Your ability to purchase a home will come down to three general factors:

1. How much money you make
2. How much down payment you will provide
3. The strength of your credit score

Your income will need to support your mortgage payments, and will be weighed against the debt you currently carry to maintain your lifestyle.

Your credit score will need to be considered good enough to prove your credit worthiness in order for the lender to provide you financing. You can check your own credit score for free using services such as Equifax, Transunion, or Credit Karma. However, note that when a lender reviews your mortgage application, they will search your credit history and score on their own systems to determine your eligibility for credit.

Your down payment is the cash you will be required to have in order to finance the purchase of your home. For example, if you have a downpayment of $100,000 and you’re purchasing a $700,000 property, the lender will issue you a mortgage for the rest of the amount. It’s easy to assume that it will be $600,000, but mortgage amounts may be a little higher if you require mortgage loan insurance.

In Canada, there is a minimum down payment requirement depending on the purchase price.

Before looking at homes, you will need to ensure you are pre-approved for a mortgage. You can speak to your bank, other lending institutions or a mortgage brokerage to explore your options. We suggest that you talk to several lenders to shop for a competitive interest rate and favorable mortgage terms.

A mortgage pre-approval matters because it gives you certainty on your purchasing power and provides an advantage if you find yourself in a multiple-offer scenario on a property you like.

It’s important to understand the difference between a pre-approval and a pre-qualification. They may sound the same, but they are two entirely different things.

A pre-qualification is when you inquire about how much you can afford to borrow from a lending institution, and you provide information and/or documents that are yet to be verified. For example, a mortgage specialist at a bank may tell you you’re qualified to purchase a property up to $800,000 based on your income, your debts, and your financial situation, but without actually going through the verification process of your employment, your documents, and your credit score, the lender can’t guarantee you that they will finance your purchase.

A pre-approval only comes after the lender has had an opportunity to scrutinize your financial situation and is a much stronger guarantee that you will get a mortgage. Even then, there are instances where a pre-approval can be withdrawn from a lender, so it’s important to be aware of the circumstances that may affect your ability to get financing.

It seems like real estate agents are everywhere. How do you know how to choose the right agent to help you and your family with your home purchase?

A good real estate agent will have deep knowledge of the local real estate market and be able to help you determine the right offer price when you’re ready to buy. They will be ethical, honest, and reliable and work hard to make you feel valued and understood. Most importantly, they will negotiate on your behalf to get you the best possible deal on your home.

By choosing RE/MAX Team Paliwal, you benefit from:

• Market Insight: Accurate information to avoid overpaying.
• Comprehensive Listings: Awareness of all available and upcoming properties.
• Updated Market Data: Informed decision-making.
• Best Financing Options: Securing favorable rates and terms.
• Protected Interests: Confidence and reduced stress.
• Strong Negotiation: Experienced negotiators on your side.

Our Home Buyer Service Program is designed to empower you with essential market information and advantages. Here’s what you can expect:

• No Fees: No cost to you as a buyer.
• Extensive Listings Access: From various search programs.
• Expired Listings Database: Explore homes that may reconsider selling.
• Proactive Prospecting: Finding potential sellers in your desired area.
• FSBO Homes Access: Discover homes not listed with agents.
• Up-to-Date Deals: Including new MLS listings, price reductions, and more.
• Market Information: On mortgage changes, price trends, and local updates.
• Years Of Experience: 40 Years of combined experience as a small family team.
• Highly Rated Team: Rated among top 50 teams across whole Canada by RankMyAgent the only most trusted portal, approved and recommended by REALTOR.CA and RE/MAX Canada.

We are proud of our tried and tested home buying process that has already helped hundreds of happy clients. This includes an important initial consultation where we discuss your home preferences and better understand your unique needs.

Being new to the home buying process can be overwhelming, so this is a great opportunity to ask any questions you have about the journey so that you feel comfortable and informed.

We will also explain the benefits and protections of having our team represent you in your purchase, and you’ll walk away with a clear picture of our obligations and duties to you and your family. 

Looking At Properties

One consideration to think about is whether or not it’s better to buy a brand new home from the builder or a resale home from MLS. Similarly, if you’re looking for a condo, you will also have an option to buy a pre-construction condo from the builder versus a resale condo. The best choice largely depends on your own circumstances and finances, and we can provide you with more insight so that you can make an informed decision for your family.

If you decide you want to buy something more immediately, you’re going to be looking at resale properties, and this is when the fun part begins because you get to book appointments to see homes in person with us! Team Paliwal will provide you with an updated list of properties in the areas of your choice that fit your criteria. Of course, if you find any other properties on your own, we can look at them as well. Just let us know the addresses and we can arrange the showing appointments with the listing brokerage.

We suggest that when you start the showing process, you look at as many homes as possible so that you can get a better sense of what you’re looking for. As you continue to see homes, it’s important to refine criteria so we can narrow down potential properties to find the perfect home for you!

Look for homes that are slightly under your budget to give you some wiggle room, and be open-minded to other areas and neighborhoods that you may have not considered before. Our team will be there to provide you all the background information you need on the properties, the areas, and market insights.

When we find your dream home, you’ll be ready to place an offer!

Making An Offer

Submitting an offer on a property that’s listed for sale requires careful preparation, important documents, and strategic negotiation with the listing brokerage.

Before we submit an offer, we’ll cover the following with you:

• Comprehensive Market Analysis: Evaluate market data to determine a reasonable offer price.
• Understanding The Process: From the deposit, to the importance of timelines, and what you can expect during the negotiation.
• Offer Preparation: Ensure the offer contains clauses that protect you and meets your needs.
• Understanding The Terms: Being informed about all the documentation you are signing.

Having Your Offer Accepted And Next Steps

If your offer is accepted but contains conditions that need to be met in order for it to be a completed transaction, you will need to address these conditions as soon as possible. Most home purchases will require a home inspection and a final financing approval before a deal is considered firm. And also a Status Certificate review in case of Condo purchase.

Our team will guide you through the process of your home inspection to ensure that if there are any potential issues with the property, we understand our options and how to best proceed forward. In the case of major deficiencies, this could include requiring the seller to repair or replace components of the home, provide us a reduction on the purchase price, or even terminate the deal. 

At the same time, you will likely need to submit your offer documentation to your lender so that they can give a final approval on your mortgage. There are lots of moving parts and tight deadlines, but our team will ensure that every important element of the process is completed.

If all the conditions are met and the deal goes firm, congratulations… you have just bought a home! We will assist in providing your documents to your real estate lawyer so that they can begin work on finalizing the final steps on your home purchase.

As a rule of thumb, you will want to budget approximately 1.5% – 4% of the purchase price towards closing costs. This will depend on whether you’re purchasing in Toronto (which has both a provincial and municipal land transfer tax), and if you’re getting a land transfer tax rebate as a first time home buyer. The maximum rebate amount is currently $4,000.

• Down Payment Balance
• Mortgage Fees
• Mortgage Insurance Premiums
• Land Transfer Tax
• Title Registration Fees
• Title Insurance
• Legal Fees
• Pro-Rated Utility and Tax Costs
• Home Insurance
• Moving Costs

Many buyers have successfully navigated the home-buying process with our help. Here’s what some of them had to say:

“We had a fantastic experience with Gyanesh and TEAM Paliwal. Their professionalism and support made our home buying journey smooth and stress-free.”

“TEAM Paliwal helped us find our dream home within our tight timeline. Their expertise and dedication were invaluable.”

Remember, you’re not alone in this journey. RE/MAX Team Paliwal guides you every step of the way, ensuring a smooth and successful home-buying experience.

The first step is to schedule a no obligation in-person or zoom video call meeting to understand your unique needs. 10 out of 10 buyers have found this initial meeting to be extremely useful in their buying journey. Contact us today!

Picture by Dillon Kydd on Unsplash