| Common Questions |
 Buyer's Agency Agreement
What Can You Afford?
Choosing a Neighbourhood
Closing Costs
Pre-approved Mortgages
Multiple Offers
Home Inspections
Government Assisted Programs
Deposits and Downpayments
Moving Assistance A-Z
Buying with 5% down
First time buyers RRSP plan
Terms of an offer
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| Government Assisted Programs |
CMHC Insured Mortgages
The National Housing Act (NHA) of
1954 introduced mortgage insurance in Canada. This act authorized CMHC to operate a Mortgage
Insurance Fund which protects NHA Approved Lenders from losses resulting from borrower
default. The act also provides the basic framework for the operation of public mortgage
loan insurance.
Mortgage Loan Insurance is required when a
mortgage loan is more than 75% of the appraised value of a dwelling. Homebuyers with CMHC
Mortgage Loan Insurance can purchase a property with as little as 5% down. It protects
NHA Approved Lenders against loss due to borrower default on the loan.
NHA Mortgage Loan Insurance is available through NHA Approved Lenders
(banks, credit unions, trust companies, and other financial institutions).
With CMHC Mortgage Loan Insurance, thousands of Canadians are able to realize a dream of
home ownership that would not otherwise be possible.
Criteria for NHA-insured
Loans
Approved Lenders may provide NHA-insured mortgage loans for all types of new and existing
housing units (including manufactured homes) and for a variety of purposes such as home
ownership and rental. The essential requirements are that:
 The housing be intended for full-time rather than seasonal occupancy
The housing does or can reasonably conform to established construction standards; and
Not more than a reasonable portion of the borrower's (or project's) income is required for mortgage repayment purposes and other housing related expenses.
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Deposits & Downpayments
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| Deposit is money offered at the time of
acceptance of your offer and is held in trust by the listing real estate broker. This money
is forwarded to the lawyers on closing and is part of your down payment.
Deposit is money offered at the time of acceptance of your offer and is held in trust by
the listing real estate broker. This money is forwarded to the lawyers on closing and is
part of your down payment.
The down payment is the amount of cash in total that you are putting towards the home.
The balance of your down payment is not required until closing day.
Buyers can use as little as a 5% down payment if they qualify for the balance of the mortgage.
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Moving Assistance A-Z
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We don't just sell houses, we help people move. Over the years we have met true
professionals who, with their professional manner and remarkable knowledge
managed to make our job easier. Whether you are buying or selling a home, our list
of professionals can make your move a smooth one. Buying or selling
a home, our list of professionals can make your move a smooth one.
Click Here for our Preferred Professionals!
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| Buying with 5% down |
First-time buyers may purchase a home with only 5% down under the following conditions:
- Price of property purchased is $250,000 (Toronto area) or less.
- The home must be principal residence - does not apply to investment property.
- Buyers must not have owned a home as a principal residence in the last 5 yrs.
Exceptions:
a) Only one buyer has to qualify for 2 and 3
b) Hardship due to homeowner having had to sell their principal residence:
- Due to formal marital break-up (includes common-law).
- For employment reasons and moved to a new geographic area.
- Sustained a loss of equity. Provided that the net proceeds from the sale are applied to the purchase of subsequent principal residence as part or all of the down payment.
- Payments for principal, interest, property tax, heating and 50% of any condominium fees can't exceed 32% of your gross family income. (GDS ratio)
- Your total debt load, including car payments etc. can't exceed 40% of your gross family income. (TDS ratio)
- CMHC mortgage insurance must be purchased at a cost of 2.5% of the mortgage balance. This cost may be added to the mortgage and paid off monthly as part of the mortgage. This insurance is for the sole benefit of the lender but is required by law.
- Down payment must be from your own resources or a gift. Financial gift from family must be in the buyer's possession at least 30 days before making an offer.
- Mortgage term must be at least 3 years but must be qualified at five years or longer.
- Employed for one year at your current job.
- Clean credit rating.
- Buyers are required to demonstrate at the time of application their ability to cover closing costs of at least 1.5% of the purchase price in addition to the 5% down payment.
- Maximum amortization period is 25 years. Other conditions may apply.
Please call Peter Mulholland and Ora Ross at 416-222-8600 or e-mail info@realestatenorthyork.com .
This information is believed to be accurate but is not guaranteed to be so.
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| First Time Homeowner RRSP |
Funds may be withdrawn tax free from you RRSP up to a maximum of $20,000 per person for a down payment on your first home under the following conditions:
- Married couples are considered first time buyers if neither has owned a principal residence in the last five years.
Notes: * Buyers may own or have owned investment property.
* In certain cases only one spouse may qualify.
- Cannot have participated in the plan previously. You can only use the plan once.
- Must be a resident of Canada. You do not have to be a Canadian citizen.
- The home must be located in Canada and be the principal place of residence.
- You must repay your RRSP withdrawal over a period of 15 years with minimum payment of 1/15 of the total amount withdrawn.
This information is believed to be accurate but is not guaranteed to be so.
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| Terms of an Offer |
| An interested buyer will submit a legal "OFFER TO PURCHASE" on an "AGREEMENT OF PURCHASE AND SALE" form. This offer will contain written details of all the provisions of the offer and will be signed and dated by the buyer. Peter and/or Ora will formally present and explain the documents in their entirety to you and all your decision makers. Depending on the situation, the buyer's representative may also be present.
After receiving the offer, you have three options:
Accept the offer.
Reject the offer.
Make a counter offer.
If something in the offer is unacceptable, rather than rejecting it outright, you can make a counter offer by making the changes you wish and initialing those changes. Your counter offer is then presented back to the purchaser for them to accept, reject or counter back to you. This is why the form is called an "Agreement of Purchase and Sale."
NEGOTIATING AN OFFER can take a few hours or a few days. The experience and knowledge of Peter Mulholland and Ora Ross, your sales representatives, is critical in helping you through the process. They will be able to provide helpful advice, accurate information and assistance in professionally negotiating the best price and terms for YOU.
The Seven Major Elements of An Offer:
PRICE: The price a purchaser is willing to pay for your home. This amount ultimately must be negotiated and agreed upon by both buyer and seller in order for the offer to be finalized.
DEPOSIT: The deposit shows the buyers good faith and will be held in trust with Re/Max Realtron. It will be applied against the Purchase price on closing. The purchase is usually entitled to any interest earned on the deposit.
TERMS: Terms include everything from the financing details, closing dates, inclusions and exclusions, etc.
CONDITIONS: There may be conditions such as 'subject to a home inspection' or 'financing' that must be satisfied before the home is sold firm. The home is not really sold until all conditions have been met. When the conditions are satisfied the home is considered 'sold firm'.
INCLUSIONS/EXCLUSIONS: Anything that is not a fixture must be noted to either stay or go. A fixture is defined as anything attached to the home. Nothing can be assumed.
CLOSING DATE: The day title is transferred to the new owner and the funds are transferred to the seller. This is the date the sellers must move out by and the purchasers may move in.
IRREVOCABLE DATE: Every offer has an expiry date that clarifies the time and date the offer is valid.
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