First Time Buyers

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The home buying process can be long, time intensive and a whole new learning process. This is why you’ll want a team of professionals helping you along the way.

The Real Estate Agent

Realtors have the most important role in helping you find a home. Their job is to:

• Help and facilitate in finding the ideal home for you.
• Write an Offer of Purchase.
• Negotiate on your behalf to help you get the best possible deal.
• Provide you with important information about the community, show you comparisons of homes that have sold in the area, help you arrange and coordinate a home inspection and essentially save you time, trouble and money.

The Lender or Mortgage Broker

It is recommended that you get pre-approved for a mortgage prior to shopping for a home as it will give you a better understanding of what you can afford.

Some people find it helpful to use a mortgage broker. Mortgage brokers don't work for any specific lending institution. Their role is to find the lender with the terms and rates that will best suit the buyer. Typically because of the repetitive business they do with banks, their rates tend to be slightly lower.

The Lawyer/Notary

You need a lawyer/notary to protect your legal interests, such as ensuring the property you are thinking of buying does not have any building or statutory liens, charges, work, or clean-up orders associated with it. He or she will review all contracts before you sign them, especially the Offer (or Agreement) to Purchase. Having a lawyer/notary involved in the process will give you peace of mind and ensure that things go as smoothly as possible.

Some key notes to remember when looking to hire a lawyer:

• Should be a licensed full-time lawyer/notary.
• Should be local and understand real estate laws, regulations and restrictions.
• Should have realistic and acceptable fees.
• Should be able and willing to explain things in plain language.
• Should be experienced with condominiums (if you are purchasing a condominium).

The Home Inspector

It is always a good investment to have your home inspected by a licensed home inspector. It is recommended that you include a “Subject to Home Inspection” clause in your Purchase and Sale agreement.

The home inspector’s role is to inform you about the property’s condition. The home inspector will tell you if something is not functioning properly, needs to be changed or is unsafe. You will also be informed of repairs that need to be made and maybe even where there may have been problems in the past.

Every inspection should include a visual assessment of at least the following:

• Foundation.
• Doors and windows.
• Roof and exterior walls.
• Attics.
• Plumbing and electrical systems (where visible).
• Heating and air conditioning systems.
• Ceilings, walls and floors.
• Insulation (where visible).
• Ventilation.
• Septic tanks, wells or sewer lines (if inspector is qualified).
• Any other buildings such as a detached garage.
• The lot, including drainage away from buildings, slopes and natural vegetation.
• Overall opinion of structural integrity of the buildings.
• Common areas (in the case of a condominium/strata or co-operative).

A good home and property inspector generally belongs to a provincial or industry association. Home inspector fees are in the $500 - $700 range and depend on the size and condition of the home. A home inspection will give you peace of mind and may save you from purchasing a home that may not meet basic living standards.

The Insurance Broker

An insurance broker can help you with your insurance needs, including property insurance and mortgage life insurance. Lenders insist on property insurance because your property is their security for your loan.
Your lender may also suggest that you buy mortgage life insurance. Mortgage life insurance provides coverage for your family if you die before your mortgage is paid off.

Be careful not to confuse property or life insurance with mortgage loan insurance, which may be required for high-ratio mortgages.

The Appraiser

Having an independent appraisal done on a property before you make an offer is a good idea. It will tell you what the property is worth and help ensure that you are not paying too much. Your lender may also ask for a recognized appraisal in order to complete a mortgage loan.

Appraisal fees may vary but you should not pay more than $250 – $350 in most areas.