When mentally ready to buy a new place, many people get overwhelmed and not sure where to start. It may seem like a complicated process, but it doesn't have to be - when done right!

The first step is setting up the budget and figuring out how much your initial investment in your home will be. You will need a combination of a down payment and closing costs.
The down payment may range from 5% to 25% of the total value of the home (or more if you have that option). The source of your down payment is either your savings or the proceeds from the sale of a home you already own.

When deciding on a property you will be required to provide a deposit of at least 5% of the price offered. The deposit forms part of your down payment, it will be presented to the seller in a form of a certified cheque either with the offer or within 24 hours from the moment the offer has been accepted. The deposit money will be kept by the listing brokerage in their trust account and cashed on closing. It is part your down payment.

 Closing costs can be as high as 1.5% of the value of the property being purchased and can vary widely depending on:

• The property being purchased
• Services required
• Taxes
• Applicable insurances
• Whether the home is new or old
• Closing dates affecting interest adjustments
• The balances of any prepaid expenses
• Legal fees

Your Real Estate Lawyer will be able to provide you with an estimate on necessary closing fees.

For the amount of land transfer tax you can check out the calculator here.

Assessing your mortgage options

There are many different types of mortgages. If you don’t have the 20% down payment for a conventional mortgage, you can get a high ratio mortgage, combined with mortgage default insurance, that allows for a smaller down payment. You need to be pre-approved for a mortgage before you start house hunting.

Finding out how much you can afford 

House hunting should begin at home, with planning. Once you know the amount of your down payment, a mortgage broker/agent should be able to provide you with information on available mortgage products that are right for you and fit your lifestyle. You can opt for a shorter or longer mortgage term whichever suits your needs better. If you need a great mortgage agent let us know and we will provide you with our list of trusted mortgage specialists.  How much house you can afford depends mainly on two things: how much you can spend on your monthly mortgage payments and how much money you can invest in your down payment.

The monthly payments will include the principal and interest on your mortgage loan as well as property taxes and home insurance.

When you have ME on your side 

The realtor you have on your side of the table will play a vital role in your home buying experience. When I represent a buyer in a transaction, I pride myself in being a friend, a consultant, a listener, an advocate and the best possible negotiator. I'm always available and ready to help, alleviating the stress of the process as much as possible for you. I’m bringing to the negotiation table 14 years of experience in the real estate field. I helped hundreds of clients navigate the market and I leave no stones unturned in finding what you are looking for.

Looking for a new place to live can be overwhelming at first. There are always so many things to think about, so many choices and often not enough time. If we are working together in finding your home, we’ll start the house hunting process at the table, with a buyer’s consultation.

The Buyer Consultation

Before we start looking for homes, there are important questions to ask yourself such as:

• Where do I want to live (community, general area)
• What’s my upper budget limit
• What style of home do I see myself living in
• Are schools a factor/ Do I have pets that need to be considered
• Am I ok with a fixer upper
• How important is commuting, is TTC access important
• How many bedrooms/ bathrooms, what features are important in the home

Taking the time to listen to your "pains and pleasures" and needs and wants can pay tremendous dividends. It can bring clarity to you as there are always many questions to be answered and it gives us a perspective on what exactly we are looking for.  It sets the tone for a great cooperation, setting expectations and figuring out what we can do to serve you in the best possible way. 

Our buyers get the whole market picture. We start broadly and work by elimination. We truly believe that finding the best home is not a matter of choosing from an overwhelming number of properties on the list, but a matter of elimination. We work with our buyers and are systematically working our lists of properties eliminating those that have smaller chances to suit your needs and wants. Once we narrow down to the core, we know we are close to finding the best property for you.

House hunting

This is by far the most exciting part of the process. With so much information out there, great pictures and beautiful descriptions of the available properties it is very easy to fall in love with a home before you even step foot inside. But there are many things to consider when looking at homes:

• General upkeep
• Possible water leaks
• Appliances and fixtures included in the sale
• Floors
• Windows and doors
• Drainage
• Grout and caulking
• Structural issues
• Storage space
• Curb appeal and landscaping

I will search the area of your interest and provide you with lisings of available properties in your price range, book showings at your convenience and then we will visit the properties together.

The offer to purchase

Once we found a property that matches your needs I will help you prepare the offer. This is the actual Agreement of Purchase and Sale that outlines the price you are offering, the deposit amount, the closing day of your choice and all the terms and conditions you may need. The offer is then presented to the sellers, which will now have 3 options: accept your offer the way it was written, reject it, or counter it back with their needs and wants. The negotiation process can take from a few hours to several days until both parties agree upon the terms. If you had conditions on your offer, the sale is now conditional and the deal becomes firm only once the conditions have been met. (Typically it takes 5 business days from the date of acceptance to fulfill the home inspection and financing conditions).

Removing the conditions

Once you have obtained a mortgage commitment from your lending institution and/or a satisfactory home inspection report, we can proceed to "firming the deal". A Notice of Fulfillment document needs to be signed in order for the deal to become firm, within the time outlined in your agreement.  

Retaining a lawyer for closing 

Next step in the process is retaining a lawyer to look after your transaction. Your lawyer will help you transfer the property title on closing, making sure all the appropriate payments have been done and the house can be safely transferred into your name.  

Preparing for moving 

There are a great deal of moving checklists out there that are meant to help you organize the next steps: changing addresses, transfering home services, updating identification and making the transition and move smoother.

Closing day 

Possession or closing day is the day when the title will be transferred into your name. Your Real Estate Attorney will let you know once the title has been transferred and the keys to your new home are ready to be picked up.

Congratulations!!
 
If you are contemplating moving to a new place soon, give us a call today at 647-261-1405 or send us an email at [email protected]
We promise we will be on your side from the initial consultation until the day of moving and beyond. We will stay in touch and aim to be your realtors for life. We pride ourselves in transforming friends into clients and clients into life long friends!

Happy home shopping!