GUIDES/Toronto Home Buyer's Guide

Your Step By Step Guide to Buying

1 – Prepare yourself for the house buying process

Avoid 9 critical mistakes that could cost you thousands of dollars when buying your home!

1. Don't "low-ball" your initial offer
   Vendors tend to give less of a counter offer (closer to list price), if they feel insulted. Understand the current market value of the home, and comparable SOLDS.
2. A pre-approved mortgage can be done for 90 days for FREE
   You can usually negotiate your mortgage rate between 1/2-1% off the posted rates with your lender.
3. Have your agent arrange a home inspection
   A home inspection with a qualified engineer costs about $300.00 (apprx.). It could very well be your best money spent. You want to know exactly what you are bidding on.
4. Avoid buying the most expensive home on the street
   The most advantageous situation is to purchase the worst home in a good area, rather than the best house in the worst area. "Location, Location, Location" is true!
5. Prepare a downpayment of at least 25%.
   When you have a down payment that is almost 25% it is usually less expensive to arrange a first and second mortgage and save on CMHC insurance fees.
6. Arrange an accelerated Bi-weekly payment plan on your mortgage.
   On your mortgage, you will save the most money if you opt for an accelerated Bi-weekly payment plan, or if you double up one payment per year. This will shorten your amortization periods by over 6 years!
7. Take advantage of tax credits.
   Place up to $20,000.00 per person of your down payment in a short term RRSP to be held for at least 90 days, or until closing.
8. Try and stretch to the maximum you can afford, therefore you will not have to move as soon. You will save $$ on:
   • Land Transfer Tax
   • Legal Fees
   • Mortgage & Discharge Fees
   • Real Estate Fees
9. Be sure to check into your lawyers fees ahead of time.
   These are separate from disbursements. Ask your agent will be able to refer you to reliable professionals.