Buying A House Article Outline
- Your down payment and other expenses
- Preparing your finances for a home purchase
- Getting mortgage pre-approval
- First-time home buyer incentives
- The Process Of Buying a home
- Negotiations For The Agreement Of Purchase
- Retainer Letter
- Update New Address
- Title Search
- Sign Paperwork
- We Do The Work For You
- Purchase Transaction Completed
- RRSP Home Buyer’s Plan
- First-Time Home Buyers’ Tax Credit
- GST/HST New Housing Rebate
- CMHC mortgage default insurance
- Land transfer tax rebate
Our real estate lawyers understand the ins and outs of buying a home in Toronto. From drafting an agreement of purchase and sale to completing due diligence and closing the sale, a Hummingbird lawyer will assist you in acquiring residential real estate in a fair and efficient manner.
In our nearly two decades of assisting Toronto homeowners, we’ve built strong relationships with lending institutions, real-estate agents, brokers, and municipal representatives. When you’re putting in a purchase offer, we know you want things to go smoothly. Especially if you’re a first-time homebuyer, a real estate lawyer can help answer questions thoroughly and responsibly. Having participated in thousands of residential real estate transactions, there’s a lot of support we can provide.
Your down payment and other expenses
The ‘down payment’ is the amount of money you’re putting towards the purchase of a home. The larger your down payment, the more favorable your mortgage terms will likely be. In Ontario, the average person will spend between 5 to 20 percent of the purchase price on a down payment. Exceeding a down payment of 20 percent or more, you avoid paying the Canada Mortgage and Housing Corporation mortgage default insurance. Subsequently, other expenses in closing a real estate transaction can include as much as 4 percent of a home’s purchase price.
Preparing your finances for a home purchase
There’s a lot more which goes into deciding what kind of mortgage you qualify for and what you’re able to afford long-term. Your credit score is something which you should monitor as you’re saving for a down payment. Borrowell is a Canadian company which allows you to monitor your credit rating month-to-month and comes highly recommended. You will also need additional documentation in qualifying for a mortgage, such as government-issued photo identification, proof of employment and income, proof of down payment, and information about assets and debts.
Getting mortgage pre-approval
Using a mortgage calculator is a smart place to start in seeing how much you can afford for a home purchase. Note a pre-approved mortgage is not a necessity however it’s highly recommended as it provides you with a confirmed budget to work with. You may also want to shop for the best mortgage terms at different financial institutions. There are also different kinds of mortgages – open/closed, low ratio and high ratio, fixed rate or variable, and home equity lines of credit.
First-time home buyer incentives
There are many first-time home buyer incentives in Canada you can take advantage of. These include:
The Process Of Buying a home
Before you’ve even made an offer, there’s a lot of moving pieces. Add to that starting a transaction and there are many caveats in residential real estate. A lawyer can help ensure property taxes are up to date, the title is valid, calculate the land transfer tax due on closing, and ensure that there aren’t any claims against the property. A residential real estate lawyer can also help someone buying a home in reviewing legal documents, like the Agreement of Purchase.
Congratulations on buying your new home, and taking an important step in your life! At times, this milestone can be equally as overwhelming as it is exciting – especially with the negotiations and seemingly endless list of technical documents. Fortunately, Hummingbird Law can support you on your new journey! We have put together a step-by-step guide on how we can help you with purchasing your new home.
Negotiations For The Agreement Of PurchaseHummingbird Law can sit in, and participate in, the negotiations for the Agreement of Purchase with the seller, their agent or their lawyer. This helps reduce some of the hassles for you!
Retainer LetterAfter negotiations are made, or if the Agreement has already been negotiated, Hummingbird Lawyers will then send you a Retainer Letter to show you what we will be doing to help support you as your move forward with the purchase of your home.
Update New AddressAs things move forward, you’ll begin to see how many things will need to be changed when moving. This includes things like the closing and opening of utilities and updating driver’s license and health card information. One of our lawyers can help manage some of this stress by sharing with you a MoveSnap link. This is an online tool that can help make these changes in a few minutes.
Title SearchThe most important part of the transaction is the title search, without good title, you are not getting what you bargained for. Your lawyer will search the title of the property, and report whether there are any issues before you finalize. After that is done, Hummingbird Lawyers will also send out a Title Requisition Letter and further prepare all closing documents and send them to the seller’s lawyer.
Sign PaperworkWith the purchase of a home, there come many documents that need to be read and signed. Your lawyer will send you an email and arrange a meeting where you can come into the office and sit down to go over the details of the transaction – the title search, the closing documents, the financing documents and then sign all of the necessary paperwork. In our email, we will also include all the information that will be needed by you, and what you may have to bring in; this way there are no hidden surprises!
We Do The Work For YouNow, you have the chance to just sit back and relax while Hummingbird Lawyers handles things from here on in. We will assemble all of the closing documents, attend to arrangements for delivery of all closing funds, registration of the deed and mortgage, obtain the keys and call you when we close!
Purchase Transaction CompletedCongratulations! You have successfully become the proud owner of your new home! Here at Hummingbird Lawyers, we pride ourselves in delivering exceptional services. We will deliver you a copy of the Registered Deed – its proof of ownership and then send you a post-closing report, along with copies of all of the documents you signed and we will also report to your lender, if applicable.
At any point in this process, if you have any questions or need assistance with municipal services, financial institutions, or other stakeholders related to the property you hope to buy, we may be able to help. A residential real estate transaction may be the largest purchase you make. A Hummingbird Lawyers appreciates what’s on the line and will work hard to ensure you receive fair purchasing terms. Protect yourself from common real estate purchasing mistakes and hire a lawyer.
Buying a home in Toronto? Speak with a representative at Hummingbird Lawyers today to have your documentation and paperwork reviewed, and to receive what could be crucial guidance as you navigate the purchasing process for your real estate transaction.