Get pre-approved from your bank or mortgage broker. There is no obligation to actually apply for a mortgage with pre-approval, and this will ensure you are looking at houses within your price range.
There are several expenses in addition to the actual cost of the home to be aware of:
- Deposit – is a portion of your down payment and is used to “hold” the house.
- Home inspection – A home inspection by a reputable company is highly recommended for those buying an older new home. These generally cost between $400 – $600.
- Lawyer fees – You will need a lawyer to transfer title and take care of your closing. Our fees schedules can be found in the “fees” area.
- Mortgage Insurance – If you are putting less than 20% down on your mortgage, your mortgage insurance will be added onto your mortgage.
- You will have to pay an adjusted amount for property taxes, based on your possession date. There may also be connection fees for utilities, depending on your vendor.
- Your lender may require a property appraisal
- Property Taxes
Commonly asked questions
When do I get to move into my new home?
Generally, you will get the keys to your new home around noon on the possession date, barring any unforeseen delays.
Can my possession date be delayed?
There are many factors that could delay the possession of your home, such as the mortgage lender not providing funds in time, or not receiving the proper information in time. Should this be the case, your lawyer will discuss options with you.
Where do I get my keys from?
If you are buying an older home, your realtor will arrange to meet and give you your keys. If you are buying a brand new home from a builder, they will make an appointment with you on the day of possession to give you your keys and any necessary documents specific to the builder.
When do I get a copy of the title?
Your lawyer will mail you a package of important documents within a month of your possession date. This will include the title to your new home.
Once the conditions of your sale have been removed, you will need to give your real estate agent your lawyers information. The realtor will provide the lawyer with most of the necessary information. This information includes:
- Your contact information
- Mortgage information, including your mortgage account number and bank branch.
- Confirmation of marital status
- Copy of the purchase and sale agreement
- Removal of conditions form
- Buyers contact information
- Name of the buyers lawyer
- Any deposit paid to you
You will meet with your lawyer 1-2 weeks before your possession date, you will need to bring:
2 valid government issued pieces of identification, at least one of which is photo ID
You lawyer will then send any necessary documents to the buyers realtor, and will request the bank release your funds.
On your closing day, you will receive your keys from either your builder, or from your realtor.
- Consider using a realtor to help sell your home. A good realtor will have a good understanding of the process, and can help guide you through the process with less stress.
- You will likely need a current RPR (real property report). This will show that the property complies with any municipal bylaws.
- Review your mortgage terms, as there may be prepayment penalties if you are selling your home before the end of your mortgage term.
- Have a lawyer that you feel confident in ready, as you will need them to handle the transfer of the property to the buyer.
- Don’t underestimate small measures, such as keeping your lawn mowed and your house tidy. Even small things like basic repairs or steam cleaning the carpets can add value to your home in the eyes of potential buyers.
Sell before you buy. This keeps you financially stable, avoid paying on 2 mortgages for any period of time, and increases your bargaining power, since you know finances will not be an issue.
Can my possession date be delayed?
There are many factors that could delay the possession of your home, such as the buyers mortgage lender not providing funds in time, or not receiving the proper information in time. Should this be the case, your lawyer will discuss options with you.
When should I cancel my property insurance?
Do not cancel your property insurance until your lawyer has received your sale funds. You are still the owner of, and therefore responsible for, the property until you receive your release funds.
When will I receive the sale proceeds?
Sale proceeds are sent on the possession date, given that everything goes smoothly. They are generally received in the afternoon of your possession day.
What gets paid out of the sale proceeds?
From the sale proceeds, your lawyer will pay your mortgage, legal fees, and other expenses such as unpaid taxes, penalties, condo fee arrears and real estate commissions.
Can the Buyer and the Seller use the same Lawyer?
Yes, in fact we would encourage you to do so. By using the same lawyer, both the buyer and the seller will save fees due to things like couriers, as well as having more cohesiveness throughout the sale. In this scenario, both parties would sign a conflict agreement acknowledging that the real estate lawyer would be representing both parties.
What kind of fees can I expect?
Outside of legal fees, which can be found in our fees section, there is a large variance depending on the scenario. Some common fees are title insurance, building inspection fees, purchase of a real property report (RPR), registration fees, adjustment for taxes, and fire insurance.
Terms to know:
- Closing costs – Costs in addition to the purchase of the home, such as legal fees, transfer fees and disbursements.
- Appraisal – Process for estimating the market value of the property
Real Property Report (RPR) – A document that shows the property boundaries, as well as any other structures or improvements on the property, such as a shed or fence.
- Variable Mortgage – A mortgage whose interest rate fluctuates based on market conditions while maintaining an unchanged mortgage payment.
- Fixed Mortgage – A locked in rate that will not increase for the term of the mortgage.
- Mortgage Term – The length of time that the mortgage contract conditions are fixed. This includes interest rate
- Offer Conditions – These are specific conditions written into the offer that must be met in order for the sale/purchase to proceed. These often include things such as financing and inspection, but can cover a wide range of things.
- Title – A legal document giving the holder exclusive ownership of the land and building
- Title Insurance – Title insurance can be used as “gap” coverage in the event that there are delays at land titles. It is also used as insurance against loss of damage arising from a matter affecting the title.
Insurance against loss or damage arising from a matter affecting the title
- Title Search – A search of the property that ensures you that there are no liens or claims on it, and that you will own the property free and clear.
- Tax Search – Ensures that all outstanding property taxes have been paid by the owners until the date of closing.