This may seem like a no-brainer, but I have seen more people than I can remember skip this step. (Resist the urge to walk in the wrong direction.)

It is critical—before you go house hunting—to go through the pre-approval process. Here’s what we cover in your first consultation:

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1. Application Review

How will the bank look at your application?

2. Budget

How much can you afford? What are the hidden costs of buying?

3. Mortgages

How do you select a mortgage, given the current uncertainty with long-term interest rates?

4. Pre-approval Letter

How do you get one and how do they help?

5. Rate Holds

How do they work and how they can reduce your borrowing costs?

This step lays the groundwork for the rest of the home-buying process.

This is where the fun begins. With your budget from Step 1 firmly in hand and your realtor by your side, you will begin to look at properties that fit your criteria.It is a good idea to make a list of “must-haves” and “would-like-to-haves” to help you keep your focus. It is also important to think about the location. You are not just buying a property, you are also choosing to live in that neighborhood.

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Pro Tip

Always use a local realtor as they will have insider knowledge of neighborhoods and the different areas of the city.

Once we receive your accepted offer, we will confirm the final details with you before submitting your application for approval.

Based on our consultation in Step 1, we will get you a mortgage that fits your needs. Until we have an approval for your application, our office will be in touch with you and your realtor daily.

Once approved, we will meet with you to review and sign the approval and to answer any questions you may have. We will also review your closing costs so you are aware of the amount of money you will require for

Step 7.

Your closing date was negotiated with your initial offer (in Step 4). Usually, about seven to ten days before closing, your lawyer will arrange to meet with you to sign the final documents. They will also let you know the exact amount of the closing costs.

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Pro Tip

If the amount of your closing costs varies significantly from the amount we calculated in Step 5, ask our office for a review.

Here’s the minimum documentation your lawyer will ask for

1. Two pieces of ID
2. A certified cheque or bank draft for the closing costs

Pop Quiz

How much does a realtor cost you?

Answer

Nothing! For a buyer, they are free.
Because the seller pays for both realtors, you would be crazy not to have your own realtor. The listing agent will happily work with you and get you to sign a Limited Dual Agency Agreement, which acknowledges the realtor’s conflict of interest and asserts that they will do their best to be neutral.

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Pro Tip

You do not want a neutral realtor. You are spending far too much money to be represented by someone who is neutral.

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Do not move on to Step 3 until you have found a realtor—one who will work for you, not the seller.

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You have found the home you love and are now ready to  make an offer.  In your offer you will want to include certain conditions precedent (subject to) clauses.  It is important to always make the offer subject to financing and subject to inspection.  Once you and the seller have agreed to the terms and have signed the contract, your realtor will provide us with a copy.

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Pro Tip

If you are purchasing a strata unit, you must review the strata documents. They can alert you to any problems with the building or any upcoming special levies that could cost you more money.

Once all of your conditions are met (the “subject-to’s” from Step 4 have been removed), you will write a non-refundable, certified cheque that will be held in trust until closing. This deposit forms part of your down payment and is given early as a commitment that you are going to purchase the property.

Under most circumstances, the cheque is not written directly to the seller but is held in trust by a third party such as your lawyer or realtor. (If you are unclear about this, contact our office and our lawyer can provide specific advice.)

In most cases, this is the point of no return. Breaking the contract at this point can result in you losing your deposit, and possibly being sued.

As one of my friends puts it, “You legally have to purchase the home, but on the flip side, the sellers legally have to sell it to you.”

Congratulations! Once your lawyer has submitted the transfer documents in the Land Title Office for registration and sale proceeds have been delivered to the seller's lawyer, your realtor will give you the keys to your new home.  Whether this is your first home or your tenth, we are so excited for you! We love helping people finance homes.
Our office will contact you about a month after you have settled into your new place to ensure that your payments are coming out as planned. We will also be in touch whenever we see an opportunity to further optimize your mortgage.
Okay, It’s a Little Different from a Trip to Ikea
Of course, buying a home is a little more complicated than a stroll through the aisles of Ikea.
This guide is meant to be like the store map on the wall at Ikea. It won’t show you everything on the shelves, but it will give you a general idea of where everything is and what is supposed to happen when.            
Use it to help you get the layout of the process.