possession as specified in contract of purchase sale.

REMOTE SIGNING

DO WE HAVE TO COME INTO THE OFFICE TO SIGN?

Is it safe to sign our documents online? – A common question people have is “Can my digital signature be forged, misused or copied?” The reality is, wet signatures can easily be forged and tampered with, while electronic signatures have many layers of security and authentication built into them, along with court-admissible proof of transaction.

FINANCING

WHAT KIND OF FINANCING SHOULD I EXPECT?
  • Deposits: A deposit is provided from the buyer to the seller as a token of the buyer’s assurance and intention to buy the property involved. The deposit is applied against the purchase price of the home once the sale has closed. We will assist you in proposing a certain and appropriate amount for the deposit. It typically is 5% of the price of the property and becomes part of your payment for the home.
  • Will I lose my Deposit if I don’t complete the Sale?: The deposit is there as good faith and collateral to compensate the seller in the case that the buyer does not complete the deal. So the usual question is: when do I have to hand in the deposit and if I don’t remove subjects do I lose any money? Chances are that you will.
  • Typically, if there is a subject removal process the deposit will be due either upon subject removal or within 24 hours after you have removed subjects. This means that if you back out of the deal during subject removal because you couldn’t obtain adequate financing then you would not lose any money as you would not have handed in your deposit. If you choose to remove subjects, you then hand in your deposit, and the deal now becomes “firm.” Once the deal is firm, the next step is to proceed with completion & possession. The only case where you would likely lose your deposit (and more likely be sued) is if you back out of the deal once it is already firm.
  • Where do I find a Lender/Mortgage Broker?
  • Pre-Qualifying for a Mortgage
  • How long is a Pre- Qualification Approval good for?
  • I just got a new job…Will I qualify for a mortgage?

MORTGAGES

WHO SHOULD I GO TO TO APPLY FOR A MORTGAGE?
  • What is a mortgage?
  • Where do I find a Lender/Mortgage Broker?
  • Pre-Qualifying for a Mortgage
  • How long is a Pre- Qualification Approval good for?
  • REQUALIFICATION: If you haven’t already gone through the mortgage pre-qualification process, you will need to meet with a lender or mortgage broker. They will establish how much of a mortgage you will qualify for. Mortgage rates vary considerably and it is paramount that you shop around for the best rate, terms and options.
  • DO I HAVE TO SIT WITH THE MORTGAGE COMPANIES/LENDERS? – No. A lot of the Pre-Qualification is done online.
  • I just got a new job…Will I qualify for a mortgage?
  • Our Mortgage Calculator will help you determine what monthly mortgage payment and the maximum mortgage you can manage. Note: if you are buying a condo, the amount of your monthly assessment has a direct impact on how much you can afford to spend on your mortgage.

First time homebuyers may want to take advantage of the federal government’s Home Buyers’ Plan. Under this plan, you may use up to $25,000 of your RRSP towards the purchase of a home. The money is tax-free as long as you pay it back in the next 15 years. Ask for details.

HOME INSPECTION

HOW DO I FIND A HOME INSPECTOR AND DO I NEED ONE?
  • Why do I need a Home Inspection?
  • What does a Home Inspector look for?
  • How do I find a Home Inspector

HOME INSURANCE

WHAT KIND OF INSURANCE DO I NEED?

Before you sign for your mortgage, your lender will expect you to have some insurance brokers available that you will be using.

As a matter of fact, your mortgage might be in jeopardy if you don’t update your insurance.

Always buy adequate insurance for your home as cheap is not always better.

For a list of insurance companies in BC…click here: List of Best Canadian Home Insurance Companies & FAQs – RateLab.ca

YOUR BUYING COSTS

HOW MUCH DO I NEED IN TOTAL TO BUY MY HOME?
  • How much will i need in total?
  • What other costs do I have besides the cost of buying my new home?

TAXES

WHAT TAXES SHOULD I EXPECT?

What kind of Taxes should I expect to Pay

LAWYERS/NOTARIES PUBLIC

WHERE DO I FIND A LAWYER/NOTARIES AND WHO PAYS THEM?

Finding a Lawyer/Notary Public – Purchasing a home involves a lot of paperwork, most of which are contractual documents that will legally bind you to the numerous terms and conditions. For this reason it is important to have a good lawyer or notary public acting for you. Someone to protect your rights and interests.

f you don’t have a lawyer or notary public, you can look for a referral from friends, family or business acquaintances. Look for someone with real estate experience and discuss their fee scales. We can help you locate a reliable professional, whom you feel comfortable working with.

You will need a lawyer or notary public to process your purchase and ensure the terms are met:

  • the correct property is purchased
  • transfered title to your name
  • ensureed title is free and clear of prior owners encumbrances
  • your mortgage is registered properly on title

The legal process varies from province to province within Canada. Specifically, you will need to consult with your chosen legal professional and he/she will explain the process and the steps that need to be completed before you get the keys to your new home.

Your lawyer/notary public will prepare a “Statement of Adjustments” outlining all the financial aspects of your sale.

COMMISSION/FEES

WHO PAYS THE COMMISSION? – SELLER OR BUYER?

Do I pay Commission to the Realtor? – The Realtor is paid from the proceeds of the Purchase price and is not an out of pocket expense for you – the buyer.

MOVING CHECKLIST

IS THERE ANY GUIDE TO HELP WHEN I AM MOVING?
  • A comprehensive Packing/Moving List to guide you through to the Final Stage.
  • Where do I find Movers I can trust?

HAVE A  QUESTION – LET US KNOW IF WE CAN HELP.