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Everything a Buyer Must Know Before Buying Their Home AN INFORMED HOME BUYER’S GUIDE
PINDER SINGH | ROYAL LEPAGE MEADOWTOWNE REALTY t 416.357.4999 | e pinder@ pindersingh .c om
SO YOU'RE THINKING ABOUT BUYING A HOME?
Fantastic! It may be your first home, or perhaps your fifth, but no matter how many times you've been through the process, one thing remains the same: It's a big job, involving a great deal of effort, time, and of course, money. But you're not alone - lots of Canadians are doing it! According to Statistics Canada's National Household Survey, 69% of Canadian households own their home. 1
Every buyer has unique needs but the questions they ask are very similar:
• How do I know how much I can afford? • Do I need an agent or should I go at it alone? • What's the best area to buy in? • How do I negotiate the best possible price? The best approach to buying a home is to be informed. This guide will help you answer those basic questions, outline what to expect in the key steps ahead, and boost your confidence in finding the right home for you. In the Resources Section at the back of this guide, you' ll find worksheets and checklists to figure out your dream home requirements; common costs for closing, moving, and settling in; who to contact with your new address and how to pack your belongings for a stress-free move.
BUYING A HOME IS A DREAM COME TRUE. LET'S BEGIN!
1 "2011 National Household Survey Homeownership and Shelter Costs in Canada," Statistics Canada, last modified January 1, 2014, http//www12 statcan gc ca/nhs-enm/2011/as-sa/99-014-x/99-014-x2011002-eng cfm
DECIDING WHAT YOU WANT Logically, the first step to finding the right home is to determine what you’re actually looking for. There are a lot of homes on the market at any one time, and looking at them all is not the best way to spend your time. To make your home search more efficient, ask yourself these three focus questions :
1. Where do I want to live? This is your first decision. What communities or neighbourhoods do you want to consider? Is it important to be near schools, shopping centres, recreation facilities, places of worship, hospitals, or other amenities? Will you require public transportation? 2. What type of home do I want? What style of home is best for you? It could be a detached, a semi-detached, a bungalow, a split-level, a two-storey, a duplex, a townhouse — the options are endless! You may also want to consider your ideal lot size and the age of the home. 3. What are my must-haves and deal-breakers? What are the most important features for you in a home? A basement? A garage? A pool or a fireplace? How many bathrooms?Bedrooms? Do you have family members with special needs? What do you absolutely not want in a home?
Refer to the “MY DREAM HOME” worksheet in the Resources Section at the back of this Resource Guide for a detailed list of home options.
GET PRE-APPROVED FOR A MORTGAGE When it comes to buying a home, getting pre-approved for a mortgage is a very important step. Not only does it help you understand exactly how much you can afford to spend on a home, but it often allows you to lock in an interest rate for a period of time which could potentially save you thousands of dollars for years to come. Here are 4 simple steps to a mortgage pre-approval: 1. T alk to a mortgage specialist. Whether it’s your bank mortgage specialist or an independent mortgage broker — talk to someone with expertise who can help you compare rates and terms as there are hundreds of options to choose from. Note: A 2014 report by the Canadian Association of Accredited Mortgage Professionals suggests that more home buyers are choosing fixed-rate mortgages for their purchases (74%, compared to 20% who had a variable or adjustable rate, and 6% who had a combination mortgage rate) 2 .
2. Complete an application to find out how much you qualify for. There are many factors that go into determining your eligibility for a mortgage. Two of the primary practices are calculating your GDS (Gross Debt Service) and TDS (Total Debt Service) ratios. These factors determine how much you can comfortably afford to spend based on your down payment, income and other financial obligations. 3. Gather your financial information to finalize pre-approval. Your bank or mortgage professional will require documentation to support your application such as income and down payment verification to finalize the pre-approval process.
4. Get a copy of your pre-approval. This is a powerful negotiating tool. It’s extremely
frustrating for sellers to lose a sale because of financing. A pre-approved buyer means sellers have one less thing to worry about. Even though many offers are conditional on financing, the seller of your dream home will see you as a more attractive buyer when they know you are pre-approved.
2 “Canadian Housing Observer 2014,” Canada Mortgage and Housing Corporation, last modified April 2, 2015, https://www03.cmhc-schl.gc.ca/catalog/productDetail.cfm?lang=en&cat=122&itm=27&fr=1436556988656.
AGENT OR NO AGENT? Most buyers today work with a real estate agent rather than go at it alone for many reasons. In most cases, your home is your most valuable asset, and it makes sense to use a professional. A great real estate professional will provide key market insights, sound advice and save you endless hours of time and money — all while helping you reduce the stress of a large purchase so you can truly enjoy the experience of buying your dream home. Top 5 Reasons Why Most Homebuyers Choose to Work with a Real Estate Professional
1. It’s free. In almost all cases, commission is paid by the seller so having an agent working for you is essentially free. 2. Avoid overpaying for a home. If you’re like most buyers, you want to know, with certainty, that you are paying a fair price. Quite often, sellers overprice their homes to “see what happens.” A great real estate professional will educate you on the price of current competitive properties as well as similar homes that have been recently sold to help you make an informed decision on how much to offer for your dream home.
Top 5 Reasons Why Most Homebuyers Choose to Work with a Real Estate Professional (Continued) 3. Represent and protect your interests as a buyer.
In any transaction, it’s important to understand that the seller’s agent is bound by contract to work in the best interests of his/her sellers. You need representation (an agent),someone to work exclusively in your best interests. Engaging the services of a real estate professional to assist you in the home buying process means you now have someone to work solely in your best interests to provide you with: • Confidential advice that addresses your needs first. • Loyal and diligent“full disclosure” care, FREE from any conflicts of interest. • Access to all listings including MLS ® , bank-owned properties,distress and estate sales,even homes that were previously on the market where the seller might still be interested in selling. • Expert advice on useful clauses such as home inspections and financing to protect you fully. • Expert negotiation of the offer to purchase,to achieve the best possible price and terms. • Expert advice on market value, inclusions, location, as well as help you decide when you should walk away. • Discovery and disclosure of all information about the property including liens, warranties, disclosures, seller’s purchase price,market and planning activity in the area.
4. NEGOTIATE the best price and terms of your most valuable asset. Negotiating requires expertise and skill, period. A great real estate professional is a masterful communicator with expert negotiating skills whose job is to help you decide what to offer, what to include, what to give up and most importantly, when to walk away if reasonable terms cannot be reached. 5. Manage the countless details and mountainous paperwork. Ensuring the i’s are dotted and t’s are crossed and that no balls are dropped from start to finish (and after) is a heavy load off any buyer’s plate. From the moment of engagement,your agent will ensure smooth sailing and guide you effortlessly through any obstacles along the way.
START SEARCHING Now the fun begins! Most searches begin online. In fact over 90% of buyers start their home buying process on the internet. The most comprehensive website for property searches is Realtor.ca, a Canada-wide database of all active properties for sale, also referred to as the MLS ® or Multiple Listing Service. This website allows you to narrow your search to a specific area, price range, key features and even displays the properties on a map. The internet can be very helpful for you to get a sense of what’s available but keep in mind, it’s not a complete picture of the market or all potential properties available. A great agent, working on your behalf, will do an in-depth needs analysis to find all the properties suitable for you, set up a time to view the homes and guide you through the selection process.
HERE’S WHAT YOU CAN’T SEE ONLINE
1. Homes in hot markets that haven’t made it online yet. These are desirable homes in great areas, at great prices that often get sold before a property listing is loaded online. The only way to know about them is through an agent. 2. Expired listings or private sales not found on MLS ® . A savvy real estate professional is on the pulse of all potential homes for sale, listed and unlisted. 3. Insight and an insider’s edge. An agent not only has access to more data than what is available online, but he/she brings expertise and a wealth of knowledge so you can be confident in knowing you have a complete picture of each property you are considering.
MAKE A SMART OFFER & NEGOTIATE You have found a house you love. Fantastic news! Here’s how the offer process typically works:
Step 1 Decide on price, terms and conditions. Your agent will conduct a Comprehensive Market Analysis (CMA), complete with comparable active and expired listings, recent solds, and other historical data to determine the market value of the home. This is extremely helpful when it comes to negotiating a fair price. You also need to decide on a closing date and if there will be any conditions of the offer such as home inspection, appraisal, water tests etc. Your agent will guide you. Step 2 Prepare the offer. Your agent will create a legal document (Agreement of Purchase and Sale) that protects you, follows your instructions, and matches your schedule and needs. Of note, many tech savvy, eco-friendly agents today are using the convenience of paperless transactions. E-signatures are becoming more and more common today for their ease of use and online, secure document storage. Your agent explains the details and terms of the offer, and suggests options for specialty clauses so that you know exactly what you are agreeing to. Step 3 Review the offer. Step 4 Present the offer. Your agent will present and negotiate the offer on your behalf.
What happens next? One of three things:
1. The seller accepts your offer. Congratulations! 2. The seller rejects your offer. This isn’t common, but it can happen and your agent will work to find out why. 3. The seller countersigns. Changing the terms of the offer, and presents the offer to back to you. Your agent will continue to negotiate on your behalf to reach agreeable terms. Your agent will also advise you if it’s clear that an agreement cannot be reached and it’s time to walk away.
CONDITION REMOVAL & INSPECTION Okay, you have agreed on the price and terms and now have a firm or a conditional offer in place. If you have conditions, now is the time to start the process of satisfying them in order to meet the deadline and firm up your purchase. One of the most common conditions of an offer today is home inspection. Home inspections allow you to scrutinize the details of the home and potentially save you from any unpleasant surprises.
HOME INSPECTION TIPS
• Choose a qualified professionaAl. member of an association can reassure you are getting an experienced, knowledgeable professional. • Ensure the home inspector checks for visible issues with plumbinegle,ctrical systems, roof, insulation,walls,ceilings, floors and windows,and the condition of the foundation.They can also check that the home includes chattels like furnaces and air conditioners,are in working orde.r • Ensure your home inspector gives you a close and personal look at your new homIt tea.kes about three hours to go through all the systems,and if there are any problems,you will see them with your own eyesT.hey will also give you maintenance tips and easy fix-ups,if necessary. • Ensure that in the endy, ou receive a detailed report that summarizes the condition of your home.
PREPARING FOR CLOSING DAY Typically you will have anywhere from 30 to 90 days before closing day. The closing date can be the same as your move-in date, however, this is not always possible. Check with your lawyer or agent to f ind out when your keys will be available on the closing date. It is normal that the exchange of money and title be complete before keys are released which could be late in the day
Remember, this is an exciting time! Being organized well in advance will pave the way for a much more enjoyable journey. Here are a few details to take care of before your closing date:
• Legal Stuff and Paperwork You and your agent will need to provide your lawyer with all the necessary documentation for your purchase. Your agent usually takes care of the agreement, waivers, survey and any other purchase documents. However, you may need to provide your lawyer with some additional information: insurance, down payment information, adjustment payments, and other signed documents your lawyer may request. • Down Payment and Closing Costs Make the necessary arrangements to have these funds available a week prior to closing or when the lawyer has requested funds. • Moving Arrangements & Change of Address Whether you are using professional movers, renting a truck, or getting a bunch of friends together, plan and organize it early. • Property Insurance Arrange for home insurance before closing and request a proof of insurance at your financial institution in advance. Provide your insurance agent with the listing information and details such as age of the house, pool or no pool, type and condition of the roof, condition of the furnace, electrical and type of exterior. • Utilities
Contact the local utilities to coordinate the change of billing on closing. Including phone, internet, cable, gas, electricity, water, and any rental agreements. Don’t forget to cancel the services at your old address. • Schools Inform your children’s old and new schools about the move and arrange any necessary record transfers.
MEET THE TEAM
Meet with The PINDER SINGH TEAM
Feeling more informed? We hope so!
There’s a lot to buying a home. If, after reading this, you feel like you want some help, we' d be happy to speak with you. We ’ll provide you with a market information and updates , and answer any other questions you have.
We' ve added some worksheets and other reference material s in this package . We think you’ll find it helpful for becoming even more informed and getting organized .
We are very proud to offer our TEAM services. We strive to provide a "one stop shop" style of service. Whether that is through having multiple Realtors on our team providing depth and combined skills to reach our clients' real estate goals or professionals that will make the process seamless. We have everything covered, multiple options for lawyers, home inspectors and mortgage brokers. We provide references for movers, painters, contractors and even discounts at The Brick, 1-800-Got-Junk, Bed Bath & Beyond and so much more! Our Team Administration Manager will help with the details to ensure nothing is missed as we help negotiate the best price for you. This includes a moving concierge service to help with changing addresses, forwarding mail with Canada Post and tips for moving. We look forward to providing you with a concierge style service and ensuring you have a comfortable and memorable real estate experience.
PINDER SINGH | ROYAL LEPAGE MEADOWTOWNE REALTY t 416.357.4999 | e pinder@pindersingh.com
BACKGROUND
A Little Bit About Pinder I’ve been in real estate for over twenty years, and licensed as a real estate salesperson for over fifteen. I started working at the office while in school and quickly realized I should be on the other side of the desk. Within months I earned awards and was in the top tier within my office. I went on to obtain my Broker’s license and become a Manager. During this time I was in charge of training, coaching and mentoring agents. I helped them with their day-to-day questions, challenging deals and overall growth as professionals. Some of these Realtors were ranked in the top 1% elite and I assisted with any questions the agent had or questions from clients that they were unable to answer.
Why hire the student when you can have the teacher?
My strengths are real estate specific knowledge and negotiating. I have proven results and it comes from working hard during negotiations, and having the experience to set the right price. That’s no easy task. A majority of my business comes from referrals—my clients stick with me. If you’d like to speak to any of them to learn why, I’d be happy to arrange it. On a personal note, my fiance and I have a son who is nearly one years old and I love to spend as much time as I can with my family when I am not busy with real estate. I enjoy playing ball hockey as well as soccer and am a goalkeeper in both sports. Some say I enjoy having the responsibility on my shoulders in all aspects of my life! I am also passionate about music, art, fashion and cars. Thanks for sharing your time with me. If I can help in any way, just ask. Sincerely,
PINDER SINGH | BROKER
PINDER SINGH | ROYAL LEPAGE MEADOWTOWNE REALTY t 416.357.4999 | e pinder@pindersingh.com
BACKGROUND
A Little Bit About Mark From a young age I have always had a fascination with homes and architecture. I used to spend many weekends touring model homes with my family and keeping the salesperson occupied with the many questions I had. I wanted to know all the details such as: quality of construction, location, options that would be included, décor, upgrades, pricing etc. This ultimately led to my first purchase of a new build home just after my 19th birthday! Growing up in Calgary, AB during the time of its boom, I knew I had to capitalize on the opportunity and began to buy and flip new homes. I would design the homes with the builder, evaluate the location, ensure the necessary upgrades were completed, and the home was staged with appealing décor. Followed by great marketing as the cherry on top, all of the aspects necessary for a quick and profitable sale. After the many home flips, I knew real estate was my passion and I took the leap to make it official and become a licensed real estate professional in 2007. Having worked in both the Alberta and Ontario markets, (since 2011) it has provided me with a wealth of knowledge and experience, which I am able to pass along to my clients. I have a solid background in understanding real estate markets/ trends, negotiating terms/conditions and of course price! I have the most loyal and appreciative clients that have continued to stand by me over the past 13 years and I am sincerely grateful for their support.
The time and dedication towards my passion for real-estate would not be possible without the love and support of my beautiful wife Natasha and our 3 princesses, Mariyah (8), Alayna (5) and Selena (3). They truly are my greatest joy and I love spending every spare moment with them and our extended family and friends! I also have a love for movies, football, cars and music. Thank you for allowing me to share a bit about myself and I look forward t o getting to know you and your family, and provide the knowledge and trust you need to help guide your real estate decisions.
MARK FERREIRA | SALES REPRESENTATIVE
PINDER SINGH | ROYAL LEPAGE MEADOWTOWNE REALTY t 416.357.4999 | e pinder @ pindersingh.com
BACKGROUND
A Little Bit About Natesha Natesha is the Team Administration Manager with a background in Real Estate and Business Human Resources. First starting off her career in human resources, she gained a considerable amount of experience in helping others and managing operations and back-end details. These are two things which she is extremely passionate about. She enjoys helping others reach their goals and ultimate potential. After becoming interested in the Real Estate industry, she made the transition working in an administrative position in the office. Quickly learning the ways of the industry, her love for Real Estate & previous experiences lead her to the role of our Team Administration Manager. She is a team player, eager to learn and is self-motivated. Her enthusiasm and passion are ideal to assist in running our team & business smoothly, ultimately servicing our clients to the best of our abilities. Growing up in Guyana and moving to Toronto and living in different cities throughout the GTA, she learned & appreciated the different cultures and values learned over the years which has influenced her decision in her career path.
She understands the value of working together as a family as she is a mother of two, whom she enjoys spending her time with. Natesha also loves baking, trying new recipes and yoga. She believes is having a balance with what we love doing and the people we love, this is key to living our lives to the fullest.
NATESHA SOHAN TEAM ADMINISTRATION MANAGER
PINDER SINGH | ROYAL LEPAGE MEADOWTOWNE REALTY t 416.357.4999 | e pinder@pindersingh.com
ACCOMPLISHMEN TS
PINDER SINGH | ROYAL LEPAGE MEADOWTOWNE REALTY t 416.357.4999 | e pinder@pindersingh.com
SAVE $12,056 OUR SOLD VS ASKING PRICE RATIO IS 1.7% LOWER THAN AVERAGE COMPARED TO THE ENTIRE TORONTO REAL ESTATE BOARD ON AVERAGE OUR BUYERS ACCOMPLISHMEN TS
PINDER SINGH | ROYAL LEPAGE MEADOWTOWNE REALTY t 416.357.4999 | e pinder@pindersingh.com
You are a professional who truly cares about your clients “Pinder I want to personally thank you for all you did. You are a professional who truly cares about your clients. Thank you for helping me find a home that suits my needs and most importantly helping me get through a difficult time in my life.” - Rob TESTIMONIALS From My Sellers, Buyers & Investors
Pinder is extremely professional and accommodating! “My wife, son and I would like to say thank you to Pinder for all the help and guidance he provided us. We were looking to sell and buy a bigger home, in which Pinder treated this transaction as if it was his own. He was quick to always put himself in our shoes when thinking about our little one as he himself was becoming a first time parent too. Pinder is extremely professional and accommodating.
Thank you Pinder, for helping us find our new home to grow within.” - Ali, Fariza, and Amir Pinder operates like a 24/7 – One Stop Shop
“Pinder Singh is a very astute and professional realtor. He is client focused and delivers prompt, efficient and quality service. He not only sees the buying process end-to-end through to completion he also ensures key objectives are met in a timely manner. When we first met him and explained what we wanted, he paid attention and listened to our specific needs. He acted consistently in accordance with his professional ethics and values. Being new immigrants to Canada and having minimal knowledge of the emerging trends in the Canadian Real Estate Market, we were not sure whether to buy a condo or a semi-detached house. With Pinder’s great leadership skills and vast up-to-date knowledge of the market, he was able to educate and guide us through the seamless buying process. He presented our offer to the Seller and managed to get us a good price using his interpersonal communication and exceptional negotiation skills. Last but not least, Pinder operates like a “24/7 - One Stop Shop”. Whatever additional service we require he went out of his way to research and quickly recommend a few good companies for us to choose from. We must say, he has built and maintained a good network of people whom he can recommend to his clients. Pinder exceeded our expectations and indeed is an added asset to Royal LePage. We will most definitely, and highly recommend and refer him to our family, friends, colleagues and the whole community. - Patrick, Nancy, and Christine
PINDER SINGH | ROYAL LEPAGE MEADOWTOWNE REALTY t 416.357.4999 | e pinder@pindersingh.com
TESTIMONIALS continued You are guaranteed to receive the best service an agent can provide “Pinder was a pleasure to have as our real estate agent. He guided us through the process with full disclosures and we always felt as if we were on a team. He never left any questions unanswered and always responded promptly. We would highly recommend Pinder over any convention real estate agent because you are guaranteed to receive the best service an agent can provide. As it was the first time we were buying a house, the ease at which it happened made us wonder why we hadn’t purchased a house earlier! He was so dedicated that he was in the hospital the day we put in our first offer and still helped us close our house. Pinder is a positive person and his excitement and energy is contagious. Anyone would be lucky to work with him!” - Sonia and Hamid From My Sellers, Buyers & Investors He was very quick in responding and goes above and beyond “Pinder helped me lease my home shortly after closing due to untimely circumstances of purchasing. His great professionalism and expertise made the process a breeze. He was very kind and thorough as this was my first experience in the Realtor market. He is very quick with responding and goes above and beyond to meet your expectations. Due to his quick but efficient efforts I had offers the next day after releasing for showings! Although our professional relationship was short, I highly recommend and will consult him in the future for real estate purposes. Thank you for being so awesome Pinder!” - Namanda I will be recommending Pinder to anyone I know who needs a Realtor “Pinder was amazing during the sale of our condo. We were in a tough situation and he handled it like it was no big deal, which made it so much easier for us to manage. He staged our apartment so beautifully I almost regretted that we were going to sell. Everything about the sale was smooth and easy from set up, staging, showings and open houses through to negotiations and sale. He was honest and open with information and helped us make the best decisions. His impressive knowledge and experience were evident in all of our conversations – he was always ready with an answer or anecdote no matter what situations or questions we had. He was really easy to talk to and my dog loved him from the first time we met. She would be excited anytime Pinder came by. I will be recommending Pinder to anyone I know who needs a Realtor. He even assisted me with finding a rental property for me after the sale. When I am ready to purchase again, he will be the Realtor I go to. Thank you Pinder for all that you have done!” - Elaine
PINDER SINGH | ROYAL LEPAGE MEADOWTOWNE REALTY t 416.357.4999 | e pinder@pindersingh.com
TESTIMONIALS From My Sellers, Buyers & Investors Made this very stress filled time in our lives a breeze! “ I want to thank you Pinder for the hard work you did with the purchase of our new home and sale of the old one. Your easy care manner and thoughtfulness for your clients made this very stress filled time in our lives a breeze. I was very impressed with your vast knowledge of all the facets involved with these procedures. From the various paperwork, financial, legal advice and even the home inspection it went off without a hitch. You are well connected with all the people who are involved with this process which is why you are successful. This is why I have informed all my friends who are thinking of moving to call you because I have always believed in you and you have proven me right. Continued success my friend.” - Val and Dan Pinder took the time to ensure that we were completely comfortable “My Family and I would like to thank Pinder Singh for guiding us through the process of selling our first house and the purchase of our new home. Pinder took the time and care to ensure that we were completely comfortable every step of the way. We were immediately impressed that Pinder was very thorough and asked questions at each property in order to receive our feedback, but never with the pressure to purchase. When we found the right property, we had the confidence in Pinder that he gave us the right advice in selecting the right home for our family. We also appreciated the guidance with the details of the inspections, the offer, and recommendations for legal representation. We are extremely pleased with your professionalism and we highly recommend Pinder’s services to friends and family.” -Lisa and Robert You would be hard pressed to find anyone that cares as much as he does “My family and I would like to thank Pinder for his incredible help with buying our first home. When faced with a multiple offer situation Pinder went above and beyond to ensure that we knew what to expect and was able to get the job done. His dedication and all around ability enabled us to purchase our dream home. Pinder made himself available to answer any and all questions we had. His vast knowledge kept us at ease through every step of the process even since the sale he as continued to help us out in any way possible. Anybody that uses Pinder as their agent will find themselves very well served. You would be hard pressed to find anyone that cares as much about their clients as he does.” -Amanda and Craig
PINDER SINGH | ROYAL LEPAGE MEADOWTOWNE REALTY t 416.357.4999 | e pinder@pindersingh.com
TESTIMONIALS continued His professionalism went beyond what one would expect from a broker “After the passing of my husband after a long illness, my daughter and I had to make a very difficult decision on whether to remain in our condominium or find another cheaper alternative. Finally deciding to sell, I remembered a gentleman that we met inside the elevator a few days ago. He left some real estate brochures. I gave him a call and listed our home for sale through him. We were impressed with his demeanor and knowledge as a realtor. In a matter of two weeks, he presented us with multiple offers. His professionalism went beyond what one would expect from a broker. My daughter and I saw and felt his care for our well being. He was very thorough, organized and well skilled in the art of negotiation. Thank you Pinder for all your hard work. We did not find the best real estate broker in Canada but also gained a friend for keeps.” - Tessie and Nica From My Sellers, Buyers & Investors He is not just an ordinary Realtor he works with you as a friend “My family and especially my kids would like to thank Pinder for his incredible help with buying our first home. Pinder went above and beyond and took care of everything as a thorough professional. He was able to understand our requirements completely and above all was able to keep us in the comfort zone at all times, very few people are like that, even my kids were always excited to see him. He is not just an ordinary realtor he works with you as a friend and always have great recommendations/suggestions. We wish him luck and Thank you again Pinder!” -Mahmood and Aroob He will always have your best interest at heart “ We recently sold and bought a house with Pinder and he made the process as stress free as possible through his professionalism and commitment to our needs. Although we are a big family, he ensured each one of our family members was informed about decisions and went out of his way to help us find our dream home. Pinder is very knowledgeable and dedicated in his profession. We can confidently confirm that he will always have your best interest at heart. We can’t thank you enough for your help and we look forward to working with you again in the future.” -Shaista, Ehsan, Saliha, Arfa, Nafila
PINDER SINGH | ROYAL LEPAGE MEADOWTOWNE REALTY t 416.357.4999 | e pinder@pindersingh.com
TESTIMONIALS continued From My Sellers, Buyers & Investors
Endlessly optimistic and upbeat, Pinder is a pleasure to work with “Endlessly optimistic and upbeat, Pinder is a pleasure to work with. He connects well with others, genuinely appearing to care about their concerns and success. Pinder has extensive experience in the real estate industry, having worked in one of the country’s most successful brokerages.” - Phil Soper, CEO Royal LePage
Pinder made us sail through a quick and complex buy/sell transaction “Me and my family are really thankful to Pinder for all that he has done during our two transactions, buy and sell. We sold a house and we bought one. We had very tight deadlines to be met on both fronts. However, we did not want to compromise on inspection, financing and lots of other conditions that we had before we went ahead. Pinder was super patient and helpful and took us through the steps. Not only was he negotiating with multiple people for us but answering all our questions irrespective of the time. He is truthful, knowledgeable and not pushy at all. He would always go that extra mile to make sure we had our doubts cleared and were fully aware and informed. Thanks a lot Pinder!” - Ritesh and Nimisha
I would happily recommend him if anyone is looking to sell or buy real estate “Pinder Singh is my Real Estate Broker. He is a very hard worker and puts in the extra effort that others do not. He sold my condominium unit in TWO DAYS! I am thankful to him for his professional manner of handling the sale of my home. I would happily recommend him if anyone is looking to sell or buy real
estate.” - Fazal
Pinder has never been too busy to work through a new or challenging issue with me “Pinder’s welcoming and honest demeanor was obvious from our very first interaction. Since then, Pinder has never been too busy to work through a new or challenging issue with me and he is always patient and supportive throughout the process. This is a valuable asset given Pinder’s deep knowledge of the real estate industry and market. He always acts with kindness and consideration. He is not only professional, but always fun. ” - Sandra
PINDER SINGH | ROYAL LEPAGE MEADOWTOWNE REALTY t 416.357.4999 | e pinder@pindersingh.com
GIVING BACK
SHELTER FOUNDATION As we are committed to strengthening the communities where we live and work, Royal LePage is the only Canadian real estate company with it’s own charitable foundation. The Royal LePage Shelter Foundation is Canada’s largest public foundation dedicated exclusively to funding women’s shelters and violence prevention programs.
Every dollar raised goes directly to helping the more than 30,000 women and children who are served each year by the shelters and support programs we fund. Since 1998, the Shelter Foundation has raised more than $27 million. On an annual basis, we support approximately 200 local women’s shelters and 40-50 violence prevention programs through our national partnerships. I proudly donate, volunteer and help organize successful events as an Ally with Interim Place to benefit the women and children staying in our local shelter.
DIRECTOR AT THE MISSISSAUGA REAL ESTATE BOARD The Mississauga Real Estate Board operates as a not-for-profit corporation mandated through By-laws, and elected Board of Directors and monitored by a Governance Committee. One of the largest boards in Canada, MREB members have underscored a dedication to both the growth of the Profession and ethical practice in the field. As a previous Director for Mississauga Real Estate Board I am proud to have been part of an organization which has stood up for not just Realtors in Mississauga, but all residents. We have successfully opposed a secondary Municipal Land Transfer Tax, keeping Mississauga a viable option to purchase real estate. The board has worked hard at increasing education and resources to ensure residents receive the service they deserve. The ongoing efforts benefit the city and its residents.
PINDER SINGH | ROYAL LEPAGE MEADOWTOWNE REALTY t 416.357.4999 | e pinder@pindersingh.com
RESOURCE SECTION My Dream Home Worksheet Common Closing Costs for Buyers
Change of Address Checklist 14 Tips for Packing Like a Pro Homebuying Step by Step Workbook and Checklists What Newcomers Need to Know
MY DREAM HOME WORKSHEET Here are a few key questions to help narrow down what you want in your home. • What type of home are you looking for? Detached or semi-detached? • What style of home is best for you? Two-storey, bungalow, split-level, duplex, townhouse? • What about the age of the home? Does the home need to be brand new? • How many bedrooms and bathrooms do you need? • What are you looking for in a kitchen? How about a family room? Do you want a separate dining room?What is your preferred layout? • What are your high-priority features?Appliances, ensuite, fireplace? • What other rooms do you need? Main floor laundry room,home office, hobby room?
• What about storage space? Basements? Lockers? • Do you need a garage or extra parking spaces?
• Is energy efficiency important? Newer windows or a high-efficiency furnace? • How long is your daily commute? How easy is it to get to the places you need to go? • How close do you need to be to transit, shopping, schools, places of worship, and hospitals? • Are there any important location factors? Backing on to parks? How about road traffic? Do you need to be on a quiet street? • What size of yard are you looking for? Is the backyard important,or is a side yard enough?What about the front yard? • What other landscaping features are important?A fenced yard, play areas, a pool, gardens, a patio? • Is it important that the house faces a certain direction?
• Who are you sharing this home with and what are their needs? For example, pets might need a fenced yard,or extended family may want a separate entrance. • How long do you plan to live here?This decision can impact the type of home, the location, and how much you will spend. • How much do you want to invest beyond the purchase price of the home—both in terms of money and effort—if you can’t find all the features that you want?
COMMON COSTS FOR BUYERS No one likes unexpected bad news—espceially the financial kind! This worksheet can help you prepare for the cost of closing, moving, and getting settled into your new home.
Common Closing Costs:
• Balance of down payment after initial deposit with offer • Mortgage loan administration and/or appraisal fees • Points or loan discount fees paid to receive a lower interest rate • Credit report fees • Mortgage insurance premiums • Land transfer tax and title registration fees • Title insurance policy premiums • Survey expense • Legal fees and related costs (couriers, photocopies, etc.) • Pro-rated amounts for your share of any prepaid costs, such as utility bills and property taxes
Moving Costs:
• Packing supplies • Movers • Vehicle rentals • Ancillary expenses (food, hotels, etc.) On average, a Canadian home buyer may spend approximately $1,325 on moving costs. 3
Settling-In Costs:
• Changing locks • Cleaning • Painting, minor renovations, and repairs
• Furniture for additional rooms • Lawn care and landscaping
On average, a Canadian home buyer may spend approximately $3,550 on general household purchases, $6,575 on furniture and appliances, and $9,525 on renovations. 3
3 Altus Group Economic Consulting, “Economic Impacts of MLS ® Home Sales and Purchases in Canada and the Provinces,” The Canadian Real Estate Association, last modified May 14, 2015, http://crea.ca/sites/default/files/Altus%20Report%20Economic%20Impact_OS_En.pdf
CHANGE OF ADDRESS CHECKLIST
Financial Bank Credit card company Insurance (car, life, home, and health) Pension plan Car loan Other loans Reward programs Miscellaneous Magazines Newspapers Professional associations Alumni associations Clubs Charities
Utilities, Bills, and Other Vendors Electricity Hydro Natural gas Cell phone Landline Cable Internet Water delivery/treatment Legal and Identity Documents Driver’s licence Passport Health card Insurance Tax documents (Income tax, Canada Pension Plan, etc.) Professional Services Pool Lawn Housecleaning Physician Veterinarian Attorney Dentist Optometrist Other specialists
14 TIPS FOR PACKING LIKE A PRO This may seem hard to believe, but many people thoroughly enjoy their moving day and the time leading up to it. The secret? Being organized. Make sure you have the right tools—packing tape, permanent markers, sticky notes, and lots of boxes on hand will make your move much easie r. Start early and work steadil y. Make progress every day with your packing instead of leaving it all until the last minute. 1. Develop a maste“rpacking/to do”list so you won’t forget something critical. 2. Purge! Get rid of things you no longer want or need. Havea garagesale, donateto a charity, or recycle. 3. Before throwing something ouret,member to ask yourself how frequently you use that item and how you would feel if you no longer had it. 4. Pack like items together. Put toys with toys and kitchen utensils with kitchen utensils. 5. Decide whati,f anything,you plan to move yoursePlf.recious itemss,uch as family photosb,reakable valuables, or must-haves during the movseh,ould probably stay with you.
6. Use the right box for the itemIte.ms packed loosely are more likely to be damaged. 7. Put heavy items in small boxes so they are easier toKelifetp. the weight under 50 lbs., if possible. 8. Do not over pack boxes — boxes that are packed comfortably will be less likely to break. 9. Wrap each fragile item separately and pad the bottom and sides of boxes. 10. Label every box on all sides. You never know how they will be stacked and you do not want to have to move other boxes aside to find out what is inside. 11. Use colour-coded labels to indicate which room each item should go in. Colour-codea floor plan for your new house to help your movers. 12. Keep your moving documents together, includingphonenumbers, the driver’s name, and van number. Also keep your address book handy. 13. Back up your computer files before moving your computer. 14. Inspect each box and all furniture for damage as soon as it arrives. Remembe,r most movers won’t take plants.
Homebuying Step by Step
YOUR GUIDE TO BUYING A HOME IN CANADA
CMHC helps Canadians meet their housing needs. Canada Mortgage and Housing Corporation (CMHC) has been helping Canadians meet their housing needs for more than 70 years. As Canada’s authority on housing, we contribute to the stability of the housing market and financial system, provide support for Canadians in housing need, and offer unbiased housing research and advice to Canadian governments, consumers and the housing industry. Prudent risk management, strong corporate governance and transparency are cornerstones of our operations. For more information, visit our website at www.cmhc.ca or follow us on Twitter, LinkedIn, Facebook and YouTube . You can also reach us by phone at 1-800-668-2642 or by fax at 1-800-245-9274. Outside Canada call 613-748-2003 or fax to 613-748-2016. Canada Mortgage and Housing Corporation supports the Government of Canada’s policy on access to information for people with disabilities. If you wish to obtain this publication in alternative formats, call 1-800-668-2642.
Cette publication est aussi disponible en français sous le titre L’achat d’une maison étape par étape : Votre guide pour acheter une maison au Canada (61143)
This book is provided for general informational purposes only. Any reliance or action taken based on the information provided is the sole responsibility of the user. Readers are advised to consult appropriate professional resources to determine what is suitable in their particular case. CMHC assumes no responsibility for any consequences arising from use of the information provided in this guide.
Canadian Cataloguing in Publication Data
Main entry under title Homebuying Step by Step: Your Guide to Buying a Home in Canada Rev. ed. Issued also in French under the title L’achat d’une maison étape par étape : Votre guide pour acheter une maison au Canada Cat. no. NH15-114/2004E ISBN 0-662-38780-5 1. House buying – Canada – Handbooks, manuals, etc. 2. House buying – Canada – Costs – Handbooks, manuals, etc. 3. Homeownership – Canada – Handbooks, manuals, etc. I. Canada Mortgage and Housing Corporation.
Table of Contents Step 1 Is homeownership right for you? 3 Step 2 Are you financially ready to own a home? 5 Step 3 Financing your home 8 Step 4 Finding the right home 11 Step 5 Making an offer and closing the deal 16 After you buy Maintaining your home and protecting your investment 18 Words to know when buying a home 20
HD1379.H65 2004
332.7’22’0971 C2004-980341-7
© 1998 Canada Mortgage and Housing Corporation. All rights reserved. No portion of this book may be reproduced, stored in a retrieval system or transmitted in any form or by any means, mechanical, electronic, photocopying, recording or otherwise without the prior written permission of Canada Mortgage and Housing Corporation. Without limiting the generality of the foregoing, no portion of this book may be translated from English into any other language without the prior written permission of Canada Mortgage and Housing Corporation. Printed in Canada Produced by CMHC Revised: 2002, 2003, 2004, 2007, 2008, 2010, 2011, 2012, 2013, 2014, 2017 Reprinted: 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2017
Homebuying Step by Step: Your Guide to Buying a Home in Canada
Introduction
A home can be a great place to build memories with friends and family and build a financial foundation for your future. Buying a home can be exciting, but it can also be a challenging and confusing experience. Canada Mortgage and Housing Corporation (CMHC) is here to help you understand the homebuying process. As Canada’s national housing agency, CMHC has helped millions of Canadians access quality, affordable homes. This guide will help you make informed and responsible decisions at each stage of the buying process. There are notes throughout the guide that tell you to follow along in
Homebuying Step by Step: Workbook and Checklists available in print and at cmhc.ca/stepbystep
or to find more information on
a related Web page on cmhc.ca .
Tips for newcomers on buying a first home in Canada There are approximately 250,000 newcomers to Canada each year. If you’re one of them, buying a home could be one of the bigger challenges you’ll face. We offer resources to help you understand how the Canadian housing system works and how to find and rent or buy a home. Learn more by visiting our newcomers website at cmhc.ca/newcomers .
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Homebuying Step by Step: Your Guide to Buying a Home in Canada
STEP1 Is homeownership right for you?
Buying a home is one of the biggest decisions you’ll ever make. To ensure that you make the best choice, ask yourself a few questions. What do you really want in a home? What is your current financial situation? What are your financial and lifestyle needs?
The real costs of homeownership As a first-time buyer, you might not be aware of all of the costs associated with homeownership.
Upfront costs The initial amount of money you need to buy a home, including the down payment, the closing costs and any applicable taxes.
Ongoing costs The continued cost of living in a home you own, including mortgage payments, property taxes, insurance, utility bills, condominium fees (if applicable) and routine repairs and maintenance.
Major repairs Large and expensive repairs and renovations your home will eventually need, such as roof replacement or foundation repair.
If you choose a property that is not hooked up to municipal services such as water and sewer, there may be additional maintenance costs to consider.
Are you ready to own a home? Buying a home isn’t for everyone. Before you make any decisions, consider the following questions.
Are you financially stable?
Do you have the financial management skills and discipline to handle this large of a purchase?
Are you aware of all the costs and responsibilities that come with being a homeowner?
Are you ready to devote the time to regular home maintenance?
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Homebuying Step by Step: Your Guide to Buying a Home in Canada
Renting versus buying: Pros and cons Start by finding out the average home price in the area where you want to live. Next, make a list of the pros and cons of owning versus renting to see which option is best for you. Use the following as examples.
Use the Renting versus buying worksheet in Step 1 of the workbook.
Renting
Pros
Cons
Less maintenance and repairs Lower monthly and upfront costs Shorter-term commitment, making it easier to move to a new home, neighbourhood or city Protection from decrease in property values Possibility to free up cash to invest or to save a larger down payment for a home
Monthly payments may increase year after year The risk that your lease won’t be renewed You are paying someone else’s mortgage rather than building equity of your own You can’t paint or remodel without the landlord’s permission
Buying
Pros
Cons
Freedom to renovate or modify your home as you wish You are building up equity in a safe, secure investment as you pay down your mortgage Potential for rental income if you include a secondary suite Stability and peace of mind that comes from being in control of your investment and owning the place where you live
The risk of financial loss if your home has lost value when you sell Responsibility for all ongoing costs including mortgage principal and interest, property taxes, insurance and maintenance Monthly payments can increase significantly if interest rates go up at renewal time Possibility of unexpected and potentially costly repairs
There are advantages to both renting and owning a home. Make sure you understand the benefits and responsibilities of each before you decide what’s right for you.
Newcomers to Canada can also visit cmhc.ca/newcomers .
Learn more about renting a home at cmhc.ca/renting .
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