Finding & securing the home of your dreams
Thinking of Buying?
Choosing to buy a home is an exciting yet complex journey. One which requires proper planning to ensure you find & secure the home of your dreams.
By working with a knowledgeable and trustworthy Real Estate agent, you’ll be able to streamline the process ensuring everything runs smoothly. It’s time to find a place you can call home.
Hiring the help of a knowledgeable Real Estate agent that you trust will streamline the process and help make it run smoothly. To ready you for this, we have provided a general overview of what to expect from your buying process.
The Buying Process
Buying a home can be both exciting and overwhelming. Here, we’ve provided you with a general overview of what to expect when buying!
Contract & Conditions Review
Home Inspection (if required)
Bank & Lawyer Prepare Closings
Final Walk Through
AppraisalThe appraisal is a process for estimating the market value of a property, typically done before subject removal. This act is done by a certified professional appraiser often hired by the bank.
Cash Offer/ Clean OfferA cash offer is an all-cash bid, it does not mean the buyer has cash in a bag, meaning a homebuyer wants to purchase the property without a mortgage loan or other financing condition. These offers are often more attractive to sellers, as they mean no buyer financing fall-through risk and, usually, a faster closing time.
Closing CostsThe costs you will have to pay in addition to the purchase price of a home on the day you officially own the home. These costs include legal fees, land transfer fees and disbursements. They usually range from 1.5% to 4% of the purchase price.
Closing or Completion DateThe date at which the sale of a property becomes final and the new owner takes possession of the home.
CMHCCanada Mortgage and Housing Corporation. A Crown corporation that administers the National Housing Act for the federal government and encourages the improvement of housing and living conditions for all Canadians. CMHC also develops and sells mortgage loan insurance products.
CMHC insurance premiumsWhen a home buyer takes out a mortgage loan with less than a 20% down payment, an insurance premium is paid to CMHC, and a mortgage loan insurance policy is issued to the lender. The CMHC Mortgage Loan Insurance premium is calculated as a percentage of the loan and is based on a number of factors such as the purpose of the property (owner occupied or rental), the type of loan (i.e. purchase/construction or refinance loan), the ability of a self-employed borrower to supply income verification, and the size of your down payment (i.e. the higher the percentage of the total house price/value that you borrow, the higher percentage you will pay insurance premiums).
Commitment letter (or Mortgage Approval)Written notification from the mortgage lender to the borrower that approves the advancement of a specified amount of mortgage funds under specified conditions.
Completion DayAlso known as the closing day in which monies are transferred from the buyer to the seller. Date on which the sale of the property becomes final and the new owner takes title to the home.
Conditional OfferAn Offer to Purchase that is subject to specified conditions, for example, the arrangement of a mortgage or an inspection. There is usually a stipulated time limit within which the specified conditions must be met. This is also known as an accepted contract of purchase and sale subject to removal. This removal process is called “subject removal.”
CounterofferIf, for example, your original offer to the vendor is not accepted, the vendor may counteroffer. This means that the vendor has amended something from your original offer, such as the price or closing date. As this new offer varies the terms of the original offer, this rejects the original offer. If a counteroffer is presented, the individual has a specified amount of time to accept or reject.
Curb AppealCurb Appeal is the first impression that a home will give the better, and can be summed up by how attractive the home looks from the street. A home with good curb appeal will have attractive landscaping and a well-maintained exterior. A good power wash is always a great start.
DeedA legal document signed by both the vendor and purchaser to transfer ownership of a home.
DepositMoney placed in trust by the purchaser when an Offer to Purchase is made. The sum is held by the real estate representative or lawyer/notary until the sale is closed and then it is paid to the vendor. In Greater Vancouver this amount is typically 5% of the purchase price, and is due upon or within 24 hours of subject removal. In a hotter market with subject free offers, the deposit is often presented with the Contract of Purchase and Sale at the time of offer presentations for negotiation purposes, thus proving that they are a ready and motivated buyer.
Down PaymentThe portion of the home price that is not financed by the mortgage loan. The buyer must pay the down payment from his/her own funds or other eligible sources before securing a mortgage. The deposit forms a part of the down payment. Down payments range from 5% onwards, and are typically between the 5% to 25% range. Down payments that are less than 20% in BC are subject to CMHC Insurance Premiums which can be added on to the monthly mortgage payment.
EasementAn interest in land owned by another person that benefits the person who has the easement, for a specific limited purpose (i.e. right of way permitting passage over a particular strip of land) such as with public utilities.
MLS — Multiple Listing ServiceA multiple listing service that contains descriptions of most of the homes that are for sale. This computer-based service is used to keep up with properties that are listed for sale.
New Home Warranty ProgramCoverage in the event that an item under the warranty needs to be repaired within the specific warranty period. The repair will be made by the organization that provided the warranty. Also known as a 2-5-10 program in BC.
Offer to purchaseA written contract setting out the terms under which the buyer agrees to buy the home. If the Offer to Purchase is accepted by the seller, it forms a legally binding contract that binds the people who signed to certain terms and conditions.
Open-houseA period of time during which a house or apartment for sale or rent is held open for public viewing.
Possession DateUsually the same date as the adjustment date. The day you are entitled to the legal possession of the property you have purchased (you get the keys!). In BC, possession usually occurs a day or two after completion.
Property taxesTaxes charged by the municipality where the home is located, usually based on the value of the home. In some cases the lender will collect a monthly amount as part of the mortgage payment to cover your property taxes, which is then paid by the lender to the municipality on your behalf.
Realtor or real estate agentA person who acts as an intermediary between the seller and the buyer of a property.
Reserve fundAlso known as the Contingency Reserve Fund. A fund required to be set up by the condominium corporation for major repair and replacement of common elements and assets of a corporation. This amount is set aside by the homeowner on a regular basis so that funds are available for emergency or major repairs.
Restrictive covenantEnter your answer here
Single-family detached homeAlso known as just a detached home. Free-standing home for one family, not attached to a house on either side.
Subject ClauseA condition(s) that must be satisfied before a contract becomes firm (unconditional). Examples are subject to financing, inspection or receipt and approval of condominium bylaws and financial statements. The conditions must be removed from the contract in writing by a certain date in order for the contract to become “firm”.
Subject RemovalA period, typically a week, in which all subject clauses must be satisfied in order for the contract to become firm. The deposit is typically due once subject removal has been completed.
Survey or Certificate of locationA document that shows property boundaries and measurements specifies the location of buildings, fences, and other improvements on the property and states easements or encroachments, at a specific point in time.
TitleA freehold title is an interest in land that gives the holder full and exclusive ownership of the land and building for an indefinite period. A leasehold title is an interest in land that gives the holder the right to use and occupy the land and building for a defined period.
Title InsuranceInsurance against loss or damage arising from a matter affecting the title to real property
Your Dream Home Wish List
Dayna helped us to find our first house, it was such a great experience. She understood exactly what we wanted (even more than us LOL) and guided us until we found our dream house. She was always available to answer all of our questions during the process.