Understand Your Needs and Wants
 
When looking for a home, it is not a surprise the list of wants can surpass the needs. Depending on your budget and timelines, you may need to set priorities and be flexible with some of the features you require. Think about what really matters to you, that way you have a clearer path moving forward.
 
Some things to consider: Detached, Semi-detached, Townhouse, Condominium Apartment, Rental income, Number of Stories, Exterior (brick, siding, stucco, etc), Lot Size/Square Footage, Backyard (size), Patio/Deck/ Porch, Main Street/Quiet Street, Private Drive/Mutual Drive, Garage, Number of Bedrooms, Number of Bathrooms (1/2 baths/powder rm), Master En-suite, Eat-in Kitchen, Modern/Renovated Kitchen, Modern/Renovated Bathroom, Family Room/Den, Separate Dining, Room Fireplace (gas or wood), Flooring (hardwood, ceramic, carpet), Finished Basement, Basement Apartment, Laundry Facilities, Central Air, Upgraded Furnace, Upgraded Plumbing, Upgraded/Recent Roof, Upgraded Wiring (100 amp ++), Complete Move-in Condition, Location (schools, TTC, amenities), Ideal Move-in Date, Total Down Payment, Approximate Price Range, Geographical Boundaries.
 
Know your Numbers
 
There are several expenses associated to purchasing a home at various stages of the process, so it is not just the down payment you are saving for.
 
HST: There is generally no HST on the purchase price of resale residential housing, however if the property has been substantially renovated, tax may apply as if it were a new home. HST does apply to the purchase of newly built residential properties but partial rebates may be available
 
Lawyer (notary) Fees: Even a straightforward home purchase requires a lawyer to review the offer to purchase, search the title, draw up the mortgage and tend to the closing details. Lawyer fees can vary greatly depending on disbursements and whether title insurance is purchased.       
 
Survey Fee/Title Insurance: Your lender may require an up-to date survey. Ask the vendor to provide one as a condition of your offer to purchase, or you may have to pay to have one done. You may also choose to get title insurance in lieu of the survey. The lawyer you select to close your purchase can inform you about title insurance, what it covers and its advantages.
 
Status Certificate: A certificate that outlines the condo corporation’s financial and legal state. The certificate and supporting documents can cost $100-$200.
 
Home Inspection Fee: Fees can range widely for home inspection as inspectors are unregulated in many provinces. A 3-hour inspection carried out by an engineer who provides a written report will cost slightly more.
 
Land Transfer Tax: This applies in Ontario and is usually your largest expense at closing. It varies as a percentage of the property’s purchase price. Some Municipalities like Toronto have an additional Land Transfer Tax.
 
Property Insurance: This insurance covers the replacement value of the structure of your home and its contents. Your lender will insist on insurance for security of your mortgage.
 
Prepaid Taxes or Utility Bills: You will have to reimburse the vendor on a prorated basis if some bills have been prepaid beyond the closing date.
 
Condo Fees: Condominiums charge monthly fees for common maintenance. These fees can range widely depending on the type of structure and inclusions. Pre-paid monthly fees would be adjusted by lawyers on closing.
 
Moving Costs: The cost of a professional moving company, or a rental truck if you move yourself, can vary and may be higher depending on the time of month and time of year you are moving.
 
Property Taxes: Taxes are always a certainty. If you have a high-ratio mortgage, your lender may require that you have your property tax installments added to your mortgage payments.
 
Find Your Savings
 
Federal, provincial, and even municipal governments offer incentives for all home buyers, including first time home buyers.
 
Mortgage Insurance
CMHC - Canadian Housing and Mortgage Corporation
Genworth Canada
 
Incentive programs
City of Toronto Grants, Incentives, and Tips
Home Energy Loan Program
Eco-Roof Incentive Program
Toronto Hydro Residential Programs 
Enbridge Gas Residential Rebates and Incentive Programs
 
Government of Canada Programs to Support Home Buyers
First Time Home Buyer Tax Credit - $750
Home Buyers Plan (HBP) - Access up to $35K from RRSPs
Land Transfer Tax Rebate - Up to $8,475 in Toronto
 
Get a Pre-Approval
 
Homes come in every size, style, and price range. Knowing what you can afford at the beginning of your search will save you and your agent time and disappointment when looking for the perfect home. To qualify for a mortgage, you will have to prove to your lender that you can afford the amount you are asking for. Mortgage lenders or brokers will use your financial information to calculate your total monthly housing costs and total debt load to determine what you can afford. Lenders will consider information such as: your income (before taxes), your expenses (including utilities and living costs), the amount you are borrowing, your debts, your credit report and score, the amortization period
 
It is important to be qualified or “pre-approved” for financing before you begin looking for a new home. This lets you and your Realtor know what you can afford as well as providing a guaranteed cap on the interest rate for up to 120 days.

Do you remember the last time you viewed a home for sale? What do you recall about that property? You likely remember the features and characteristics that stood out, such as the gorgeous hardwood floors, the spacious kitchen with the long island, or… the faucet that was dripping in the main floor washroom!

Obviously, you want potential buyers to notice the great features of your home rather than those things that are less appealing. So, when preparing your home for sale, pay particular attention to what a buyer is likely to notice and remember.

Say, for example, you have a small unused bedroom that has become the unofficial storage room. If something doesn’t go anywhere else, it gets put in that room! Now it’s a cluttered space.

What will buyers remember about that room after a viewing? Will they see the potential for a home office or comfy reading room? Most likely, they will just remember a small, cluttered, potentially unusable space.

Buyers will also notice a dripping faucet, a scuff in the wall, or the lingering smell of spicy cooking in the kitchen. They will remember all the things that stand out, regardless of whether they are positive or negative.

So, when you list your property, make sure that what stands out for potential buyers are the desirable features of your property.

If you have a wonderful sitting room with large windows and a great view, make sure that space is clean and comfortable. You may even want to “stage” it a little, perhaps with some fresh flowers and a good book sitting on the end table.

You may have purchased a pre-construction condo and are excited about closing so that you can finally get your keys. Before that happens, you will need to settle all of your closing costs and some of these may come as a surprise to you. These are the main items you should expect to see a bill for:

• Land Transfer Tax
• The City of Toronto has both a municipal and provincial taxes, while Mississauga, Brampton, and Vaughan have only the provincial tax.
• Development Charges
• This is another major bill that could run up to $20K or more and is subject to HST.
• HST (if you are an investor)
• Most developers include HST in their advertised price, which includes the government rebates that they received.
• If you are an investor, you no longer qualify for these rebates that the developer already claimed and thus, you must pay HST at closing.
• Legal Fees
• You will always need a real estate lawyer to deal with any real estate transaction.
• Expect to pay approximately $2,000 plus HST.
• Utilities
• There is a fee or approximately $1,500 to connect gas, hydro, and water to your unit.
• Warranty
• The Tarion Warranty you get with your purchase can cost up to $1000 plus HST.
• Other Fees
• Developer may charge you up to 2 years worth of property taxes as a prepayment.

I hope visibility to these costs better prepares you for closing and if you have not purchased a pre-construction unit yet, do keep them in mind. Remember to always consult a real estate agent before you enter a pre-construction sales centre.

When a hotel wants to make a room look inviting, they start with the bathroom. They clean it until it sparkles. They place fresh towels everywhere. They make sure the soap bars and shampoos are new. Some hotels even fold the end of the toilet paper into a nice neat triangle!

Why all the fuss?

Hoteliers know that if a customer is impressed with the bathroom, they will likely feel the same way about the rest of the property.

Something to think about when selling your house.

When you purchased your current home, chances are it was a good match for your lifestyle. It had the space you needed, the features you wanted, and a location that worked for you.

But for most people, lifestyle and needs evolve through the years. Kids get older. Jobs or careers change. People take on new hobbies and other interests.

As a result, the home that was ideal a few years ago may not fit with your current lifestyle.

That doesn’t necessarily mean you need to shop for a new home! However, it may mean that it’s worth taking a look at the market and seeing what’s possible.

Think about the kind of home that would support your lifestyle today. Ask questions like:

• How many bedrooms do we need?
• How easy is it to travel to work each day?
• What special features do we want in our home? (Big backyard? Rec room? Quiet area?)
• What do we want nearby? (School? Playground? Walking and biking trails? Shopping? Entertainment? Golf?)
• What else does our home need in order to support our lifestyle?
• After asking yourself some of these key questions, ask other family members for their opinions too.

You may, in fact, find that the property you have now is still ideal for your lifestyle.

If, however, your home is no longer a good fit, you have options. You can stay in your current home despite it no longer being ideal, you can make some changes (a renovation, perhaps), or you can see what’s available in the housing market.?

You visit a garage sale on a sunny Saturday morning and find a bicycle that you think would be perfect for your child. You look at the price tag and it’s about twice as much as you would expect to pay. When you question the owner, he says, “That bike has a lot of sentimental value for me. I couldn’t let it go for less.”

Chances are, you’ll pass on the bike. The owner sees the bike and happily remembers teaching his daughter to ride it. What you see is just a bike! You can’t buy someone else’s memories.

This scenario sometimes plays itself out in real estate. A homeowner has fond memories of his home. He may have renovated the den himself and is proud of his work. He may delight in memories of family BBQs on the deck.

That doesn’t mean the house will sell for more than its market value.

So when you put your property on the market, make sure emotions don’t get in the way of pricing it properly.

Fortunately, memories will stay with you, even without your house. You’ll be able to happily take them along to your next home.