10 Steps When Purchasing a New Home
10 Steps when Purchasing a Home
Step 1: Determine how much you can afford
Get a Mortgage advisor. Based on your down payment, income, existing debt, regular expenditures, and other key financial information, we can help you determine how much you can afford to pay every month and the price range that works within your budget. This is also known as getting a pre-approved loan/mortgage.
Step 2: Team up with a Real Estate Agent
Finding a real estate agent to help you search for your dream home is important to the home buying process. The best real estate agent will be a combination of a personal advisor, consultant, and negotiator. This expert will show you homes that match your criteria, guide you through the home buying process, and negotiate the best possible price for your home.
Step 3: Make an Offer
When youve found a place that youd like to call your own, your real estate agent will help you draw up an Offer to Purchase to present to the seller. This legal document specifies the price, the closing date, and any conditions.
Step 4: Retain a Lawyer
Its important to hire a lawyer who specializes in real estate. You could find yourself in a bidding war for the home you want, and you may want a lawyer to look over any offer to purchase before you submit. If you dont have access to a lawyer we at Inbudget Mortgages have inhouse Lawyers who offer their services for affordable rates.
Step 5: Get the Mortgage Approved
With a copy of the signed offer to Purchase and the necessary financial information well submit your application to the mortgage lender we have seleced based on your financial profile. The lender will qualify the application and complete a valuation on the property you have purchased. Mortgage insurance gives you the ability to buy a home with a down payment of less than 20% of the purchase price however in Ontario it is becoming harder to get mortgages approved with less than 20% down because of the high average home price.
Step 6: Arrange the Home Inspection
Many buyers consider including a home inspection as one of the conditions on the offer to Purchase. A professional inspection is a good way to uncover major problems with the home. If the home doesnt pass home inspection you can adjust or withdraw your conditional offer. A home inspection and a Home Appraisal are 2 separate things that the buyer is usually responsible for most banks will require a Home Appraisal to fulfill funding.
Step 7: Get Property Insurance
Apart from the mortgage, youll need to purchase property insurance that protects your home against fire and other damages. Once you have a policy in place, forward a copy to your lawyer.
Step 8: Check Legal Details
With the deal finalized and the financing in place, your lawyer can now search the title and check whether there are any unpaid property taxes outstanding. Your lawyer will arrange for a survey to be completed, if necessary.
Step 9: Complete the Paperwork
A few days before the deal is set to close, youll meet with your lawyer to review, sign, and get copies of all the documentation. At this time, youll also provide the remainder of your down payment and pay legal fees and any additional costs, such as prepaid utility expenses for which the seller should be reimbursed, that are due on closing.
Step 10: Pick up the Keys
On the closing day, your lawyer and the sellers lawyer will exchange documents and cheques. Your lawyer will also register your new home in your name. When these tasks are complete, youll get the deed and your keys to your new home, and you can move in.
Bank of Canada increases policy interest rate by 75 basis points, continues quantitative tightening
The Bank of Canada today increased its target for the overnight rate to 3%, with the Bank Rate at 3% and the deposit rate at 3%. The Bank is also continuing its policy of quantitative tightening.
The global and Canadian economies are evolving broadly in line with the Banks July projection. The effects of COVID-19 outbreaks, ongoing supply disruptions, and the war in Ukraine continue to dampen growth and boost prices.
Global inflation remains high and measures of core inflation are moving up in most countries. In response, central banks around the world continue to tighten monetary policy. Economic activity in the United States has moderated, although the US labour market remains tight. China is facing ongoing challenges from COVID shutdowns. Commodity prices have been volatile: oil, wheat and lumber prices have moderated while natural gas prices have risen.
Prices have come down from their peak in July
From the National Bank of Canada
Declining transactions in the resale market and rising interest rates continue to weigh on property prices, with the Teranet-National Bank Composite House Price Index falling 0.2% from June to July after seasonal adjustments. This is the first monthly decline since the one seen at the beginning of the pandemic in June 2020. Using the unsmoothed seasonally adjusted index, which is more sensitive to market fluctuations, the decline is even more pronounced, with property prices falling 1.4% from June to July. Moreover, price decreases continue to be widespread across the country. In fact, for all 32 markets where the seasonally adjusted unsmoothed index was available in July, 58% experienced a decline during the month, the same proportion as observed in June, but much higher than those recorded since the beginning of the year. You have to go back to May 2020, at the very beginning of the pandemic when uncertainty was at its peak, to find such a large proportion of markets down. While the Bank of Canada has indicated that it will continue to raise its policy rate and that transactions in the real estate market should continue to decline, we anticipate that the composite index should decrease by 10% by the end of 2023.