Buying or selling your home can be a scary task. Let Vincent La Fiura, your Toronto Real Estate agent, can help make the process easier and less scary. Visit My Toronto Realty to learn more.
2. Where do I start my search?
• Word of mouth
o tell everyone you know that you're looking! You may
be the first in line for that dream home not yet
even on the market!
3. Where to start:
• Newspapers and real estate magazines
o these publications are free and provide a good
summary of the properties best assets and photos
• The internet
o realtor websites like realtor.ca can help you narrow
your searching perameters with a wide range of
properties.
o many sites let you search by location, price,
number of bedrooms, acreage size etc
4. Some Useful Tips to Help Your
Search!
• Keep records
o of everything!
• Things to compare in the homes you see
o energy rating of the home
o utility costs
o properly taxes and major reparis
o ask to see copies of the utility and other bills
5. Financing and a Closer Look..
• Check out the current financing on the
house
o if the mortgage is favorable, you may be able to
take it back from the vendor or get a vendor take
back mortgage to help close the deal
o when the title of the property is transferred to the
buyer who makes mortgage payment directly to the
seller (not a banking institution)
• Think twice about the house
o Make sure to go back and inspect the home at
different times of the day on different days. Look
deeper then the attractive surface details
6. Making an Offer to Purchase
• After you find the home you want to buy, an
Agreement of Purchase and Sale is signed
o it is helpful to work with a realtor to prepare your offer
as the Agreement is a legal document and should be
prepared carefully
• Things included in the Agreement are
o Your legal name
o The price you are offering to pay
o any items you would like included in the purchase price
o amount of deposit
o closing date (day you take possession)
o expiry date of the offer
7. Other Conditions
• Other conditions that you might want to
include
o satisfactory home inspection report
o property appraisal
o lender approval of mortgage financing
• This means that the contract will become
firm when the conditions are met
8. What Happens Next?
• The realtor then presents the offer to the
vendor. There are 3 possible responses you
could receive on your end
o 1. the vendor accepts your offer! The deal
concludes and you move onto the next step of the
process
o 2. The vendor makes a counter offer, one with a
higher price or different terms. This can go back
and forth until price and terms are both agreed
upon by both buyer and vendor
o 3. You cannot pay the price of the counter offer so
you walk away from the sale. Your deposit is
returned to you.
9. Getting a Mortgage
• Once your offer is accepted, go see your
lender. Your lender will
– verify and update your financial inforamtion
– put together what is needed for the mortgage
application.
– ask you to get a property appraisal and/or a land
appraisal, title insurance
– tell you about various types of mortgages, terms,
interest rates, amortization periods and payment
schedules.
– Depending on your down
payment, you may have a
conventional or high ratio
10. Mortgage Basics
• Conventional Mortgage
o when the mortgage loan is equal to or less than 80%
the lending value of the property
o The lending value is the property's purchase price.
The down payment for a conventional mortgage is
at least 20% of the purchase price
• Mortgage term
o the length of time that the mortgage contract
conditions (including interest rate) is fixed.
o can be from 6 months to 10 years
o Know your options, ask how different terms will
affect you in the long term.
11. Mortgage Basics Cont'd
• Mortgage interest rates
o these rates are either fixed, variable or adjustable
o fixed rates are locked in and will not increase for
the term
o variable rates fluctuate based on market conditions
o adjustable rates involve both the interest rate and
mortgage payments to vary based on
the market conditions
12. Open vs. Closed Mortgage
• A closed mortgage cannot be paid off
before the end of its term
o must make only your monthly payments, no more.
o not flexible
o often involve penalties and restrictive conditions
• An open mortgage
o is flexible.
o you can pay as much as you want without penalty
o a good option if you want to sell your home in the
future
13. Amortization
• The length of time the entire mortgage
debt will be repaid.
o The longer the amortization period, the lower your
monthly payments
o BUT the more interest you pay in the long run
o If a mortgage term is 5 years, and
the amortization period is 20 years,
you will need to renegotiate your
mortgage 4 times.
14. Payment Schedule
• How a mortgage loan is repaid
o done in regular payments
o monthly, biweekly or weekly
• A frequent payment schedule will save you
for accruing large amounts of interest on
your principal.
15. Closing Day
• When you take legal possession of the home
• The final signing usually takes place at the
lawyers office
o Your lender will give the mortgage money to your
lawyer
o You must give the down payment and remaining
closing costs (minus the deposit) to your lawyer
• Your lawyer then:
o Pays the vendor, registers the home in your name
and gives you the deed and keys to your home!
16. Moving Day
• Don't forget to ask your mover for
referances
• Ask the mover to estimate and outline their
fees
o Do they charge hourly or a flat rate?
• Ask your property insurance company about
goods in transit for big ticket items that
need to be moved
• Move important papers, money and jewelry
yourself
17. Post Closing Costs
• Changing the exterior
locks
• Cleaning expenses
• Decorating and furnishing
• Appliances
• Tools and Equipment
