Here are the advantages of working with an agent when buying a house:

• Agents are experienced negotiators who will manage your offers and counter-offers.
  
  
• An agent is familiar with the neighbourhood and can give you information on local real estate values, taxes, utility costs, services and amenities.
  
  
• An agent is familiar with the entire home purchasing process and can advise you of your legal and financial options as well as recommend appraisal, home inspection and contracting services.
  
  
• An agent can pinpoint homes that fit your needs and dismiss those that do not, saving you time.
  
  
• An agent knows the potential problem areas in a home and can guide you away from "lemons."

Obtain a Pre-Approved Mortgage

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.

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.

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.

We can suggest some mortgage lenders that may help you in this process. Click here to email us from our contact page.

Hire A Legal Professional

A legal professional is there to represent your interests and to process the legal documentation required. Your Royal LePage Real Estate Professional can provide you with the names of legal professionals who specialize in real estate.

The legal process differs from province to province. Your Royal LePage Real Estate Professional or legal professional will advise you on the steps to be taken before the keys to your new home are presented to you.

Determine what you can afford

Purchasing a home involves one-time costs and monthly expenses. The largest one-time cost is the down payment. It usually represents between 5-25% of the total price of the property. In addition to the actual purchase price, there are a number of other expenses that you might be expected to pay for.

Typical one-time expenses include:

• Mortgage Application and Appraisal Fee
  
  
• Appraisal Fee
  
  
• Property Inspection (optional)
  
  
• Legal Fees
  
  
• Legal Disbursements
  
  
• Deed and/or mortgage registration Property Survey (sometimes provided by seller)
  
  
• Land Transfer, Deed Tax or Property Purchase Tax (in Quebec within 3 months following signing)
  
  
• Mortgage Interest Adjustment and Take Over Fee (if applicable)
  
  
• Adjustments for Fuel, Taxes, etc.
  
  
• Mortgage Insurance (and application fee if applicable)
  
  
• Home and Property Insurance
  
  
• Connection charges for utilities such as gas, water and electricity
  
  
• Moving Expenses

Other costs may include landscaping, redecorating, furnishings, appliances and repairs.

Typical monthly costs incurred with home ownership are mortgage payments, maintenance, insurance, condo fees, property taxes and utilities.

How To Make An Offer

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.

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.

Closing The Deal

Closing day is the day you become the official owner of your home. However, the closing process usually takes a few days.

Typically, you visit your lawyer's office to review and sign documents relating to the mortgage, the property you are buying, the ownership of the property and the conditions of the purchase. Your lawyer will also ask you to bring a certified cheque to cover the closing costs and any other outstanding costs.

Once your mortgage and the deed for the property are officially recorded, you become the official owner of the property and your lawyer will call you to pick up the keys to your new home. Congratulations! You've just bought a home!

Amortization Period:
The actual number of years it will take to pay back your mortgage loan.

Appraised Value:
An estimate of the value of the property. Conducted for the purpose of mortgage lending by a certified appraiser. This appraisal is not to be confused with a building inspection.

Assumability:
Allows the buyer to take over the seller's mortgage on the property.

Closed Mortgage:
A mortgage that locks you into a specific payment schedule. A penalty usually applies if you repay the loan in full before the end of a closed term.

Condominium Fee:
A common payment among owners which is allocated to pay expenses.

Conventional Mortgage:
A mortgage loan issued for up to 75% of the property's appraised value or purchase price, whichever is less.

Down Payment:
The buyer's cash payment toward the property. The difference between the purchase price and the amount of the mortgage loan.

Equity:
The difference between the home's selling value and the debts against it.

High-Ratio Mortgage:
A mortgage that exceeds 75% of the home's appraised value. These mortgages must be insured for payment.

Interest Rate:
The value charged by the lender for the use of the lender's money. Expressed as a percentage.

Land Transfer Tax/Deed Tax/Property Purchase Tax:
A fee paid to the municipal and/or provincial government for the transferring of property from seller to buyer.

Maturity Date:
The end of the term, at which time you can pay off the mortgage or renew it.

Mortgagee:
The person or the financial institution that lends the money.

Mortgage Insurance:
Applies to high-ratio mortgages. It protects the lender against loss if the borrower is unable to repay the mortgage.

Mortgage Life Insurance:
Pays off the mortgage if the borrower dies.

Mortgagor:
The borrower.

Open Mortgage:
Allows partial or full payment of the principal at any time, without penalty.

Portability:
A mortgage option that enables borrowers to take their current mortgage with them to another property, without penalty.

Pre-Approved Mortgage:
Qualifies you for a mortgage before you start shopping. You know exactly how much you can spend and are free to make a "firm" offer when you find the right home.

Prepayment Privileges:
Voluntary payments in addition to regular mortgage payments.

Principal:
The amount borrowed or still owing on a mortgage loan. Interest is paid on the principal amount.

Refinancing:
Paying off the existing mortgage and arranging a new one or re-negotiating the terms and conditions of an existing mortgage.

Renewal:
Re-negotiation of a mortgage loan at the end of a term for a new term.

Second Mortgage:
Additional financing. Usually has a shorter term and higher interest rate than the first mortgage.

Term:
The length of time the interest rate is fixed. It also indicates when the principal balance becomes due and payable to the lender.

Title:
Legal ownership in a property.

Variable-Rate Mortgage:
A mortgage with fixed payments, but fluctuates with interest rates. The changing interest rate determines how much of the payment goes towards the principal.

Vendor Take-Back Mortgage:
When the seller provides some or all of the mortgage financing in order to sell their property.