Buy House in Richmond Hill, Ontario| Sam Bakhshi Real Estate

Buying

Buying

BUYING

As your agent of choice, I understand how to find and finance the perfect home for you. Buying a house requires a lot of time and effort, but these 6 steps can make the home buying process manageable and help you make the best decision possible.

While knowing how much you can afford is the first step, sellers will be much more receptive to potential buyers who have been pre-approved. You’ll also avoid being disappointed when going after homes that are out of your price range. With Pre-Approval, the buyer actually applies for a mortgage and receives a commitment in writing from a lender. This way, assuming the home you’re interested in is at or under the amount you are pre-qualified for, the seller knows immediately that you are a serious buyer for that property.

Buying a home is a big decision. Ask yourself 3 questions before you decide if you’re ready to own a home.

  1. Am I financially stable?
  2. Do I have the financial management skills and discipline to handle this large a purchase?
  3. Am I ready and able to take responsibility for all the costs that come with being a homeowner?

Before you even go looking for a home, you have to understand your needs and wants. Make 2 lists. The first should include items you must have (i.e. the number of bedrooms, the size of the house, the vicinity of schools or malls).The second list is your wishes; things you would like to have (pool, den, etc.), but are not necessary. Once you have narrowed down some qualities, it is time to go looking for a home!

So you’re ready to buy or sell a home and you want the guidance of a knowledgeable real estate professional to help you with the process. But with over 65,000 real estate professionals in Ontario, how do you pick the one that is right for now.

You have to pick carefully. They will be acting as your representative and you will need someone to look out for your best interests. You will need someone that you can trust and someone who understands what you want.They have to be a trained professional who knows your area inside out. A great agent is someone who offers you quality services to help you accomplish your goal.

It’s always a good idea to meet with at least a few different real estate professionals before selecting the one you’d like to work with. When you have your shortlist of representatives ready, consider asking these questions to help determine who will be the right representative for you.

  1. What is your experience and education?
  2. What is your approach to the buying or selling process?
  3. What services will be included?
  4. Do you work on your own or as part of a team?
  5. How many other clients are you working with at this time?

Think long term when buying a home. What kind of home do you need now? What will you need in 5 to 10 years?

Consider:

  • the location and neighbourhood
  • the size of the property and home
  • the type of home — for example, detached, duplex, row house or condominium
  • the travel distance to work, recreation and services
  • your lifestyle needs and possible changes in the future
  • your preference for a new, resale or custom-built home

Keeping these things in mind, you are free to go window shopping! Look at a potential property as if you are the seller. Would a prospective buyer find it attractive based on school district, crime rate, proximity to positive (shopping, parks, freeway access) and negative (abandoned properties, garbage dump, source of noise) features of the area? Keep a file of the properties that your agent has shown to you, take notes whenever possible.

Now that you’ve found the house that you are set on, it’s time to make an offer. Not all offers are the same and here’s where your real estate agent comes in. They will help you with specific terms and conditions that will be specified in the offer like the price you want to pay, financing conditions, or other things like inclusions and exclusions.

Be thorough, a few extra dollars well spent now may save you big expenses in the long run. Don’t forget such essentials as:

  • Include inspection & mortgage contingencies in your written offer.
  • Have the property inspected by a professional inspector.
  • Request a second walk-through to take place within 24 hours of closing.
  • You want to check to see that no changes have been made that were not agreed on (i.e., a nice chandelier that you assumed came with the sale having been replaced by a cheap ceiling light).

All the above may seem rather overwhelming. That is why having a professional represent you and keep track of all the details for you is highly recommended. Please email me or call me directly to discuss any of these matters in further detail.

What happens on closing day?

You legally take possession of your new home on closing day. The final signings usually take place at your lawyer or notary’s office.

To complete the process, your lender gives your lawyer the mortgage money. You then give your lawyer the down payment (minus the deposit) and the closing costs (usually 1.5% to 4% of the purchase price).

Your lawyer or notary then:

  • pays the seller
  • registers the home in your name
  • gives you the deed and keys to your new home

Congrats, welcome to your new home! You’re all ready to move in!

As a first time homebuyer, you want to be familiar with various programs that apply to your situation. Whether it’s a rebate you may qualify for or a tax-efficient way of funding your down payment, there’s information you need to know to navigate the buying process and potentially save yourself some money along the way.

The First-time Home Buyers’ Tax Credit (FTHBC) is designed to help recover closing costs such as legal expenses, inspections, and land transfer taxes. The Home Buyers’ Tax Credit, at current taxation rates, works out to a rebate of $750 for all first-time buyers. After you buy your first home, the credit must be claimed within the year of purchase and it is non-refundable. In addition, the home you purchase must be a ‘qualified’ home, described in more detail below.

You are considered to be a first time buyer if neither you and your spouse or common-law partner has owned and lived in another home in the year of the purchase or in any of the four previous years.

A great source of funding for your mortgage down payment is a Registered Retirement Savings Plan (RRSP). The Canadian government’s Home Buyers’ Plan (HBP) allows first time home buyers to borrow up to $25,000 from your RRSP for a down payment, tax-free. If you’re purchasing with someone who is also a first-time homebuyer, you can both access $25,000 from your RRSP for a combined total of $50,000. However, since the HBP is considered a loan, it must be repaid within 15 years.

You also must occupy this space no later than a year after buying or building this new home. To take advantage of this program you have to be considered a first-time buyer. You are not a first-time home buyer if you (or you and your spouse) have owned a home which you have occupied as your principal place of residence in the past 5 years.

When you buy land or an interest in land in Ontario, you pay the land transfer tax. First-time homebuyers of an eligible home may be eligible for a refund of all or part of the tax. To claim a refund, you and your spouse cannot have owned a home or an interest in a home anywhere in the world. Previous ownership in a home means you do not qualify for the land transfer tax first-time home buyers’ refund.

Qualifying taxpayers may claim an immediate refund at time of registration. If the refund is claimed at the time of registration, it may offset the land transfer tax that would be payable. If the refund is not claimed at registration, the tax must be paid, and a claim for the refund may be submitted to the Ministry of Finance.

For conveyances or dispositions that occur before January 1, 2017, the maximum amount of the refund is $2,000. Beginning January 1, 2017, the maximum amount of the refund is $4,000. The increased limit of $4,000 applies only to conveyances or dispositions that occur on or after January 1, 2017, regardless of the date the agreement of purchase and sale was signed.

Beginning January 1, 2017, no land transfer tax would be payable by qualifying first‑time purchasers on the first $368,000 of the value of the consideration for eligible homes. First‑time purchasers of homes greater than $368,000 would receive a maximum refund of $4,000.

The HST New Housing Rebate program allows you to claim a rebate on part of the HST you pay on the purchase price of either a newly constructed home or cost of building the home. You can claim a rebate on a newly renovated home, a purchase of a new mobile home, or when your home is destroyed in a fire and is subsequently rebuilt.The purchase price of resale homes are exempted from the HST whereas the purchase price of newly constructed homes are subject to HST.

New home buyers can apply for a 36% rebate on the federal portion of the HST of the purchase price to a maximum of $6,300 for homes costing $350,000 or less. For new homes priced at $350,000 to $450,000 the rebate will be reduced proportionately. Homes priced over $450,000 would not receive a rebate on the federal portion of the HST.

For the provincial portion of the HST, new home buyers can apply for a 75% rebate applicable to the purchase price to a maximum of $24,000.