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Download & Print Buyer's checklist Download & Print Buyer's worksheet ( *Acrobat Reader required)
How to Get Your Dream House For Less - Tips on buying the right home
Buying a right home? These six tips can help make your house-hunting experience positive and rewarding : (By Welistfree.com)
- Before deciding on purchasing your dream home check out the location. Is it important to you to locate near your place of work, what about good schools, proximity of public transportation, shopping centers…Check these out first. If it is the biggest and most expensive home in an area of less than average homes - think again - Location counts.
- Get pre-approval for a mortgage. Invest some time in finding out how much of a loan you qualify for, your credit rating, your down payment, whether to use your RRSP as a down payment. Lenders like to find out how long you or your spouse has worked at a particular place. Procure a letter from a bank/lending institution stating how much you're qualified to borrow.
- Make a list of features that are essential in a home as well as features that are a wish list. Be practical, you may have to forgo some when deciding on a home to purchase. Also make a list of undesirable features.
- When looking at homes, jot down important features to avoid confusion. List the homes in order of preference and eliminate from your list those that do not meet your requirements.
- Be acquainted with an agreement with an agreement of purchase and sale and go over the clauses with your realtor. A verbal offer carries no legal weight at all - So be prepared to make an offer in writing.
- Educate yourself with the home buying process, surf the net, read, acquaint yourself with the sale prices, the neighborhood that you want to locate in; get pre-approval from a bank. Buying a home need not be a stressful or intimidating experience.
Making an Offer
 It is a myth that an offer should go 5% or 10% below asking price. Before making an offer, ask your realtor to give a list of recent sales, keep in mind if the market is up or down since the last sale, if the property has improvements or renovations done to it and so on. Generally most real estate boards have a standard contract form - in which information and clauses are added. This is called an "offer" - other information required is price, closing date, deposit, requisition date, extras included, name of purchaser and vendor. It is a good idea to carefully review the clauses.
It is not a good idea to start too low as this may annoy or offend the seller and prompt him to stick to his asking price. If it is more convenient for one person than both to be available to sign, it is okay as this is just an offer. Later on your lawyer can add the requisite names on the title.
An offer may go back and forth between buyer and seller, several times before acceptance. This is called counter offers. It is important to be in touch with your agent during this process, keeping in mind when the offer expires or the irrevocable date. Always look at the larger picture and don't get bogged down by small details or be offended. This is a business transaction.
How to make an offer?
The process of making offers varies from place to place. Typically, you will fill in a pre-printed 'offer form' with your terms and conditions of purchase and we will present it to the owner and the owner's representative. The owner may in turn accept the offer, reject it or make a "counter-offer".
Because counter-offers are common (any change in an offer can be considered to be a counter-offer), it is important for buyers to remain in close contact with us during the negotiation process so that any proposed changes can be quickly reviewed.
Making a Successful Bid
© Welistfree.com
 Don't throw away all the hard work and preparation you have done by making a ridiculous offer on a well priced home. Nothing will turn a seller off more than a low ball offer on a house that has been realistically priced. Often, negotiations will stop, rarely to be revived again. If they are re-opened, the sellers generally will show their displeasure at the initial low offer by locking at or near the listing price.
An example: Mr. and Mrs. Buyer have been looking at houses for months. Finally, they find the perfect house, which is an ideal match for their needs and wants. The house is listed at $255,000. Mr. and Mrs. Buyer have a CMA in hand that shows average selling prices in the neighborhood to be in the $248,000 to $253,000 range. Ignoring the information they have, they make an offer of $220,000. Mr. and Mrs. Seller, annoyed at the low offer, counter offer at full selling price, $255,000. The Buyers, still convinced that they can "steal" this house, make a 2nd offer of $225,000. The Sellers, now very frustrated, do not move from their $255,000 price. Suddenly, there is word that another offer is forthcoming, this time from Mr. and Mrs. Smith. In fear of losing the house, Mr. and Mrs. Buyer up their offer to $254,000 (still needing some concession) and the Sellers accept. Consider, though, that a realistic first offer in the $250,000 range (remember, the CMA showed $248,000 to $253,000) may well have been accepted by the Sellers. If this were the case, the Buyer's paid $4000 more than they had to.
The moral: An unrealistic offer on a house that meets your needs and is priced correctly could end up costing more than it would with a realistic offer.
How to Win When There Are Multiple Offers
 A buyer can be faced with the challenging task of being one of two or multiple offers. There can be many reasons for a home getting multiple offers - such as being priced slightly below market, attractive features, or when there is not much available in the market.
If there are two offers, the seller generally gets his asking price or close to it, if however, there are three or more there is a strong possibility of the seller getting more than his asking price.
Sometimes due to certain circumstances the seller may opt for a lower offer but one with no conditions or the least conditions or the least conditions. In other words a clean firm (without too many conditions) offer is more attractive than one with numerous conditions. It is a good idea to be pre-approved for your mortgage before taking such a step. A larger deposit and down payment is advisable.
How can I make my offer more attractive to the sellers?
Offer the highest price you can. Get pre-approved, not just pre-qualified, for your mortgage and attach a copy of the preapproval letter to your offer. Make as large a downpayment as you can and provide documentation showing the source of your downpayment (e.g., a bank statement). Avoid unnecessary contingencies. (Waiving your inspection or financing contingency can make your offer attractive, but it's foolish.)
It is advisable to be readily available throughout the process of buying your home, and it is crucial that you be there whilst your offer is being presented and negotiated with the vendor are in progress.
Buyer's Checklist (Download & Print this Section )
- Decide what your budget for buying is and how much down payment and monthly payments you can afford.
- Visit our office and have yourself pre-approved for your mortgage. This will ensure that your finding a home will not be an exercise in futility, that on finding your dream home, you find out that you are not able to get a mortgage to buy it. We will get the interest rate locked-in , so that you are not caught off guard by interest rate hikes. We will also get you the lowest mortgage rates and save you thousands of dollars.
- Spend ample time with us discussing your specific requirements, market conditions and availability of homes in your price guidelines. Best of all, keep in touch.
- Zero in on an area keeping in mind whatever is most important for you, i.e.
- Proximity to your workplace, expressway etc.
- It is advisable to sign a Purchaser's Agreement with us. The Law requires this agreement if we are to negotiate your purchase at the minimum price and the overall contract in your favour.
- Please make sure you keep all your appointments. It takes several hours of time, sometimes stretched over days for our office to coordinate the appointments for you and to make sure that you can view the properties in a brief span of an hour or so. It is not uncommon for the owners of homes to shuffle their own schedules simply to make their homes available for your visit.
- Make notes while looking at properties, you do not want to mix the kitchen of one property with the washroom of the other.
- Your down payment should be in your account at least 2 weeks before the closing date
- Your land transfer tax will be 1% less $275 for the initial $250,000.00. For exact amount please check our website.
- Your closing cost generally will be about 1.75%-2.25% of your purchase price and this will include the appraisal fee for your mortgage, loan fee, mortgage processing fee, insurance and lawyer's fee.
- Be prepared to provide verification of income (including a pay stub and recent tax returns), bank account numbers and details of your long term debt (credit cards, auto loans, child support etc.). If you are self employed you are also required to provide financial statements for your business. Lenders require specific information from borrowers in order to approve mortgage. If you change jobs or your financial status changes between the time you submit an application and the time it is funded or if you change jobs, there is a change in salary or your marital status changes, it could affect your mortgage application.
- Your mortgage payments will normally start at the end of the month, however the actual date of your first payment will be included in your closing documents and you should check with your lawyer
- If you purchase a condominium apartment or townhouse, maintenance fee are paid at the beginning of each month.
- We can provide detailed information on almost any property currently listed for sale by any real estate company, as we have access to all the data, so if you see a 'For Sale' sign or a newspaper or magazine ad, call us for any further details that you may wish to know and to arrange an appointment to view the property.
- During Final inspection, if it is included in the Agreement of Purchase and Sale, please check and measure whatever you need to on this inspection as you will not have another access to the property till after closing. Please give yourself ample time to confirm this appointment. It is recommended that this inspection is done closer to the day of closing of your home.
- Please get a copy of every document you sign and maintain a file of these and on closing make sure that your lawyer forwards all the relevant closing documents to you and do not forget to remind him often as he will take his time doing this
- If purchasing a condo make sure you book elevators well in advance by calling the management office of the corporation.
- Inform the Post Office of the change of address
- Inform the Ministry of Transport for the change of address on your driving license
- Inform the telephone company, your cable provider, OHIP, Insurance companies and banking institution(s) and your children's schools
- And of course don't forget to inform all your friends and family.
Home Buying Timeline
© Welistfree.com
There are no absolutes on a time-frame for buying a home (some buyers find a home their first day out while others may take weeks or even months) but there are some general guidelines that can help with your overall planning. These time-frames can vary by the type of Real Estate market you are in. In an active market, they can be compressed (you will need to move quickly for desirable homes) but in a less active market you may have the luxury of a bit more time.
Time Prior to Desired Moving Date |
3 ~ 4 months |
2 ~ 3 months |
5 ~ 6 weeks |
3 ~ 4 weeks |
1 ~ 2 weeks |
• Contact us and stay in touch
• Develop a personal checklist
• Get Mortgage Pre-Approval (we do it for you)
• Begin property search
• Visit website "welistfree.com" often to check for special deals & bargains
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• Compare and evaluate homes
• Choose a home
• Offer and purchase contract
• Home Inspection
• Closing arrangements
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• Moving arrangements
• Monitor mortgage process
• Arrange for any school transfers or registrations
• Arrange homeowners insurance
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• Start basic packing
• Make address changes
• Arrange for utilities at new home
• Purchase decorating items (e.g. draperies) for new home
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• Verify mover
• Verify closing details with your lawyer
• Verify any final mortgage details
• Packing
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The RRSP Home Buyer's Plan (HBP)
 The RRSP Home Buyers' Plan (HBP) is a program under which you can, generally, withdraw up to $20,000 from your retirement savings plan (RRSPs) to buy or build a qualifying home. Withdrawals that meet all applicable HBP conditions do not have to be included in your income, and your RRSP issuer will not withhold tax on these amounts. However, before you can withdraw funds you must have entered into a written agreement to buy or build a qualifying home which you must occupy no later than one year after buying or building the home.
If you buy the qualifying home together with your spouse or other individuals, each of you can withdraw up to $20,000. You cannot withdraw an amount from your RRSP under the HBP if you or your spouse owned the home more than 30 days before the date of your withdrawal.
Details:
- Up to $20,000 per person could be withdrawn tax-free from RRSPs to buy or build a principal residence. Couples -- including common-law -- will be able to withdraw up to $40,000.
- You have to meet the first-time buyer's condition. You are not considered a first-time home buyer if you or your spouse owned a home that you occupied as your principal place of residence in the past 5 years. To determine past 5 years, the 4 years preceding the year you make yourwithdrawal plus the period in the year you make your withdrawal ending 31 days before your withdrawal is the rule adopted.
- Home buyers withdrawing funds do not have to pay income tax on the amount withdrawn, as long as the funds are repaid into an RRSP in the future.
- The 15-year repayment period will begin in the second calendar year following the calendar year in which the withdrawal is made. In addition, a qualifying home must generally be acquired before October 1 of the calendar year following the year of withdrawal. For example, those making withdrawals under the plan in 2000 will have until October 1, 2001 to acquire a qualifying home and their first annual repayment will be due by the end of 2002 or the first two months of 2003.
- A special rule denies a tax deduction for contributions to an RRSP that are withdrawn within 90 days of the RRSP deposit being made. Consequently, to get the normal tax break for a contribution and to use those funds under the plan, the money must be in your RRSP for at least 90 days before a withdrawal is made.
Participating More Than Once:
You can participate in the HBP more than once if:
- Your HBP balance for your previous participation is zero on January 1 of the year you want your new participation in the HBP to occur
- AND you meet the first-time buyer's condition and all other HBP conditions that apply to your situation.
Housing for a disabled relative:
Existing homeowners can use the HBP to purchase a more accessible home or a home for a disabled dependent relative where the individual withdrawing the funds:
- Qualifies for the disability tax credit (DTC) and is buying a home that is more accessible for the individual or is better suited for the care of the individual;
- is related to a disabled individual who qualifies for the DTC and is buying a home for the benefit of the disabled individual that is more accessible for, or better suited for, the care of the disabled individual, or;
- is related to a disabled individual who qualifies for the DTC and is withdrawing an amount for the disabled individual to buy a home that is more accessible for, or better suited for, the care of the disabled individual.
For more information call 1-800-959-8281, or visit Revenue Canada's web site
The 5% Down Payment Plan
With as little as five per cent of the purchase price as down payment, all home buyers now have access to mortgage insurance enabling then to enter the housing market, as long as you can manage the costs of home ownership.
Details:
- Mortgage insurance for 95 per cent mortgages is now available to both first time and repeat home buyers.
- Buyers using the Program may use up to 32 per cent of their gross family income for payments of principle, interest, property taxes and heating, and total debt load cannot exceed 40 percent of family income.
- Insurance premiums on loans above 90 per cent of the lending value of the house will be 3.75 percent of the mortgage loan. This premium can be added to the mortgage.
- Price restrictions include a $250,000 ceiling on homes purchased in the Greater Toronto Area.
- The maximum amortization period is 25 years.
- Borrowers are required to demonstrate, at the time of application, their ability to cover closing costs equal to at least 1.5% of the purchase price.
- Where the minimum equity requirement is being met by way of a financial gift, the funds must be in possession of the borrower 15 days before making an offer to purchase.
For more information call CMHC at 416-221-2642 or visit http://www.cmhc-schl.gc.ca/en/index.cfm
Buyer's Worksheet (Download & Print this Section in pdf file ) (Download & Print this Section in html file )
* Download file is in .PDF format, Adobe Acrobat Reader is required
Short Form
The Essentials
| Maximum Price |
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Family Room(s) |
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Condo / Freehold |
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Dining Room(s) |
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Neighbourhood |
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Kitchen(s) |
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Age of House |
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Garage (cars) |
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Style of House |
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Basement |
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Bedroom(s) |
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Size of House (sqft) |
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Bathroom(s) |
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Lot Frontage (feet) |
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| Other Thoughts |
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* Fill in the top section, photocopy the sheet, and take it with you to your house viewings
Your Scoring - how you rate each house: 
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House Size |
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Curb Appeal |
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Family room |
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Master Bedroom |
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Other Bedrooms |
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Master Ensuite
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Washrooms |
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Living Room |
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Dining Room |
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Kitchen |
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Basement |
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Backyard |
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Other |
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Long Form(Download & Print this Section in doc file )
The Essentials
| Maximum Price |
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___________________ |
Family Room(s) |
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___________________ |
Condo / Freehold |
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___________________ |
Dining Room(s) |
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___________________ |
Neighbourhood |
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Kitchen(s) |
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Age of House |
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Garage (cars) |
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Style of House |
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Basement |
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Bedroom(s) |
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Size of House (sqft) |
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Bathroom(s) |
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Lot Frontage (feet) |
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| Other Thoughts |
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* Fill in the top section, photocopy the sheet, and take it with you to your house viewings
| Home Buyer checklist |
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| Property Address |
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| Asking Price |
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| Real Estate Taxes |
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| The Neighborhood |
| Near Work |
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| Near Schools |
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| Near Shopping |
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| Near Expressways |
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| Near Public Transportation |
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| Near Doctors / Dentists |
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| Near Churches |
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| Garbage Collection |
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| Street Lights |
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| Sidewalks |
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| Streets / Alleys Well Maintained |
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| Traffic Volume |
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| Parks |
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| Neighbor's Property Well Maintained |
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| All Utilities Installed |
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| Neighborhood / Restrictions |
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| Near Trains / Airports |
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| Area Zoned Residential |
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| Near Industry |
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| Proposed Special Assessments |
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| Environment Concerns / Influences |
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| The House |
| Age of House |
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| No. of Stories |
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| Wood Frame |
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| Brick Frame |
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| Wood & Brick Frame |
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| Aluminum Siding |
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| Roof Condition |
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| Foundation Condition |
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| Overall Exterior Condition |
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| No. of Bathrooms |
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| No. of Closets |
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| No. of Bedrooms |
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| Oil Heat |
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| Insulation |
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| Age of Heating System |
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| Age of Water Heater |
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| Capacity of Water Heater |
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| Age of Electrical Wiring |
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| Plumbing Condition |
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| Estimated Water Bill |
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| Estimated Heating Bill |
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| Estimated Electric Bill |
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| Living Room |
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| Fireplace |
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| Separate Dining Room |
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| Family Room |
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| Drapes - No. of Rooms |
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| Carpeting - No. of Rooms |
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| Kitchen Eating Area |
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| Refrigerator |
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| Storm Windows / Screens |
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| Washer / Dryer Outlets |
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| Finished Basement |
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| Attic |
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| Connected to Sewer System |
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| Patio |
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| Landscaping |
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| Property Boundaries |
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