Frequently Asked Questions From Buyers

A REALTOR® is very often paid by the seller, so there is a good chance, your representation could be FREE! To read more about the buying process, click here, OR feel free to reach out to me directly! (Contact Angela)

A REALTOR® plays a huge role in the sale or purchase of a home, they are often your first and last point of contact. Selecting a REALTOR® that you trust and feel comfortable with is paramount. This professional will be very involved in the process from Step 1, right through to Step 10 (Possession Day) To learn more about what your REALTOR® will do for you along the way, click here!

Before you can decide where and what to buy, you’ll need to have an idea of how much you can afford. Having a pre-approval already in place, before beginning your house-shopping will make the whole process much smoother! What exactly is a pre-approval? A pre-approval determines the home price you can afford, it also allows you to lock in a mortgage rate in case rates increase during your home search. The BEST part? A mortgage broker is paid by the lender you choose, so your representation will most likely be FREE!

Absolutely! With years of experience in the real estate industry, I have a great database of lawyers who can assist with the legalities of your transaction. Click Here  for a list of some lawyers I recommend.

Of course!  Having a great mortgage broker is crucial to your home purchase. It’s important to choose someone that you feel comfortable with and trust as you will need to be in close contact with your mortgage broker throughout the process. I am fortunate to have experienced the importance of a savvy mortgage associate and I am confident in recommending a few of my favorites. Click Here for a few mortgage brokers I highly recommend.

First, you’ll hire the right REALTOR® to represent you. Click here, to learn why I’m the right REALTOR®

Second, your REALTOR® (even if it’s not me) will prepare a CMA for you so that you will know how much the price of this home compares to others like it. Click here, to learn more about what a CMA is!

Buyers typically need a minimum 5% of the purchase price as a down payment, though some lenders now have mortgage options that allow you to borrow your down payment, and/or a relative can provide you with a gift of a down payment. Other than any such gift funds, you must prove to the financial institution or lender that your down payment is from your own funds. Other than any gift funds, you must prove to the financial institution or lender that your down payment is from your own funds.

If your down payment is less than 20% of the purchase price, you need a high ratio mortgage and it has to be your primary residence (i.e. you can’t rent it out). Lenders require borrowers to obtain mortgage insurance for high ratio mortgage, since they can be riskier for financial institutions. Your mortgage insurance premium will vary depending on the size of your down payment relative to the price of the property, but ranges from under 1% of the purchase price to more than 3%. If your down payment is 20% of the purchase price or more, you do not require mortgage insurance.

Closing costs are separate from your deposit and down payment, and are typically due on possession date, which is the date when the real estate transaction is complete and the property is yours. Closing costs include lawyer fees, property tax adjustments, title insurance (if any), etc. It is a good idea to budget a couple thousand dollars on top of the purchase price as closing costs. CMHC (Canadian Mortgage and Housing Corporation) recommends up to 1.5% of the purchase price for closing costs. (I usually say 2%, just to be on the safe side)

If you have less than 20% saved for a down payment, you’ll probably have to get mortgage loan insurance. It protects banks and other lenders against the risk of mortgage default, just like property insurance protects you in case of loss. Insurance premiums on mortgage loans are calculated as a percentage of your total loan amount. They’re based on factors including the size and source of your down payment. In general, the smaller the down payment is, the higher the insurance premiums will be. You can usually pay your mortgage loan insurance premiums up front or have them added to your mortgage loan.