Complete Home Buyer's Guide For Canada

by Geraldine Santiago, Alma Pasic, Frank Dodich, Hilde Deprez

Overview

Learn what you need to know to purchase your home (be it a house or a condominium) with confidence! Whether a veteran or a novice, buying a home can be intimidating and worrisome. The Complete Home-Buyer's Guide for Canadians is written by an experienced real estate agent who specializes in working with first-time home buyers.

Product Details

ISBN-13:	9781770407787
Publisher:	Self-Counsel Press, Inc.
Publication date:	04/15/2012
Series:	Reference Series
Sold by:	Barnes & Noble
Format:	eBook
Pages:	144
File size:	879 KB

About the Author

Geraldine Santiago is a licensed realtor based in Vancouver, BC, where she also conducts regular seminars on buying and selling homes. She hosts her own home-buying and -selling website. Santiago is a member of the Canadian Real Estate Association (CREA), the Greater Vancouver Home Builders’ Association (GVHBA), and the Real Estate Board of Greater Vancouver (REBGV). She is also the author of Complete Home-Buyer’s Guide for Canadians and Sell Your Home in Canada, both published by Self-Counsel Press.

Table of Contents

NOTICE TO READERS ix ACKNOWLEDGEMENTS xi FOREWORD xiii 1 GETTING FINANCING 1 What Is a Mortgage? 1 What are the types of mortgage loans? 3 Amortization Period 5 Term 6 A Pre-Approved Mortgage and Its Advantages 6 What documents do I need to provide to a lender? 7 Understanding Where You Stand with the Lender 8 Criteria for the self-employed or those earning commissions 8 Changing jobs 8 History of bankruptcy 8 Credit Report 8 Acquiring a co-signer or guarantor 9 Minimum age to purchase a home 9 Calculating affordable mortgage payments 9 iii k Correlation between interest rates and borrowing capacity 9 Lenders might not look at your income and other financial obligations 10 Where Do I Get a Mortgage? 10 The Difference between a Bank’s Mortgage Specialist and an Independent Mortgage Broker 10 Letter of commitment 11 Down Payment 12 How much of a down payment do I need to buy a home? 12 Can I use the money in my RRSP to make a down payment? 13 Can I take out a loan to cover the down payment? 13 Purchasing property with only a small down payment 13 What Do I Need to Know about the Housing Market? 14 2 SEARCHING FOR A HOME 17 What Types of Housing Structures Are Available? 18 Factors to Consider When Looking for a New Home 19 Community 19 Neighbourhood 19 Transportation 20 Dwelling 21 Schools 21 New Home Warranties 21 Resale homes and new home warranties 22 Pros and Cons of Resale or Older Homes 23 The Difference between Freehold and Leasehold Interests in Land 23 Co-ownership 24 What Is the Best Time of Year to Buy a Home? 24 How long does it take to find a house? 25 Real Estate Agents 25 Responsibilities of the realtor 25 What is my relationship with a real estate agent? 26 The exclusive buyer’s agent contract 28 What time-saving technological services are available from a realtor? 28 Can I “switch” real estate agents? 30 iv Complete home-buyer’s guide for Canadians Contents v Homes for Sale by Owner 30 Landlord and Tenants 31 Purchasing a home with a tenant in an unauthorized accommodation 31 Your landlord offered to sell you the property you are renting 32 Choosing Your Team of Professionals 33 Do realtors provide referrals to other professionals? 34 A Realtor’s Commission and Allowable Bonuses 34 Who pays for the realtor’s commission? 34 What do realtors do to earn their commission? 35 Are realtors allowed to receive bonuses or other gifts from financial institutions? 35 Where Do I Start Looking for Properties? 37 What is a hot sheet? 37 Pricing the Property 38 What is a fair price when I’m placing an offer? 38 Pricing properties per square foot 39 How sellers price their homes 39 What to Look for When Viewing Properties 39 Seller’s motivation 40 Prior offers 40 Property condition 40 Moving dates 40 Restrictions 41 Health, safety, and environmental concerns 42 Zoning 45 Land title search 46 City assessment 46 Fixtures and chattels 46 Area 46 Documentation to Review before Purchasing a Condominium 47 Protecting Your Legal Interests 48 3 MAKING AN OFFER 51 What Should the Offer to Purchase Include? 51 After the Offer Has Been Presented, What Are the Seller’s Options? 56 Competing or Multiple Offers 57 What Is an “All Cash Offer”? 59 What Happens When Identical Offers Are Made? 60 What Is a Back-Up Offer? 60 Can I Place Offers on Two Different Properties? 61 Contract 61 Can I back out of a signed contract at any time? 61 In what circumstance should I not go ahead with the contract? 61 What do I do once the contract has been signed by both parties? 62 4 REMOVING SUBJECTS 67 Subject Clauses 68 Why do I include subject clauses in the contract? 68 The most common subject clauses 68 Removing Subjects 68 What does it mean to remove subjects? 68 How long do I have to remove subjects? 70 Building Inspection 70 What should a building inspection include? 70 Condominium unit inspection 73 What areas of a condominium may need repair? 74 Single-detached home inspection 74 What should I look for when purchasing a single-detached home? 75 What if I don’t want to have a building inspection done? 76 Can I get a relative to inspect the building? 76 Building inspection for a remodelled property 76 Cost of building inspection 76 Can the realtor pay for the property building inspection? 77 Building inspection failure 77 Protect Yourself from a “Leaky Condo” 78 What is a special assessment? 78 Buying a Former “Grow House” 79 Oil Tanks Can Cause a Potential Problem 80 vi Complete home-buyer’s guide for Canadians Contents vii How can I know whether a home’s underground oil tank is leaking? 80 Provincial standards for oil tanks 80 Items to Watch out for in a Land Title Search 81 Removal of All Subjects before the Subject Removal Date 82 The Deposit 82 Can I make the down payment in two equal payments at different dates? 82 What if the deposit cheque is an NSF? 82 Where does my deposit go? 83 5 CLOSING AND COMPLETION DATE 85 What Happens at Completion? 86 Lawyers or Notaries Public at the Closing Stage 89 The role of the lawyer or notary public 89 Choosing a lawyer or notary public 90 The difference between a lawyer and a notary public 90 Adjustment Date 91 Additional Costs You May Incur on Closing 91 Property transfer tax or land transfer tax 91 Transaction levy 93 Property taxes 93 Utilities 94 Maintenance fees 94 Condominium surcharges 94 Forms 94 Confirmation 94 Appraisal fee 95 Survey certificate 95 Mortgage application fee 95 Mortgage default insurance 95 Fire and liability insurance 96 New home fees 96 Legal fees 96 Title insurance 97 Interest adjustment 98 Are any of these fees negotiable? 98 Tax Exemptions and Financial Grants Available to Home Buyers 99 GST on new housing rebates 99 Home Owner Grant 99 Tax deferral 100 Home ownership assistance programs 100 Mobile Home Ownership Program 101 Mobile Home Upgrade Program 102 What Is the Possession Date, and When Does It Occur? 102 The Previous Tenants or Owners Left the Property in a Mess 102 What If There Is a Flood in the Apartment or the Appliances Do Not Work on Possession Date? 103 Summary 103 APPENDIX 1 105 APPENDIX 2 115 APPENDIX 3 119 GLOSSARY 123 SAMPLES 1 Mortgage Application Form 2 2 Commission Agreement 29 3 Buyer-Agent Fee Agreement 36 4 Property Condition Disclosure Form 43 5 Agreement Of Purchase and sale 52 6 Addendum 55 7 Summary Appraisal Report 63 8 Abbreviated Building Inspection Report 71 9 Buyer’s Statement Of adjustments 87 CHECKLISTS 1 The Contract 65 2 Subject Removal 84 3 Service Arrangements 88