Buying Your Home:
The Process
| 1. |
FINANCIAL PRE-QUALIFICATION:
Speak with your Mortgage Broker or Bank to answer any of your questions, to feel
completely comfortable with the price to pay for your home. You'll need a T4 & letter
from your employer verifying your income. (I can suggest a number of Mortgage Brokers or
Banks if you haven’t already built a relationship with one as yet.) |
| 2. |
REVIEW OF THE STANDARD COSTS: |
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a) |
Provincial Land Transfer Tax :
First $55,000 X .005 = $275.00
$55,000 to 250,000 X .01 = $1,950.00
$250,000 to 400,000 X .015 = $2,250.00
$400,000+ X .02 = $_________
OHOSP - must opened prior to the "closing" of the purchase
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b) |
Municipal Land Transfer Tax:
- 0.5% of the amount of the Purchase Price up to and including
$55,000.00 plus
- 1% of the amount of the Purchase Price between $55,000.00 and
$400,000.00 plus
- 2% of the Purchase Price above $400,000.00
(Call me about a rebate for a Purchase before February 1st, 2008.) |
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c) |
Lawyer: Allow +/- $1000.00 (maybe less) |
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d) |
Moving Costs |
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e) |
Home Inspections: General Home $350.00 and up
(depending on the size of home and Sale Price). Termite inspection: allow $200. - $300. |
|
f) |
Survey +/- $900.00 – Call me about Title
Insurance $300.00 and up that will eliminate the need for a survey. |
| 3. |
THE AGREEMENT OF PURCHASE &
SALE:
- Deposit: 5 – 10% of Purchase Price to accompany the Offer.
- Conditions: Finance, Home Inspection, Sale of the Purchaser’s
Property.
- Irrevocable Date: the date and time before which the offer cannot be
withdrawn
- Closing Date: the date that the property changes hands
- Requisition Date: the date allowed for title search, usually 2 weeks
before closing
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Commonly Used Clauses
Purchase "Agreement of Purchase and Sale" forms
from any Grand & Toy, or have your Solicitor draw up an Agreement that is preprinted
with all the particulars regarding your property.
For example: Name, Property address, Legal description, Deposit,
Your choice of Clauses, Chattels, Exclusions, etc.
CASH OFFER
PURCHASER AGREES TO pay the balance of the purchase price in cash or by certified cheque
to the Vendor on closing, subject to the usual adjustments.
CONDITIONAL UPON ARRANGING SATISFACTORY FINANCING
THIS OFFER IS CONDITIONAL upon the Purchaser arranging satisfactory financing on or before
______, otherwise this Offer becomes null and void and the deposit money shall be returned
to the Purchaser in full without interest. The Purchaser reserves the right to waive this
condition at his sole option within the specified time period. The said proceeds for
financing shall be paid to the Vendor on closing as part of the purchase price.
CONDITIONAL UPON QUALIFIED INSPECTION
THIS OFFER IS CONDITIONAL for a period of _____ days from the date of acceptance by the
Vendor upon the Purchaser having the subject property inspected by a qualified home
inspector and finding said inspection satisfactory to him, failing which, this Offer shall
become null and void and the Purchaser's deposit shall be returned in full without
interest. The Purchaser reserves the right to waive this condition at his sole option
within the specified time period.
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