Frequently Asked Questions

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Step one is to speak to the bank or a mortgage broker to receive a pre-approval. Next, find a real estate agent to assist you with your search. 

Interview a few potential agents to find the person that you feel will best represent your interests and someone with which you can develop a strong professional and personal rapport. Your real estate agent will guide you through the process from start to finish and will be a resource for any of your questions.

It is the amount of money you pay upfront for a home. This amount includes the deposit that you must make within 24 hours of an accepted offer.

The minimum down payment you need depends on the price of the home:

• $500,000 or less = 5% of the purchase price
• $500,001 to $999,999 = 5% of the first $50,000 and 10% for the portion above $500,000 of the purchase price
• $1 million + = 20% of the purchase price

The down payment is the total amount that you pay upfront for a home. The deposit is a portion of your down payment that is usually paid within 24 hours of an accepted offer by bank draft or certified cheque to the real estate brokerage that has listed the home. 

This amount can range; in the Greater Toronto Area, the average deposit amount is 3% - 5% of the purchase price of the home.

Timelines can vary depending on:

• Your own timeline
• The supply for the type of home you are searching for or selling and the competition
• How long the seller may need to vacate the home

The average time from start to finish can be as quick as 30 days to six months. However, the goal is to make the process as efficient as possible based on your preferences. If you want to take your time, great! If you are working on a deadline, we can make sure that deadline is a priority.

It protects the mortgage lender in case you’re not able to make your mortgage payments and applies when your down payment is less than 20% of the price of your home. Mortgage loan insurance isn't available if the purchase price of the home is $1 million or more. 

Your lender will coordinate getting mortgage loan insurance on your behalf if you need it. The companies that offer mortgage loan insurance include:

• Canada Mortgage and Housing Corporation (CMHC)
• Genworth
• Canada Guarantee Mortgage Insurance Company

To pay your premium, you can either add them to your mortgage loan or pay them with a lump sum up front. If you add your premium to your mortgage loan, you'll be paying interest on your premium at the same interest rate you're paying for your mortgage. 

In addition, provincial sales tax applies to mortgage loan insurance premiums, which cannot be added to your mortgage loan. You must pay these taxes when your lender funds your mortgage.

This is a question many people contemplate. If it’s a seller’s market (where demand outweighs supply), then buying first with a longer closing date to give you sufficient time to sell can be a consideration.

Some people prefer this option as it ensures they find the right home without feeling rushed. However, there is always that risk if you don’t sell quickly, you could be left carrying two homes.

If it’s a buyer’s market (where supply outweighs demand), then selling first is usually the better way to go. In addition, selling first allows you to see exactly how much money you have to put towards your new home. 

Speaking to an experienced real estate professional is a great start, as we can properly guide you given the market conditions along with your requirements and expectations.

The main costs associated with purchasing a home include:

• Deposit (forms part of eventual down payment)
• Land transfer taxes
• Legal fees
• Home inspector
• Moving company
• Appraisal (speak with your lender to confirm)
• Mortgage insurance (if applicable)
• Home insurance
• Reimbursement to the previous owner for prepaid utility costs or property taxes (if applicable)

Depending on market conditions, purchasing a home can be competitive, resulting in multiple offers on one property. When you are competing with other potential buyers, it can become stressful. 

The key is to put your best foot forward and be comfortable with the outcome, knowing that if you don’t end up being the successful purchaser of that particular home, it wasn’t the right home for you and you will find ‘the one’ soon enough. 

As long as you try your best not to get wrapped up in the emotion of the process and you truly want to make an offer, then give it a shot! We will give you guidance on how to make your offer as competitive as possible and we will ensure that your home search process will be a positive experience from start to finish!