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| Step 1: Are you ready to
buy a home? |
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Over the years, I have
demonstrated the ability to save money
and am generally pleased with the amount
I've saved so far. |
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I'm ready to change my
spending and life-style habits to support
the additional costs of paying for and
maintaining a home. |
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I have worked hard to
earn a good credit rating and continue
to use credit wisely. |
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I'm prepared to enter
into a long-term commitment for my family's
security, both physical and financial. |
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Pride of ownership is
important to me, and I would enjoy the
chance to take care of my house, inside
and out. |
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| If you have said yes to all
or most of these points, you may be ready
to buy a home. |
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| Step 2 & 3: Cost of buying
a home |
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| Step 4: Deciding what to
buy |
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Single-family detached
- As its name implies, the home is not
attached to the home next door. Detached
homes come in three basic styles: bungalow,
or one-storey; two-storey, where the
entire home is two stories high; and
split-level, where one portion of the
house is one level and another is two
levels. |
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Semi-detached or linked
- Two houses with a common wall between
them (or sometimes between garages or
basements). |
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Duplex - A two-family
dwelling or house. |
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Town house - Also
known as terrace or row housing, these
comprise several homes sharing the same
style, usually joined together by common
walls, although town houses can be detached.
In some town home developments the owner
owns the land as well as the home on
it. |
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Condominium - A
condominium is not really a type of
home, but rather a legal term referring
to a form of collective ownership. Each
home "unit" is owned individually, while
common areas including the land are
owned jointly. Most building structures
can be set up as condominiums - apartments,
town houses, detached, semi-detached,
duplexes, commercial buildings, mobile
home parks, parking lots - anything
where there are advantages to be gained
from collective ownership. In Canada's
larger cities, condominiums are often
associated with high-rise buildings,
with complete recreational areas and
other shared amenities. |
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| Step 5: Selling your current
home to buy another |
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| The following are reasons /
factors why homeowners sell: |
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Employment |
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Family |
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Financial position |
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Lifestyle |
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When should you sell?. |
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Wait until the market
improves? |
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The "seasonality" of home
sales |
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Buy first or sell first? |
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Bridge financing |
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Sell with a Realtor's
help or go it alone? |
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| Step 6: Working with a Real
Estate Professional |
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| Buyer's Agent |
A real estate company acting
as a "buyer's agent" must do what is best
for the buyer.
A written contract, called a buyer agency
agreement, establishes buyer agency. It also
explains services the company will provide,
establishes a fee arrangement for the REALTOR's
services and specifies what obligations a
buyer may have.
Typically, buyers will be obliged to work
exclusively with that company for a period
of time.
Confidences a buyer shares with the buyer's
agent must be kept confidential.
Although confidential information about the
buyer cannot be disclosed, a seller working
with a buyer's agent can expect to be treated
fairly and honestly. |
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| Step 7: How your lawyer will
help |
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Making sure you will have
valid title (proof of ownership) to
the property and what it is described
correctly in every document. |
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Investigating whether
there are any claims registered against
the property and ensuring these are
cleared before you take the title. |
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Arranging for Title Insurance
on your behalf, to protect you and the
lender against defects in property's
title or zoning. |
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Checking with the appropriate
municipalities to find out if taxes
are owing on the house, or (in the case
of a new home), if final inspection
has been completed. |
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Calculating the amount
of Land Transfer Tax you will be required
to pay when you complete the transaction,
as well as any adjustments necessary
to compensate the seller for prepaid
fuel (in the oil tank), taxes and utility
bills. |
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Drawing up the mortgage
documents, if these are not prepared
by your lender's lawyer. |
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| Step 8: Making an offer |
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| Preparing the offer |
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If this is the first time you've
purchased a home, you probably have never
seen an Agreement of Purchase and Sale before,
let alone drafted one. Not to worry. The Realtor
is knowledgeable about this subject and will
prepare your offer, taking into account all
the factors that are important to you.
Fortunately, Realtors don't have to reinvent
the wheel every time there's an offer to be
drafted. Standard Agreement of Purchase and
Sale forms are used by most real estate boards
and contain terms common to almost every real
estate transaction in the province. The wording
on these forms has been thoroughly reviewed
and tested through Ontario's legal system,
and is broadly accepted. That doesn't mean
however, that your specific offer cannot also
include special conditions you want. Every
sale is different, and your offer will contain
the wording that suits your needs. |
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| Step 9 & 10: Arranging a
mortgage and other costs |
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Ask your employer for
a letter confirming your employment. |
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Make a list of your assets
(cars 0 even if you owe money on them
- savings accounts, GICs, stocks, bonds,
etc.) |
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Also list your liabilities
(the things you owe money on - car loans,
student loans, credit card balances,
etc.) |
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Subtract your total liabilities
from your total assets; the remainder
is your net worth |
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Itemize the source(s)
of your down payment giving account
numbers where appropriate. |
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Also come prepared with
your social insurance number, chequing
account information and contact information
for your lawyer |
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If you've already selected
the home you want to purchase, bring
along any information that will help
describe it. |
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| Step 11: The Home Inspection
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| The most reliable indication
of a home inspector's qualifications is membership
in the Ontario Association of Home Inspectors
(OAHI), the Provincial Association of Certified
Home Inspectors (PACHI) and/or the Canadian
Association of Home Inspectors (CAHI). |
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| Step 12: Closing the deal |
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Make sure a copy of the
signed Agreement of Purchase and Sale
is sent to your lawyer right away. |
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Immediately begin satisfying
any conditions of the agreement that
require action on your part. |
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Upon your direction and
after the conditions have been met,
your lawyer will begin searching title
to the property. |
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If you so decide, your
offer should contain a condition that
the property pass inspection by a professional
home inspector. |
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If no current land survey
exists on the property, arrange for
one soon. |
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Contact your lending institution
and have them begin the process of finalizing
your mortgage documents. |
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Your lawyer will contact
the seller's lawyer with any questions
or issues regarding title and costs
that have to be resolved before closing
can take place. |
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Hydro, gas and water companies
serving the property will be contacted
by your lawyer for final meter readings
on the day of closing. |
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If you currently rent,
you'll need to give notice to your landlord
or sublease your apartment. |
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Begin making arrangements
to move your possessions from where
you live now into your new home. |
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Meanwhile, your lawyer
will be busy gathering a number of different
reports, certificates and clearances
form various governmental offices |
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If your lender is not
going to draw up the mortgage papers,
your lawyer will do this for you. |
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Send out your change of
address notices and fill out a card
at the post office. |
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Well before closing, contact
your insurance agent to arrange homeowner's
insurance coverage to become effective
on the date of closing. |
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Your lawyer will review
and verify the draft deed (the document
that transfers ownership from the seller
to you), statement of adjustments and
other closing information provided by
the seller's lawyer, and will deal with
any problems as they arise |
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A day or two before closing,
you'll meet with our lawyer to go over
and sign the closing documents |
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| Step 13: Making a "smooth"
move |
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Who will handle your move? |
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Working with a professional
moving contractor? |
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Do it yourself? |
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Sell with a Realtor's
help or go it alone? |
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