• Mortgage Application Fee
• Appraisal Fee
• Home Inspection
• Legal Fee's
• Legal Disbursements/Mortgage registration/Deed
• Property Survey if not provided by the Seller
• Land Transfer Tax
• Mortgage Interest Adjustment and or Mortgage Assumption
• Adjustments for Heat/Water/Hydro and Property Taxes
• Home and Property Insurance
• Connection Charges for Gas/Water/Hydro/Bell/Cable
• Moving Expenses

What are Market Conditions

With the ever changing political and economic climates, these factors have a dramatic change on the real estate market. A change of 25 basis points by the Bank of Canada rate can cause the market to swing up or down. For this reason it's best to gauge what type of market are you Buying or Selling in. 

      Buyers Market - This is where the supply of homes far exceeds the the number of potential buyers who are looking to purchase. In this type of market homes tend to be on the market much longer and prices have a tendency to drop to attract buyers. The flip-side to this is when your buying your next home your now in the drivers seat.

      Seller's Market - In a seller's market the number of buyers wanting homes exceeds the supply of homes. This type of market is characterized by homes that sell quickly, rising prices, multiple offers on the same home and a minimal inventory of homes available for sale. The downfall from the Buyers perspective is that they must make decisions quickly, pay more for the home, and frequently has conditional offers rejected.

      Balanced Market - In a balanced market the number of homes for sale equals the number of buyers looking to purchase. The characteristics of this market is that homes sell within a reasonable period of time, demand equals supply, sellers are asking reasonable offers and prices are generally stable.

Having a pre-approved mortgage has many advantages, it gives you the confidence of  knowing exactly what you can and cannot afford to buy. Far too many times people go out looking at homes only to be disappointed later to find out that they can never afford to buy let alone qualify for a mortgage for the type of home that they have been viewing.

Our In-House Mortgage Specialist will take you through the steps of qualifying you for a mortgage and also hold current rates for 120 days should they go up during your time of purchase. She has a list of 30+ lenders all competing for your business, her job is to get you the best rate and terms.


Elements of the Offer/Agreement of Purchase and Sale

There are 6 components to the offer to purchase, they include the purchase price, the deposit, the terms and conditions of the offer, any inclusions or exclusions and the closing date.

The purchase price is what you the purchaser feel you want to offer the seller for the home your interested in. Your realtor will help in making a reasonable decision so as not to offend the seller with a  " low ball offer ".

The deposit should be substantial as to add credibility and integrity to the buyers offer.

Terms and conditions will deal with such items as financing, home inspections, status certificates if your purchasing a Condo etc.
 
Inclusions/chattels are items that the seller is leaving behind or are part of the sale. The buyer may want to have all the appliances thrown in as part of the deal. There could be carpeting/broadloom that has to stay, electric light fixtures, Air conditioning and so on. The owner on the other hand may want to take with them certain items which have sentimental value to them and are not part of the deal and are not negotiable.

The closing date is a very important component of the deal. Both sides want to close the deal as set out in the Agreement of Purchase and Sale. If the deal is broken by either side that's where the lawyers get involved and start suing each other. Not a good thing.


Home Inspections-Are They Necessary

When you come to think about it,  buying a home is probably one of the biggest decision you'll ever make next to marriage. So why take a chance and not enlist the services of a professional Home Inspector who will take the time to walk you through the entire process of the home inspection. Your realtor should always include this clause especially if your buying a brick and mortar home.
The home inspector will check over items like the plumbing, the electrical, heating and A/C unit, the roof and foundation. You the new homeowner want the peace of mind knowing that there are no hidden surprises down the road. Sometimes, homeowners will conceal deficiencies that are not easily detected by you, but the home inspector has the trained eye to discover these hidden defects. Spend the money up front and not get burdened with huge bills later on. Better to spend $300.00 now than a few thousand down the road.

When it comes to Condo buying that's  another animal. There is a document called the Status Certificate and what it indicates is how well financially the Condo Corporation is doing. Your realtor should always request a copy as part of the terms and conditions of the deal. The information contained will be reviewed by your Lawyer who will indicate if the Corporation is financially sound and no lawsuits pending or under review. Also that the contingency fund for future work to the building is adequate.


Homeowners Insurance

Once you have purchased that dream home of yours you now have to insure it especially if you carry a loan or mortgage on the home. The bank's will on fire insurance equal to the amount of the outstanding loan or the building value. The lender will ask for proof of insurance prior to lending out the funds. Your mortgage specialist or lawyer will ask for proof prior to closing.

Like all new homeowners you should always consider a policy which includes full replacement value for home and contents. The reason being over time items wear out and loose their value. If your policy has a " Replacement Cost " clause  and should there be a fire and loss of property or contents your insurance company will cover you for the full amount in " Today's Dollars ". There is no depreciation for value if that item was 5 or 10 years old.

At the time of signing for your mortgage  specialist will offer you an option for Mortgage Insurance. What this is, should you pass away, loose your job, become injured and unable to work for a period of time your mortgage payments are taken care of.

Many times our health insurance packages only pay us a certain percentage while we are off from work. These payments don't always cover all the expenses we incur in a month. This coverage is really worth considering and is very in-expensive and gives you peace of mind.


Land Transfer Tax