You may be wondering...
How much do I need for a down payment?
In Canada the minimum is 5% of the first $500,000 and 10% of the portion above that, up to $1.5 million. At $1.5 million and above, it is 20%. With less than 20% down, you will also need mortgage insurance. The FHSA and the RRSP Home Buyers' Plan can help you get there.
Should I get pre-approved before I start looking?
Yes. A pre-approval tells you what a lender is prepared to lend, holds a rate for a set period, and shows you the price range to search in. It is not a final approval, so avoid new debt or job changes until you close.
What costs are there besides the down payment?
Land transfer tax (with rebates for first-time buyers), legal fees, a home inspection, title insurance and moving costs. If your down payment is under 20%, Ontario also charges 8% tax on the mortgage insurance premium, paid at closing. The calculator above estimates most of these.
What is a status certificate, and why does it matter?
It is the condo corporation's disclosure package: the budget, the reserve fund, any lawsuits or special assessments, and the rules. I review it with you, and your lawyer reviews it too, before your offer becomes firm.
How much does it cost me to work with you?
In most Toronto purchases, my commission is paid from the seller's side of the sale. Before you sign anything, I will walk you through the buyer representation agreement, including what happens in the rare case it is not.
How long does buying usually take?
It varies. Some buyers find the right home in a few weeks, and others take several months. Once an offer is accepted, closing is usually 30 to 90 days later, depending on what you and the seller agree.
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