The Buying Process

Moving can be very exciting but it can also be very stressful as there are so many things to remember to do! Don’t despair; whether you are doing it on your own, asking friends for some help, or hiring professionals, here is a quick guide to help you get through the buying process.

Avoid 9 critical mistakes that could cost you thousands of dollars when buying your home!

  1. Don’t “low-ball” your initial offer
    Vendors tend to give less of a counter offer (closer to list price), if they feel insulted. Understand the current market value of the home and comparable SOLDS.

  2. Get Pre-approved
    A mortgage preapproval is free and greatly enhances the strength of your offer. You can sometimes negotiate your mortgage rate between 1/2-1% off the posted rates with your lender.

  3. Have your agent arrange a home inspection
    An average home inspection with a certified home inspection services costs around $550.00 + tax (approx) and it could very well be your best money spent. You want to know exactly what you are bidding on.

  4. Avoid buying the most expensive home on the street
    The most advantageous situation is to purchase the worst home in a great area, rather than the best house in the worst area. “Location, Location, Location” is true!

  5. Prepare a down payment of at least 2o% to avoid insured mortgage fees.
    When you have a down payment that is 20%, it is usually less expensive to arrange a first and second mortgage and save on CMHC insurance fees.

  6. Arrange an accelerated Bi-weekly payment plan on your mortgage.
    Save money on your mortgage by opting for an accelerated payment plan, double up on as many payments as you can. Fat tax return? Throw it at the mortgage (be sure there are no fees charged for this). This will shorten your amortization.

  7. Take advantage of tax credits.
    Talk to your investment advisor about whether there is a tax advantage for putting some or all of your down payment in a short term RRSP or other investment vehicle until closing.

  8. Buy what you can afford and plan ahead for potential interest rate changes. Afford it now and still afford it later without becoming “housepoor.”

  9. Be sure to check into your lawyer’s fees ahead of time.
    These are separate from disbursements. I am happy to refer you to reliable professionals.