GETTING PRE-APPROVED
Before you start looking for a home, you need to know how much you can spend. Getting your mortgage pre-approval is the very first step in the process - and it’s never too early to start! It will strengthen your position when you’re ready to submit an offer and help you focus on opportunities in your price range. Consult with your bank and/or a mortgage specialist who will look at your current financial situation and pre-approve you for a mortgage within your budget. This pre-approval will typically be valid for 120 days.
COSTS TO BE AWARE OF
It’s imperative to know and understand the costs to be aware of when buying a home as they can add up quickly (on top of your purchase price). Don’t worry! To ensure you are informed, we’ve broken down the common costs in detail for you here:
DEPOSIT AND DOWN PAYMENT
Deposits in the Greater Toronto Area are typically 5% of the purchase price. This amount needs to be accessible in a bank account and ready to be paid within 24 hours of your offer acceptance. Deposits form part of your total down payment and are contributed towards your balance owing on the purchase price on closing.
CLOSING COSTS
Closing costs are typically 1-2% of your final purchase price. These are additional funds that you will need to have accessible for your closing (they are not included in your mortgage):
• Legal (lawyer fees)
• Land transfer tax
OTHER FEES
• Appraisal fees
• Mortgage Insurance
CREATE YOUR WISH LIST
When creating your wishlist, there are a lot of factors to consider.
For example, these are the main topics our clients typically consider:
THE SEARCH PROCESS
Search in real-time from any device using an exclusive tool called REALM™; an invite-only search tool that gives you direct access to the same MLS system used by us, as Realtors. Easily communicate with your North Group Team Partner to comment on listings or request showings. It’s user-friendly and instant; it looks a lot like your favourite social media tools where you can like, comment, save and share
PREVIEWING PROPERTIES
We know how busy life can get and your time is valuable! We’ll help streamline the best 5 to 8 properties to preview and ensure they meet your criteria so you aren’t wasting your time. You can preview these homes in person or virtually. We’ll help you keep track of which homes you view and then discuss honest feedback on each. You’ll have a chance to rate each home on a scale from 1 to 10. Typically your ratings will have these results:
MAKING AN OFFER
When you find the right place, the next step is to submit an offer. In today’s market, there are a couple of different strategies Sellers will have to accept an offer. A lot of properties are sold in multiple offers (otherwise known as bidding wars; when there is more than one offer on the same property) or through pre-emptive offers (where an offer is submitted in advance of a specified offer date). A pre-emptive offer is also known as a “bully offer”. When you submit an offer (Agreement of Purchase and Sale), the main components for you to consider are:
OFFER PRICE
The amount you are willing to pay. This may be the final amount or the starting point of negotiations.
CLAUSES
A clause is a term or terms necessary to include in your offer to protect you through the purchase process.
CLOSING/COMPLETION DATE
The date that you pay for and take title/ownership of the property.
DEPOSIT
This is typically 5% (or more) of the purchase price and is payable by bank draft or certified cheque within 24 hours of offer acceptance or in some cases, with the offer, depending on circumstances.
CONDITIONS
A condition is a clause the Buyer needs to waive or fulfill by an agreed time in order for a sale to be finalized. The most common conditions are: financing, inspection, lawyer review and status certificate review.
CHATTELS AND FIXTURES
Otherwise known as inclusions and exclusions; these are the items that you wish (or the Sellers wish) to be included or excluded from your offer.
OFFER ACCEPTANCE
Once your offer has been successfully negotiated and accepted by all parties, you now have either a conditional or firm sale. Once firm (conditions have been fulfilled according to the agreement), your sale remains pending until the Closing/Completion Date. You will require a lawyer to facilitate the closing of your property. We recommend that you contact your lawyer a minimum of 1-2 weeks before your closing date to ensure that everything is in order and to confirm a date and time to sign all paperwork (this can be done virtually), where and when to pick up keys for your new home etc.*
*If you do not have a lawyer, we will be pleased to recommend one of our preferred partners to you
CLOSING DAY
On closing day, your lawyer will advise you once the transaction has been successfully completed (i.e. funds have been transferred) which would mean that the title will be officially transferred and you’ll be given access to your new home! The Sellers typically have until 6:00pm to provide vacant possession, unless otherwise negotiated in your contract.
