Frequently Asked Questions

First of all, you need a pre-approval for a mortgage. A mortgage pre-approval will give you a better idea of how much you can spend on your first home and allows you to lock in a specific interest rate for three months.

There’s technically no perfect “time” to buy a home. Many different factors will affect when might be a better time to buy a property. Supply and demand will vary from city to city and even from different neighbourhoods within the same region. Usually, one of the most significant indicators and factors in your negotiating power is the number of days a house has been on the market.

One of the most crucial parts of buying a property is the down payment. Although it is not recommended, some private lenders offer zero-down mortgages, but keep in mind that the interest rate coming with those types of mortgages will be much higher. Try to save at least five percent of the purchase price. If you are a first-time buyer, you may be eligible for the Home Buyer’s Plan to borrow a portion of your RRSPs tax-free to use for your down payment.

Closing costs are costs associated with the final steps of buying a home, such as home inspection, the mortgage default insurance in the case your down payment is less than 20 percent, the Land Transfer Taxes, lawyer fees, appraisal fee and property taxes. For example, for a $375,000 property, you should include in your budget $5000 to $15,000 for closing costs.

A crucial part of your home-buying process is the offer. Your real estate agent should be walking you through all the possibilities before preparing your offer. The seller’s background and objectives, recent sales in the area and specific contractual contingencies all play a part in the preparation process before making your offer. 

Once you submit an offer, the negotiations will likely start. Factors such as final price, deposit, inclusions, possession, and completion date will be part of the negotiation. If your offer is accepted, the home buyer has a set period of time to meet all the legal conditions agreed upon in the contract, like the home inspection report completion and securing financing.