Right At Home Realty Inc.
Frequently Asked Questions - Buyers-FAQ's
If you’re buying a brand new property, then count on paying HST. For most resale homes, there is no tax added onto the selling price.
Yes. Pre-approval helps determine how much you can afford, and also shows the buyer that you’ve got financing arranged already.
Yes. Skipping the inspection can mean you’re stuck with a property that needs repairs that weren’t disclosed by the seller, or the seller wasn’t aware of.
Yes. The federal government allows first-time buyers to use up to $25000 withdrawal in a calendar year from their RRSP with a payback period of up to 15 years under the Home Buyers’ Plan.
You need to consider a home inspection ($350 or more), a real estate lawyer ($1,500 or more), home appraisal ($350 or more), property & title insurance & land transfer tax.
Buying a home is an exciting time. But, as one of the largest purchases you're likely to make, it can also be seen as one of your best long-term investments - so it's important that you get it right. This means doing your homework and making sure that the property you will eventually buy is the right one for you in terms of price, location, value, size and lifestyle.
To determine 'affordability' you will first need to know your taxable income along with the amount of any debt outstanding and the monthly payments. Assuming it is a principal residence you are purchasing, calculate 32% of your income for use toward a mortgage payment, property taxes, and heating costs. If applicable, half of the estimated monthly condominium maintenance fees will also be included in this calculation.Second, calculate 40% of your taxable income and deduct all of your monthly debt payments, including car loans, credit cards and lines of credit. The lesser of the first or second calculation will be used to help determine how much of your income may be used towards housing related payments, including your mortgage payment. These calculations are based on lenders' usual guidelines.In addition to considering what the ratios say you can afford, make sure you calculate how much you think you can afford. If the payment amount you are comfortable with is less than 32% of your income you may want to settle for the lower amount rather than stretch yourself financially. Make sure you don't leave yourself house poor. Structure your payments so that you can still afford simple luxuries.
Good city services, nice parks and playground facilities, convenient shopping and transportation, a track record of sound development and good planning--these are just a few considerations that are important to many people when they choose a community in which to live.
Your original offer is often rejected for one reason or another. But do not let that stop you. When an offer is rejected, you begin negotiating. If you find that daunting, don't worry; I can help you. You may have to offer more money, but you may ask the seller to cover some or all of your closing costs or to make repairs that would not normally be expected. Often, negotiations on a price go back and forth several times before a deal is made. Just remember, do not get so caught up in negotiations that you lose sight of what you really want and can afford! I can help you keep on track.
Once you've found a house you like and have the financial resources to buy it, you must decide how much to offer. In putting together your actual offer, consider the following factors:
The Advertised Price Of The House
Treat this as only a rough estimate of what the seller would like to receive, and recognize that different sellers price houses very differently. Some sellers deliberately overprice, others ask for pretty close to what they hope to get and a few (often the cleverest) under-price their houses in the hope that potential buyers will compete and overbid.
What You Can Afford
What you can pay for a house will probably depend on how much you already have in cash and how much you can reasonably borrow in a mortgage. When figuring out the cost of the house, be sure to factor in your share of the closing costs, which will be about 2%-5% of the purchase price.