Home Buyer’s Guide

HELLO & WELCOME

Dear Homeowner,

Congratulations on making the decision to buy a new home! The process is an exciting, but complex one. Don’t worry – our team is committed to providing you with expert guidance along the way. Let’s get started.

My job as your real estate agent is to help you narrow your search criteria and show you potential properties that meet your requirements. I write the offer and negotiate on your behalf. My service follows through to your possession of the property, and I can recommend service providers to assist you along the way.

This Home Buyer’s Guide will give you an overview of what to expect over the next several weeks. It cannot cover every question that may come up, so please don’t hesitate to ask any questions you might have.

I look forward to working with you.

MORTGAGE PRE-APPROVAL

Determine exactly how much you can afford before we start looking. Your dream home could arrive on day one of your search. Let’s get prepared.

ADVANTAGES OF MORTGAGE PRE-APPROVAL

  • Narrow your search and save time seeing only homes you can afford.
  • Lock in a mortgage rate for up to 120 days with your pre-approval to protect against potential mortgage rate increases.
  • Your pre-approved status may be a valuable asset when making an offer to purchase or negotiating with a seller. It shows you are serious and have your finances in place.
  • Knowing your down payment and monthly payment amounts can help you manage cash flow and expenses leading up to your move. Pre-approval comes at no cost to you and you’re not obligated to accept the mortgage.
  • Sit down with a mortgage specialist to discuss your financial strategy and needs including; mortgage amount, down payment, and purchase price. They’ll explain your mortgage options (fixed vs. variable rate, interest terms, payment options, and amortization) and discuss which best suits your needs. At that point, you would proceed with the pre-approval paperwork.

RECOMMENDED MORTGAGE PRE-APPROVAL

Meghan Dodds
(778) 891-5607 | Meghan.Dodds@mortgagegroup.com | www.meghandodds.com

Shaun Zipursky
(604) 862-6360 | shaun@citywidemortgage.ca

RBC – Johanna Williams
(778) 999-6133

SHOULD YOU BUY OR SELL FIRST?

This is the most asked question by nearly every homeseller. The answer depends on your risk tolerance level and personal circumstances. A buyer needs to carefully review the following scenarios to decide what might be right for you.

THE BUYING PROCESS STEP

The buying process can be a bumpy road to travel. Taylor Brown will be a dependant source of knowledge, contacts, and advice. She will be helping you turn the process of buying a piece of property into a successful search for a home that’s right for you.

Phase 1

Phase 2

TRADITIONAL TRANSACTION COSTS

This is by no means an exhaustive list, but it will give you an idea of some of the costs associated with a real estate transaction.

Seller’s Costs

  1. Lawyer’s Fees: Attending to Execution of Documents
  2. Costs of Clearing Title including:
    • Discharge Fees charged by Encumbrance Holders
    • GST on Real Estate Commission (5%)
  3. Mortgage Prepayment Penalties
  4. Real Estate Commission

Buyer’s Costs

  1. Home Inspection
  2. Appraisal (if required for Financing)
  3. Lawyer or Notary fees and expenses:
    • Searching Title
    • Investigating Title
    • Survey Certificate (if required)
    • Drafting Documents
    • Land Title Registration Fees
    • GST on legal fees (5%)
  4. Insurance
  5. Property Transfer Tax:
    • 1% on the first $200,000,
    • 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000, and
    • 3% on the portion of the fair market value greater than $2,000,000, and if the property is residential, a further 2% on the portion of the fair market value greater than $3,000,000
  6. GST on new construction


Under the First Time Home Buyers Program you will be EXEMPT from paying transfer tax if

  • You’re a Canadian Citizen or Permanent Resident
  • You have never owned an interest in a principal residence anywhere in the world
  • The property will be your principal residence
  • The property is located in BC
  • Purchased for less than $525,000 (non-new properties)
  • Purchased for less than $750,000 (new properties)

Down Payment

Depending on the lender and the property type, down payments can vary. A general rule of thumb is that for a condo/townhouse or detached house, a minimum down payment of 5% is required, whereas bare land typically requires a down-payment of at least 50%.

The Canadian Mortgage and Housing Corporation (CMHC) requires any buyer to purchase mortgage insurance when the down-payment is less than 20%. Insurance rates can vary from $3.60% – 1.80% depending on your own down-payment amount. Full insurance costs can be found at: www.ratehub.ca/cmhc-mortgage-insurance

Sample Mortgage Calculation

Based on 2.0% Mortgage interest, 25 year amortization, and no transfer tax exemption