When it comes time to make an offer, your Royal LePage Real Estate Professional can provide current market information and will assist you in drafting your offer.
Your Royal LePage Real Estate Professional will communicate the offer, sometimes known as an Offer to Purchase* to the seller, or the seller's representative, on your behalf. Sometimes there may be more than one offer on a property coming in at the same time. Your Royal LePage Real Estate Professional can guide you through this process.
*Offer to Purchase: a legal document which specified the terms and conditions of your offer to purchase the home.
The offer can be firm or conditional.
*Firm Offer to Purchase: usually preferable to the seller, because it means that you are prepared to purchase the home without any conditions. If the offer is accepted, the home is yours.
*Conditional Offer to Purchase: means that you have placed one or more conditions on the purchase, such as "subject to home inspection", "subject to financing" or "subject to sale of buyer's existing home". The home is not sold until all the conditions have been met.
*In the province of Quebec, this is referred to as a "Promise to Purchase".
Acceptance of the Offer
Your Offer to Purchase will be presented as soon as possible. The seller may accept the offer, reject it, or submit a counter-offer. The counter-offer may be in reference to the price, the closing date, or any number of variables. The offers can go back and forth until both parties have agreed or one of you ends the negotiations.
LAND TRANSFER TAXES
Purchasers in most large Canadian centres can add Land Transfer Taxes to their list of closing costs.
Unless you live in Alberta, Saskatchewan, or rural Nova Scotia, land transfer taxes (or property purchase tax) are a basic fact of life. These taxes, levied on properties that are changing hands, are the responsibility of the purchaser. Depending on where you live, taxes can range from a half a per cent to two per cent of the total value of the property.
Many provinces have multi-tiered taxation systems that can prove complicated. If you purchase a property for $260,000 in Ontario, for example, .5 per cent is charged on the first $55,000, 1 per cent is charged on $55,000 - $250,000, while the $250,000 - $400,000 range is taxed at 1.5 per cent. Your total tax bill? $2,375.00.
The following information illustrates Land Transfer Taxes by province.
Property Purchase Tax
Up to $200,000 X 1 % of total property value
From $200,000 up X 2 % of total property value
Land Transfer Tax
Up to $30,000 N/A
From $30,000 to $90,000 X .5 % of total property value
From $90,000 to $150,000 X 1 % of total property value
From $150,000 up X 1.5 % of total property value
Land Transfer Tax
Up to $55,000 X .5 % of total property value
From $55,000 to $250,000 X 1 % of total property value
From $250,000 to $400,000 X 1.5 % of total property value
From $400,000 up X 2 % of total property value
Up to $50,000 X .5 % of total property value
From $50,000 to $250,000 X 1 % of total property value
From $250,000 up X 1.5 % of total property value
Land Transfer Tax
1.5 per cent on total property value
Outside Halifax County
Check with local municipality.
Having a pre-approved mortgage will give you the confidence of knowing exactly what you can spend on a home before you start looking. You will also be protected against interest rate increases while you look for your new home.
Apply online now for a pre-approved mortgage certificate.
Your Mortgage Specialist will answer your questions and help you determine which financing terms and options are right for you. Your Mortgage Specialist and Real Estate Professional work as a team to help you find the right home and select the best financing.
Finalizing Your Mortgage
Once you've found the home you want to purchase, there are some documents you'll probably be asked for in order to finalize your financing. They will include:
- A copy of the real estate listing of the property. If the home is still to be built, the mortgage lender will need to see the architect's or builder's plans and details on lot size and location.
- A copy of the offer to purchase or the building contract, if this document has been prepared.
- Documents to confirm employment, income and source of pre-approval.
- If you have a pre-approved mortgage, it's a simple matter of finalizing a few details which your Mortgage Specialist will explain to you.
The old adage 'house rich and cash poor' is an economic reality for many buyers in large Canadian cities.
Many purchasers are looking for creative ways of making ends meet. One such option available to purchasers is to create a 'secondary suite' or 'basement apartment' in their home. For most buyers, the advantages clearly outweigh the disadvantages. The inconvenience of becoming a landlord is offset by the substantial dent the incoming rent will make on the monthly mortgage payment.
But before you start drywalling the basement, you may want to check with your municipal government to determine if there are any zoning by-laws and planning standards that will impact your decision.
By-laws pertaining to 'secondary-suites' generally vary from municipality to municipality. In Ontario, for example, the Land Use Planning and Protection Act - Bill 20 allows municipalities to use their zoning by-laws to decide if and where new second units in houses are to be allowed. Existing apartments in houses that have been registered with the municipality continue to be permitted as long as they meet fire code requirements and planning standards.
Similar laws governing rental units are in place in other provinces.
Contact your local municipal offices to determine how by-laws and planning standards will affect your decision to create a secondary suite.
When choosing a company to relocate you and your family, respect, trust and care are qualities that must be evident. You will discover that Allied has become the world's largest mover by displaying these values for millions of families, one move at a time.
Whether you move around the corner or around the world, you can trust Allied to handle your move with the utmost care and attention to detail. That's why Allied is known as "The Careful Movers".
To assist you during your planning stages of your relocation, Allied has developed a residential moving guide to explain many of the services and benefits Allied and our Canadian agency network can provide you to make your move an enjoyable one.
We encourage you to review this guide and contact Allied or one of our agents to arrange for your moving experience. Our responsibility is to ensure you enjoy a positive moving experience from your first contact with Allied to the end of your move.
There are a number of steps to getting mortgage financing. A particularly important step and one many people don't give much thought to - is the credit check. As a routine part of the application process the lender will order a copy of your credit history.
Your personal credit history is compiled by credit bureaus which collect information from various sources including banks, retailers and other public records, creating a credit report. Information such as: what credit and debit cards you have, the types of accounts you have at various financial institutions, information about personal loans, mortgages, student loans, etc., is all part of the report. The report shows the creditors' names, account numbers, the date accounts were started, the current balance as well as a detailed payment history (for example: how many times you were over 30, 60, or 90 days late in paying bills). Generally, credit reports show information going back six to seven years. The report will also show public information, for example, marriages, divorces, liens, judgments that have been entered against you, bankruptcies, etc.
The credit bureau does not rate you - it merely provides information on your credit history. The lender will examine the credit report to aid in determining whether to lend you money. If the lender has any concerns about something on the report the lender may ask you for an explanation. Though lenders usually work as quickly as possible in processing mortgage applications - the process can be slowed down if the lender needs to go back to the applicant for an explanation concerning items on a credit history. So, don't worry, but be prepared to answer questions the lender may have - often a simple explanation will do.
The lender will also use the report to verify other information on your mortgage application, for example: information about your employment status, your address (including the name of your landlord and perhaps rental payment history), etc. The credit report will also indicate inquiries made by other creditors over the period of the report. This information might be useful to a lender to show what other avenues of financing you might have tried and it may raise questions about why another potential creditor declined to lend it to you.
Honesty is the best policy - and that certainly holds true when applying for a mortgage. If you think there might be any credit problems - tell the lender up front and ask about the lender's policy prior to applying for the mortgage. There is no point in trying to hide something that will show up in your credit history. Of course, even if you think your credit record is fine, there may be detrimental comments on the report about which the lender may ask you.
Just like the old saying - a stitch in time saves nine - by getting a copy of your credit report before you apply for a mortgage you may be able to avoid surprises and possible delays that may occur in having to answer questions about your credit report. Because the report contains information about you, you have a right to inspect a copy of it. Equifax, one of Canada's largest credit bureaus, will mail consumers a free copy of their personal credit file upon request. The request must be by mail or via fax, and certain information must be supplied with the request. For more information, call Equifax at 1-800-465-7166.
If you disagree with something in your credit history you have the right to challenge it and ask that the information be corrected. For example, perhaps the report shows that you were over 90 days late paying a bill but the report does not indicate that you withheld payment pending a settlement of a dispute with the creditor. OR perhaps you were late with a particular payment because you were away. Whatever the explanation, contact the credit bureau to attempt to clarify the matter and have the file corrected. Equifax, for example, ensures that file correction procedures to personal credit files are made within seven days, and they send amended copies of your history to any company that has received your credit report in recent months.