If you are purchasing a home under $500,000 you can put a minimum of 5% down (ex $400,000 home you would need $20,000) If you are looking at a home between $500,000 to $999,900 You are able to put down 5% on the first $500,000 and 10% on the remaining (ex Purchase price of $850,00 you would need $60,000 for a downpayment)
If you are looking for a home over a million you will need a minimum of 20% down (ex on a home that is 1.5 million you would need $300,000)
If you are serious about starting to shop for a home or it is a goal for yours to own a home one day. It is good to get proper pre approval or advice from a Mortgage broker. This is not something that an online calculator or your accountant can do. The mortgage broker digs deep into your financial health and history. They will normally need to see two years of your taxes, pull your credit etc.
If you are planning on the future a Mortgage broker can break down what you need to do whether that is in proving your credit, making more money, increasing your savings or opening more trade lines to show you can manage debt. If you want more information on this process, contact Andrew Wade at findmeamortgage.ca.
If you are a first time buyer you can be exempt from property transfer tax. You must have never owned a home in the world and lived in BC for 12 months. The home must be under $450,000 or if you are purchasing a brand new home from a developer the home must be under $750,000.
As of February 2018, the Foreign Buyers Tax is 20% in Greater Vancouver regional district, Capital Region District, Fraser Valley, Central Okanagan and Nanaimo Regional District. For a full map of the regional district areas in BC, click here.
GST is normally applicable on homes that are brand new or if homes have been run as a business. Your Realtor can advise you on what clauses you need in a contract if you are not sure if GST is applicable as you never want to be caught years later with a bill for GST on your home purchase.
A condition or subject is in the purchase and sale contract for a buyer to do their due diligence and get their mortgage loan approved. On our purchase and sale contracts we have some standard conditions built right into the contract. We also have a lot of conditions and clauses that can be added in as each sale can be unique. If you have any questions or would like to know more please contact us to discuss.
Just because you have a pre approval with a rate hold does not mean you have your financing in the bag. The lender will want to see a full purchase agreement with the property disclosure statement and tax information. They might also do an appraisal on the home which is always done once you have an accepted offer not prior too. The lender might also ask you for updated documents or extra documentation so be prepared to provide that information to your mortgage broker in a timely manner.
On our purchase and sale contracts we have some standard conditions built right into the contract.
If you would like to see a purchase and sale contract please click here.
The best answer is that it depends, some contracts will only have a couple of days where while others might have 6 weeks if someone has to sale their house.In the hot market of 2016 we saw most contracts being unconditional which took a lot more work as you would have to do everything prior to making an offer and very quickly.
This is great and now you have a firm deal! Once you remove your subjects, you are required to provide the deposit that you agreed upon in your contract. This is usually required within 2 business days of removing the subjects, it makes up part of your total down payment and will be taken into consideration at the time of closing. There are a few steps that you also need to take care of as well.
A deposit forms part of your down payment however it is collected normally by your realtor and held in the Realtor brokerage trust account until the closing date of your new home.
The short answer is YES! When you are buying a home using your own Realtor to represent you is free to you as the seller normally pays for their commission.
The short answer is NO. In BC the rules changes in 2018 not allowing any dual agency if you do make an offer with the seller Realtors will be considered unrepresented which means no advice or help whatsoever. You might think it's no big deal or that real estate is straightforward and you rather save a few dollars however click here for a real story that happened to one of our team members when buying their first condo.
Andrew Wade, our in-house mortgage broker, bought his first condo in 2010 at the age of 25. He was a first time buyer and didn't believe he needed any help, from a realtor, home inspector, lawyer etc. He believed it was a total waste of money.
He found a perfect condo right here in Victoria BC. He decided to go through the listing agent to save some money and contacted the listing agent (who will not be named). He made an offer to purchase on the condo and got an accepted offer.
To save money he did not hire a home inspector and had himself walk thru the condo with his father and a friend. They looked at the plumbing, wiring and finish work in the condo and everything looked good to them. Andrew read through all the strata documents himself and did pick out that the strata had an engineers report that was complete and should be out the a few days after he removed conditions.
Andrew had arranged his financing and had everything ready to go to move forward however he wanted to ask for an extension for a couple of days to read the FINALIZED engineers report before moving forward. He emailed the listing agent who was always presenting him and the request was denied. He was told if he wanted the condo he would have to move forward and so he did… If anyone knows real estate this is cringe worthy for a few different reasons.
First off there are normally a few drafts reports that happen before it is finalized and the strata council would have seen it. Andrew most likely could have gotten a copy. Andrew or “his realtor” should have spoken to the council over the matter other no advice was given about the matter form his Realtor.
Another major red flag is why would a strata pay for a major report unless work needed to be done or something is wrong with a building? Strata’s do not normally blow a bunch of money on a report if it is not needed. I also want to point out that the seller was living in the condo and knew about the report, what was in it and lied. The report would have devalued the condo and would have made it next to impossible to get financing on.
The report came out a few days later and Andrew’s Realtor did not provide him a copy prior to closing. Andrew closed on his condo a few weeks after and was super excited to move in! Who isn't excited when they buy a new home. Andrew had saved up for 20% down and put all his savings into buying his first place.
Not long after he moved in Andrew got a gut punch: the engineer's report showed that the building needed over 2 million dollars worth of work for new windows and some concrete repairs. Andrew’s cost for just his unit was going to be $48,000!!!!
The property taxes are different for each municipality however when properties are listed it will state the latest tax amount. This also can be wrapped into your mortgage once you purchase a home
There are a few types of stratas however a freehold strata will be the most common form you come across. This means that the land is owned not leased and you are purchasing the unit entitlement or lot. The other forms of strata you might see are hotel, leasehold and co-op which are all harder to get a mortgage on and run a bit different - Strata download for more information.
This can look different for each person. I would recommend talking to your Realtor as well as a trusted Mortgage broker to make a plan that works for you.
If you are looking for a home with a suite that for long term renters it will help you qualify for more of a mortgage as well as hopefully help you pay off that mortgage faster. If you are thinking about using a suite for short term rental purposes you will need to look into the municipality rules as each are different.
As for getting a mortgage, most lenders will not count “short term” rental income so you might not be able to get a larger mortgage unless the mortgage loan is processed with the purpose of a long term rental and once you close and move in you can then start up your short term rental.
When you are purchasing a lot the main things you need to know are:
When you are purchasing a home to tear down and build new you will need to know the following:
No, each complex will be different. Some will be unrestricted in size which is normally newer complexes and others will have a weight or size restriction. If you do have pets it's good to let your Realtor know right away so they can adjust your search.
All condos or strata type properties have bylaws that run with the complex. This will include quiet hours as well as guidelines for making complaints and issuing fines. If a neighbour is noisy often and ruins your right to quiet enjoyment they will add up racking up fines with the strata which can be up to $200 each time.
Yes and no, most mortgages allow you to double up payments and put down a one time lump sum payment once a year which is normally 10-20% which if you can do I would highly recommend as you will pay off your home faster and pay less interest. However if you want to pay off your mortgage in full or even just break the mortgage term to purchase a new home or change lender to save on interest than normally there is a fee. A good mortgage broker can review your current mortgage and let you know the best way to proceed.
Credit is very important when you purchase a home however you do not need to have the best score out there at all. You will need a minimum credit score of 600 to purchase a home, however if you are under 600 you can possibly go with a B lender which is slightly higher interest rate and you could need 20% down (click here to learn about improving your credit score).
You can still purchase a home! As soon as you get your absolute discharge you can qualify for a mortgage again.
The top 3 things we always tell sellers to do before listing is to:
The short answer is yes. You want your home to sell for top dollar so you do not want your home to be a secret that it is for sale.
This depends on your comfort level completely, if you want an open house your Realtor should host one. This normally happens on Saturday or Sunday. Just keep in mind most open houses do not produce a buyer however it does help your Realtor build their book of business, which can result in the sale of your house in the near future.
If your home is vacant, we would suggest doing some staging to create that cozy, emotional home feeling. Most buyers purchase based off an emotional feeling over a logical one. This can even go for investors, so making your home warm and inviting goes a long way.
Yes, we will walk through your home and make suggestions for you to do. If you have already done our top 3 things to do before selling this process will be easy and quick.
Yes, we have a professional photographer that we work with that offers a full photography package for each of our listings.
Yes, we believe in having a floor plan for every listing.
We prefer to have a week or more to get professional photos, floor plan, video, put a For Sale sign up etc. Our biggest challenge can be the perfect day for getting great photos. If need be we can get your home up on the market in 48 hours, however we recommend taking the time to put your best foot forward, as you only get one chance.
Yes you can be home however we do not recommend it. The buyers coming in always prefer when the sellers are not home as they can speak freely with their Realtor.
Yes of course. We completely understand that having people in and out of your home and keeping it sparkling clean can be a lot of work. We are always happy to work with you, make a schedule and ask for 24 hours notice.
We like to have a minimum of 3 months for a listing contract in place when selling your home. We do make all our contracts cancelable as we understand that sometimes life changes.
Yes, we are happy to pass along references from past clients however we always have to check and make sure that our client is okay sharing their information before doing so.
In sellers’ markets, increasing demand for homes drives up prices. Here are some of the drivers of demand:
A buyer’s market is characterized by declining home prices and reduced demand. Several factors may affect long-term and short-term buyer demand, like:
A stratified market happens where supply and demand characteristics differ by price point, in the same area (typically by city).
For example, home sales for properties above $1.5M may be brisk (seller’s market) while homes under $750k may be sluggish (buyer’s market).
This scenario comes along every so often in West Coast cities where international investors - looking to park their money in North America - buy expensive real estate. At the same time, home sales activity in mid-priced homes could be entirely different.