Guide to Whos Who in Housing - PDF

Mortgage (Pre-Approval)

Get a pre-approval letter for a mortgage. Mortgage factors to consider:

• What type of mortgage is best for you?
• How much should your down payment be?
• Are you eligible for an RSP homebuyer withdrawal?
• There may be a fee for mortgage application and appraisal fee.
• Documents confirming employment, income and source of pre-approval.

Determining What You Want ^ TOP

Choosing A REALTOR® ^ TOP

• DO NOT HAVE 3 REALTORS® IN TO GIVE YOU A PRICE!
  
  Emphasizing price as the main criteria tends to encourage “bidding up” of the list price in order to get the listing, creating unreal expectations.
  
  Do have 3 REALTORS® in to determine who you can work well with and who will do the best job for you!
  
  By definition, the REALTOR® who will do the best job will know your area, be very experienced in your market, and a skilled negotiator. Determining the appropriate list price, expected selling price and appropriate target market will not be the challenge.
  
• DO NOT FOCUS ON THE COSTS OF SELLING YOUR HOME.
  
  Selling fees and other costs are important factors, however just not the only considerations in a real estate transaction.
  
  Do focus on maximizing the amount you will “net” after all costs.
  
  The best way to do that is to go back to point number one and pick the best person for the job. That individual will maximize your selling price, help you avoid unnecessary costs and negotiate a deal that is in your best interests.
  
• DO NOT RELY SIMPLY ON MLS®.
  
  The Canadian Multiple Listing System, MLS®, is the most effective real estate marketing system in the world and is relied upon by most Realtors as their source of what is happening in the market place.
  
  While a real estate license is valid anywhere in BC, it is just not feasible for a Realtor to have an in depth knowledge of all areas. With 24 years experience in all facets of residential real estate, our expertise is head and shoulders above the competition.

Home Inspection ^ TOP

By hiring a home inspector prior to purchase, you will protect one of the most important investments of your life. A home inspection will reveal the structural and mechanical soundness of your home. The report will advise you of:

• Existing and potential problem areas.
• Suggested solutions.
• Cost estimates for any work required.

How Much will it Really Cost? ^ TOP

Mortgage Calculator - English / French

Once you have figured out the home price range you can afford and the type of mortgage you qualify for, you will need to calculate all of the associated costs of the transaction to make sure you are financially ready.

Up-Front Costs

You will need to plan ahead to cover the many up-front costs of buying a home. Timing is important to help make sure things go smoothly.

• Mortgage Loan Insurance Premium. If yours is a high ratio mortgage (less than 25% down payment), you may need mortgage loan insurance. To get this insurance, you will be asked to pay the required insurance premium. Your lender may add the mortgage insurance premium to your mortgage or ask you to pay it in full upon closing.
• Deposit. This is part of your down payment and must be paid when you make an Offer to Purchase. The cost varies depending on the area, but it may be up to 5% of the purchase price. If you wish to make a down payment of 5% and you give a deposit of 5%, then your down payment is considered to be made.
• Down Payment. At least 5% of the purchase price is usually required for a high-ratio mortgage and at least 25% of the purchase price is usually required for a conventional mortgage.
• Home Inspection Fee. Remember that this may be a condition of your Offer to Purchase. A home inspection is a report on the condition of the home and may cost over $200, depending on the complexities of the inspection. For example, it may be more costly to inspect a home that has large square footage, one that is expensive or one where contaminants such as pyrite, radon gas or urea-formaldehyde are suspected..)
• Land Registration Fees (sometimes called a Land Transfer Tax, Deed Registration Fee, Tariff or Property Purchases Tax).You may have to pay this provincial or municipal charge upon closing in some provinces. The cost is a percentage of the property's purchase price and may vary. Check with your lawyer/notary to see what the current rates are.
• Prepaid Property Taxes and/or Utility Bills. To reimburse the vendor for pre-paid costs such as property taxes, filling the oil tank, etc.
• Property Insurance. The mortgage lender requires this because the home is security for the mortgage. This insurance covers the cost of replacing the structure of your home and its contents. Property insurance must be in place on closing day.
• Legal Fees and Disbursements. Must be paid upon closing and cost a minimum of $500 (plus GST/HST).Your lawyer/notary will also bill you direct costs to check on the legal status of your property.

Other Costs ^ TOP

Besides up-front costs, there are other expenses to consider:

1. Appliances. Check to see what comes with the house, if anything.
2. Moving Expenses.
3. Renovations or Repairs.
4. Service Hook-Up Fees. Charged for utilities. You may be required to pay a deposit for utilities such as telephone and heating services.
5. Condominium Fees. You may have to make the initial payment for these monthly fees.

Upon Closing

• Your lender will provide the mortgage money to your lawyer/notary.
• You must provide the balance of the purchase price to your lawyer/notary along with the closing costs.
• Your lawyer/notary pays the vendor, registers the home in your name, provides you with a deed.