Home Buying Tips
1. Get pre-approved for a mortgage
2. Determine your budget
3. Hire a reputable real estate agent
4. Prioritize your needs and wants
5. Inspect the property thoroughly
6. Negotiate wisely
House Buying Tips
Buy your house Now!
Advice for Buyers
Determine Your Individual Needs
The reasons for buying a property vary widely from one person to another. It is therefore extremely important to discuss your individual needs with your real estate broker before visiting a property.
Before making an appointment with your real estate broker, draw up a list of features you deem important and determine your individual needs such as locality, price, type of property, number of bedrooms, surroundings, public utilities, and so on.
Check with your financial institution to find out how much you can afford to carry as a mortgage and have the loan amount preauthorized.
Talk to a RE/MAX Broker
Once you have analyzed your individual needs, talk to your neighbourhood RE/MAX broker. If you are moving out of the area in which you currently reside, your local broker will be able to refer you to a professional RE/MAX broker in the area of interest to you.
If you do not know a local RE/MAX broker,
click here
to find the closest agency to your home or to the desired location. They will refer you to a broker, without any obligation from your part.
Moving Day Checklist:
Read all metersLower or turn off heatingTurn off all lightsShut and lock all doors, latch all windowsTurn over keys to new occupantsHave telephone disconnectedTake out all garbage
Possible Expenses When Buying a Property
Inspection of property by building expertMortgage arrangements with bank :Conventional loan (20 % cash)Loan insured by CHMC (less than 20 %)Deposit to accompany Offer to Purchase
Possible Expenses When Signing at the Notary
Deposit to accompany Offer to PurchaseTax redistribution and refunds:Refunds are calculated from the date of the signing of the deed of sale. You are responsible for reimbursing the seller for the number of days paid to date.Municipal taxesSchool taxesHeating oil tank:The seller is required to have the tank filled on the day of the signing of the deed of sale and submit the invoice to the notary for reimbursement in full by the buyer.Electricity meter (Hydro Québec):The buyer and the seller must notify Hydro Québec of the date the property is scheduled to change hands, have the meter read, and ensure that all amounts owing are properly allocated.Homeowner insurance:Upon signing of the deed of sale, you must present proof that you have contracted homeowner's insurance in an amount equal to or greater than the mortgage on the property.
Possible Expenses Once the Deed of Sale is Signed
Land Transfer or Welcome TaxThe municipality in which you settle will bill you within four (4) to six (6) months of the signing of the deed of sale in an amount based upon the selling price and scaled as follows:0.50 % of amounts up to $50,0001.00 % of amounts between $50,000 and $250,000Province of Quebec, excluding Montreal:1.50 % of amounts exceeding $250,000Montreal only:1.50 % of amounts between $250,000 and $500,0002% of amounts exceeding $500,000Moving, painting, interior and exterior decoration, etc.
MAKING AN OFFER
Once you have found that Montreal home that is right for you, it is time to write a “Promise to Purchase”,as it is called in Quebec. Writing the offer is an exciting, emotional, and sometimes a complicated experience. You will be glad you have Remax knowledge and experience at your side to help you through the process. Ayfert Barak will write up your offer to purchase and arrange to present it to the seller and his agent. He
will discuss and negociate the terms and conditions of your offer, and the seller will either accept it as written, make a counter offer, or reject it. The Promise to Purchase becomes a contract only when accepted copies have been signed and delivered to all parties.
MAKING A DEPOSIT
When you submit an offer, be prepared to make a deposit to indicate that you are serious about your offer. When the sale goes through, your deposit will be applied to the purchase price.
ORDERING A HOME INSPECTION
A professional home inspection is an essential step in the home buying process. Home inspectors see beyond the "cosmetics" and survey all parts of the house, including the structure, roof, exterior and major systems (electrical, plumbing, heating, cooling, and ventilation).Your Promise to Purchase should include a clause stating that the sale is contingent upon a home inspection. This contingency is meant to protect you against major structural flaws, but not the everyday "wear-and-tear" of a home.
APPLYING FOR A HOME LOAN
When you apply for your loan, your lender will give you a good faith estimate of your closing costs. This document estimates the amount of money you need for closing. The lender will also order an appraisal of the property to confirm it is adequate security for your mortgage. After the lender has verified the information, reviewed your credit history, and analyzed the appraisal, a commitment letter will be prepared. This document is a promise from the lender to give you a loan.
FAIR MARKET VALUE
DETERMINING THE PURCHASE PRICE
How much should you pay for a home in the West Island, in Montreal or in the Laurentians is inevitably the big question if you are considering to purchase. The answer depends on a myriad of factors, which singly or combined, affect market pricing. At RE/MAX Excellence Inc. we find that conducting a Comparative Market Analysis of a property eliminates much of the guesswork involved in establishing a fair market value and purchase price. Through an analysis of similar properties recently sold in the area, Ron can determine the most viable price range that you should pay for any given property. He provides this service at no charge or obligation, because he understands your need to have qualified information to make your decision.
Some of these factors include:
Current Local CompetitionSupplyDepreciationPolitical ClimateChanging DemandInflationConsumer ConfidenceEmployment MarketChanging TastesMost Recent SalesMortgage RatesCost Replacement Factor
EXPENSES TO PLAN FOR WHEN BUYING PROPERTY
EXPENSES TO ALLOW FOR PRIOR TO SIGNING THE DEED OF SALE
Building InspectionMortgage Arrangements: Conventional mortgages require 20 % cash contributionMortgages insured by CHMC require less than 20 % cash contributionOffer to Purchase Deposit
EXPENSES TO ALLOW FOR WHEN SIGNING BEFORE THE NOTARY
Notary feesTax redistribution and refunds: Refunds are calculated from the date of the signing of the deed of sale. You are responsible for reimbursing the seller for the number of days paid to date for Municipal taxes and School taxesHeating oil tank: The seller is required to have the tank filled on the day of the signing of the deed of sale and submit the invoice to the notary for reimbursement in full by the buyer.Electricity meter (Hydro Québec): The buyer and the seller must notify Hydro Québec of the date the property is scheduled to change hands, have the meter read, and ensure that all amounts owing are properly allocated.Homeowner Insurance: Upon signing of the deed of sale, you must present proof that you have contracted homeowner's insurance in an amount equal to or greater than the mortgage on the property.
Knowing what to expect when you buy a house can make the difference between a smooth transition to your new home and one that is stressful. Talk to Ron, he has helped over a thousand families buy a MONTREAL Home.
PREPARING TO BUY A HOME
VISUALIZE YOUR DREAM HOME
The best way to save time and energy is to write down everything you are looking for in a new home. Let your imagination go. Then, call Ron to discuss your goals.
PRIORITIZE YOUR NEEDS
After you create your "wish list," prioritize each item. Picture your family's everyday activities and habits. This will give you a clearer picture of the home that best suits your needs.
PUT THE PIECES TOGETHER
Analyze the locations and the neighborhoods you are considering. Remax can provide information on school systems, taxes, shopping centers, and cultural activities.
PRE-QUALIFY & PRE-APPROVAL
To save yourself time and possible disappointment, Remax always recommends using a qualified mortgage broker for pre-approval and clarification of your personal financial options before you start house hunting. Find out your mortgage limit and your down payment requirements. A pre-approval is a guarantee that you can qualify for financing to a maximum purchase price and loan amount.
FIRST TIME BUYER
The Home Buyers' Plan (HBP) is a government program which allows first-time home buyers like you to gain financial autonomy. You can become happy homeowners while at the same time building a retirement fund within a Registered Retirement Savings Plan (RRSP).
Is the HBP right for me? Of course! And what's more, while you're fulfilling your dream of owning a home, you'll also be getting income tax refunds worth thousands of dollars. For spouses who work, these refunds can be between $10,000 and $21,000, which is quite sufficient to purchase your first home. The HBP allows each taxpayer to withdraw up to $20,000,tax-free, from their Registered Retirement Savings Plan (RRSP) to purchase a home.
But I've never contributed to an RRSP... It doesn't matter. You can still take advantage of the HBP, as long as you are earning, or have earned in the past, an income entitling you to contribute to an RRSP. By contributing the maximum possible amount to your RRSP, you'll receive generous income tax refunds
But I don't have enough money to contribute to an RRSP...
It's easy to contribute up to $20,000 to your RRSP, because allowable unused contributions since 1991 can be fully used and deductible. Also, if you take out a 90-day loan from your financial institution, and pay it back immediately after the 90-day period using money withdraw from your RRSP, you will legally obtain your income tax deduction. Afterwards, you will have almost 18 years to reinvest the money in your RRSP, without interest. It's a simple strategy with fabulous results!
Tips for Buying a Property: Five Errors to Avoid
In light of the real estate market's expansion, RE/MAX wishes to inform new buyers looking for a house, condo or other property of the choices they must make with regard to mortgage loans and pre-purchase inspections.
1. Inadequate Mortgage Loans
Mistakes made when selecting a mortgage loan can prove costly and impede your lifestyle.
Like most people, you are probably unaware that there exists a simple way to calculate the monthly amount you can dedicate to a house, condo or other property while maintaining your lifestyle. Often times, brokers set this amount using the gross debt service (GDS) ratio. Besides your property's base cost, you must also consider real estate transfer rights, notary fees and moving expenses, as well as plan for additional funds in case of emergencies.
2. Failing to Secure Pre-Authorization on a Mortgage Loan
Many sellers will demand that potential buyers secure a pre-authorized mortgage loan. If your dream house is subject to several competing offers, such pre-authorization may give you an edge. Please note that this process may take several days once you've submitted the required information to your financial institution, such as proof of income and your down payment amount.
Should you meet all criteria stipulated by your lending agency, it will then provide you with a written pre-authorization. According to the Canadian Mortgage and Housing Corporation, said pre-authorization is subject to deadlines and does not guarantee the issuance of a mortgage loan.
3. Ignoring One's Basic Needs
Many future buyers don't always know exactly what they're looking for when they buy a house, condo or other property. You must take into account all amenities offered by the target neighbourhood, especially when leaving the city for the suburbs. For example, what is the walking distance to grocery stores, schools and banks within the area? While this is an important factor among many house and condo buyers, it is often overshadowed by the excitement surrounding the amount of bathrooms in a given house or the huge rooftop terrace above a condo. You should definitely write a list of your priorities, keeping in mind your day-to-day and family needs.
4. Foregoing a Pre-Purchase Inspection of Your Future Property
You should always conduct your own pre-purchase inspection, even if the seller proposes that you consult the report produced following a previous pre-purchase inspection or other buyers are lining up to submit a promise of purchase on the property you're considering.
Upon submitting a promise to purchase, make sure that a qualified inspector bound by the proper requirements will perform a thorough pre-purchase inspection of the property in question. All things considered, this initial investment of a few hundred dollars could end up saving you several thousand down the road.
5. Negotiating with One's Heart
Buyers and sellers often let their emotions override their reason. Indeed, feelings may impede negotiations. Unwittingly, sellers may attribute real value to their memories, which don't have any financial value among buyers. One must strive to remove all feelings from the equation.
RE/MAX, Québec's Highest Performing Network of Real Estate Brokers
Once you have fully analyzed your needs, contact a RE/MAX broker within your region, who will be able to guide you through the purchase of your chosen property. You may also consult current property listings in your target region at
http://properties.remax-quebec.com.
Why Choose a Real Estate Broker to Buy Your House, Condo or Other Property?
For most people,
buying a house, a condo or any other property represents the biggest investment of their life. With myriad of factors involved, such as research, visits, offers, negotiations and counter-offers, not to mention commercial, legal and financial details, this process is far from simple, especially when one is going through it for the first time. As such, the professional services provided by a real estate broker contribute to the success of each step of the purchase transaction.
As a buyer, the client will incur no real estate brokerage fees, as these will be borne by the seller. So, why forego such a service? The
real estate broker
will facilitate the buying process, taking charge of each step, while serving as an advisor and seasoned negotiator. The buyer will be guided through every step of looking for a
house, condo or other property, as well as the transaction itself, thereby guaranteeing peace of mind.
Each real estate broker boasts a broad field of expertise, which any property buyer can appreciate. Through their real estate brokerage training, they have access to several tools and an excellent network of contacts to properly advise their clients. As a financial advisor, building inspector and notary, a
real estate broker
leverages its network to facilitate every transaction, and can also provide many useful details on properties for sale.
Furthermore, their objectivity and expertise will be a boon during visits. Indeed, they will be able to remind buyers of their search criteria at all times, as well as any property details to check on before producing a promise to purchase. As such, despite emotions that may arise during the buying process, clients will be properly guided to an informed decision.
Teaming up with a real estate broker when
buying a house, a condo or any other property, also means benefitting from full protection under the Real Estate Brokerage Act, which stewards the profession and protects the general public.
RE/MAX, Quebec's Highest Performing Network of Real Estate Brokers
With approximately 3,500 real estate brokers across 136 offices*,
RE/MAX
offers you Québec's foremost real estate network to help you find your ideal property. RE/MAX brokers represent almost 19% of Quebec's entire pool of real estate brokers and controls nearly half of the market share, sometimes more in certain regions.
Contact the
RE/MAX office
of the sector that interests you to schedule a meeting with a real estate broker. Start looking for potential properties
online
right now!
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