Make a list of all the features you want in your new home such as number of bedrooms, bathrooms, proximity to schools, shopping and workplace.
Be sure you can afford your home. Your monthly housing costs should not be more than 32% of your gross monthly income and your entire monthly debt load (which includes debts such as car loans and credit card payments) should not be more than 40% of your gross monthly income. We can put you in touch with a mortgage representative who appreciates and understands your situation.
Calculate your other monthly living expenses such as food, clothing, transportation, personals and childcare to ensure you can afford your mortgage payments.
Call Diane Boyd! I am a trained professional with knowledge about local conditions and the housing market in general. I service the Brampton, Caledon, Orangeville, MIssissauga and Georgetown areas. Through the Multiple Listings Service I have access to virtually every property listed for sale in my areas. I can narrow down your search and provide you with information on properties for sale and those that have recently sold. This will allow you to make informed decisions about pricing. Licensed by the province of Ontario and a member of the Brampton real estate board, I must adhere to a high standard of ethical behavior.
Obtain a pre-approved mortgage from the lender of your choice or talk to my in-house Sutton Group Mortgage Specialist. This will help you determine the price range you should be looking in. With a pre-approved mortgage, your lender will guarantee the interest rate for 60 to 90 days.
I will always get a copy of the Seller's Property Information Statement, if it is available. This document is completed by the sellers (optional) and ensures the buyer gets complete information about the property they are about to purchase, and alerts buyers when they need to do more research on a property.
If buying a new or existing condo, look beyond style and amenities and investigate whether the construction is of good quality. I will be sure you receive a Status Certificate so your lawyer can determine if there are or have been financial problems in the past.
I always recommend a home inspection from a professional home inspector. An inspector's written report should include how well-built the home is and whether any repairs are necessary and the estimated costs.
Don't forget about other costs when you buy your home such as legal fees, property taxes and the GST (if purchasing a new home). I will review all of these with you before you go house shopping so there are no surprises!
According to home inspectors, there are up to 100 physical problems that can come under scrutiny during a home inspection.
A professional home inspection can offer a buyer peace of mind. An inspector goes through the house in great detail, from the roof down to the foundation, from the electrical and plumbing systems to the garage doors. All pertinent and visible items are inspected, and a detailed report will be given to the buyer upon completion. This report will detail all aspects of the home, any necessary repairs, whether the repairs are normal for the age of the home, and whether a specialist should be called in, to further examine the deficiency. Most home inspections will not deter a buyer from completing the transaction, but give a calendar of when repairs may be necessary.
Remember, some items that may be obvious, will be taken into account when negotiating the transaction, so the need for a new roof, which we used as a negotiating factor when determining what you might pay, will not be renegotiated once the inspector confirms this deficiency. Only unknown items, and major structural deficiencies are generally cause to ask for a renegotiation.
Whether you are considering an older home or a brand new one, there are a number of things that can fall short of requirements during a home inspection. If not identified and dealt with, any of these items could result in a sale that fails to complete! That’s why it’s critical that you read the following information. If you wait until the building inspector flags these issues, you will almost certainly experience delays in your home search, or worse, buy a version of the movie classic "The Money Pit".
A Home Inspection normally takes 2 to 3 hours. Costs vary from $250-$350 plus G.S.T. To help home buyers better prepare for inspections, as well as get more out of them, I have provided this extensive list of things you should look for while shopping for a home.
Once you have decided on a home and had an offer negotiated and accepted, the home inspector will also look at the home with an eye to most of these items. If you overlooked any of these things yourself, you can be sure the home inspector won't! So, along with this list, a home inspection and with my guidance, your home buying experience will be a smart one! Please bring this list with you to your Home Inspection .
Remember most home inspectors do not inspect appliances, so be sure to do this yourself. Also a home inspection is not a guarantee nor can they or do they check everything. Some exceptions are furnaces, (they cannot take it apart), inaccessible areas, every electrical outlet, central vacs, garburators and many other items.
Squeaky hinges, loose door knobs or cabinetry hardware.
Leaky faucets or running toilets.
General furnace and air conditioner condition.
General state of humidifier and air cleaner.
Wiring, especially any handyman work that may not meet code or knob and tube wiring (older homes)
Examine the attic, if possible, to be sure there are no leaks and the sheathing looks good.
The eaves troughs should be free of debris and downspouts should run away from the foundation.
Cracked windows or those that have broken seals.
Do most of the electrical outlets in the home work?
Has fireplace chimney been cleaned recently?
Is the electrical panel labeled - it’s not mandatory but it's nice.
Skylights can be a major home inspection problem. Do they leak? Are there water stains?
Check ceilings for stains.
Bathroom ceiling fans - are they clean and operable.
Be sure water pressure is good.
Look out for leaks! Windows, roof or basement.
Is there a sump pump? Is it operable?
Be sure light fixtures and fans are in working condition.
Does garage door opener work properly?
Do interior and exterior doors close properly?
Should you have any questions call Diane Boyd
Sutton Group – Professional Realty Inc.
905-454-1100 or 1-800-756-4112
New Law Requires Real Estate Agents to Collect and Verify ID of Buyers and Sellers
New federal laws and regulations designed to prevent money laundering and anti-terrorist financing went into effect June 23, 2008.
This new law states that all Realtors must obtain proof of identity from all parties in any real estate transaction, even if one of the parties is not represented by a real estate agent.
Realtors must also track the source of funds received during the course of a real estate transaction, such as the deposit. If the client is a corporation, corporate documentation and the names of the corporation directors must be provided and the corporation must disclose if a third party is involved in the transaction.
"Real estate agents have had legal obligations under the federal government's push to prevent criminal activity and terrorism since 2001, when Canada's first comprehensive laws to combat money laundering and terrorist financing were introduced,"
says RAHB President, Ann Cosens.
"Real estate agents were required to report only suspicious transactions or transactions involving more than $10,000 in cash."
These new regulations are part of federal legislation (Bill C-25) passed in 2007 that requires a number of industries, including real estate, to do more to help stop money laundering and terrorist financing. The regulations are enforced by the federal agency known as the Financial Transactions and Reports Analysis Centre of Canada.
You will hear it being called FINTRAC, for short.
As part of the new rules, Realtors are required to keep all identification and the receipt of funds report on file for at least five years and provide it to FINTRAC. Realtors are also required to complete a report on the receipt of all funds received during a real estate transaction.
Also, under the new FINTRAC regulations, real estate agents dealing with clients they never meet must also verify identification. The broker office involved can do this with a service agreement with an agent or mandatary in the area where the client is located. The agent or mandatary must then meet the client, verify the identification of the client, and provide the information to the broker office handling the real estate transaction.
To comply with the new regulation, real estate agents will need to get more acquainted with their clients.
So don't be shocked when your Realtor asks to see some identification next time you sit down to sign some paperwork, even if you have been doing business together for 20 years!
When you require a mortgage for more than 75% of the purchase price of a property, that mortgage must be insured by Canada Mortgage and Housing (CMHC) or GE Mortgage insurance. The premium charged by these company`s decreases as the down payment increases. When you finance your property at 95%, a premium of 2.75% is added to the mortgage. By increasing the down payment to 10% of the purchase price the premium can be reduced to 2.5%. If you can put down 25%, you can avoid any additional insurance fee. Depending on your situation there are ways that you can structure this financing to avoid the CMHC or GE insurance premium.
Most mortgages have the option to allow payments to be made on a weekly or bi-weekly basis. This option may be desirable for two reasons. The first is it can save you money as you can expect to pay off your mortgage about 4 years sooner. This can save you dramatically over the life of your mortgage. The other reason why these options are so popular is that if your employer pays you on a weekly or bi-weekly basis, you can simplify your budgeting by making the payment line up with the way you are paid.
The options for mortgages available can be very confusing for most mortgage shoppers. Terms for mortgages vary between variable and fixed rate, 6-month terms to 10 year terms. Taking a variable or floating rate mortgage can have savings. Typically the shorter the term or guarantee of the rate, the lower the rate will be. This does not always happen, depending on the market place and the economy, but history has shown that short-term rates tend to be lower than long-term rates. The up side of variable rate is the strong potential for interest rate savings. The down side is the fact that you are accepting the interest rate risk without a guarantee. If you are considering a variable rate mortgage you need to look at your own risk tolerance, and your cash flow available to deal with potential increased payment. Considering projections of rates and where we see interest rates heading can also be important in this decision. Make sure you talk to an expert when you are making this decision.