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Buyer's guide

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Introduction to the Buyers Guide

 

Mortgage Premium

Depending on your down payment you will be required to pay an insurance premium to CMHC or Genworth Capital (which guarantees repayment of the mortgage loan to the bank in the event of your default to repay). The premium is a percentage of the total loan and is based on a 25 year mortgage.

For example:



95%

mortgage the premium is 2.75% of basic mortgage loan

90%

mortgage the premium is 2.00% of basic mortgage loan

85%

mortgage the premium is 1.75% of basic mortgage loan



If you have a mortgage of $200,000 with 5% cash payment your premium will be $5,500, which will be added to your mortgage. Your Mortgage Deed will read $205,500. The government taxes the insurance premium at 9%, which will be collected by the notary at the signing of the Deed of Sale.

 

Appraisal

Prior to a lending institution approving your mortgage loan, an appraisal of the property will be required in order to determine the value of the property. The final mortgage loan will be based upon the purchase price or the appraised value, whichever, is lower. If you do not take the mortgage you will be charged.

Mortgage Appraisal Fees: $295 -$500


Deposit With Offer

It is called "Good Faith Deposit". In Quebec you do not need to have a deposit with your offer, yet it does show the homeowner that your offer is serious. After the offer has been accepted you will need to certify the cheque. Deposits are from $2,000 and up. A deposit greater than $5,000 may earn interest for you until the signing of the Deed of Sale.

 

Building Inspection

We strongly suggest your offer includes a condition of having the property you are purchasing inspected by a building inspector within 5-7 days of acceptance of the offer. Make sure you use a building inspector who is qualified and covered by responsibility insurance.

A building inspector will explain how things function in the house, suggest how to make simple changes to the house that could improve the value or prevent further deterioration of an important structural element of the property. A building inspector will also point out items that should be corrected in the future (within 2-3 years) or should be corrected immediately. You should recognize that a building inspector is similar to a General Practitioner. When your GP finds something wrong with you, he will recommend you see a specialist. Only make a final decision, as to whether you want to cancel the sale or renegotiate the price, after having obtained an opinion from the specialist.

For example: You noticed that the roof looked a bit tired and knew that you will need to change the roof. The building inspector tells you the same thing yet he goes up into the attic and notices that the roof had leaked in a few places and that the insulation was wet and moldy and that the plywood sheeting was rotten. This you did not anticipate. A roofing specialist will give you a proper estimate of the cost to replace the insulation and the plywood. Armed with this estimate, you can request that the vendor reduce the purchase price accordingly.

Cost: $450 - $650

 

Certificate of Location

A certificate of location is a 4 or 5 page document detailing the property and building dimensions, and showing the footprint of the home on the lot, as well as, anything attached to it.

It is always a condition of your mortgage lender to request a new certificate of location and make sure the property respects the by-laws of the municipality regarding building codes, etc. If the new certificate reveals no major changes made to certificate of location, the surveying cost will be borne by you.

Cost: $650

Municipal Property Taxes

Municipal taxes are paid in two installments on January 1st and on June 1st . The amount payable will be half of the yearly municipal taxes.

 

School Property Taxes

School taxes are paid in one installment on July 1st.

 

Adjustment at Signing

The homeowner prepays the property and school taxes and depending on when you take possession of your home, the notary will make an adjustment in favour of the homeowner in an amount equal to the prepaid taxes.

 

Testimonials

97 Av. Charles
"We are writing to you in to express our appreciation and thanks for the service you provided us with the sale of our house and with the purchase of our new home.

Right from the moment we met you we knew that we wanted to work with you: your honest and frank approach, your determination and your professional experience were a clear signal that would build a working relations based on trust. And trust was an essential attribute we were looking for.

...Thank you for being so thoroughly professional. We wouldn’t hesitate to call you back in the future or to recommend your services to our friends."

 

 

214 Rue Frontenac
Scott and I would like to thank you for all your help in selling our house and in buying our new one. We never would have imagined putting in offers on 5 other houses before finding the house that was meant to be ours. We are really happy with our decision and believe it will be a great house and neighborhood to raise our family. We appreciate all your guidance, help, professionalize and patience in helping us buy our new home.