Buying a Home

Mortgages

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If you are just getting started in the hunt for a new home, it's important to know the difference between pre-qualifying, pre-approval and a loan commitment. It is not enough to simply begin looking for the home of your dreams. It is critical that you determine the price range that you can afford, get qualified for a loan and understand all of the steps to assist you in securing that perfect property when you find it.

Pre-Qualification

Pre-qualification does not mean that you have been approved for a loan, but it is an important component of the home buying process. You have to know what you can afford before you look. Pre-qualification will save you time and ultimately money.

Pre-Approval

It is a good idea to plan on getting pre-approved for a mortgage. Pre-approval is a firmer commitment that is based on more information than pre-qualification. A mortgage broker or lender will need to do a thorough credit investigation and it is particularly important that you disclose all financial information that is requested. The amount that you are approved for will be the amount that the lender is committed to loan for the purchase of a house.

Getting pre-approval may give you more bargaining power when you are negotiating the price of a home. If the seller knows that you are approved for the loan already you may have more leverage. Some real estate agents won't waste their time showing homes to potential buyers who do not have a pre-approval, especially in a hot market. However, pre-approval doesn't necessarily mean that you will ultimately get the loan. The final approval will still depend on verification on the information provided and also approval of the home you wish to purchase.

Home Buying: The Closing Costs

It’s easy to count your available cash, but remember that all of these cash savings cannot be used as your down-payment. There are last-minute costs, such as taxes, legal fees, appraisal fees, moving expenses, and home insurance to pay before you are finally in your new home. The time to budget for those ‘end’ expenses is now. You must be prepared to pay most, and perhaps all, of the following closing costs:

BC Property Transfer Tax

When purchasing a home in BC, the purchaser (Buyer) is charged a Property Transfer Tax of 1% on the first $200,000 and 2% on the balance.

(For further information, contact the Property Transfer Tax office in Victoria at www.gov.bc.ca/sbr .

Tax HST (Harmonised Sales Tax)

For further information contact Canada Revenue Agency at www.cra-arc.gc.ca.

Property Tax

If the current owners have already paid the full year’s property taxes to the municipality, you will have to reimburse them for your share of the year’s taxes.

Appraisal Fee

When the lending institution requires an appraisal of the home before approving your loan, it may be your responsibility to pay the appraiser’s fee. The approximate cost is $300 to $400.

Survey

The lending institution may also require that a survey certificate be presented to them. The purpose of the survey is to formally establish the boundaries of the property and to ensure that all buildings are within those boundaries.

Note: Lending institutions may ask for either a building location survey, which establishes where a building is located on a property, or a monumental survey, which establishes the actual boundaries of a property. If the current owner cannot provide a recent survey certificate, it will be your responsibility to pay the surveyor’s fee. The approximate cost is $300.

Home Inspection

The approximate cost is $300 to $500. It’s best to obtain a building inspection during the offer stage of your purchase (unless you are purchasing a new construction).

Types of Housing Ownership

While there are a variety of housing ownership interests, the most common include the following:

Freehold

A freehold interest (also known as fee simple) is the more precise term for what we ordinarily refer to as ‘ownership of a home’. The owner of the freehold interest has full use and control of the land and the buildings on it, subject to any rights of the Crown, local land-use bylaws, and any other restrictions in place at the time of purchase.

Strata Title

The strata title form of ownership is designed to provide exclusive use and ownership of a specific housing unit (the strata lot) which is contained in a large property (the strata project), plus shared use and ownership of the common areas such as halls, grounds, garages, elevators, etc. This type of ownership is used for duplexes, warehouses, and many other types of buildings. In addition, some single family home developments may be part of a bare-land strata development. Because ownership of the common space is shared, the owners also share financial responsibility for its maintenance.

Leasehold

In some cases, you might purchase the right to use a residential property for a long, but limited, period of time. The owner of this right of use has a type of ownership called a leasehold interest. This type of ownership is used most often for townhouses or apartment built on city-owned land. It is also used occasionally for single detached homes on farm land, First Nation reserves, and apartments where the owner of the freehold interest of an entire apartment block sells leasehold ut regardless of the length of the original term, you will only be able to purchase the remaining portion. Of course, the shorter the remaining portion, the less you, or the person who eventually purchases from you, will be willing to pay for the leasehold interest.

Cooperative

In the cooperative form of ownership, each owner owns a share in a company or cooperative association which, in turn, owns a property containing a number of housing units. Each shareholder is assigned one particular unit in which to reside.

Our Services

Deciding whom to represent you is the most important decision you will make in the home buying process, next to actually choosing a home. We will provide counsel from start to finish in the following areas that are critical to achieving a satisfying and happy real estate experience.

As Realtors, we work within a legal relationship called Agency. The agency relationship exists between you (the principal), and the brokerage (Macdonald Realty), the company under which we are licensed. In Canada, real estate buyers work with one real estate agent, who is responsible for finding all available properties in their price and preference range, setting up showings, performing due diligence on potential acquisitions, and representing the buyer in all negotiations.

Stage 1 - Needs Assessment

  1. The needs assessment provides us with a clear picture of what your needs and wants are in a home and neighbourhood. The right property at the best price and terms.
  2. We discuss financing, motivation and timing.
  3. We will offer guidance regarding competent conveyance lawyers, mortgage brokers and qualified property inspectors
  4. We provide you full confidentiality

Stage 2 - Property Selection

  1. The way we increase the pool of suitable properties is by accessing private for sale, exclusive and expired listings plus the MLS.
  2. We can promote your search via “property wanted”, and directly to owners of properties that may be of interest to you.
  3. We provide you with first opportunity to view new listings and/or we can preview properties for you.
  4. We will look at properties priced higher as well with the aim to negotiate down.
  5. We will act as your trusted advisor and represent you, not the Seller, in the process of acquiring what may be your biggest asset.
  6. We will keep you abreast on the most up-to-date listings in your price range and provide you with the most recent ‘solds’ in your area

Stage 3 - Viewing Properties

Viewing properties can be a time consuming process. We have an obligation to provide you with service and advice, we clearly understand that you are the decision maker though you may rely on our advice.

  1. We will give you advice accompanied by facts. We will help you make objective evaluations on properties. This includes both the positive and the negative aspects of the issue.
  2. We will educate you with comparisons of competing properties.
  3. We will make you aware of current issues that could affect land value. We will disclose to you material facts such as proposed zoning and land use changes, proposed highway construction, planned residential, commercial or industrial construction.
  4. We will suggest alternative properties that may be in your best interest.

Stage 4 - Negotiating the Offer to Purchase Contract

  1. We will give you advice with facts
  2. We will negotiate on behalf of you, not the Seller
  3. We will strengthen your negotiating position
  4. We will share all information about the Seller with you
  5. We will negotiate the best price and terms for you that meet your needs and budget
  6. We will prepare a reasonable and binding offer
  7. We will put you at ease and answer all of your questions in an open, honest and frank matter

Stage 5 - Negotiating the Purchase Contract

  1. We will suggest strategies, tactics and techniques that will strengthen your negotiating position.
  2. We will negotiate on behalf of you. Once the strategy has been formulated, we will implement the contract on your behalf.
  3. We will disclose all information about the Seller with you (unless you the Client agree otherwise as in a disclosed limited dual agency situation agreed to by both parties) that could aid your position.
  4. We will provide price information about similar properties that have sold recently or are currently on the market.
  5. We will recommend protective clauses for the Purchase Contract to safeguard your interests.
  6. We can suggest financing alternatives that could be advantageous to you.
  7. Continue all services to you during the negotiating process.

Stage 6 - Follow Through After the Offer to Purchase Contract

  1. We will endeavour to solve problems to your advantage and satisfaction
  2. We will keep you and the sellers Realtor informed throughout the process
  3. We will be present during the Inspection and answer all of your questions in an open, honest and frank matter.
  4. We will go through all the documents with you. Including all strata documents.
  5. We will do our best as your advisors, to help you achieve a satisfying and happy real estate experience.

Our Relocation Specialists are available to assist you, at no cost to you, with any questions regarding living in Vancouver or to provide assistance with relocation to this beautiful part of the world

Buying or selling your home will be both an efficient and enjoyable process if you have the right help. Thorough market knowledge, excellent negotiation skills, a proven track record and efficient customer service are all essential in a Realtor. With us leading your sale or purchase you will have enthusiasm, energy and good humour added to the process. Honesty, integrity and excellent communication skills will combine with the above to make your real estate experience one which you will want to recommend to others. Our experience ensures that your largest investment delivers the return and experience you deserve. We provide real help and achieve real results and are “Dedicated to your Success”.

Helpful Resources

Government Sites

Vancouver (BC)

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Testimonials
MR and MRS Cleator

Geoff was our realtor and friend in helping us to make our first property purchase in B.C. We found him...

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