Let's get into the details with an in-depth guide

You’ve heard it before: buying a home may be the largest purchase you will ever make. Does that make you nervous? Consider this: it can also be one of the best investments you will ever make.

From the pride you feel by being a homeowner to the potential tax deductions associated with homeownership, the benefits are plenty. If you’re ready to travel the road toward homeownership, take your first step by reading through this guide. I've created a resource to help familiarize you with the homebuying process and present you with relevant information, including a list of terms, things to consider when choosing a home and a checklist to help you make decisions that are right for you. 

Whether you’re moving across town or across the country, the real estate market can feel overwhelming. But you can trust me in helping you navigate it with ease. I have access to current market information and can help you make informed decisions about the areas and properties that interest you. As you move through the process, I'll walk you through confusing paperwork and, of course, assist you in house hunting.

In the meantime, I've created a guide to help clear up the process.

Getting pre-approved for a home loan before you start touring houses can put you ahead of the pack. Should you fall in love with a house, being pre-approved strengthens your offer to purchase. Applying for a mortgage requires a written application and supporting documentation. Here are a few things you should be ready for when meeting with a mortgage lender:

They will check your credit score. Lenders will examine your credit history to help decide if you’re a good candidate for a loan. Credit scores are ranked on a scale of 300-900; the higher, the better.  

They will check your employment history.  Lenders ask for a list of your past employers, how long you’ve been with your current employer and what your annual salary is. They want to make sure you can make regular mortgage payments.  

They will check your assets and debts. Be prepared to show your past tax records, recent bank statements and current debt amounts, including credit card debt, car loan, or student loan. Lenders want to know your debt-to-income ratio to know if you can make each loan payment with the income you earn.  

One size doesn’t fit all. Mortgage loan and lender options vary. Different loan types can accommodate different financial situations. The same goes for additional resources like The Home Buyer's Plan (HBP) or The First Home Savings Account (FHSA).

You can find a mortgage specialist from my list of preferred vendors here

As a homebuyer, you can expect to see an array of different home styles and designs. You’ve got the choice of single-family, condo, townhome, lakefront, acreage or luxury; you can also choose single-story, multiplestory or split-level. In addition, you can choose a pre-existing home or new construction. In other words, you’ve got options. But what’s most important is that you choose a home that complements your lifestyle and your income.

To narrow down your choices:

• Know your budget and stick to it.

• Determine a desired location.

• Consider how many bedrooms, bathrooms, and square feet you need.

• Decide which amenities are must-haves versus like-to-haves.

• Consider your needs for outdoor space, like a yard or balcony.

Once you've found a home you love, we put together a Purchase Contract. This is an agreement to purchase a home and once accepted by the buyer, signed and all changes initialed, will become a legal document in the transaction. The offer can be unconditional, or conditional on a number of factors, such as financing or home inspection. 

You will also place a deposit once the offer has been accepted. This is an up-front payment made to the seller to show you are seriuos about the purchase. This amount will be held in trust by the seller's brokerage or lawyer until the deal closes, at which point it is applied to the purchase price. This payment can be made by cheque, bank draft, or electronic funds transfer. 

Should you choose to place a conditional offer, the home will be marked as "Pending" during the specified time frame. You will use this time to satisfy any conditions, such as completing a property inspection or reviewing condo documents. If the conditions are satisfied, you will complete a Waiver of Conditions to remove this condition from the sale of the home, agreeing to purchase the home. If you are not satisfied, you will complete a Non-Waiver of Conditions to cancel the purchase and have your deposit returned. 

The time frame for a conditional period varies depending on what is needed to be done. However we can see a typical time frame of 2-4 weeks for conditions to be satisfied. Having a mortgage pre-approval prior to starting this process is helpful in lessening the time to satisfy a financing condition. Additionally, some sellers require a pre-approval letter to accomodate the Offer to Purchase. 

During the conditional period, we can make adjustments to the Purchase Contract. As an example, if you complete a property inspection and discover any problems in the home, we can ask for the seller to fix the issue or request a change in purchase price to cover the cost of the repair. Should you need more time to satisfy the condition, we can get an extension through an Amendment. 

Should you choose to make an unconditional offer, you are in essence purchasing a home "as-is", with no option to review your finances or issues within the home. Once the offer is accepted, the home will be marked as "Sold" and you are in a legal agreement to purchase the home. While this may feel scary or impulsive, there are benefits to purchasing a home unconditionally and we can talk about it further if you choose to go this route. 

You can find a list of home inspectors, condo document reviewers, or mortgage specialists here

Once conditions are "waived", the home is marked as "Sold" and you have entered a legal agreement to purchase the home. During this time, you will have appointments with your mortgage specialist to have your mortgage approved and appointments with your lawyer to transfer the home from the seller to you. 

During this time, I would suggest you begin preparing to move by:

• Changing addresses in important accounts such as banks. You can ask Canada Post to forward your mail from your old address to your new one here. 

• Setting up utilities. Ensure you give ample start notice to utility companies or you will be charged a "Expedited Connection Fee". For help with finding rates for utilites, use this site.

• Purchase home insurance. This period can give you the chance to shop for the best rate for insurances.

The time frame for this depends on when the seller can vacate the home, when you would like possession, and the amount of time the lawyer needs to complete all necessary documents, transfer funds, and the ownership. Typically the minimum amount of time needed is 2 weeks. 

Known as "Completion Day" or "The Best Day Ever", this is the day you get keys to your new home! The Purchase Contract stipulates the time to be Noon, however it depends on when the seller's lawyers have confirmed receival of funds. Under special circumstances, this may take more than 1 day. Once I receive the call that funds are confirmed, I will meet you at your new home to give you keys!

Please know I am always a resource for you, even after you have been living in your home for some time. My phone is always on, please give me a text, call, or email should you need assistance in any way, shape, or form. 

I am looking forward to being there for you every step of the way. Should you have any further questions that aren't answered in this guide, please give me a call and I can do my best to answer your questions

As a buyer, unless specified by your agent, you do not pay any fees to the real estate agent representing you. The buying agent's fees are paid by the seller.

However, as a purchaser there are several other upfront costs that you will need to be prepared to pay. Budget 1% to 4% of the purchase price towards the following:

1. Deposit (this will go towards your purchase price)

2. Property Inspection

3. Condo document review

4. Down Payment (this will go towards your purchase price)

5. Property Tax

6. Lawyer Fees & disbursments

Glossary of Frequent Terms

1. Buyers Market. In a buyer’s market, there are more homes on the market than there are buyers, giving the limited number of buyers more choice and greater negotiating power. Homes may stay on the market longer, and prices can be stable or dropping.

2. Bridge Financing. A short-term loan designed to “bridge” the gap for homebuyers who have purchased their new home before selling their existing home. This type of financing is common in a seller’s market, allowing homebuyers to purchase without having to sell first.

3. Closing costs. The costs associated with closing the purchase deal. These costs can include legal and administrative fees related to the home purchase. Closing costs are additional to the purchase price of the home.

4. Comparative market analysis. A Comparative market analysis (CMA) is a report on comparable homes in the area that is used to derive an accurate value for the home in question.

5. Counteroffer. When the original offer to purchase a home is rejected by the seller, the seller can counteroffer with adjustments, usually to the price or terms of the purchase, such as the closing date.  

6. Down payment. The down payment is the amount of money paid up front for a home, in order to secure a mortgage. Down payments less than 20% of a home’s purchase price may require mortgage loan insurance. The selling price, minus the deposit and down payment, is the amount of the mortgage loan.

7. Property inspection. The property inspection is performed to identify any existing or potential underlying problems in a home. This not only protects the buyer from risk, but also gives the buyer leverage when negotiating a purchase price.

8. Real Property Report (RPR). An RPR will identify property lines and structures within the property boundaires. Simply put, it helps define what is yours and what isn’t. It is not required to purchase a house, but it is recommended. A survey is important if issues arise between neighbors or the municipality, should the owner wish to make changes in the future involving property lines or structures within the property.

9. Seller’s market. In a seller’s market, there are more buyers than there are homes for sale. With fewer homes on the market and more buyers, homes sell quickly in a seller’s market. Prices of homes are likely to increase, and there are more likely to be multiple offers on a home. Multiple offers give the seller negotiating power, and conditional offers may be rejected. 

10. Title insurance. Title insurance is a policy designed to protect both yourself and your mortgage lender from financial loss or damages caused by potential title defects such as code violations or legal complications. Typically this is paid for by the seller