Congratulations, you are thinking of purchasing a home.
The first steps to take are to find resources and to ask questions, so you are better informed when making your first home purchase.
The following information is provided to help you address some of the questions or concerns that you may have.
Buying a home is one of the biggest decisions you will ever make. It is important to plan, prepare and educate yourself in order to make a good decision.
All potential buyers must consider their personal needs carefully before taking on this responsibility. Knowing the advantages and disadvantages of becoming a homeowner can help ensure that an informed decision is made:
It is important not to get overwhelmed by the disadvantages listed. Owning a home is a long-term investment and will always be one of the best investment opportunities available.
If approved in this program, don’t forget you will have to give your landlord required notice of your intention to vacate.
Review this list of statements below. If most or all of these apply to you, then you may be ready to buy a home.
The purchase price of your home is only one of the costs you will encounter. The following is a brief outline of the additional costs for buying a home, aside from the down payment and purchase price.
A fee may be charged by a mortgage broker to arrange a mortgage on your behalf. This is payable at the time of closing.
The inspection protects the buyer by revealing any problems in the property that you would want to know before you move in.
If you are applying for a high ratio mortgage (if you are making a down payment of less than 20%), you will have to pay for mortgage default insurance which protects the lender against default.
You are expected to pay all legal fees required to arrange a mortgage on the purchase of your home. You must also pay for disbursements which are the costs involved in conducting a title search, drawing up the title deed, and preparing and registering a mortgage.
Payable by anyone who purchases property in Ontario. It is calculated based on the property’s purchase price and varies from 0.5% to 2%. A realtor or lawyer can help you calculate the tax you will pay on your purchase.
As of December 13, 2007, first-time buyers of resale homes will be eligible for a refund from the provincial government of up to $2,000 of the Land Transfer Tax paid.
For more information, visit the Land Transfer Tax Refund Program for first-time home buyers.
A real estate agent will have considerable knowledge about market values and homes available in a given price range that can match your needs. While working with you to find a home that suits you, the agent will be able to do the following:
Ministry of Municipal Affairs and Housing (MMAH)
Region of Peel
905-453-1300, ext. 3589
Financial Consumer Agency of Canada (FCAC)
Multiple Listing Service (MLS)
Revised: Monday July 29 2013