Step 1: Get Ready to Buy

1. Hire a realtor Buying a new home is involved many steps and is sometimes a time consuming. It is highly recommending to hire a realtor who is knowledgeable and patient and who can help you to make sure your purchase experience is stress free and you are being protected as well.
2. Talking to your bank or mortgage broker to find out your maximum purchase price that you can afford and what other costs involved.
3. Decide where you want to purchase and what type of property you want.
4. Determine the number of units you want such as number of bedrooms, bathrooms and other requirements.

Step 2: Meet Your Bank or Mortgage Broker

Depending on your employment status whether you are an employee or a self-employed, your bank or mortgage broker will require you to provide a different set of documentation in order to finance your purchase. The bank or your mortgage broker will go over with you the following:

1. Maximum mortgage loan – How much the bankis going to lend you
2. Mortgage term – How many years of your mortgage will expire before you renew it
3. How much your down payment is
4. What the interest rate and either fix or variable rate is
5. Amortization – The lifelong of your mortgage payments
6. OR whether you need to refinance if you already own a property or how much you can use your RRSP toward your down payment etc…
7. Additional fees should be considered such as:
   1. Application fee
   2. Appraisal fee
   3. Mortgage broker fee (if using private lender)
   4. Land survey fee
   5. Home Inspection fee
   6. Home Insurance fee
   7. Title Insurance Fee
   8. Lawyer Fees
   9. Adjustment Fee
   10. Property Transfer Tax Fee
   11. GST/HST if buying brand new property
   12. Realtor commission fee (if applicable)

You can either use our Affordability Calculator calculate how much you can afford or out Payment Calculator to calculate mortgage payment per month.

Step 3: View Properties with Your Realtor

Once you hire a realtor you like, there are a few ways you can view the properties.

1. Your realtor will send you a list of properties that you are interested in based on your search requirements. Your realtor will make appointments for you to view them;
2. Your realtor will also make appointment for you to go to open houses and this is a great way for you to view the property inside/outside and to ask questions.

Step 4: Make an Offer

Once you decide which property you want to put an offer in, your realtor will prepare a contract of purchase and sales on your behalf. This process is a bit challenging sometimes depending on what current market you are entering in. Below are a few steps you should know when the offer is written:

1. You are the buyer on the contract of purchase and sale
2. The Seller is the owner of the property
3. Purchase price – Your realtor will provide recent solds and active listings in the area or a CMA (Comparable Market Analysis) to determine the purchase price of the offer (Keep in mind the purchase price is an approximate amount based on the MLS data, it is not a precise amount)
4. Your realtor will advise you how much the deposit is
5. Your realtor will draft the contract of purchase and sales which includes the purchase price, the deposit, terms and conditions of the sale, what includes and what not includes in the sale (In the event, you would like the seller to include something else that is not in the listing, ask your realtor to write it in the contract).
6. Negotiation and offer expire - This process depends on how quick the Seller’s realtor presents your offer and how quick the Seller and you would settle with the purchase price, it is going to back and forth a few times before the Seller and you settle the purchase price. - The offer expiration normally is less than 48 hours, however this is not always the case.
7. Subjects Removal date - Once the offer gets accepted by both parties, there is normally a 2 weeks period where you as a buyer has to do your due diligence (conditions of the sale) before you decide to get the property. Once everything is finished and good to go, the sale becomes firmed (This is called “subjects removal)

Step 5: Meet with Your Lawyer/Notary to Close the Purchase

Completion – Adjustment date – Possession date.

• The date of completion and adjustment date are on the same day and normally two (2) months after the accepted offer, however this is not always the case. The date of a completion date cannot be on the weekend or holidays. This is a date where your bank will transfer the money to the Seller and the title of the property is transferred to your name at a lawyer’s office. It is recommended to see your lawyer a few days to a week before you close your purchase.
• The Adjustment date is the on the same date as the Completion date, your lawyer will transfer utilities such as hydro and water to your name. You will have to call the telephone and cable companies to switch to your new address.
• The Possession date is the day after the completion date and the possession date. It is recommended to buy the property insurance and has it covered before 12 noon on the possession date. Your realtor will meet with you at the property to do a final walk through and give you the keys.