Looking to buy the perfect home, in the neighbourhood you love, while staying on a budget? More often than not, that can turn into a daunting and stressful task. But not to worry, we are here to guide you through the entire process to ensure your home buying journey is a smooth and successful process.
Prior to looking for your dream home, it is essential that you meet with a Mortgage Broker, get pre-approved, secure a rate hold, and determine a budget that you can comfortably afford.
Step By Step Guide
Hey There!
- FINTRAC, DORT & Privacy Forms
- Home Buying Overview
- Needs & Wants Assessment
- Budget & Deposit
- Buying Expenses
Home Search
- Collab Center Set-Up
- Property Viewings & Tours
Offer Negotiation
- Pre-Offer Analysis
- Terms & Subject Clauses
- Disclosure of Renumeration
- Offer Presentation
- Negotiation of Price, Dates & Terms
- Acceptance
Subject Removal
- Subject Removal Addendum
- Deposit: Bank Draft with Account Information
- Lawyer / Notary Selection
- Book Movers & Cleaners, if required
Closing – WOOHOO!
- Final Mortgage Documents
- Set up: Utilities, Cable & Internet
- Notify Strata & Set up Monthly Payments
- Signing Appointment with Lawyer / Notary
- Purchase Home Insurance, if required.
- Completion Date: Money & Title Transfer
- Possession Date: MOVE IN!
Follow Up
- Home Value Updates
- Market Updates & E-Newsletters
- Assistance with future Real Estate Needs
- Referral Program
Home Buying Expenses
Property Transfer Tax
Unless you qualify for the First Time Home Buyers’ Program, you will be required to pay Property Transfer Tax (PTT) at the completion of your purchase. PTT is calculated as follows:
1.0% …………………………………………………. First $200,000
2.0% …………………………………………………. $200,000 – $2,000,000
3.0% …………………………………………………. $2,000,000 & above
Additional 2% on portion above $3,000,000
PTT Exemption
First Time Buyers – Purchasing Principal Residence under $500,000
Newly Built Homes – Purchasing Principal Residence under $750,000
Goods and Services Tax (GST)
GST is applicable on Newly Built Homes, barehand, commercial properties, and properties that have been used as a business, and is calculated at 5% of the Purchase Price.
Foreign Buyer Tax
On January 1st 2023 a foreign buyer ban came into effect, in Canada, preventing everyone who is not a citizen or a permanent resident from purchasing real estate. This ban will be in affect for two years; however, there are some exclusions, so reach out to your Two Awesome Realtors for more information.
Prior to this change, foreign nationals, foreign corporations or taxable trustees, would have had to pay an additional property transfer tax of 20% of the purchase price.
Deposit and Downpayment
It is important that you ensure you have sufficient funds available for your deposit. Deposits are typically 5% and are cable as a bank draft or wire transfer at the time of subject removal. They are held by your agents Brokerage until the completion and will form part of your down payment. If you are obtaining an uninsured mortgage, you will be required to have a down payment of 20% of the Purchase Price. If you qualify for a CMHC insured mortgage the minimum down payment required is 5% on the first $500,000, 10% on the amount between $500,000 and $1,000,000 and 20% on the balance over $1 million.
Real Estate Commission
The Seller pays the commission for both sets of Real Estate Agents, so our services are free of charge to you as the Buyer!
Home Inspection
Home inspections are typically done, and paid for, between contract acceptance and subject removal. This fee varies depending on the type and size of home, and can range from approximately $500 – $1000.
Lawyer / Notary Public
You will need to use the services of a Notary Public or Real Estate Lawyer to register the Title of the property in your name. They will also prepare a statement of adjustments for you. The cost varies, and can range from $1,500-$2,500.
Mortgage Insurance (CMHC)
CMHC insurance protects lenders in case a borrower defaults on their mortgage. This insurance is required on all mortgages where the purchaser has a down payment which is less than 20% of the purchase price of the home. CMHC costs vary between 2.8% and 4% of the mortgage amount, depending on the amount of the down payment.
Property Taxes & Utilities
You will be responsible for paying a prorated amount of the Property Taxes and Utility Bills. This amount is based on your completion date and will be reflected on the statement of adjustments.
Ongoing Expenses
- Annual Property Taxes & Utility/Water Bills Annual Property & Content Insurance
- Monthly Strata Fees for Strata Properties
- BC Hydro (Electricity) & Fortis BC (Natural Gas) bills
- Monthly Internet, Cable & Home Phone bills
