Purchasing a house process
Finding a Mortgage Expert and Processing Your Personal Data
Phone conversation with Your Mortgage Expert
Since each lender offers different programs, this meeting will help your mortgage broker determine which lenders would be best secure the mortgage that will meet your needs. With the information from this meeting, you’ll also be able to go back to your realtor, who will then have search parameters to find properties that meet both your needs and your wants. At this stage, the mortgage broker will send you a list of documents to prepare. Good preparation will save you both money and time! To see the list of documents you will need, please either click here or call us!
Finding a Good Realtor
We have a small, quality list of realtors which we work with, ones who work in focused areas and bring an exceptionally high standard of work to the table. We’re more than happy to share our realtors, and why we chose them, with you.
Making an Offer
Subject Removal Term
Financing Commitment: In most cases, the bank will give you an approval that will indicate the mortgage amount and offered terms. Sometimes, the offer that your bank will extend is insufficient, and so it’s important to have enough time to approach other lenders should the need arise. It’s important to know that your bank commitment will have conditions, or requirements, of you. Should you fail to fulfill any of the conditions, even the tiniest ones, the bank will have the right to withdraw their mortgage offer. One of the terms, which takes 3-4 working days, is having the house appraised within 30 days. You pay for the appraisal as part of the expenses of purchasing the house, while the bank orders the appraisal and owns the documents.
At this point, if you have a down payment that is less than 20% of the purchase price, you will have to be approved by a mortgage insurer, Genworth Canada Guaranty, or CMHC. This takes time, and does not always have a positive result. Our process accounts for time to prepare upfront so that we will be able to satisfy all of the bank’s requirements and have all conditions checked off to ensure that, when the time comes to remove the subject of financing, you have a confirmed mortgage with no risk of the bank cancelling.
Locating a Solicitor: At this point, you will need to select a lawyer or a notary public who will act on your behalf in transferring the ownership of the property from the sellers to you. They will receive their commission as part of the purchase expenses. Sometimes, you’ll be able to choose an attorney from the general pool of attorneys who practice real estate law in your area, whereas in some cases, you’ll be limited to a specific list of attorneys. In either case, it’s important to get recommendations from your friends and other trusted people in order to find a good lawyer. We’ll be happy to help you and to recommend our trusted solicitors.
House Inspection: Inspection is not mandatory and the cost can get to hundreds of dollars. Still, we highly recommend having one done, especially when purchasing a debauched house. Given the cost of real estate in Canada, buying a house with a few known problems can be an expensive mistake. It’s important to remember that most houses in Canada are built of wood, and the foundations and structure are sensitive to weather, humidity, and water damage. In Europe, a leak in the washroom and a spot on the ceiling usually means you fix the leak and paint the ceiling. In Canada, a water leak can destroy the house’s structure from inside the walls, requiring tens of thousands of dollars of professional repair. If the leak is in a condo, the condo will have an assessment against it, and both banks and insurers might refuse to finance it.
The Day of Subject Removal
Waiting to Get the Keys
Bank meeting: Some banks will require a mandatory meeting at the branch as a condition of taking the mortgage. At this meeting, you’ll set up an online account, and you’ll be offered other services from that bank.
Meeting with the lawyer: A few days before getting the financing and the keys, you’ll meet with an attorney to sign all of the original documents, register the house, and transfer ownership. The lawyer will explain the details of the mortgage contract and answer all of your questions. Don’t hesitate to call your mortgage consultant for any clarification, even if you’re sitting in the attorney’s office. It’s important to know that your attorney is the one who coordinates everything financially. On the day you complete the sale, the certified cheque you deposited on the day of subject removal gets transferred from the seller’s realtor’s trust account into your lawyer’s trust account. The mortgage funds are also deposited into your lawyer’s trust account; they then calculates the final balance, including their commission, insurance, provincial and federal taxes, and anything else included in their instructions from the bank.
Finding a moving company: Taking care of this in advance will pay off. Most moving companies are very busy at the beginning and end of the month, especially in spring and summer. Contact us to learn about how our experts can pack and move your house in less than one day.
Transferring utilities: You’ll need to transfer your telephone, cable, internet, electricity and gas, disconnecting service at your old home and connecting it at the new location. It’s important to budget a few hundred dollars for the fees and deposits as part of the expense of purchasing your new home. Start this process a month in advance in order to give the utility companies notice to coordinate technicians to complete these services.
Date of Possession
Focused mortgage approval process
COMPLETE OUR FORM
All it takes 1-2 minutes to send us your form. You can expect a response from us within 24 business hours. We’ll set up time for a quick phone conversation to determine how we can help you. Once we see we can get you the value you need, we will collect all information needed to immediately submit your file to specific lenders.
Our process begins with us collecting your supporting documents, things like ID’s, tax documents etc. We need these so that when we contact a lender on your behalf, they will not only approve you, but will also take the next step and confirm your income in order to offer you a fully guaranteed mortgage commitment. Giving us your documents upfront serves you in that we are able to perform a focused search among 40+ lenders and find you a tailored mortgage solution, the best mortgage rate and best mortgage terms.
A mortgage can be arranged within very short notice. Our record is set today at 11 hours from initial call to funding for a private mortgage, and 5 business days from the first call until the keys were in our client’s hands, for a conventional mortgage(!). Having said that, it is always better to take the needed time to properly lead a controlled and focused process. We are here with you along the way and long after you conclude it, as we constantly oversee the market to discover opportunities for our clients to cut costs.