Everand Logo

Welcome to Everand!

  • Discover millions of ebooks, audiobooks, and so much more with a free trial

    Only $11.99/month after trial. Cancel anytime.

    Complete Home Buyer's Guide For Canada
    Complete Home Buyer's Guide For Canada
    Complete Home Buyer's Guide For Canada
    Ebook194 pages1 hour

    Complete Home Buyer's Guide For Canada

    By Geraldine Santiago, Alma Pasic, Frank Dodich and Hilde Deprez

    ()

    Read preview

    About this ebook

    Find out how to avoid buying a home that’s too expensive, too small, or too big

    Understand how home-owners’ grants and tax exemptions can benefit you


    Whether a veteran or a novice, buying a home can be intimidating and worrisome. The Complete Home-Buyer’s Guide for Canadians is written by an experienced real estate agent who specializes in working with first-time home buyers. The book is written in a step-by-step manner, guiding the home buyer from obtaining financing to the final paperwork. It includes information on:


    The buying process

    Arranging for financing

    Home-owner grants

    Tax exemptions

    The inspection

    The final paperwork


    Special sections discuss financing options available to first-time home buyers, including the use of an RRSP for a down payment, and tips on buying in today’s market.
    LanguageEnglish
    PublisherSelf-Counsel Press
    Release dateApr 15, 2012
    ISBN9781770407787
    Complete Home Buyer's Guide For Canada
    Author

    Geraldine Santiago

    Geraldine Santiago is a licensed realtor based in Vancouver, BC, where she also conducts regular seminars on buying and selling homes. She hosts her own home-buying and -selling website. Santiago is a member of the Canadian Real Estate Association (CREA), the Greater Vancouver Home Builders’ Association (GVHBA), and the Real Estate Board of Greater Vancouver (REBGV). She is also the author of Complete Home-Buyer’s Guide for Canadians and Sell Your Home in Canada, both published by Self-Counsel Press.

    Read more from Geraldine Santiago

    Related to Complete Home Buyer's Guide For Canada

    Related ebooks

    Real Estate Law For You

    View More
    View More

    Related podcast episodes

    Related articles

    • Article

      Reverse Mortgages: 10 Things You Must Know

      Mar 26, 2021

      Get a large wad of cash! Never make a mortgage payment again! Stay in your home as long as you want! Sounds like a great deal, right? Well, for some older homeowners, a reverse mortgage can be.  For others, it's more perilous than promising. If you’r

      6 min read

    • Article

      First Time Homeowners

      Sep 3, 2021

      First Time Homeowners
      5 min read

    • Article

      First Time Homeowners

      Sep 3, 2021

      First Time Homeowners
      5 min read

    • Article

      Bridging The Price Gap

      Sep 29, 2022

      Bridging The Price Gap
      7 min read

    • Article

      5 Facts About Distressed Property Sales

      Oct 21, 2022

      Send suggestions for topics and requests for info to yourmoney@you.co.za. We may answer your questions in this column but won’t reply personally. BANK-ASSISTED or distressed property sales happen when a homeowner can no longer afford their home loan

      3 min read

    • Article

      4 Facts About Bridge Loans

      Dec 30, 2022

      PEOPLE who are in the process of selling property often use bridge loans (aka gap financing) to cover the expenses for their new home while their current one is being sold. Costs financed this way usually include a deposit on a new property, property

      3 min read

    • Article

      Your Money Sorted

      Jul 17, 2020

      IS NOW the time to sell? It’s a question many homeowners are asking themselves as they struggle to keep their heads above water. Most don’t want to, but with the Covid-19 crisis having cost them their jobs, they can’t afford to pay their mortgages an

      3 min read

    • Article

      Doors Open For First-timers

      Nov 30, 2022

      Doors Open For First-timers
      4 min read

    • Article

      Why You Shouldn’t Rush to Buy a House Right Now

      Sep 25, 2021

      With mortgage interest rates at an all-time low, the temptation to buy is now higher than ever and may make sense for some. To put it in perspective, a 30-year $250K mortgage with a 5% interest rate would have once cost you $1,342; now, with a lower

      2 min read

    • Article

      4 Things To Know About A Second Property

      Mar 4, 2022

      Mortgage applications for buy-to-let properties increased substantially last year. A second property can be a really good investment, but you need to understand the expenses and pitfalls before you sign on the dotted line. Here are some things to kee

      3 min read

    • Article

      Keeping the House Post-Divorce Has Gotten More Affordable

      Feb 12, 2020

      Typically, financial advisers have recommended against keeping the marital home. In the past, it became too big of a financial burden for one spouse to incur all the costs associated with keeping the house on only one household income. Couples in div

      4 min read

    • Article

      Clear The Deposit Hurdle

      Sep 6, 2023

      It can take the average first home buyer more than five years to save for a house deposit. That's five more years of paying rent, watching your dollars and hoping house prices don't shoot upwards again. But there are ways to get into the home ownersh

      4 min read

    • Article

      Equity Release Can Top Up Your Cash

      Nov 2, 2022

      Senior equity access schemes, also known as reverse mortgages, can solve a lot of problems for asset-rich, cash-poor retirees, says Ray Taylor, from Reverse Mortgage Finance Solutions (RMFS). Home equity release lets you access some of your equity wh

      1 min read

    • Article

      Looking to Buy a $1 Million Retirement Home, But Need a Short-Term Loan?

      Jun 28, 2021

      I recently worked with a couple who found their perfect retirement home. But they were remodeling the kitchen in their current house and it couldn’t sell it for a few more months, which would have given them the cash needed to buy the new home. Knowi

      4 min read

    • Article

      Self-build for beginners PART FOUR HOW TO FUND YOUR SELF-BUILD PROJECT

      Oct 5, 2023

      Building our own home is the ultimate dream for many of us, with one of the main benefits being that it allows us to design a unique property that will completely suit our lifestyle. But before we start planning the perfect property or digging the fo

      5 min read

    • Article

      The Purchase Money Loan

      Apr 13, 2021

      While researching options for financing your log or timber home, you’ll likely hear the phrase “purchase money loan” come up in conversation. At face value, the term is pretty self-explanatory; however, there are subtle nuances to purchase money loan

      2 min read

    • Article

      Cash Home Buyers: New Services Offer Help Making All-Cash Offer

      May 25, 2022

      If you’re buying a home in a competitive market—like this one—making a cash offer gives you a major advantage. Home buyers who made an all-cash offer in 2021 were four times more likely to win a bidding war, according to a recent report by Redfin, th

      5 min read

    • Article

      Tap Home Equity for Extra Income

      Mar 25, 2021

      Housing wealth, better known as home equity, increased to $7.8 trillion for homeowners 62 and older in the third quarter of 2020, according to a report from the National Reverse Mortgage Lenders Association. That’s good news for retirees who are conc

      6 min read

    • Article

      Choosing the Right Home Equity Loan

      Mar 2, 2021

      Home equity is a powerful tool, and, just like any other, it must be handled with care. As much opportunity as leveraging your home’s equity may present, remember that it requires thought, preparation and commitment. What is it? Home equity is the di

      2 min read

    Related categories

    Reviews for Complete Home Buyer's Guide For Canada

    0 ratings

    0 ratings0 reviews

    What did you think?

    Tap to rate

    Review must be at least 10 words

      Book preview

      Complete Home Buyer's Guide For Canada - Geraldine Santiago

      Foreword

      When I bought my first home, I was not a realtor. I found the entire buying process difficult because I didn’t know what questions to ask, where I should look, or what documents I had to review and sign. I felt intimidated and frustrated. I depended solely on my realtor to give me advice and show me the way, but I wished I knew a little more about the buying process to give me the confidence in my own choices and decisions.

      Buying a home is probably the largest investment you will ever make, financially and perhaps emotionally. Gaining knowledge about home buying is not only empowering, but it can also save you money. Visit real estate Web sites, read books about home buying, and attend seminars; get as much information as you can about the processes and costs of home buying before you get caught up in searching for a home. Becoming familiar with these procedures can make your home buying experience exciting and stress-free.

      This book is intended to help home buyers become familiar with the many processes involved in buying a home, including obtaining a mortgage, searching for a home, drawing up a contract, closing, and possession. I hope this book will give you confidence in your own choices and decisions and make your buying experience a pleasant one!

      What are Canadian home buyers paying for their homes?

      Housing prices vary widely across Canada and change over time. They may even have a wide range within a single community, so don’t assume that a particular community might be out of your range. The following examples will give you some idea of the range of prices available in some of the nation’s larger communities.

      In British Columbia, single-detached homes in a blue chip neighbourhood such as Vancouver’s West Side currently start at $400 000, while entry-level condominium units can be purchased for as little as $150 000 — although leaky condominium syndrome has put a damper on condominium sales along the British Columbia coast.

      In West Edmonton, townhomes in Callingwood start at $115 000. In Calgary’s Mount Royal and Elbow Park neighbourhoods, prices for a single-detached home start at $300 000, while condominiums in the Beltline area can be purchased for as little as $110 000. Single-detached homes in the Greystone and Dundonald areas of Saskatoon start at $115 000, although new condominium lofts in the downtown core sell for less.

      In Toronto’s Kingsway and Lawrence Park areas, prices start at $350 000 for a single-detached home; condominium apartments in the downtown core start at $100 000.

      In Atlantic Canada, semi-detached homes in Moncton’s North End are available for $95 000, and single-detached homes in the same area start at $120 000. Single-detached homes in Halifax’s Hammonds Plains start at $140 000, and condominiums in the centre of the city can be purchased for $95 000.

      1

      Getting Financing

      Getting financing to pay for the purchase of a new home is on the mind of every home buyer. Before searching for properties, you should see how much you can afford to spend. Going through a financial institution’s pre-approval process is a good way to determine your buying power. You will need to gather financial information about yourself, which will be detailed in an application. The financial institution will assess your income (employment income and earnings from assets, stocks, bonds, and so on) and assess your debts and expenses (car loans, credit card loans, student loans, rent, living expenses for yourself and your family). It will also assess your credit history and verify the amount of the down payment you can make. After making all these assessments, it will determine the amount of the loan for which you qualify.

      What Is a Mortgage?

      Obtaining a loan to finance the purchase of your new home will probably mean that you must fill out a document called a mortgage application. Your mortgage will set out the terms and conditions for the loan and its repayment. Mortgage payments consist of a principal sum (the amount borrowed) and interest (the cost to you of borrowing money). The best plan for any type of mortgage is to minimize the amount of interest you pay, and lenders offer several ways to help you do this. A larger down payment means that your home ultimately costs less because a smaller mortgage means less interest paid in the long term. Also, a mortgage with a shorter term means that although there are higher monthly payments, less interest will be paid.

      What are the types of mortgage loans?

      Conventional mortgage loan

      A conventional mortgage loan allows you to borrow up to 75 percent of the purchase price or the appraised value of the property, whichever is less.

      High-ratio mortgage loan

      A high-ratio mortgage loan allows you to borrow more than 75 percent of the purchase price or the appraised value of the property, whichever is less. But you must pay a mortgage default insurance premium to protect the lender if payments are not made. This premium can be as much as 3.75 percent of the loan amount.

      Insured mortgage

      An insured mortgage allows you to put down as little as 5 percent of the property’s value and obtain a high-ratio mortgage equivalent to the remaining 95 percent. You must meet certain qualifications regarding your income and monthly debts.

      Vendor take-back (VTB) mortgage

      A vendor take-back (VTB) mortgage allows you a chance to purchase a property with the help of vendors who lend you a portion of the purchase price. Such a loan often comes with favourable or flexible terms, depending on the inclinations of the individual vendor. The loan may be open, which means that you can repay it any time without penalty. The vendor may charge an interest rate lower than the prevailing market rate, or the vendor may negotiate the term of the loan with you.

      You can avoid a lot of red tape and administrative charges by obtaining a VTB mortgage. In a slow market, a VTB mortgage attracts potential buyers. On the other hand, if the market is hot, you won’t find many vendors who’ll offer to lend you money at favourable rates, unless their property is poorly located, in bad condition, or otherwise hard to sell. In general, vendors sometimes prefer the steady and consistent return of a mortgage secured by a familiar property to a riskier investment. They also prefer borrowers such as you, whom they know and trust, to faceless and nameless managers who manage many other types of investments.

      Assumable mortgage

      An assumable mortgage can benefit both the buyer and the seller.

      An assumable mortgage allows buyers to assume the mortgage on the property they would like to purchase. Typically, a vendor will already have a mortgage on the home that you want to buy. Instead of going through the process of obtaining another mortgage, you can sometimes assume the existing mortgage from the vendor.

      When you assume the vendor’s mortgage, you continue making the monthly payments at the same interest rate as the vendor has, for the remaining term of the mortgage. You will still need the lender’s approval, and you will have to pass a credit check, just as you would if you applied for a new mortgage.

      When interest rates are high, you may assume a mortgage that the vendor had obtained several years earlier, when interest rates were lower. By assuming the mortgage, you may also be helping the vendor, because he or she can pass the mortgage along to you instead of repaying the lender. Most lenders charge a penalty if a borrower repays a mortgage before its term expires. Some of the money that the vendor saves by avoiding this penalty can be deducted from the price of the home.

      Condominium mortgage

      In a condominium mortgage, the buyer of a condominium unit receives legal title to the unit he or she is purchasing as well as an undivided interest in the common area. This means that you can sell your unit and your share of the common area without having to ask permission from everyone else who owns a unit in the building.

      Blanket mortgage

      The first mortgage registered against the entire condominium project is a blanket mortgage. That means that the mortgage is registered over the entire property. The blanket mortgage is placed on the project by the developer, who uses the funds from the mortgage to build it. As the developer sells individual units, the lender removes the mortgage from each individual unit. Meanwhile, the buyer can obtain a condominium mortgage to pay for the individual unit, if necessary.

      Open mortgage

      An open mortgage means that you can repay the loan, in part or in full, at any time without penalty. Interest rates are usually higher on this type of loan. An open mortgage can be a good choice if you plan to sell your home in the near future. Most lenders will allow you to convert to a closed mortgage at any time. Many experts suggest taking an open mortgage for a short term in times of high rates and converting to a closed mortgage when rates fall.

      Closed mortgage

      A closed mortgage usually offers the lowest interest rate available at any given time. It’s a good choice if you’d like to have a fixed rate to work your budget around for a few years. However, closed mortgages are not flexible, and there are often penalties or restrictive conditions attached to prepayments or additional lump sum payments. It may not be the best choice if you might move before the end of the term.

      Portable mortgage

      A portable mortgage means that the lender will arrange a mortgage loan that can be transferred to another property if you decide to move. Note that not all lenders offer portable mortgages.

      Amortization Period

      Typically, the size of a mortgage loan payment is calculated as if the loan payments were going to be paid over a period of 20 to 25 years. This is called the amortization period. Each payment will repay the interest due up to the payment date along with some of the principal owed. The longer the amortization period you choose, the lower the regular payment will be. Remember, however, that the faster you repay any money borrowed by choosing a shorter amortization period, the more

      Enjoying the preview?
      Page 1 of 1