Should I buy or rent?
This can depend on your unique situation. I am a firm believer that most people benefit from owning their own home. There are practical benefits (such as you get to choose what you want to do with your space, and do not need to ask permission from your landlord to do things like paint). And there are financial benefits (when you have paid off your mortgage, that bill is gone, but you will have to keep paying rent). Contact me, and we can come up with a plan.
Do I need to sell my current home before buying my next house?
Different strategies have advantages and disadvantages depending on your unique situation. For example, you might be able to rent out your current house and then purchased a second home. Contact me, and we can come up with a plan that works best for you.
How do I know what I can afford to pay?
There is no one answer to this, but you will need to figure out a budget that factors in: Mortgage, Property taxes, Utilities, Maintenance, etc. I have created a budgeting spreadsheet that reflects the true cost of owning your own home, and I would be happy to share it with you. Please contact me if you are interested.
How much money will I need to have saved?
This depends on your unique situation, and I would be happy to go over all of this with you in more detail. In general, you will need money for: A down payment - the portion of the purchase price that you pay yourself. Depending on what kind of mortgage you would like, you will need from 5% to 25% of the purchase price. I can help you choose what kind of mortgage makes the most sense for you. An inspection (though it is not required, an inspection is good for your peace of mind and to make sure you are not buying a house with problems you don't know about). Closing, which is about 1.5% of the purchase price, normally covers lawyer fees and disbursements and land transfer tax.
How do I know if asking price is fair?
I will be able to help you with this. I can look at the property's history and similar recent sales to help assess the market value of the property.
How do I know what to offer?
I can recommend an offer price based on comparable recent sales and other factors such as the presence of competing offers. My goal is to balance getting you the best deal, and giving you the best chance to be the successful buyer.
What if my offer is rejected?
Offers can be rejected for many reasons, and some times negotiations go back and forth many times. I am here to make sure your interests are protected during this process.
What conditions should I put on my offer to buy?
Depending on your situation, you might need to put in conditions that mean that the contract is neither firm nor binding until certain things happen. For example, getting financing, or an inspection. However, conditional offers are considered weaker than non-conditional offers, and this may affect your chances of successfully buying a popular property. This is why I will discuss your best options with you.
How much do I need to put down when making an offer?
Deposits amounts vary, but are generally at least $1,000. This may change depending on the property, and a larger amount can show that you are serious in a multiple offer situation.
What happens to my deposit?
Your deposit is held in a brokerage trust account until closing, when it is applied towards the purchase price of the property.
Do I need an inspection?
A home inspection is an examination of the property to determine the overall condition. An inspector should check all major components (roofs, ceilings, walls, floors, foundations, crawl spaces, attics, etc.) and systems (electrical, heating, plumbing, drainage, weather proofing, etc.). A home inspection can help you anticipate whether a property will need significant improvements early on, and helps remove some of the unknowns. I work with local inspectors, and would be happy to make a recommendation if you request one.
Where can I get financing?
I have experience with some talented local mortgage brokers and would be happy to make a recommendation if you are looking for financing (I am in good with the mortgage super hero).
What is a conventional mortgage?
A conventional mortgage is usually one where the down payment is equal to 25% or more of the purchase price, a loan value of or less than 75%, and does not normally require mortgage loan insurance.
What is mortgage loan insurance?
Mortgage loan insurance is insurance provided by Canada Mortgage and Housing Corporation (CMHC), and is required by law to insure lenders against default on mortgages with a loan to value ratio greater than 75% (less than 25% downpayment). The insurance premiums are typically added directly onto the mortgage amount. This is not the same as mortgage life insurance or home owners insurance.
Do I need a real estate lawyer?
Yes. Your lawyer will explain the Agreement of Purchase & Sale and related documents and do a title search for the property to ensure it is free from encumbrances. If you do not have a real estate lawyer, I can recommend one.
How long does it take to close?
Most closings are from 30-60 days from the date the offer was accepted. This can vary based on buyer and seller needs.
What is CVA?
A Current Value Assessment is how the City has valued a property for the purpose of calculating property tax. It may or may not represent the market value of the property.
What is SPIS?
A Seller Property Information Statement is an optional form that sellers can fill out where they provide certain information about the home, such as knowledge of any structural problems, or details on any upgrades. If you are interested in a property, I can let you know if there is a SPIS, and send you a copy of it.
What is title insurance?
Title insurance protects a buyer against loss in case the status of the title to the property is other than it has been represented.
What is an appraiser?
An appraiser is an impartial, independent third party who provides an objective opinion on the value of a specific property.