THE ONLY GUIDE YOU’LL EVER NEED TO BUY REAL ESTATEcrm.agentlocator.ca/UserFiles/4848/files/Buyers...

THE ONLY GUIDE YOU’LL EVER NEED TO BUY REAL ESTATE

capitalforever.com

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CAPITAL FOREVERREAL ESTATE INC. BROKERAGE

Congratulations on taking the first step to buying your dream home!

As you can imagine, whether this is your first purchase or your a seasoned vet, theres tremendous amount of information readily accessible to you that can become overwhelming. Just take a moment and do a quick search on Google "buying real estate" and see what comes up.

Many will tell you this is the best time to buy while others will tell you to hold off. Our answer to this question is simple “the best time to buy YOUR next home all depends on YOU.”

Market analysts, real estate agents will all tell you the best time to buy real estate is yesterday. Though this may be right to a certain degree, everyone has their own set of unique circumstances.

It's obvious, no place is there basic, simple to process, helpful data on what necessities you need when buying your next home. Studies demonstrate that the normal Canadian purchases their first home at 29 years old so if this is your first home purchase it is especially important that you use this resource to the best of your abilitiy. If this is not your first rodeo a little refresher wouldn’t hurt.

Some important questions to ask.

• Do I have to get prequalified? • Do I know my options for mortgage products? • Am I financially ready to buy? • Are the guts of the home good? • Do I have the resources to bring the house to my satisfaction? • Am I making a decision based on emotions? • Does the home and location offer long term resale? • Will I be able to sell this home at all? • Do I trust the people I am working with? • Do I have a clearly defined end goal with my purchase?

You get what we mean. Your rundown of inquiries can frequently surpass your accessible answers and you have no reason to be spending the following hour and a half online stressing looking for answers.

All things considered, you require ZERO stress since this trustworthy guide will spare you time, energy AND cold hard cash. This property can quite arguably be your most important and largest purchase, and it ought to be treated as such. With the enormous amount of data accessible (some extraordinary, some total trash) you have the right to have a tool you can refer to quickly should you have to purchase your home today or a half year from now.

capitalforever.com | Table of Contents

TABLE OF CONTENTS

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1. Buying options

2. What makes a superior broker?

3. What to ask when interviewing brokers?

4. Analyzing the state of the current market

5-6. Buyer’s vs. Seller’s Market

7. What to look out for when buying a home?

8. Mortgages

9. Five reasons to be pre qualified when buying a home

10-12. Closing costs

13. Standard Forms

14. Buying timeline

15. Common mistakes to avoid when buying a home 16. Success stories

17-18. Frequently asked questions

19. Why we created this in depth guide?

capitalforever.com | 1

BUYING OPTIONS


“It’s always better to be prepared for an opportunity and not have one than have an opportunity and not be prepared”. - Les Brown

#1 Decide that you can’t or won’t buy in today’s market.

#2 Decide to buy by yourself

#3 Hire a conventional real estate salesperson.

#4 Hire a real estate consultant who takes a collaborative approach to make sure YOU get exactly what YOU want. Not by “saying” all the right things, but by DOING all the right things.

So how would you find and decide if you're working with a conventional real estate salesperson, or a real estate consultant?

Well here are a couple of things to search for and things to ask. On the off chance that you're pondering, except if you choose to buy your property yourself, you have to interview a couple of agents before entrusting them with the purchase of a home.


WHAT MAKES A SUPERIOR BROKER?


While picking your representative, expect nothing short of perfection! Yes we said.. perfection! A real estate broker will show you their characteristics and all the reasons why you should and would work with them.

WHAT ARE THOSE TRAITS?

Dedication, superior knowledge, empathy, enthusiasm, consistency and determination are but a few.

Why they are so important?

1. DEDICATION

Dedication is proof of the want to achieve an objective. When you want to buy a home home, the objective is a sale that satisfies you in all areas. Would you expect anything other than the total dedication from your agent towards your objective?

2. SUPERIOR KNOWLEDGE

This is a result of two things: (1) Formal Education and (2) Daily contact with buyers, sellers, attorneys, lenders, fellow agents and others directly involved in real estate in the area you are interested in. Always make sure to look for an agent who is educating themselves and seeking further training as well as who is active in the local real estate market.

3. EMPATHY AND ENTHUSIASM

You the client is all the matters, so look for a broker that listens very carefully to what your needs are, responds with excitement to deliver along with great energy, a good attitude and don’t forget a big smile. This broker will attract way more buyers and sellers.

4. CONSISTENCY AND PROFESSIONALISM

Consistency and professionalism can usually be found together. Look for a broker willing to repeat the same tasks over and over without quitting. Finding the right home is not a simple task, but having a trustworthy broker certainly helps.

When choosing a broker, ask questions - lot’s of them! Look for the traits mentioned above to ensure a good home buying experience. Now that you’ve thoroughly know the right broker for you, what arethe right questions to ask?


WHAT TO ASK WHENINTERVIEWINGBROKERS?

Buying a home home could be yourbiggest purchase ever! Picking the right person is the difference between a good experience.


WHAT DO YOU NEED TO ASK?

There is an approach to figure out who is well on the way to prevail with regards to buying a home. The key is knowing the correct things to ask.

Select a team dependent on criteria particular to the organization, the ability of the team, and off course the service.

The below rundown gives you things to ask your future real estate broker. This rundown won't just enable you to pick the correct profes-sional, however will likewise guarantee that the one you select will be the best real estate broker to help you find your home.

1. How long have you been in the business full-time? 2. How many people do you help find a home on a monthly basis? 3. How long have you been working in this area? 4. Do you have a strategy to help me find the home I am looking for? 5. What resources would you use to help me find a home? 6. When are you available to show me homes? 7. Do you have references I can call to ask about how the experience is working with your team? 8. After I view a home and am interested in putting in an offer, how soon will you be able to draft the paperwork? Immedi ately or the following day? 9. Do you require a preapproval before looking at homes? 10. Do you have other trustworthy professionals you can recommend to me? 11. Do you require buyers to sign a contract? 12. How do you determine which homes match my wants and needs? 13. How do you provide information about these possible homes? 14. Are you able to provide me history and comparisions about homes I may be interested in? If so, when will I get this data? 15. What level of negotiation skills do you have?

Can you see how valuable a questionnaire like this could be? You can actually just ask them over the phone to save yourself and the broker time from coming to a meeting if you do not like their answers.


ANALYZING THE STATE OF THECURRENT MARKET


Best Month to Buy a Home: January

The start of the year not only comes with fresh resolutions, but it also brings great deals for home buyers. January is the best month to buy a home for price-sensitive shoppers.

In January, the median sales price of homes is at the lowest point. In addition, houses that close during the first month of the year have been on the market for over three months on average. In general, the longer a home stays on the market, the lower the price is at closing. Buyers have more room to negotiate price when a home has been on the market for a long time and tend to get better deals.

Although the percentage of homes selling above listing price is not the lowest in January, it is not the highest either. Since you have median sales price and days on market working in your favor, January is overall the best month to buy a home.

Worst Month to Buy a Home: June

The transition between spring and summer is the worst time to buy a home. Houses closing in June sell the fastest compared to other months, so buyers don’t have a lot of room to negotiate price. This might explain why median sales price peaks in June, and the proba-bility of houses selling above listing price is second only to March, April, and May.

The short time on market, high median sales price, and higher percentage of homes selling above list price make June the worst time to buy a home. Overall, price-sensitive shoppers should sit this month out.


BUYERS VSSELLERS MARKET


You and your broker shouldanalyze the current state of the market in regards to a buyersor sellers market. This can be very important when it comes to negotiations and getting the bestvalue for your home.


BUYERS VSSELLERS MARKET


Is the price right?



WHAT TO LOOK OUT FOR?

LOCATION, LOCATION, LOCATION

"The old adage 'location, location, location' is as true today as it ever was. Buyers should consider the quality of the schools, their commute to work, the neighbors, and any noise when thinking about purchasing a house. I always stress to my clients: Pay attention to the things that you can’t change about a house and to make sure you can live with those items. Kitchen and bathrooms can be remodeled, but you can't make the noise from a busy freeway go away."

AGE & LOCATION

"Look at the age and condition of the home, especially for those big-ticket items. How does the roof look? What about the HVAC? Are there signs of water or structural damage? No matter if you want a turn-key home or a fixer-upper, these are things that should be in good condition before you buy. If not, you could end up spending much more than you intend on fixes and replacements."

CURRENT AND FUTURE NEEDS:

"Buyers should always make sure a home meets both their current and future needs. Shop for homes based on a list of must-haves that suit your current lifestyle, plus any changes that may occur down the road. For instance, are you planning on starting a family (or growing your current one)? If so, be sure the homes you are looking at have room for growth. However, no matter what's on your list of must-have's, don't settle for a home unless you're sure it will meet your needs."

BUDGET:

"Don’t overbuy for your budget. Make sure you know how much you're comfortable paying in a mortgage amount and stick to that limit, even if you've been approved for more. You don't want to be in a position where you feel 'house poor', or worse, are unable to make your payments."

RESALE VALUE:

"Though it may be a not-so-sexy feature of your home, resale value one of the most important. It can be a huge determining factor the quality of your investment and how long it will take you to sell once you decide to move. Look for features in your home that most buyers would consider desirable like bedroom size, kitchen size, outdoor space, or parking."

KEEP AN EYE OUT FOR:

• Windows • Roof • Plumbing • HVAC • Electrical

These things can get costly so do your self a favor and check them outbefore placing an offer.

Here are all the things you wantto look out for when buying a home.



MORTGAGES Applying for a mortgage is vital for first time home buyers. This can seem intimidating at first, but with the immense knowledge of a team of realtors and mortgage agents, this can be made into an easy and exciting step into acquiring your dream home. Follow these few basic tips and you will be well-equipped to glide through the loan application process.

1. KNOW THE DIFFERENT MORTGAGE PRODUCTS AVAILABLE

It is important to understand the subtleties of the various mortgage programs available. Also, it is valuable to know the pros and cons of fixed mortgage rates and variable mortgage rates.

2. FIXED INTEREST RATE VS. VARIABLE

If you decide to lock in your interest rate, you are committing to a set interest rate throughout the term of the loan. If you decide to let your interest float, the interest rate you pay will fluctuate up or down depending on current market conditions.

3. USING A PROFESSIONAL TO SAVE

Take your time to assess your options and decide which plan suits you best. You don’t want to discover that you could have taken a loan from another lender at a lower interest rate. A mortgage agent will present you with many options and advise you as to the best decision. A realtor with experience in mortgages can help by recommending a mortgage agent to you.

4. HOW MUCH WILL MY MORTGAGE PAYMENT BE?

Below is illustration of a mortgage calculation payment. For your desiredhome purchase go to CapitalForever.com to get an exact amount.

Applying for a mortgage

$1,000,000.00 M O R T G A G E

D O W N P A Y M E N T

T O T A L M O R T G A G E R E Q U I R E D

T O T A L M O R T G A G E P AY M E N T

L A N D T R A N S F E R T A X

M O R T G A G E T E R M

20%

$200,000

$800,000

$3,889

$32,950

3.25% O V E R 5 Y E A R S W I T H A 2 5 Y E A R A M O R I T I Z A T I O N

25%

$250,000

$750,000

$3,646

$32,950

30%

$300,000

$700,000

$3,403

$32,950

35%

$350,000

$650,000

$3,160

$32,950



FIVE REASONSTO BE PREQUALIFIEDWHEN BUYING AHOME Here are all the reasonswhy getting prequalifeidbenefits you.

KNOW WHAT YOU’RE GETTING INTO

1. You need the knowledge of monthly payments before you shop. Finding the perfect home and then finding out the payments are much higher than you can comfortably afford or qualify for isn’t a pleasant way to go through this process. You’re not going to want to be house poor, so confirm the range you can shop in before you tease yourself with properties that have payments beyond your comfort.

GIVING YOURSELF A CHANCE TO WIN

2. Getting prequalified improves your position as a buyer in the marketplace. Sometimes homes are in high demand with multiple offers – buyers with their prequalification letter from a trusted local lender in hand have a leg up on buyers who do not. Many sellers also do not want to show their homes to buyers who are not prequalified – be the person who is ready to go and improve your power in the market.

GIVING YOURSELF TIME

3. Sometimes issues arise on a credit report that need fixing before the best loan terms can be achieved. With enough lead time, credit repair services can be used when needed, or paying down debts can improve credit scores and loan terms. These issues that can make or break your ability to purchase or get you a better interest rate, and it’s much nicer to have time to pave the way to home ownership in the best way possible instead of under duress when you’ve already found your dream home.

BETTER TO BE PREPARED

4. Down payment requirements are important to know up front. You’re going to want to have enough to close on the house and maintain a buffer for repairs or emergencies. Knowing what you need ahead of time gives you time to plan and prepare to buy when you are actually ready financially. The source of funds can also require some planning ahead to avoid delays in closing a home – it’s good to know these things up front.

KNOWING YOUR OUTCOME

5. The most important reason to get prequalified? Knowing that your financ-es are in shape when you are out shopping in the marketplace. Shopping for a home with the confidence that you can afford what you’re doing is such a better way to go through this experience, so why would you want to do it any other way?

The cost of buying a home is always more than the purchase price and a moving truck rental. First-time home buyers are often shocked when they see the total amount they need to pay on closing day. Knowing what to expect ahead of time can help you financially prepare. By familiarizing yourself with more than just your down payment and regular mortgage payments, nothing will come as a surprise on closing day.

Home Inspection Fee: $350 to $600Some buyers may think they can cut costs by skipping the home inspection, but the fee is minimal in comparison to what you may have to pay later without one. The cost of a home inspection usually ranges depending on the size of the home.

If you’re in the process of closing the deal on a home, a home inspection should be done promptly so you have the opportunity to uncover potential major issues with the property sooner rather than later.

DepositWhen you put in an offer to purchase a home, you are also expect-ed to provide a deposit. This assures the seller that you will indeed go through with the sale when closing day arrives – and if you don’t, the seller keeps the deposit. If you do go through with the sale, the deposit will be credited in full and put towards the purchase of the house. There is no set amount that you need to provide, but generally speaking, a higher deposit says you’re a serious buyer and can ultimately save you money on interest.

Appraisal Fee: $300 to $500Your lender will only lend you so much when it comes to your mortgage. The amount they lend you will either be a percentage of the appraised market value of your home, or a percentage of the home’s purchase price – often, the lesser of the two.

Land Survey: $1,000 to $2,000Most lenders require a survey of the property that outlines its boundaries so there is no confusion between neighboring proper-ties later on. Although they may accept the last survey that was done on the property, depending on when it was last conducted, it may need to be done again.

Legal Fees: $850 to $1,400Real estate lawyers manage all of the legal paperwork involved when acquiring a mortgage. After your purchase, they draft your mortgage contracts and assess the property to ensure there are no old mortgages or liens on the property.


CLOSING COSTS


Here are some of the costs youcan expect when closing on yourhome.


CONTINUED


Land Transfer Tax: 0.5 to 2% of Property Value

A marginal tax you must pay to the province when “buying land” or, simply put, just purchasing a house or condo. Certain municipalities, like Toronto, have an additional municipal land transfer tax. To get an exact amount for land transfer taxes visit CapitalForever.com and simply put the asking price of your next home.

Harmonized Sales Tax (HST)In Ontario, 13 per cent HST is applied to the purchase price of all new homes, but not to resale homes. It’s also applied to all services, including your lawyer fees, your real estate professional’s commis-sion, the home inspection, and your moving costs.

New Home WarrantiesIf your home is a new development (it’s not a resale home and you’re the first owner), warranties protect your investment. New home warranties are mandatory in Ontario, British Columbia and Quebec. It is a one-time fee of a few hundred dollars, depending on coverage and price of the house.

Mortgage Default Insurance: 1.75%-2.95% of the Mortgage ValueIf you are applying for a high-ratio mortgage (meaning you have less than a 20 per cent down payment), your lender will require you to purchase mortgage default insurance. This type of insurance protects the lender in case you no longer can make your mortgage payments.

Title Insurance – $300Though not required in all provinces, title insurance protects you from such things as title defects, errors or omissions. This includes errors in the public registry and existing surveys. Title insurance also protects you from undisclosed heirs who may try to claim your property and/or fraudulently discharged mortgages. Although it depends on the property type (resale, new, condo) and the purchase price, title insurance usually costs approximately $300. The cost is minimal and well worth the peace of mind. Ask your lawyer for more details.

CLOSING COSTS

IT’S OFFER TIME!You’ve listed your home for sale and

week! This can happen, even in slower markets. Your first thought is:“I’ve priced it too low. I should counter

price or add some ridiculous demands.”

Don’t fall into that mindset!



CLOSING COSTS

CONTINUED

Home Insurance

Home insurance covers any damage related to the home, inside and out. If you’re a first-time home buyer, you likely have never bought home insur-ance before. But if you do happen to have insurance on a current property and want to transition, you technically will have to cancel your old policy first. That being said, the cost may vary between policies since each property will likely have differing square footage, age, additional structures, and more. While you can stay with your current insurer, this is probably the best time to shop around for a new and better rate.

Utilities and Taxes: Only if ApplicableYou may have to reimburse the previous owner for utilities or taxes if they were paid beyond the closing date. Referred to as adjustments, they include hydro, water and property taxes.

Moving CostsMoving costs vary, depending on your personal preferences. Although it can be stressful, you can save a lot of money if you take the do-it-yourself route. But don’t forget to include the cost of a rental truck, if necessary. Alternatively, you could hire a moving company to do the work for you. Again, costs vary, depending on whether or not you want them to pack for you, or simply move your belongings.

How can I save if I’m a first-time home buyer?

For cash-strapped first-timers, there is a tax credit to help offset some of the costs for your new home.

Land Transfer Tax RebateThose purchasing property for the first time may qualify for a rebate on the provincial Land Transfer Tax, depending on the province. For example, in Ontario, first-time home buyers can receive a maximum rebate of $4,000 (or $2,000 for those who registered a land transfer at the rate prior to January 1, 2017). Municipalities with land transfer taxes may also offer rebates for first-time home buyers.


STANDARDFORMS


WORKING WITH A REALTOR

This explains agency relationships such as: Selling representation, Buyer representation, Multiple representation, Customer Service, Fiduciary Duties and more.

BUYERS REPRESENTATION AGREEMENT

A BRA outlines the property types and geographic areas for your potential new home, lists the services that will be provided by the brokerage, determines the commission that will be paid to the brokerage, and sets a time commitment.

Top Three Reasons to Sign a Buyer’s Representation Agreement

• It Outlines Your Agent’s Fiduciary Duties. These duties (for exam-ple, full disclosure of known property information, loyalty, confiden-tiality and obedience to name a few) are significant for establishing trust and comfort between the real estate representative and the buyer. The BRA outlines them in writing – providing valuable peace of mind for any buyer.

• It Helps with your Home Search. When you sign a BRA, your home criteria (or “must-haves,” in other words) are included in that docu-ment – and so is the specific area in which you would like to buy. This information is then listed on the Buyer’s Registry Service, so home sellers’ real estate agents will be able to connect with you easily. It provides contractual protection. Your BRA serves as a guarantee, in writing, that the brokerage representing you will make your needs as a home buyer their top priority throughout the course your home search. Having this important document gives you physical proof of that commitment.

• Generally, it’s best to sign a Buyer’s Representation Agreement as soon as possible when you have found a real estate agent who you want to work with. Inevitably, it’s something you will have to do anyway if you are serious about buying property – any home buyer seeking representation with an Ontario realtor must have an executed BRA prior to signing an Agreement of Purchase and Sale, otherwise the buyer will be deemed to be representing themselves.

INDIVIDUAL IDENTIFICATION INFORMATION RECORD (ALSO KNOWN AS A FINTRAC FORM)

This is a required form by the Proceeds of Crime (Money Launder-ing) and Terrorist Financing Act. It discloses that you are who you say you are, if you’re a present Canadian citizen & whether it’s a primary residential property or investment.

Here are all the forms you’ll needwhen buying a home.


BUYINGTIMELINE


Here is a summary of the entireprocess from start to finish.


COMMONMISTAKESWHEN BUYINGA HOME


MISTAKE #1: MAXING OUT YOUR BUDGET

Before house hunting, it’s a good idea to get pre-approved for a mortgage. When you’re pre-approved, you’ll know exactly how much you can afford to spend on a home. Take some time to crunch the numbers and see if you can afford the mortgage payments on a monthly basis. Don’t forget to take into account property taxes and maintenance fees (condo). You’ll want to leave yourself some financial breathing room in case mortgage rates go up or you run into a financial emergency.

MISTAKE #2: FORGETTING TO BUDGET FOR CLOSING COSTS

If you’ve never bought a home before, it’s easy to overlook closing costs. Closing costs can add up to four percent of your home’s purchase price.

MISTAKE #3: BUYING SOLELY BASED ON APPEARANCE

Have you ever stepped foot inside a house and it became love at first sight? You see everything you’re looking for in a home: granite countertops, stainless steel appliances and an open kitchen. You’re ready to make an offer right then and there. But before you do, take the time to look at the bones of the home. Look at the roof, windows, furnace and structure. Anyone can install a new back-splash in a kitchen or toss some fresh paint on the walls, but replacing something significant like the roof can cause a lot of heartache.

MISTAKE #4: SKIPPING THE HOME INSPECTION

A home could have flooding issues. But if you don’t know the signs to look for you’ll totally miss it. That’s an expensive mistake. A home inspection sounds like a lot, but once you get the report you’ll be happy you did it. This is especially important for older houses. The report will provide you with a handy checklist of all the things you should do to make sure your home is in great shape. Don’t cheap out on it.

MISTAKE #5: NOT SHOPPING AROUND FOR A MORTGAGE

There’s nothing wrong with your local bank branch being your first stop for a mortgage, but it shouldn’t be your only stop. By just taking the first offer, you’re likely leaving money on the table. Your local bank may have the best mortgage, but you won’t know for sure without shopping around. The best solution is to sit with an experienced mortgage broker.

D I F F E R E N T P E O P L E . S A M E R E S U L T .

They showed interest in teaching us the market and recommending what would best suit our needs. I would de�nite ly recommend them! Thank you for your help! ”

Orlando M Magna International

They did a fantast ic job with the sa le of my home. I inter v iewed a number of other brokerages but af ter we met I real ized they had the dr ive and determinat ion that others didn’t . They stayed in constant communicat ion with me and negotiated f rom a posit ion of st rength.”

Geeth M St ikeman El l iott LLP

They were a lways avai lable to answer quest ions, book v iewings and send o�ers. Having a team by our s ide led us to �nd and successful ly purchase our new home. We appreciate your hard work , thank you!

Natal ia J GoodLi fe Fi tness

“You were nothing shor t of ex tremely k nowledgeable, d i l igent & accommodating - a rare commodit y in a profess ional these days i t seems! Thank you again f rom the depths of my hear t . . . don' t ever change ; - ) ”

L isa Thompson M inistr y of the Attorney General

“ They were ver y progress ive and honest . What they sa id they would do they did. They ac tual ly made us move up a bit in l i fe. They were a lways there ever y day. They were a lways on t ime so I would de�nite ly recommend them.”

R afeek J Flexsonic Enter ta inment

“A pleasure to deal with and I would highly recommend. They take their t ime to understand c l ients and real ly look out for theirbest interests .

Joseph B AMP M otorspor ts




FREQUENTLY ASKED QUESTIONS

1. HOW DO I KNOW IF I’M READY TO BUY A HOME?

While there is no single sign that will confirm a person is ready for home ownership, there are a couple cues that will signal it could be your time. If you love the area that you’re living in and you’re planning to stay for a while, you may be ready to settle down and buy a home. If you’ve got a savings plan in order that is allowing you to pay down debt and save a little nest egg, you could be ready for the financial side of home owner-ship.

2. SHOULD I BUY OR RENT A HOME?

The real estate market is constantly changing, but often times, it is more cost-efficient to buy a home rather than rent one. Think about it. When you buy, you are investing in your own future. When you rent, you are helping your landlord to invest in his or her future! There also are financial perks like tax deductions and home equity that come along with owning a home.

3. HOW DO I KNOW HOW MUCH I CAN AFFORD?

So that you don’t enter the home-buying process blindly, it is a good idea to meet with a bank or mortgage broker, who can help you determine a range of home prices that you may be approved to buy in. Lenders will consider how much a buyer makes, how much debt they have, any assets they own and their credit history before issuing a preapproval letter, which details the amount they can purchase, providing their financial situation does not drastically change during the home-buying process.

4. HOW DO I FIND THE RIGHT MORTGAGE?

When it comes to financing a home, it is a good idea to shop around for the best mortgage terms. Many buyers often start with their own personal banking institutions. The government offers tax credits for first-time homebuyers as well. Buyers are able to seek out mortgage rates from several lenders before selecting the one that is best for them.

5. WHAT CREDIT DO I NEED TO BUY A HOME?

This question is one reason that it is always a good idea to shop around for a mortgage. In most cases, there are mortgage programs for nearly every homebuyer who is looking to get into the real estate market. A buyer’s credit score and down payment may impact the amount they’re approved to buy or their financing rate, but there are typically mortgage options to meet many financial situations.


FREQUENTLY ASKED QUESTIONS CONTINUED


6. HOW MUCH MONEY DO I NEED FOR A DOWN PAYMENT?

The amount of money you’ll need to put down on a new home depends on the price of the home you select, along with the mortgage terms that you’re approved for. Different lenders offer different mortgage options that may allow a buyer to put as little as 5% down. However, you may encoun-ter mortgage insurance during part of your mortgage, which will add on to your monthly mortgage payment until you pay it off.

7. WHO IS CMHC?

Canada Mortgage & Housing Corporation (CMHC) offers mortgage insur-ance that lenders use to protect themselves against a buyer who defaults on their mortgage. Mortgage insurance is money a buyer pays along with their principal and interest to reimburse a lender in case they default. This fee is lumped into a buyer’s monthly mortgage payment until about 80% of their home is paid off.

8. WHAT DOES A MONTHLY MORTGAGE PAYMENT COVER?

When a first-time homebuyer is looking to purchase a home, it is important to realize that a monthly mortgage payment does not cover all of the monthly expenses that go along with home ownership. Often times, a monthly mortgage payment covers the principal amount borrowed, homeowners insurance, property taxes, interest fees and mortgage insurance, if applicable. Monthly mortgage payments do not cover things like utilities, cable and internet service.

9. DO I NEED A REAL ESTATE BROKER?

Technically, it is possible to buy a home without a professional real estate broker. It’s just a whole lot harder to do on your own. Not only have professional real estate brokers received training to help buyers, but they’re also up-to-date on current market conditions, real estate proce-dures and the closing process. They’ve also got helpful industry contacts, like lenders, appraisers and other service professionals at their disposal that can make the buying-process go more smoothly. The best part is in almost all scenarios you can have access to all the services a real estate broker has to offer without paying a cent!

10. WHAT HAPPENS DURING THE CLOSING PROCESS?

After buyers and sellers agree on a home’s price, the closing process begins and it typically lasts between 30-90 days. During this time, the purchase contract is drawn up and signed, financial documents are finalized, home inspections and appraisals are completed and various other legalities are handled, too.


There are a lot of real estate agents in Canada. To put it in perspective, there are approximately 110,000 agents, meaning one for every 245 Canadians over the age of 19. In Toronto, there is an even denser popula-tion of agents—nearly 40,000, or one for every 140 people in the GTA. Needless to say we can conclude that the Real Estate market is really over saturated with agents. In fact in a recent survey, the public said that they have only a 17% trust level in realtors which puts us with the least trusted professions in all industries. Now is the public right to feel this way? Absolutely, they have every right to feel that way and we are sure with very reasonable belief. Real estate agents can get a bad reputation, sometimes with good and other times with bad reason. It’s true that there are inexperienced, shady, or neglectful agents out there, but that’s true for people in most fields. There are plenty of agents that know the market, how to conduct their business and are a pleasure to work with, so it’s your job to make sure and find the perfect agent. Knowing all of this about the real estate market, there was only one conclusion that we could come up with, and that was to make sure that every buyer moving forward is as educated as they can be when buying their property whether with a realtor or by themselves. We knew that even if only one person used this guide to get more out of their home purchase, that this guide would be a success. We wanted to give something tangible to today’s buyers that they can use right away, refer back to later or share with someone that can also be of use to it. With many years of experience in the real estate industry and helping many clients achieve their own personal goals in the real estate market, we would love the opportunity to also help you in your home buying process. Is everyone that is using this guide want to work with us? Yes? No? Maybe? That is totally fine, if you want to take the journey of buying your home, all we hope is that you can refer back to this guide and let it help you get the most out of your home buying process. If you are ready to meet one of our team members and want to discuss more specifics in regard to you upcoming home purchase just give us a call or send us an email and we would be happy to meet with you. We will make sure that whether you decide to work with us or not you will get plenty of information and insight from our meeting about the purchase of your home as well as the current real estate market. Reach us at: [email protected] or call 416 556 5626. We have also made it very easy for you to search properties on your own time on our custom database that provides you with all available/upcom-ing listings on the market and more at www.capitalforever.com. We are happy that you enjoyed this guide book. We are really looking forward to meeting with you in the near future and getting a chance to work together. Team, Capital Forever

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REAL ESTATE INC BROKERAGE

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1200 Derry Rd E #12, Mississauga416 556 5626 capitalforever.com

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