Down payment: Buyers will need a minimum of 5% down payment. Can go through a variety of sources, and with the most popular one will be finding a lender, usually acquiring a mortgage. If the down payment is less than 20% you will need a high ratio mortgage and it has to be your primary residence. Lenders will require buyers to get insurance premium when down payment is less than 20%.
Deposit funds: You will need to provide a deposit when you giving a offer to the seller. The deposit is typically part of your down payment.
Closing costs: Seperate from your deposit and down payment, and usually due on possession date. This can include lawyer fees, property tax adjustments, title insurance, etc.
2. Finding the right home
Key Consideration: Some considerations to think of before viewing the future home can include location, type of home style, number of bedrooms and bathrooms, features of the home, inclusions with the home, price, and most importantly the size. Now, there's much more of considerations when buying a home but having a list of needs and wants can help the professional narrow the search to the specifications.
3. Real estate professional and mortgage broker
Real Estate Professional: Find a professional that you can trust, answer questions, help secure financing, find the right property for you, and negotiate a purchase. As professionals we should be able to answer your wants and needs.
Mortgage Broker: Most common way of finding a mortgage broker is through the bank or a mortgage broker. The difference between these two is that a bank will offer their own mortgage products while a mortgage brokers can source their products through different lenders. A mortgage brokerage has different relationship with you, in which they can represent the borrower, represent the lender, or act as an intermediary.
Accept, counter, or reject: Your real estate agent will handle all of this. This can include offer price, deposits, terms, conditions, and negotiations.
Home Inspection: Clarification of the propety defects and problems, if any.
Mortgage broker: If the offer is accepted, from here on you'll need to finalize your mortgage and the payment to obtain the home.
5. Preparing for possession
Schedule your visit: Conducting a final inspection to make sure the home is in the same condition as when you signed the offer.
Contact an insurance broker and obtain property insurance: Have this prepared in the early stage, rather then last minute.
Closing costs: Have a statement of all of the costs you need for the closing and make sure you have enough money to cover it all.
Meet with your lawyer: Let the lawner know about all of the statement of adjustments and you will be taking the title of the property.
Title and title insurance: A lender title insurance policy and owners title insurance will be placed. Title insurance will protect you against title defects, survey issues, work orders and frauds.
Additional Closing Costs: Beyond lawyer fees and title insurance costs, you may have to pay for closing costs, including property tax adjustments.
6. Possession day
Property condition: Ensure the property is in the same condition as it was when you submitted the offer. If it's not the same condition, contact your lawyer.
Keys: Around noon on possession day you'll get the keys.