1. You will require a minimum 15k – 45K deposit in the form of a bank draft to accompany an Offer. This number will increase in direct proportion with the list price of home being purchased. Five percent is the easiest calculation, but you can provide less if necessary. Having your deposit in hand can put a bit more strength behind your offer, but failing that, you have 24 hours to deliver the agreed upon deposit to the Listing Broker. This will be credited to your purchase price.

  2. Meet with a Mortgage Broker or Bank Representative to determine up to what purchase price you can afford. Have he, or she, explain the difference between ‘Pre-approval’ and ‘Approval’. Very important to understand.

  3. Closing costs average approx $1500.00 for Legal Fees, so calculate that factor in when estimating costs. Also determine Land Transfer Taxes. If you are not a first time Buyer, then they average 2% of purchase price for Provincial Taxes, and if Buying in Toronto, an additional (approximate) 2% is payable for Municipal Land Transfer Taxes. If you have less than 20% down there is a one-time, CHMC penalty that is added to your mortgage. If you have 20% equity to put in, then there is zero premium to be paid. As your equity amount moves down from the 20% benchmark, the payment increases. Finally, set aside a few dollars for unexpected ‘surprises’ when you move in. Everything works until it doesn’t.

  4. A home inspection cost approximately $500 - $700 and it should be listed as condition for purchasing the home. If the owner has had the home pre inspected by a reputable Agency, then you may feel comfortable using it as a reference. You can still request your own inspection within your Offer.

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