Where do You Want to Live?

Whether you’re new or native to a neighbourhood, a REALTOR® can help you navigate homes in the areas that best suit your needs and lifestyle.  Take a minute to reflect on these popular housing options to help decide what fits you best.

	Urban Sure the prices are generally higher, but you can walk to a restaurant, maybe even to work. You’ll also have the widest range of housing options.
	Suburban Newer schools, modern shopping centres, bigger yards, and bigger homes are just a few of the reasons many people flock to the suburbs.
	Rural Rural living isn’t for everyone but if owning a few (or many) acres of seclusion is your idea of heaven, be sure to expand your search beyond the city lights.
	Smaller cities and towns Smaller cities and towns in Canada are dotted with thousands of wonderful self-contained communities and, compared to the big city, you can save a bundle.

What Type of Home do You Want?

Whether you’re building a home from the ground up or giving new life to a home previously loved by others, a REALTOR® can help narrow down a type of home to meet your needs.

	Single-family detached As the name implies, the home is freestanding and not attached to any homes next to it.
	Semi-detached or linked Two distinct houses (with separate owners and lots) that are built side-by-side and share a common wall.
	Duplex A building on a single lot but that is zoned for two families (each with independent access).
	Town house   Also known as terrace or row housing, they’re identified as homes featuring a common style and joined in a row. They usually share common walls on both sides.
	Condo With a condo, you own 100% of your unit and a share of the common areas. Common areas include the necessary plumbing, electrical systems, hallways and elevators. They may also include amenities like a private gym or pool. On top of the mortgage and property taxes, condo owners also pay a monthly fee to operate and maintain the common areas.

Sell Your Current Home

If you’re not planning to own two homes at the same time, you’ll need to sell the one you have now. So, do you buy or sell first? Many people are able to time their sale and purchase to happen on the same “closing date,” making their purchase offer “conditional” on the sale of their current home or by extending the “closing period” to give more time to find the perfect home. A REALTOR® can help you decide the best time to enter the market, analyze local market trends to set an agreeable and appropriate price and help promote your home to potential buyers.

Seller’s market

When lots of people are looking for homes but there aren’t many for sale.

Buyer’s market

When there are many homes for sale but not enough people buying them.

Seasonality

This refers to the fact that winter sales tend to be slower in most markets while spring sales typically speed up.

For more information about selling your home, check out our Tips for Sellers.

Arrange a Mortgage

Since you may not have hundreds of thousands of dollars at your immediate disposal, a mortgage is a loan that can help you cover the cost of buying a home.

Get talking

There are hundreds of banks, credit unions and other lenders out there who would love your monthly mortgage payments. So talk to everybody and don’t be money-shy! A REALTOR® can be very knowledgeable about the different types of mortgages and can offer advice based on your needs and comfort level.

Call a mortgage broker

Mortgage brokers are another great resource. Their job is to find low lending rates and they usually don’t get paid unless you sign a mortgage through them – meaning they’re highly motivated to get you the best deal.

Mortgage takeover

Often, you can take over the seller’s mortgage. This is a great option if the seller is locked into a lower interest rate than you can get right now. Your REALTOR® may have additional information.

Mortgage term

Refers to how long the bank has agreed to lend you the money – typically from six months to five years. At the end of the term, you usually renegotiate a new term.

Amortization

Amortization refers to the length of time it will take to pay off the whole mortgage, often as long as 25 years. The longer your amortization, the lower your monthly payments, but the more you pay in interest over time.

Interest rate

Interest is the cost of borrowing money, and the interest rate tells you exactly how much. Using our mortgage calculator, check out the difference between borrowing $100,000 at 6% versus 9% at the same amortization.

Keep in mind you can also choose between a fixed or variable rate. A fixed rate will remain unchanged for the entire term whereas a variable rate will fluctuate as rates increase or decrease throughout your term.

Down payment

Refers to the initial up-front portion you pay against your home purchase. A larger down payment means a smaller mortgage (and less debt).

If you’re a first-time homebuyer with money in a Registered Retirement Savings Plan (RRSP), you can withdraw up to $25,000 without paying income tax through the Home Buyers’ Plan. If your spouse or partner is also eligible, that’s a possible $50,000 you can use towards your down payment. Ask your REALTOR® for details.

Applying for a Mortgage

• Letter of employment (including your position, your salary or rate of pay and how many years you’ve been with the company)
• List of your assets (your car, stocks, bonds, GICs, etc.)
• List of your liabilities (car payments, student loans, credit card debt, etc.)
• Social Insurance Number
• Your chequing account number
• Your lawyer’s contact information
• Information about the house you want to buy

Extra Costs to Consider

Application fee

Some mortgage lenders charge a fee to process your application. Be sure to ask whether it can be waived.

Appraisal fee

Your mortgage lender may need to have your new home appraised by a professional and they often pass the bill on to you. Sometimes your lender will waive this fee.

Mortgage broker’s fee

Your mortgage broker may charge a fee that’s payable on your closing date. Ask your broker to avoid any surprises.

Land survey fee

Lenders may require a survey of your property, even if it’s an existing survey. Get your lawyer on the case.

Home inspection fee

A home inspection is intended to help avoid surprises and protect yourself and your investment. It usually happens a little later in the process. Don’t worry; we devoted an entire step to it.

Home insurance

Mortgage lenders require you to carry fire and extended-coverage insurance because your home is the security deposit on the mortgage. Often you can have these payments added to your monthly mortgage payments. Shop around.

Title insurance

While not mandatory, it protects you from fraud and potential errors surrounding the title to your land. Ask your lawyer for details.

Legal fees

You’ll pay your lawyer for their invaluable time and “disbursements” which are the costs involved in title searches, drawing up the title deed and preparing your mortgage.

Adjustments

The previous owner may have paid property tax or utilities in advance and they will want to be credited for those payments. Ask your REALTOR® and lawyer what might come up on the closing date.

Maintenance and utility costs

Remember, you’ll now have more regular monthly payments in the form of property tax and utilities.

Property transfer tax

The amount of this tax varies from province to province.

GST/HST and new homes

GST/HST doesn’t apply to resale homes but they will to new homes. If you intend to live in your new home (instead of renting it out), there is some relief. Consult your REALTOR® and/or lawyer for more information.

REALTOR® commissions or fees

REALTOR® commissions or fees are subject to GST/HST.

See What’s Out There

Now’s the time to pound the pavement and see what’s available. This step can be either incredibly fun or incredibly exhausting. But with a REALTOR® by your side, you’ll be able to land on your dream home much more effectively.

	Visit REALTOR.ca. REALTORS® have access to incredible house-hunting tools called MLS® Systems, which are operated by real estate boards and associations across Canada. You can view publicly-available information about MLS® listings on REALTOR.ca. Browse listings that meet your criteria, view photos and virtual tours, share listings with family and friends, explore neighbourhood details and statistics and more. Your REALTOR® can start sending you listings that match your specific criteria right away. Meet a REALTOR® today.
	Visit open houses. Open houses are a great way to see inside the homes that interest you. If a REALTOR® is hosting the open house, he or she probably knows the local market inside and out, and will be happy to answer your questions – don’t be afraid to ask!
	Check out real estate ads in local papers. Your REALTOR® can introduce you to neighbourhoods you’re already – or should be – considering based on your wants and needs. Make note of surrounding schools, shopping and recreational areas. Keep an eye out for not-so-great features like large industrial areas, railway tracks and airports. Visit during the day and at night.

Tip: Walking through a potential home is a thrill but try not to lose your head. Don’t let a giant kitchen island or swanky hot tub distract you from your real goal: finding a home that meets all your needs and fits your budget. Arm yourself with this house hunting checklist and bring it with you to homes you’re serious about buying. Good luck and happy hunting!

Finding a Home Inspector

When you’re buying a home, you’ll want to scrutinize every last detail. Hiring a professional to visually inspect your home for defects and overall condition – or, a home inspection – typically costs a few hundred dollars and can save you from unpleasant surprises and long-lasting regrets.

Many home buyers arrange a home inspection as a condition of their purchase. That way, should the inspector uncover any issues, you have the option to back out of or renegotiate the offer accordingly.

While your REALTOR® can help recommend home inspection companies to choose from, make sure your inspector is a member of a recognized professional organization. It helps provide some assurance they have the training and experience for the job. An inspection generally lasts a few hours and, when complete, you’ll get a written report summarizing the condition of your home.

What Does An Inspector Look For?

• Plumbing and electrical systems
• Heating, ventilation, air conditioning (HVAC) units
• Roofing
• Visible insulation
• Walls and ceilings
• Floors and windows
• Integrity of the foundation
• Presence of lead paint, asbestos, mould or pests (termites or mice)
• Out-dated or dangerous wiring

Tip: A newly-built home does not mean it’s perfect. In fact, construction quality can vary greatly from builder to builder. It’s at your discretion whether or not to opt for an inspection. In some provinces, repairs and corrections in new homes may be covered by a government or industry-sponsored warranty program. Bad news doesn’t necessarily mean it will have to cost you.

Close the Purchase

Your offer has been accepted and you can’t wait to move in … don’t break out the bubbly just yet; you still have to close the deal. Your REALTOR® and lawyer will do most of the closing work, but here’s a checklist to follow:

• Immediately begin satisfying any conditions of the agreement that require action on your part. Your REALTOR® can fill out the documents confirming the conditions have been satisfied.
• Ask your lawyer to begin searching title to the property. This can take a while, so make sure you allow ample time.
• Well before closing, arrange your homeowner’s insurance to kick in on your closing date. Your insurance broker will give you a “binder letter” certifying that you’re covered. You can’t get a mortgage without this letter.
• Contact your lender and have them finalize your mortgage documents. Make sure your lawyer reviews them before you sign.
• Your lawyer will transfer essential utilities like hydro and water but you’ll have to make sure telephone and cable companies switch their services to your new address.
• If you rent, be sure to give the required notice to your landlord or sublease your apartment.
• Begin planning your big move. Where are those cardboard boxes?
• Send out your change of address information and fill out a card at the post office. Contact the appropriate provincial agencies about changing your other identification cards.
• Walk through your new home one more time with your REALTOR®. Don’t forget the measuring tape to start planning your furniture arrangement.
• A day or two before closing, you’ll meet with your lawyer to sign the closing documents. Your lawyer will tell you in advance what certified cheque(s) you’ll need to seal the deal.

Move In

Moving day will come sooner than you think, so get planning now.

	Closing date and moving date aren’t synonymous. On closing, it’s likely you won’t get the keys to your new home until late in the day so it might make more sense to schedule the actual move for a day or so after closing.
Get packing Whether you’re getting the help of friends and family to move or hiring a professional, nobody will take the same care you will. Start early and spread it out over many days. Label all your boxes by room (and especially if the boxes carry anything fragile) so the movers know where to put them and how to treat the boxes.
	All moved in The boxes are mostly unpacked and you’re settling in nicely. You will now feel a strange urge to begin making changes and improvements right away. Sure, that old carpet has to go and a bigger deck would be great for entertaining but slow down! Take the time to get a feel for your new home and, more importantly, your new budget. Take a deep breath and enjoy what you have: your new home.

Tip: If you intend to move at the end of the month, contact a moving company or truck rental company well in advance. If you can move mid-week or mid-month, your moving company might cut you a deal.

Bonus Tip: Moving into a new home is a chance to start fresh. Take the opportunity to purge by either hosting a garage sale or donating items you no longer use or need to charity.