1.
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Be definitive about buying
(i.e. you have decided you are going to buy a home) |
| 2. |
Get qualified for a mortgage. It is extremely
vital that you know exactly what you can qualify to buy and
what you’re comfortable borrowing (see our automated
mortgage qualification option below. |
| 3. |
Get educated. This is difficult and time consuming.
Either spend the time it takes to be an expert or hire one.
Real Estate agents can offer you a certain crash course in
your preferred real estate in a few hours. The best part
is that it is free. Buyers don’t have to pay an agent
a fee, the seller does. |
| 4. |
Hire a Real Estate agent who is an experienced,
qualified, educated sales expert. Since you’re already
found our website you don’t need to look any further. |
| 5. |
Know all the hidden and exposed extra costs.
When buying a resale or existing condo, you need to be aware
of certain closing costs. |
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Below is a list of all the possible costs: |
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1. land transfer tax
2. bank appraisal fee
3. mortgage broker or application fee
4. legal fees
5. high ratio mortgage insurance fee
6. prepaid tax reimbursement
7. prepaid condo fee reimbursement |
| |
Remember your first mortgage payment is due one month after
your transaction closes. |
| |
Condo fees are always due on the first of every month. |
| |
Property taxes are due in installments (usually 4 per year)
or can be paid for you by your bank on a monthly basis. |
| |
It is quite possible that you will purchase a new condo
from floorplans.
You will have all the closing costs above except for #7 |
| |
Below is a list of the other expenses you should expect
when purchasing a new condominium |
| |
1. educational levy
2. development charges
3. law society of Ontario fee
4. 2 months of condo fees
5. parks levy
6. discharge of developer’s mortgage fee
7. heat pump fee
8. prepaid occupancy fee payment |
| |
Remember that when you buy a new condo from floorplans,
your first closing is when you occupy the suite. At this
point you do not yet own the unit, you are known as an occupant.
You pay the Developer an occupancy fee until the building
registers with the City of Toronto. Currently 6 months is
a typical occupancy period. A sample occupancy fee is calculated
below:
Simple interest on the unpaid balance of your
purchase price (calculated at a legislated
rate) + Your estimated monthly taxes + The
monthly condo fees
= Occupancy Fees |
| 6. |
Do not rush into anything but do not drag your
feet either. Currently, and for the past eight years the
real estate market in Ontario and rest of Canada has been
very strong.
Rushing into buying before you have seen four to eight properties
or have been very well schooled by a knowledgeable and honest
real estate agent is foolhardy.
Equally foolhardy is wasting everyone’s time by dilly
dallying when the right property comes your way. Be decisive
and make your move. My observations have shown that indecision
usually costs a buyer more than making an educated decision. |
| 7. |
What to offer? I’m sorry that
there is no rule book on what to offer.
Do not listen to any advice that tells you that there is
a standard discount from an asking price. I have seen 25%
discounts and 25% premiums. Too many factors are at play
to offer you a rule. My best advice is for you to look at
past sale comparables before making an offer and listen to
your Real Estate agent’s advice. This advice is the
most important input you will ever get. If you have selected
your agent wisely they will know exactly what to do
|
| 8. |
Make an offer – just do it! |
| 9. |
Cold feet. Every one except for sociopaths
gets cold feet. It’s expected and it’s ok. If
you’ve followed steps 1-7 you’ll be ok. Proceed
with confidence. |
| 10. |
Do not chicken out! I could tell you of hundreds
of stories of first time buyers that lost their nerve. Every
single one of them was worse off for it, and most of them
ended up realizing this fast and deeply regretted their decision
to bail. |
