Buying a home is a major decision. Besides being a place to live, a home is often the single largest investment Canadians make. Here are a few things you may want to consider before you buy:

Location
Think about where you want to live – the three most important principles in real estate are location, location, location! Talk to your friends, drive through various neighbourhoods, or contact us - we’d be happy to send you regular updates on properties of interest!

Finances
Consider getting pre-approved. Knowing how much you can afford to spend will make decisions about where you want to live and the features you’d like much easier. Make sure you have 5% of the purchase price available in a certified cheque or draft as a deposit on your new property. Also, don’t forget about application fees and mortgage insurance. Although some lenders will waive this fee, application fees usually range from $75.00 to $235.00. Mortgage insurance will range from 0.5% to 3.57% of your mortgage and can be included in your monthly payment.

Click here to estimate the amount of your monthly mortgage payments, taking into account your down payment and interest rate. If you think you may have a high-ratio mortgage (i.e. with a down payment of less than 20% of the purchase price), click here to calculate the cost of CHMC insurance.

Legal
Once you have selected a real estate agent, you will be asked to sign a Buyer Agency agreement. The agreement outlines all services provided by the realtor and establishes the fee schedule and duration of representation to the buyer. You should select a lawyer to represent your interests through the transaction. Prices range from $500.00 to $1,500.00 plus disbursements. Fees are determined by the lawyer.

Disbursements
Include City Tax Certificate, City zoning Reports, City Engineering Report, Sheriff's Certificate Registry Office searches, deeds registration, mortgage registration, copies, postage, long distance calls, courier fees, etc.

Provincial Land Transfer Tax* (LTT)
$0 to $55,000.00	0.5 %
$55,001.00 to $250,000.00	1.0 %
$250,001.00 to $400,000.00	1.5 %
$400,001.00 +	2.0%
* Special taxes apply to non-residents. These figures represent approximate amounts, for planning purposes only.

Toronto City Land Transfer Tax
This tax takes effect February 1st, 2008. If the Agreement of Purchase and Sale was signed prior to December 31, 2007 the land transfer will be rebated regardless of the closing date. If it closes prior to December 31, 2007 you will not be required to pay the Toronto Land Transfer Tax. If you buy a property after Dec 31, 2007 with a closing on or after February 1, 2008 you will be required to pay the full Toronto Land Transfer Tax. This only applies to real estate within the City of Toronto. First time home buyers of new and re-sale homes will receive a rebate of the Toronto tax of up to $3,725 (this equals 100% on homes purchased up to $400,000 - essentially first time home buyers pay nothing on the first $400,000).

$0 to $55,000.00	0.5 %
$55,001.00 to $400,000.00	1.0 %
$400,001.00 +	2.0%

Click here for a calculator that will calculate the total amount of Land Transfer Tax to be paid upon the purchase of a new home.

Adjustments
Money owned due to pre-payment of taxes, hydro, gas, fuel oil, etc.

Home Inspection
The approximate cost is between $250 and $600.

The Move
Varies depending on your choice of movers (i.e. professional movers or packing yourself). We have a list of qualified movers for your use.

Insurance
After you close your home you will need to have it insured. This can cost from $600.00 and up depending on the size and contents.

Closing
You will meet with your lawyer a few days before closing to sign the paperwork, deal with mortgage and you should have the rest of the money available of funds due on closing. The lawyer will adjust taxes and utilities and deal with other issues. Now that you've considered the issues of buying, contact us and we'll help you buy the house of your dreams!