“Buying home isn’t Just a milestone – it’s moment that changes everything. Whether youre taking your first step or
starting your next chapter, this guide is here to simplify the process and help you move forward with clarity.”
Your next move begins here…
01. Get PRE-APPROVED.
This is the essential first move before you start home shopping. You wouldn’t go shopping without knowing how much money you have in your wallet, so why would you go home shopping without getting your finances in order?
Bank or Broker
You can chose to work with a financial institution you bank with, or a mortgage broker. The key difference is banks can only offer you their own mortgage products. Brokers, are essentially a middleman.
Downpayment
You’ll need to secure money for a down payment. At minimum 5%
of the purchase price of the home you’re planning to buy is
required.
Know your options
Mortgage loans are not a “one size fits all” approach. Different
lenders may offer different mortgage structures depending on yoursituation.
02. KNOW your numbers.
Congrats, you’re been pre-approved. Now it’s time to
determine what your shopping budget is. Here’s the
additional costs that are involved when buying real estate:
Property Transfer Tax
Calculated based on the purchase price of the property:
1% on the first $200,000
2% on the portion of the fair market value greater than
$200,000 and up to and including $2,000,000.
3% on the portion of the fair market value greater than
$2,000,000, and
If the property is residential, a further 2% on the portion of
the fair market value greater than $3,000,000.
GST
Good and Services Tax is a federal tax of 5% applicable
ONLY on the sale of brand new properties.
Appraisal Fee
Lenders will order an appraisal of the property you are purchasing as required, to ensure the home is worth what you are paying.
Property Inspection
The cost of an inspection can vary depending on the
property type and the professional you hire. The inspection will help assess the condition and risks of the property.
Legal Fees
Attaining a lawyer or notary is required to register a property and transfer the Title from the previous owner to the new buyer. The cost depends on the complexity of the real estate transaction.
Home Insurance
Your home insurance is paid for monthly or yearly and is not added to your mortgage. The cost will depend on the type of property and insurance coverage options that you select.
03. Create your must-have list.
Before you step into a single showing, you need to get clear picture on what truly matters to you. This isn’t about making a wish list. It’s about defining what you need to live well.
Define your Non-Negotiable’s.
These are features that are essential for your lifestyle, daily routine, and long-term plans. Do you work from home and need office space? Do you plan to have a dog and need outdoor space? Do you need to be near transit?
What’s your Lifestyle?
Location is everything and your home should support the life you want to live. Where do you spend your time? What kind of neighbourhood is right for you? Are you willing to commute?
Prioritize Wants from Needs.
This is where it gets real. Needs = deal breakers. Wants = nice to have. Rank your list in order of importance. It can be your decision maker when choosing between two great homes.
04. Start Shopping
After a discovery session to finalize your shopping list and must-have’s, we’ll set you up on our client search platform. You will have access to the latest properties and be notified real time when a property matching your criteria hits the market. Before you know it, you’ll be going on your first property tour.
05. Writing an Offer
You’ve found the one. It’s time to talk numbers and set expectations. Our agent will prepare a market evaluation to guide you on the property’s value, based on the most recent sales data. To present an offer on a home, we will use a document called the Contract of Purchase and Sale. We will educate you on the Terms and Conditions and how to best structure an offer to protect your best interests as a buyer.
06. Accepted Offer
Almost there. An accepted offer means you have a period of time to satisfy all the conditions written into your offer that both parties have agreed to. From getting your financing approved, conducting a home inspection, to verifying insurance options, our agent will guide you through this step by step. You should also get your funds for deposit ready, as it can take ample time to withdraw funds from your RRSP or other investments.
07. Subject Removal
Once you have satisfied all the conditions of your purchase contract, you are ready to remove those subjects. Your deposit will be due, and is required in the form of a bank draft. It is held in trust in our real estate brokerage account until closing. Bank drafts should be made out to “1NE Collective Realty Inc. In Trust”. Deposits can also be paid via wire transfer. Next, you will need to choose a legal representative to process the transaction (Lawyer or Notary).
08. Completion
The money day. This is when the legal transfer of ownership from the seller to buyer is finalized. It is also when funds are transferred, closing costs are paid and you officially become a homeowner. You will typically receive keys either on the completion date or the following possession date, if specified separately.
09. Time to Move
Congratulations, you are picking up your keys today. The possession date is the day you officially take physical possession of the property. In most real estate deals, the possession date comes after the completion date to give the seller time to move out, and to ensure legal ownership is confirmed before handing keys over.
10. Celebrate
… and just like that, you’re now a homeowner. From day one to popping bubbly, this is a monumental achievement. Whether this is your first, next or forever move, we’re here to make your journey unforgettable.
The information shared here is intended for general educational purposes only and should not be considered financial, tax, or legal advice. I am not a licensed accountant or tax professional. Readers are encouraged to consult with a qualified professional regarding their specific situation. Programs and qualifications may change at any time. For most up to date policy and detail please always refer to official sources and confirm with professionals.
