The best time to look for a mortgage is before you start looking for a house. Knowing exactly how much money you can borrow and how much house you can afford is key to a successful search.

Once you find your dream house, we suggest you contact your mortgage specialist to confirm your financing before you make an offer.

1. Price: This is what you’re offering to pay for your new home.
2. Deposit: This amount of money demonstrates your good faith to the seller. It can be all or part of your down payment.
3. Closing Date: This is the date when money changes hands and you take possession of your new home.
4. Conditions: Freehold and condominium conditions vary. They also vary by individual property and are put in place to protect your interests. Typical conditions include the necessity of a home inspection, status certificate, and financing specifics.

Homes, whatever their size or type, are complicated machines with a lot of moving parts. A home inspection identifies the problems you’ll have to deal with before you finalize the purchase. Many flaws aren’t obvious to the untrained eye. A home inspection covers structural, electrical, heating and air systems, plumbing, roofing, along with exterior and interior checks. Your home inspector will identify existing and potential problem areas, suggest practical solutions, and provide estimates regarding costs for any work required. Shortly after the inspection, a report summarizing the findings will be provided to you. Home inspection costs range according to size, age, and location of the home. We can introduce you to reputable home inspection providers. In some cases, the sellers might already have commissioned a recent home inspection to speed up the process.

The industry standard is 5%-10% of the purchase price. This deposit is held in trust until closing and is then applied to your down payment. Deposits must be either certified cheque or bank draft and payable to the listing brokerage. Your deposit is due within 24 hours of the offer being accepted.

A lawyer’s role is to represent your interests and process the legal documentation. Feld Kalia specializes in residential and commercial real estate and served the needs of many of our clients. They offer all-inclusive fees and are there to guide you through the closing process. Visit them at www.feldkalia.com for more information. You may–of course–choose your own lawyer.

The land transfer tax will be your largest cost at closing. This is money in addition to your down payment. Use the Feld Kalia cost calculator to determine your land transfer tax and legal fees. You should set aside an additional $5,000 to cover other related expenses.

The land transfer tax is the most significant closing cost when buying a house. In addition to the Provincial Land Transfer Tax, Toronto buyers are also responsible for Municipal Land Transfer Tax. First-time buyers are eligible for a rebate up to a maximum of $3,725.

The status certificate is a document dealing with the financial status of both the condo corporation and the unit. It specifies the fees, large forecast increases, any special assessment being contemplated by the board, and any arrears or liens on a particular unit. It contains the condo declaration, by-laws, budget, reserve fund, insurance, management contract, rules, minutes of the last annual general meeting, and mention of any lawsuit involving the corporation. This certificate can run 100 pages.

The seller is most often responsible for ordering the status certificate. The seller will typically have 10 business days to provide the document to your representative. Once received, your lawyer will have three days to review it. Your lawyer will then report on the findings of the document. If the report is positive, i.e. the building reserve fund is sufficient, there are no assessments planned, the lawyer will advise you to proceed with the deal.

Waivers remove conditions from the offer making it firm and binding. Fulfillment of conditions can include arranging financing, requesting a status certificate, or booking a home inspection.

The average is $35,000 – $40,000 for downtown condominiums. If a parking space isn’t included with your condo unit, you might have the option of buying or renting the space separately.

Mortgage loan insurance is provided by the Canada Mortgage and Housing Corporation (CMHC). This insurance is required by law to insure lenders against default on mortgages with a loan-to-value ratio greater than 75%. The insurance premiums, ranging from .50% to 3.75%, are paid by you and can be added to your mortgage. Mortgage loan insurance is not the same as mortgage life insurance.

Of course–send us an email and we’ll provide you with a list.