- Do Your Research: Create your Budget and don't over leverage yourself. We suggest practicing True Qualification when purchasing real estate.
- Interview Brokers: Not every broker is a good fit for you. Do your research and try to find someone that you will be comfortable working with for many years to come. Getting a great rate is easy, it's the additional advice, strategies, and mortgage management that truly differentiates a quality broker.
- Get Pre-Approved: Banks generally have a soft process when it comes to pre-approvals. Brokers generally go much deeper with this process. Being pre-approved means your broker has checked your credit and offered suggestions to improve your score and has requested, reviewed, and verified the quality of your documents. Essentially, you have been provided with a maximum and True Qualification.
- Obtain Rate Hold: This is a very important step that many people don't bother to complete. Rate holds are free and protect you against rising interest rates for up to 120 days. Plus, if rates drop lower than your rate hold, you will be able to access the lower rate (majority of the time).
- Interview realtors: Your broker can likely suggest someone they trust who they have done business with in the past. Brokers generally do far more transactions than realtors per year so they have a very good idea whom to recommend. Ensure you “interview” more than one unless you are blown away with greatness on the first shot!
- Property Shopping: This is generally the most entertaining part of the process. Bring a camera and take lots of notes. When buying a stratified property, ensure there is a detailed review of the strata docs. Your realtor should do this for you, so trust is key.
Writing your offer: Protect yourself with terms & conditions. Do not go subject free unless you are certain you will have no issues completing the purchase. Getting your offer accepted is one thing, removing your subjects is another. This is the most important stage in the entire process and you must ensure that you are properly prepared for this process. Being properly qualified is essential during this time. Make sure to give your broker 5 full business days to get your mortgage approved. Issues can arise that your broker will need time to handle prior to removing your subjects. During subject appraisal the following will happen:
- Your broker will submit your file to the selected lender with all supporting documents.
- You will complete your inspection of the property. Do not skip the inspection process. Hire a professional recommended by your realtor or mortgage broker - even with new construction!
- The lender will request an appraisal to assess the value of the property.
- Once approved, the lender will forward the mortgage commitment and your broker should highlight the key points / review this with you.
- Many lenders these days will not review your documents (conditions) if you do not sign the commitment so it is recommended to complete that step ASAP (providing you are happy with the conditions).
At the time of subject removal, you are required to pay a deposit which is typically 5% of the purchase price. This is held in trust with the real estate firm and will form the down payment.
Our clients enjoy an average cash back on real estate transactions of $2,000-$7,000 (depending on the circumstances) while still enjoying Canada’s best mortgage rates. Please call our office for more details. Side note: Realtors come at no cost to you when buying, so you should use one!
- Instruction Process: This is when you sign the final lender documents, bring a bank draft for the difference in required funds to complete (minus the deposit), obtain fire / property insurance and transfer the title.
- Moving in: We suggest starting this process sooner than later. Ensure you book off the elevator (if buying a property with strata) and be weary of movers on Craigslist. Remember to change the address on your bills and try to give yourself a few days to move instead of doing everything on one day.
- Welcome Home: Congrats, you are now are the proud owner of your own piece of Canadian real estate!