Your down payment requirement depends on your home’s purchase price and the type of mortgage you choose. Understanding these requirements helps you plan your finances and budget effectively.

Minimum Down Payment Requirements in Canada:

• 5% minimum for homes priced up to $500,000
• 5% on the first $500,000 + 10% on the portion between $500,000-$999,999
• 20% minimum for homes priced at $1 million or more

The 20% Advantage:
Putting down 20% or more offers significant benefits:

• No mortgage default insurance required (saves thousands in premiums)
• Lower monthly payments due to smaller mortgage amount
• Better interest rate options from lenders
• Stronger negotiating position when making offers

Mortgage Default Insurance:
If you put down less than 20%, you’ll need to pay mortgage default insurance (CMHC, Genworth, or Canada Guaranty), which typically costs 0.6% to 4.5% of your mortgage amount, depending on your down payment percentage.

Additional Considerations:
Remember to budget for closing costs (1.5-4% of purchase price) on top of your down payment, including legal fees, home inspection, appraisal, and moving expenses.

Planning Your Down Payment:
We can help you understand how different down payment amounts affect your overall purchasing power and monthly budget, ensuring you make the choice that best fits your financial situation.

Mortgage default insurance is a mandatory requirement when your down payment is less than 20% of the home’s purchase price. This insurance protects the lender (not you as the borrower) in case you’re unable to make your mortgage payments.

When It’s Required:

• Any mortgage with less than 20% down payment
• All high-ratio mortgages (those exceeding 80% loan-to-value)

Insurance Providers in Canada:

• CMHC (Canada Mortgage and Housing Corporation) – government-backed
• Genworth Financial – private insurer
• Canada Guaranty – private insurer

How Much It Costs:
Insurance premiums range from 0.6% to 4.5% of your total mortgage amount, depending on:

• Your down payment percentage
• Whether you’re a first-time buyer
• Your credit score and financial profile

Payment Options:
You can either pay the premium upfront at closing or add it to your mortgage amount and pay it over the life of your loan (most common option).

Important Notes:

• The insurance premium is a one-time cost, not an ongoing monthly payment
• Once you’ve paid down your mortgage to 80% of your home’s value, the insurance requirement ends
• This insurance doesn’t protect you – consider separate mortgage life insurance for your own protection

Planning Ahead:
We’ll help you understand exactly how mortgage insurance affects your total home buying costs and monthly payments, so you can budget accordingly.

Purchasing a home involves several costs beyond the purchase price that you need to budget for. These additional expenses typically range from 1.5% to 4% of your home’s purchase price.

Government Fees & Taxes:

• Land Transfer Tax: 0.5% to 2.5% of purchase price (varies by province and municipality)
• First-Time Buyer Rebates: Up to $4,000 in Ontario (if eligible)
• HST: 13% on new construction homes (resale homes are generally exempt)

Professional Services:

• Legal Fees: $1,000-$2,500 for your lawyer to handle closing and title transfer
• Home Inspection: $400-$800 to assess the property’s condition
• Appraisal: $300-$500 (if required by your lender)

Mortgage-Related Costs:

• Mortgage Default Insurance: 0.6%-4.5% of mortgage amount (if down payment is less than 20%)
• Mortgage Application Fees: Varies by lender
• Interest Adjustment: Covers interest from closing to your first payment date

Moving & Setup Costs:

• Moving expenses: $500-$3,000+ depending on distance and services
• Utility connections and deposits
• Property insurance: Required before closing
• Immediate home needs: Keys, locks, basic maintenance items

Our Support:
We’ll provide you with a detailed breakdown of estimated closing costs early in your search, so you can budget properly and avoid surprises. We can also recommend trusted professionals for inspections, legal services, and insurance to ensure you get quality service at fair prices.

Buying a home involves several key steps that we’ll guide you through from start to finish. Understanding this process helps you feel prepared and confident throughout your journey.

Step 1: Financial Preparation

• Get pre-approved for a mortgage to understand your budget
• Gather necessary financial documents
• Determine your down payment and closing cost funds

Step 2: Define Your Needs

• Identify your must-haves vs. nice-to-haves
• Choose preferred neighborhoods and property types
• Consider your timeline and any special requirements

Step 3: Begin Your Home Search

• Browse online listings and attend open houses
• Schedule private showings for properties of interest
• Refine your criteria based on what you see

Step 4: Make an Offer

• Prepare a competitive offer with terms that protect your interests
• Include conditions like financing and home inspection
• Negotiate price and terms with the seller

Step 5: Secure Financing & Complete Due Diligence

• Finalize your mortgage approval
• Conduct home inspection and review results
• Complete any additional conditions in your offer

Step 6: Prepare for Closing

• Hire a lawyer to handle the legal aspects
• Arrange home insurance and utility transfers
• Complete final walk-through of the property

Step 7: Close the Deal

• Sign all final documents with your lawyer
• Transfer funds and receive your keys
• Celebrate becoming a homeowner!

Our Role:
We’ll be with you every step of the way, ensuring you understand each phase and making the process as smooth as possible.

Making an offer is one of the most important steps in your home buying journey. Your offer is a legal document that, once accepted, becomes a binding contract, so it’s crucial to get all the details right.

Key Components of Your Offer:

• Purchase Price: The amount you’re willing to pay for the property
• Deposit Amount: Typically 1-5% of purchase price, held in trust
• Closing Date: When you’ll take possession of the home
• Conditions: Protections like financing approval, home inspection, etc.
• Inclusions/Exclusions: What stays with the home and what doesn’t

Strategic Considerations:

• Market Conditions: Your offer strategy will vary in buyer’s vs. seller’s markets
• Property Analysis: We’ll review comparable sales to determine fair market value
• Seller Motivation: Understanding why they’re selling can inform your approach
• Competition: Adjusting your offer if multiple buyers are interested

Deposit Protection:
Your deposit is always held in trust (typically by the listing brokerage) and is legally protected. The funds cannot be released without proper authorization from both parties or a court order. You’re entitled to receive your full deposit back if:

• Any conditions in your offer aren’t satisfied (financing, inspection, etc.)
• The seller breaches the contract
• You withdraw your offer before it’s accepted
• Other circumstances outlined in your purchase agreement

The only time you would typically lose your deposit is if you breach the contract after all conditions have been satisfied and the agreement becomes firm and binding.

Our Guidance:
We’ll help you craft a competitive offer that protects your interests while appealing to the seller. We’ll explain all terms and conditions before you sign, ensuring you understand exactly what you’re committing to and your rights throughout the process.

Timeline:
Offers typically have expiry times ranging from a few hours to several days, depending on the situation and market conditions.

The closing process is the final step in your home purchase where legal ownership officially transfers from the seller to you. This typically occurs 30-90 days after your offer is accepted, depending on your agreed-upon closing date.

Your Legal Representative:
You’ll need to hire a real estate lawyer or licensed paralegal to handle the legal aspects of your purchase. They are responsible for:

• Title Search: Ensuring clear ownership and no legal issues with the property
• Document Review: Explaining all legal documents before you sign
• Fund Transfer: Coordinating the transfer of your down payment and mortgage funds
• Title Registration: Officially registering you as the new property owner

What Happens at Closing:

• Document Signing: You’ll sign the mortgage documents, deed, and other legal papers
• Fund Transfer: Your lawyer transfers the purchase funds to the seller’s lawyer
• Key Transfer: You receive the keys to your new home
• Adjustments: Utility costs, property taxes, and other expenses are calculated and adjusted

Your Responsibilities:

• Final Walk-Through: Inspect the property one last time before closing
• Insurance: Arrange property insurance to take effect on closing day
• Certified Funds: Provide your down payment and closing costs as certified funds

Timeline:
The entire closing process typically takes 1-2 hours at your lawyer’s office, after which you can officially move into your new home.

Our Support:
We can recommend experienced real estate lawyers and will coordinate with them to ensure your closing goes smoothly and on schedule.

Understanding how your real estate agent is compensated is important for transparency in your working relationship. Agent compensation structures can vary, so it’s essential to discuss this upfront.

Common Payment Structures:

Traditional Commission Model:

• Agent compensation is typically paid from the total commission split between the listing and buyer agents
• This commission is usually paid by the seller at closing
• As a buyer, you generally don’t pay your agent’s commission directly

Fee-for-Service Models:

• Some agents charge specific fees for particular services
• May include flat fees, hourly rates, or tiered service packages
• Payment terms vary and should be clearly outlined in your agreement

Buyer Broker Agreements:
Your representation agreement with the brokerage will clearly outline:

• How your agent will be compensated
• What services are included
• Any fees you may be responsible for
• Under what circumstances you might owe payment

Important Considerations:

• All compensation arrangements must be disclosed and agreed upon in writing
• You have the right to understand exactly how your agent is paid
• Different brokerages may have different compensation models

Our Transparency:
We believe in complete transparency about compensation. During our initial consultation, we’ll clearly explain our payment structure and ensure you understand all terms before we begin working together. There should never be any surprises about how your agent is compensated.

A home inspection is a thorough examination of a property’s condition conducted by a qualified professional inspector. This critical step helps you understand exactly what you’re buying and can protect you from costly surprises after closing.

What Inspectors Examine:

• Structural Elements: Foundation, framing, basement, and crawl spaces
• Exterior: Roof, siding, windows, doors, and drainage systems
• Electrical Systems: Wiring, panels, outlets, and safety features
• Plumbing: Pipes, fixtures, water pressure, and drainage
• HVAC Systems: Heating, ventilation, and air conditioning functionality
• Interior: Walls, floors, ceilings, stairs, and built-in appliances
• Safety Features: Smoke detectors, carbon monoxide detectors, and railings

Why It’s Important:

• Identify potential problems before they become your responsibility
• Negotiate repairs or price adjustments based on findings
• Plan for future maintenance and budget for upcoming expenses
• Peace of mind knowing the true condition of your investment

The Inspection Process:

• Takes 2-4 hours depending on the property size
• You should attend to ask questions and learn about your potential home
• Inspector provides a detailed written report within 24-48 hours
• Report includes photos and recommendations for any issues found

Your Options After Inspection:
If you’ve included a home inspection condition in your Agreement of Purchase and Sale, you have several options based on the findings:

• Proceed with the purchase if you’re satisfied with the inspection results
• Negotiate repairs with the seller to address specific issues
• Request a price reduction to account for needed repairs or defects
• Withdraw your offer without penalty if the inspection reveals issues you’re not comfortable with

Important Note:
You can only withdraw your offer based on inspection results if you included a home inspection condition in your original Agreement of Purchase and Sale. Without this condition, you would be legally bound to complete the purchase regardless of what the inspection reveals.

Our Guidance:
We strongly recommend including a home inspection condition in every offer to protect your interests. We’ll help you understand how to properly structure this condition and ensure you have the flexibility to make informed decisions based on the inspection results.

Asking the right questions about a property can reveal important information that affects your buying decision and help you avoid potential issues down the road. In Ontario, if you’re working with an agent, RECO (Real Estate Council of Ontario) requires your agent to exercise due diligence in becoming informed about properties of interest to protect your interests as their client.

Property History & Maintenance:

• Age and condition of major systems (roof, HVAC, plumbing, electrical)
• Recent repairs or renovations and whether permits were obtained
• Any past issues like flooding, foundation problems, or pest infestations
• Maintenance records for major appliances and systems

Legal & Regulatory Matters:

• Outstanding permits or work orders from the municipality
• Property tax assessments and any pending increases
• Easements or restrictions that might affect your use of the property
• Homeowners association rules or fees (if applicable)

Practical Considerations:

• Utility costs and average monthly expenses
• Neighborhood characteristics like noise levels, traffic patterns, or planned developments
• What’s included in the sale (appliances, fixtures, window coverings)
• Reason for selling (may provide insight into timing or negotiation opportunities)

Documentation to Request:

• Property disclosure statements outlining known defects or issues
• Warranty information for appliances, roof, or recent work
• Survey or property boundaries if available
• Utility bills to understand ongoing costs

Our Professional Obligation:
As your agent, we’re required under RECO regulations to conduct thorough due diligence on properties you’re considering. We’ll research property history, verify important details with the listing agent, and ensure you have all necessary information to make an informed decision that protects your interests.

Environmental concerns can significantly impact your health, safety, and property value, so it’s important to investigate potential issues before purchasing. Understanding these risks helps you make informed decisions and budget for any necessary remediation.

Common Environmental Concerns:

• Lead paint: Common in homes built before 1978, especially hazardous if deteriorating
• Asbestos: Found in insulation, tiles, and materials in homes built before 1980
• Contaminated soil: From previous industrial use, fuel spills, or chemical storage
• Mold and moisture issues: Can cause health problems and structural damage
• Radon gas: Naturally occurring radioactive gas that can accumulate indoors
• Underground storage tanks: Previous fuel or chemical storage on the property

How to Investigate:

• Ask direct questions about known environmental issues or past remediation
• Review property history and previous land use through municipal records
• Request environmental assessments if there are concerns about contamination
• Include environmental conditions in your offer when appropriate
• Hire specialists for testing if red flags are identified

Professional Testing:
Depending on the property age and history, consider professional testing for:

• Air quality (radon, mold spores)
• Water quality (if on well water)
• Lead paint or asbestos (in older homes)
• Soil contamination (if industrial history exists)

Our Due Diligence:
As part of our obligations to protect your interests, we’ll research the property’s history and alert you to any potential environmental red flags. We can also connect you with qualified environmental specialists if testing or assessments are needed to ensure your peace of mind.

Understanding the legal aspects of a property purchase is crucial for protecting your investment and avoiding future complications. Several legal considerations should be investigated before finalizing your purchase.

Key Legal Issues to Investigate:

• Construction liens: Outstanding claims by contractors or suppliers for unpaid work
• Building code compliance: Ensuring all work was done with proper permits and inspections
• Title issues: Clear ownership and any encumbrances on the property
• Zoning compliance: Confirming the property’s current use aligns with municipal zoning
• Outstanding work orders: Municipal orders for repairs or code violations
• Property taxes: Any arrears or special assessments

Due Diligence Steps:

• Title search: Your lawyer will conduct this to verify clear ownership
• Permit verification: Check with the municipality for proper permits on renovations
• Lien searches: Identify any registered liens against the property
• Survey review: Confirm property boundaries and identify any encroachments
• Compliance certificates: Verify septic, well, or other system certifications

Professional Protection:

• Legal representation: A real estate lawyer is essential for title searches and document review
• Title insurance: Protects against unknown title defects or legal issues
• Professional inspections: Can identify unpermitted work or code violations

Our Role:
As your agent, we’re required to exercise due diligence in identifying potential legal issues. We’ll work with your lawyer and other professionals to ensure all legal considerations are properly investigated and addressed before closing.

Red Flags to Watch For:
Recent renovations without permits, unusual property configurations, or reluctance to provide documentation may indicate potential legal issues requiring further investigation.

A Seller Property Information Statement (SPIS) is a standardized disclosure document that sellers can voluntarily complete to inform potential buyers about the property’s condition and any known issues. While not legally required in Ontario, it’s an important tool for transparency in real estate transactions.

What the SPIS Covers:

• Structural elements: Foundation, roof, walls, and other building components
• Mechanical systems: Heating, cooling, electrical, and plumbing systems
• Environmental concerns: Water damage, mold, asbestos, or other hazardous materials
• Property history: Previous repairs, renovations, or insurance claims
• Neighborhood factors: Noise, drainage, or other local considerations
• Inclusions/exclusions: What stays with the property and what doesn’t

Important Notes:

• Voluntary disclosure: Sellers are not required to complete a SPIS
• Known issues only: Sellers only disclose problems they’re aware of
• Not a guarantee: The SPIS doesn’t replace the need for professional inspections
• Legal protection: Providing accurate information can protect sellers from future liability

Your Protection:
Even with a completed SPIS, you should still:

• Conduct a professional home inspection to verify disclosed information
• Ask follow-up questions about any issues mentioned in the SPIS
• Consider additional testing if environmental concerns are disclosed
• Review the document carefully with your agent before making an offer

Our Guidance:
We’ll help you review any SPIS documents and explain what the disclosed information means for your purchase decision. If no SPIS is provided, we’ll work with you to gather property information through other means to ensure you’re making an informed decision.

Selecting the right real estate lawyer is crucial for protecting your interests and ensuring a smooth closing process. Your lawyer handles all legal aspects of your property purchase, so choosing someone experienced and reliable is essential.

What to Look For:

• Real estate specialization: Choose a lawyer who focuses primarily on real estate transactions
• Local experience: Someone familiar with your area’s specific legal requirements and processes
• Good communication: Responsive, explains legal terms clearly, and keeps you informed
• Reasonable fees: Transparent pricing structure with no hidden costs
• Professional reputation: Positive reviews and referrals from other clients

Services Your Lawyer Provides:

• Title search and verification of clear ownership
• Review and explanation of all legal documents
• Mortgage document preparation and coordination with your lender
• Fund transfer coordination on closing day
• Title registration and deed preparation
• Legal advice on any issues that arise during the transaction

Questions to Ask Potential Lawyers:

• How many real estate transactions do you handle annually?
• What is your total fee structure and what’s included?
• How quickly do you respond to client questions?
• Can you provide references from recent clients?
• What is your typical timeline for closing preparations?

Our Recommendations:
We work with several experienced real estate lawyers and can provide you with referrals based on your specific needs and location. We’ll help coordinate between your lawyer and other professionals involved in your purchase to ensure everything proceeds smoothly.

Timing:
You should retain a lawyer as soon as your offer is accepted to allow adequate time for all legal preparations before your closing date.