Information for Buyers
So you have decided to buy a home – congratulations! Purchasing a home is a large and complex transaction, so it is important to be well-informed before you begin looking. Find helpful information for buyers below, and contact Emily with any further questions, or to secure representation.
Click here to access the calculator. This Mortgage Calculator from the Government of Canada helps you determine your mortgage payments and payment schedule.
Moving can be a stressful and overwhelming time for all parties. Having a clearly laid out moving plan can help the process go smoothly. Consequently, this moving checklist will help buyers get a head start on their moving plans:
1. First, before you start packing, start going through your belongings and determining what you want to take with you, and what you want to leave behind. There’s no point in packing items that you want to get rid of anyways! Host a garage sale to sell unwanted items, or donate them to your local thrift shop!
2. Second, research and find a moving company in your area that you like and trust. Making arrangements for your moving day well in advance can help make moving day seamless and stress-free.
3. About a month before moving day, it’s time to start packing! Start with the items that you don’t use often and won’t miss for the month that they are packed away. Make sure that you label each box carefully!
4. In the last month before closing it is important that you reach out to your banks, utility companies, and insurance companies to inform them of the move and ensure that address changes and policy changes happen before the closing date (because you want to have power and water during moving day!).
5. A few weeks before your closing date – it’s time to finish packing! Leave out only the absolute essentials that you will need until moving day.
6. A couple of days before moving day, dissassemble any large furniture that you need to move in preparation for the big day. Anything you can pack up prior to moving day will help to make the move less stressful.
7. Finally it’s closing day! Get the keys to your new place and pack up the last of your essentials for the move. Congratulations on your new home!
Home inspections are always optional for buyers, but highly recommended in all cases. While superficial repairs may be immediately obvious upon walking through a property, a home inspection can uncover any issues with the plumbing, electrical, roofing, or structural integrity of the house that only a trained professional can recognize. Emily has worked with many different, highly-rated home inspectors in the local area and can provide recommendations for buyers so you can feel confident with the home inspector that you choose.
Click here to access the calculator. Use this handy Land Transfer Tax calculator to estimate the Land Transfer Tax that you may owe on closing.
Click here to find residential building permits and inspections for the City of Guelph here.
Costs to Consider When Purchasing
MAKING AN OFFER
Deposit When Making an Offer $10,000+++
Your deposit must be available within 24 hours of an offer being accepted. Certified cheques are preferred. This deposit counts towards the purchase price of the home. It is negotiable and differs for every property. The seller usually sets the minimum deposit amount
Appraisal (market evaluation for financing) approx. $350
Appraisals are sometimes required by the banks to ensure the buyers are paying market value for the property. Occasionally, the bank or the broker pays for this transaction, but it is usually the responsibility of the buyer to pay.
Home Inspection $400-500
Approximate cost for residential homes under 2,500 sq ft.
HST* 13% of purchase price
HST is not applicable on resale homes. There is HST applied to moving costs, lawyer fees, etc.
*HST is applicable on new homes/builds, commercial leases, and so on.
Lawyer (often includes Title Insurance) $1,500 - $2,500
Lawyer fees for residential properties in the area are usually around $1,500.
Land Transfer Tax 1% - 1.5% of purchase price
Adjustments on Closing Varies
The cost of adjustments on closing varies greatly from sale to sale. For example, if the sellers pre-paid property taxes or utility/rental costs beyond the closing date this influences the final number.
Utilitiy Deposits approx. $350 each
Utility deposits are credited back to the account holder after a year. If you have existing accounts these costs may not apply.
Ensure that you plan for miscellaneous costs during closing such as moving truck rentals, movers, etc.
MONTHLY CARRYING COSTS
Monthly Utility Costs $300 /month min.
Budget for a minimum of $100-$150 for heating costs and $100-$150 for hydro.
Property Tax Varies
Property tax costs are determined based on the assessed value of the property (MCAP).
Insurance approx. $50 - $100 /month
Insurance costs are influenced by the use, age, and size of the property.
General Maintenance $100 - $200 /month
It's a good idea to plan in advance for any potential maintenance costs. Setting aside $100 - $200 /month will help to cover unexpected costs as they arise.
Hot Water Heater/Tank Rental approx. $40+ / month
Most homes in Ontario have leased or rented Hot Water tanks, although purchased/owned tanks are also an option.
Monthly Mortgage Payment approx. $1,500 - $2,000
Monthly mortgage payments vary greatly from property to property and are influenced by the cost of your home, your initial down payment, current interest rates, your amortization period, and more.
Don't forget to budget for things like internet, cable, phone bills, etc.!