Buying Tips Buying a home Buying a home can be one of life’s most fulfilling experiences and one of the most challenging.
The more prepared you are at the outset, the less overwhelming the buying process will be.
Your professional realtor will be able to help you with all of the steps in this process.
Initial steps. - Make a list of your requirements. (what you want in your new home). Size, bedrooms, kitchen, office, work shop, etc.
- Make a list of other features. Age, location, exterior, yard (fenced), gardens, deck, neighbourhood
- Compare your list with your spouse.
- Prioritize the two lists.
- Financing.
What price range will fit your budget Calculate your net worth. This will help you determine mortgage.
Calculate maximum payments that you can carry.
General rule is monthly mortgage payments (PIT, principal, interest, taxes) should not exceed 30% of your net income.
Contact a mortgage broker for assistance with these items. - Timing. When do you need or want to have this deal complete?
- Plan the sale of your current house. (see link on previous web page for things to think about when selling your home.)
Contact a Realtor. - Your realtor is your professional assistant to help you with all of the steps listed on this page for the purchase of your home.
- Your realtor will be able to provide detailed searches on MLS (multiple Listing Service) using your requirements to find a house for you.
- Your realtor will be able to put you in contact with all of the necessary people and agencies to help you complete your purchase.
- Your realtor will also be able to assist you with all of the other steps of the offer and close.
- Interview your realtor. Is this the person you will feel comfortable working with?
Other things to think about. - Mortgage Broker – size of mortgage you qualify for, payments, search best interest rates
- Lawyer – to check title to the property, liens, easements, restrictions, etc.
- Building Inspector – report on home’s safety and construction condition
- Septic system, health (water) certificate
- Survey
- Mover
- If renting, you need to give notice to landlord
- Change of address for driver’s licenses, post office, credit cards and friends
Costs to Consider - Mortgage Broker. usually no charge. May be fee if financial counseling is required.
- Home Building Inspector. report can range from $250 to $400
- Realtor. 5%–6% of the sale price of the property + GST. This amount is usually included in the selling price. Your realtor will provide details for you.
- Lawyer can range from $500 – $800. + GST plus disbursements $100 – $500 (tax certificates, zoning reports, registry searches, deed registration, mortgage copies
- Land transfer tax. Residential .5% of first $55,000
1% of $55,000 – $250,000
1.5% of $250,000 – $400,000
2% of $400,000 plus
(eg. $140,000 home would be (.005 x 55,000) + (.01 x 85,000) = $1,125. - Title Insurance $200 – $400 in lieu of survey Closing adjustment costs.
- Reimbursement for any prepaid property taxes or utility bills, fuel
- Survey $1000 – $1500. (for town lot.) may not be required if seller has current survey or if mortgage insurance is purchased.
- Moving. Depends on distance and choice of movers. (family and friends vs professionals)
- House Insurance
| Allan Duffin
Sales Representative
RE/MAX Trent Valley Realty Ltd. Brokerage
email Allan Duffin
office 613-475-6594or 800-501-7499 |  | | Comments made on this site are for general information only. Appropriate professionals should be contacted for detail.
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