Buying a home is a big decision, and there is a lot to consider; timing, costs, location, market trends.
We hope you find the information here helpful.
Got a specific question? We’d love to hear from you anytime! Simply email us and one of our team members will get back to you.
Thinking
If you are contemplating the purchase of a home this is a great place to start researching and planning your move.
Most people begin their search for a new home online. Looking at Realtor.ca, agents websites, and mortgage sites are all part of this initial research phase. This research is very important; it helps you to understand what is available, the current market conditions and allows you to start narrowing your search.
Three important things to keep in mind when you are online:
- It’s the tip of the iceberg
While you can learn a lot about real estate online, and the internet is a great tool for doing research, not everything that is available is on the web. You generally won’t get the best mortgage rate available online; properties are also not all online. This may sound strange in this day and age and while most properties do end up on line eventually, sometimes that’s too late. Some of the best properties sell before they actually show up on all the websites. - Pictures are deceiving
Nothing beats seeing a house in person, pictures don’t tell the whole story. Sometimes homes are made to look larger than they are (e.g. wide angle lenses), and almost all pictures online will showcase only positive aspects of the home and leave out anything less desirable. Seeing the home in person gives you the best understanding of the true character and feel of the home. - Timing is Everything
Many websites hold data, particularly listing data for a long period of time. Many continue to display data long after a property has sold and the new owners have unpacked the last box. As important as location is in real estate, sometimes timing is everything. Make sure that you are doing your research on an up to date site. How often are they posting new content? Are all of the listings sold? To make sure you have access to the most timely information, working with a dedicated Realtor will ensure you access to the most current information and instant access to properties that come on the market.
We believe that the name on your back signifies who you are as a person and the values that you represent. Our family has worked hard over generations to build a name that represents honesty, integrity, hard work, and dedication. By living our family values we ensure that each and every one of our clients feels like family before, during and after their transaction.
Use these mortgage tools below to help determine how much you can afford.
Premium Calculator
A tool to help you estimate the premium payable when you are purchasing a home. Simply enter the purchase price, down payment and the amortization period.
Household Budget Calculator
Compare your income with your current or planned expenses and debt payments and see what you can afford.
Mortgage Payment Calculator
A tool to find how much and how often your payment will be. Compare options and find one that’s right for you.
Mortgage Affordability Calculator
Easy to use mortgage tool to help you estimate the maximum mortgage you can afford.
Owning your own home is a goal of many people, make sure now is the right time for you by asking yourself these 4 questions.
- How likely is it that you will need/want to move in the next 24 months?
Two years may seem like a long time but in the world of real estate, it’s seconds. Generally speaking there is a good chance your home will not likely go up in value enough to cover your costs of selling. You need to weigh the costs of renting versus the costs of owning, don’t forget to include things like maintenance, selling costs and mortgage penalties. Aside from the costs you should also remember that real estate is not a highly liquid asset, if you need to move quickly, it can, depending on the property and the market it may take some time to sell. If you do decide that you want to buy but think there is a good chance you will have to move within the first three years be sure to mention it to us at your consultation appointment and we’ll make sure to target your search towards homes that would be quicker to sell when the time comes. - How stable is your employment?
Home ownership requires a number of regular payments and is a longer term commitment than renting. If you are unsure about the stability of your employment then renting may be a better option at this point. - Will you be “house poor”?
This is where planning and completing a realistic budget come into play. If the costs of owning leave you in a position where you are not able to save any extra “rainy day” money, then buying a house may not be a wise investment at this time. Owning a home sometimes brings unexpected surprises. Urgent repairs can come out of nowhere, so it’s wise to put a little extra aside for emergencies. - Have you done the math?
Make sure you are considering the cash flow component of ownership.. Renting has the advantage of being a fixed amount, no unexpected expenses, however during ownership you build equity over the long term by paying down some of the principle on your mortgage every month. Both renting and owning have advantages and disadvantages from a financial perspective, weighing them out will help you determine what’s best for you.
Once you’ve decided that you will be purchasing a new home, what’s next?
Whether you are buying a brand new builder home, a century old heritage home or something in between we would love the opportunity to speak to you about your goals and to help you achieve them.
Once you’ve decided that a move is in your plans, get in touch with us, even if you’re planning on waiting for some time before making your move. We will sit down together and help you to make your plan by going over all the costs and timelines involved that way when the time does come you are not caught off guard by any unexpected surprises.
Once we’ve had our consultation appointment we recommend making an appointment with a mortgage professional. We’d be happy to refer you to one of the talented mortgage brokers in our network to make sure you get the best advice and best service possible. Just like in real estate, not every mortgage broker offers the same level of dedication and commitment to you, the client. We’ve worked hard to develop a network of professionals that meet our service standards, that way our clients can enjoy a smooth transaction from beginning to end.
To book your appointment, click here, we look forward to working with you.
Looking
Now that you know you’re ready to start the search for a home it’s time to get going.
Once you’ve decided that you are ready to make a move one of the first steps is determining your price range. You likely already have a fairly good idea of your comfort zone for both your down payment and your monthly budget, putting these two together will determine your price range. While there are many online calculators to help you make this determination we strongly recommend that you speak to a mortgage professional prior to beginning your search for a new home. Interest rates fluctuate regularly and a change of 0.5% can affect your purchasing power by thousands of dollars.
3 common questions about pre-approvals:
Q: I know I should speak to a mortgage professional before I begin shopping for my next home, but do I need a pre-approval or to be pre-qualified, what’s the difference?
A: The first step in purchasing a home is to get pre-approved. Being pre-approved means you have had a full underwriting application which includes your income verification and a credit check. Being pre-approved ensures you get a rate lock, typically for 120 days, to protect you against rate increases. Pre-qualifying is usually much less intensive and usually just entails having your mortgage professional to do the math. It’s a good place to start but there are a number of other factors that go in to being approved. You must go through a full pre-approval before you confidently start looking for a house.
Q:What information and paperwork do I need to provide to obtain a pre-approval?
A: Depending on your employment status the information you need to provide the bank may vary. For example self-employed individuals require some extra verification of income. As a general guideline we will require verification of employment and proof of income (recent paystub, T4, letter of employment) as well as a credit check and proof of down payment.
Q: Obviously the interest rate is a determining factor in choosing a mortgage, is there anything else I should be considering?
A: Getting a mortgage is not like going to the grocery store and getting a loaf of bread. There are a number of options and factors to consider. Here is a list of few important things to compare:
- Interest Rate
- Term to choose (long term vs. short term).
- Amortization
- Payment frequency
- Property Taxes (are they included or not)
- Pre-payment privileges
- Penalties
- Assumption and portability features
- Blendability of the mortgage
At our appointment we will sit down and talk about your goals and objectives and work together to create a game plan for your move. Together we will build an action plan and a timeline unique to you and your situation, that way we can ensure that we are all working towards the same goals. Here are a few of the things that we will discuss at our meeting:
- We will go over the process of buying and moving into your new home From looking at houses, to closing day procedures and everything in between.
- We will discuss financial costs involved and timelines to help you create a budget That way you are prepared and won’t be caught off guard by unexpected expenses
- Review your needs and wants in a new home Some of the factors that we will need to consider are: Location, price range, number of bedrooms, number of bathrooms, features and amenities, and perhaps most important your future plans. All of these things combined will give us a great idea and feel for the home that will best suit your needs.
- We will provide you with suggestions on who to talk to, which lenders, home inspectors and lawyers have consistently offered a high level of service to our clients.
Planning ahead allows you to act quickly and with confidence when an attractive property comes on the market rather than making an impulsive purchase which might not be in your best financial interests. Our goal is to educate and to consult, not just to sell. We want you to feel confident when the time comes to buy your next property that you are making a well-informed decision. Call us anytime to book your appointment for a personal consultation with one of our professionals and put our experience to work for you. No pressure by us at all, ever.
The feel of the home is very important, layout, style, do you prefer bungalow over splits, we will help you to understand the differences. In touring homes you may be surprised at what your likes and dislikes really are and we can help guide you through the process.
We will also help you to determine what your must haves in a home are and what things are a bonus. It’s also important to consider what things are changeable and what things are not.
For example you can re-paint, change flooring, and even renovate a kitchen or bathroom depending on how much work you are prepared to take on. There are certain things, however, that you can’t change. An example of this would be location. Make sure to consider commuting times, traffic, and school districts.
It’s also important to try to buy a home that will meet your needs for a reasonable amount of time, we suggest you try to think 5 to 10 years down the road when purchasing a home. Here are a few things to consider:
The Location
- What is a reasonable commuting distance for you?
- Do you have a preference of school district?
- How close would you like to be to clubs, churches and organizations you would like to be part of?
The House – Basics
- How many bedrooms do you need?
- How many bathrooms do you need?
- Do you have a preference on the age of the house
- Do you prefer condo or freehold?
The House – Features
- Do you need space for entertaining?
- Are there any amenities that are high on your priority list? (e.g. swimming pool)
- How much parking space do you need?
At our consultation appointment we will go over questions like these together to start on the path to finding you your perfect home.
Buying
Understanding the contract, the paperwork, how to determine value, and decide on terms.
Once you have found the property that you would like to be your next home and have decided to make an offer we will sit down together and create a plan. Together we will go over the following:
- Comparable Homes
Reviewing what similar homes in the area have sold for and are currently listed at will help us to determine an offer price. - Terms
An essential component to any contract is the terms; what will be included and excluded from the sale, what conditions must be met, when the closing date will be. All of these elements contribute to the acceptability of an offer by all parties. - Review documentation
We will go over all of the paperwork with you and explain the contract and it’s components.
Ensuring that you receive the right information and that you understand all of the agreement and its terms will allow you to feel comfortable and confident that you have made a knowledgeable, well-informed decision. Throughout the process our goal remains the same, to help you move in to your new home for the best price and terms.
Home Inspections cover hundreds of components of your new home. The inspection typically takes 3-4 hours, to complete; afterwards a full report will be prepared for you.
We definitely recommend that all buyers be there for the full duration of the home inspection, first and foremost to make sure the home is for you and to see first-hand any issues that arise. Secondly and equally important a home inspection is an opportunity to be educated about the home and the current state of repair of it and its mechanical systems. By going through the property with the inspector you`ll be able to create a to do list of any upcoming maintenance or repairs needed to protect your investment.
Buying a home can be a stressful experience, our goal is to make the process as smooth, seamless and as stress free as possible. After you’ve reached a conditional agreement with a seller what happens next?
After your offer has been accepted we will have a specific time period to fulfill or waive your conditions which generally include a home inspection, and arrangement of financing. Other common conditions to include are the arranging of insurance, sale of your current home, and a review of the status certificate documentation by your solicitor if you are purchasing a condo. We will help to explain your options and provide advice on what conditions pertain to your particular situation before you make an offer.
During your conditional period we will help to ensure everything goes smoothly by forwarding all the required documentation to the appropriate parties on your behalf, as well as put you in touch with our network of service providers.
Closing
Closing the transaction is where your solicitor comes to the table. We’ve asked Mike Miller of Mattlow, Miller, Harris, Thrasher LLP, to answer a couple of common questions buyers have for their lawyers:
What can I expect from my lawyer in a real estate transaction?
In one line, the job of a lawyer acting for a Buyer is to ensure that the Buyer obtains a good and valid Transfer (deed) to the property and the mortgage company obtains a good and valid first mortgage on the property. In order to achieve this, the lawyer must communicate very clearly with the Buyers, the Buyer’s mortgage company and the Seller’s lawyer.
In order to achieve this goal, the lawyer acting for a Buyer on a home purchase is responsible for doing the following:
- Receiving and reviewing the Agreement of Purchase and Sale.
- Communicating with the Buyer. At the earliest stage possible, the Buyers should contact their lawyer to request a full budget of closing costs. Buyers can have up to 6 items that will make up their closing costs, and the lawyer should communicate ALL of these costs up front. If all costs are not properly budgeted, the Buyers may be surprised by unknown closings costs at the time of closing.
- Searching title to the new property. A title search confirms that the Seller’s actually own the property and reveals any mortgages, liens, easements or other items registered on the property.
- Search for judgements against the Buyers and Sellers.
- Communicate with the Buyer’s mortgage company.
- Receive and prepare the mortgage instructions to ensure that the Buyer’s mortgage is registered in accordance with the Buyer’s terms.
- Communicating with the Seller’s lawyers.
- Communicating with the Buyers 3-5 days before closing to provide all final closing costs and arrange an appointment.
- A day or two before closing, the Buyers will meet with the lawyer to sign all final paperwork and provide the down payment and closing costs. Buyers should meet with their lawyer when signing final documents. Some law firms allow a secretary to meet with the clients to sign final paperwork. Buyers should demand that they meet with a lawyer.
- On the day of closing, the lawyer will complete the following tasks:
- final search of title to confirm that nothing has been registered since the first search of title;
- Sends the purchase proceeds to the Seller’s lawyer;
- Registers the Transfer (deed) and Mortgage on title to the property;
- Releases keys to the Buyers;
Where and at what time will keys for my new house be ready for pick up on closing day?
Buyers will receive their keys on the day of closing from their lawyer. There is no set time for closing – the closing takes place when both the Buyer’s lawyer and the seller’s lawyer have completed all necessary tasks. This can take place anytime between 11:00 a.m. and 5:00 p.m. depending on a number of different factors. If Buyers are also selling on the same day, they should expect that the keys will not be available until late in the day as the sale must close before the purchase.
Most people suggest budgeting 1.5%-2% of your purchase price for your closing costs. Mike Miller, of Matlow, Miller, Harris, Thrasher LLP has prepared the following list as a guideline to help you to budget for closing day. Of course these costs change from one transaction to the next, but this checklist will help as a guideline of the items to include in your budgeting:
- Legal Fees and all closing costs (disbursements) which include title searches, registration fees, execution searches, e-reg fees, HST etc.
- Land Transfer Tax (Ontario Government Tax on the Transfer of Property);
- Property Tax adjustment between the Buyer and Seller;
- PST on CMHC Mortgage Insurance (if applicable);
- Title Insurance Premium;
- Condo Fee adjustment (if applicable)
- Remaining Down Payment (Down Payment less deposit). For example if Buyer is putting $25,000 down and have paid $2,000 as a deposit to the real estate agent, the Buyers would bring in $23,000 plus all closing costs listed above.
As soon as you have a firm agreement
(all conditions have been removed)
- Ensure your lawyer has received a copy of all of the paperwork pertaining to your purchase (we take care of this on behalf of all of our clients)
- If you haven’t already done so, we highly recommend starting a file or binder to keep all of the documents pertaining to your move in. Having everything in one place will be invaluable once you’ve started packing.
- Contact your mortgage broker and ensure that they have all of the paperwork they require to finalize funding your mortgage.
- Arrange your home insurance, this is something you can take care of well in advance of closing day and proof of this insurance will be required by your lawyer before your mortgage company will allow them to advance funds.
- If you plan on using movers or renting a truck or storage pod this is also something that can be taken care of right away, in fact the sooner the better, since these companies book far in advance and popular moving days book up early.
About a month before moving day:
- Gather packing supplies (packing paper, permanent markers, boxes, packing tape, bubble wrap)
- Begin packing—start with anything you won’t need for a few months that way it can be packed first and unpacked last
- Start notifying others of your address change, click here for a handy checklist
- Contact utility companies and book appointments for any installations or service hook-ups
- If you are moving in to or out of an apartment building book your elevator time.
About two weeks before moving day:
- Pack any items that you won’t need unpacked until a week or two after you have moved
About a week before moving day:
- Complete all final packing we recommend having a couple of boxes for things you will want access to right away (e.g. cleaning supplies, entertainment for kids, toiletries and a change of clothes)
At your new home:
- Ensure that everything that was included in the sale is in good working order (turn on and run all appliances, make sure that everything that was included in the agreement is there. If there are any problems call us right away.
At Eaton Realty we pride ourselves on taking a consultative approach to real estate. We will guide you through the process and help you to make decisions that are best for you, your family and your long term financial goals. We highly recommend booking a personal consultation appointment with us early on; one of our professionals will review your goals and work with you to create a solid plan and to help you avoid many of the common mistakes that buyers make.
