Buying a home can be a complicated process. You'll want to get help from a team of knowledgeable professionals who can provide reliable information and answers to your questions.
Your team will likely include a realtor, a lender or mortgage broker, a lawyer, an insurance broker and a home inspector. Take your time and do some research before choosing any of these professionals.
Realtors
If you are buying a resale home there's a very good chance that you will work with a realtor. Your realtor's job is to help you find the ideal home, write an Offer to Purchase and negotiate on your behalf to get you the best possible deal. Realtors can also provide important information about the community you are considering and help you arrange a home inspection.
When you are ready to select a realtor, don't be afraid to ask questions – especially about possible service charges. Normally the seller pays a commission to the realtor but some realtors charge buyers a fee for their services. To learn more about realtors including their ethical obligations, visit the Canadian Real Estate Association's website at www.crea.ca or contact your local real estate association.
Lenders and Mortgage Brokers
For most people, buying a home means taking out a mortgage. There are many different institutions that lend money for mortgages including banks, trust companies, credit unions, caisses populaires (in Quebec), pension funds, insurance companies and finance companies.
Mortgage brokers don't work for any specific lending institution. Their role is to shop around and find the lender with the terms and rates that are best for the buyer.
To find a lender or mortgage broker you can ask for a referral from your realtor, family members, friends or other professionals. You can also contact the Canadian Association of Accredited Mortgage Professionals (CAAMP) at www.caamp.org.
Lawyers
The lawyer on your homebuying team is there to protect your legal interests by making sure the home you are buying does not have any building or statutory liens (a claim against a property for money owing), charges or work or clean-up orders. Your lawyer will review all contracts before you sign them, especially the Offer (or Agreement) to Purchase.
Lawyer fees range widely and depend on the complexity of the transaction and the lawyer's expertise so be sure to shop around for rates. To find lawyers who specialize in real estate law, check with your local law association.
Insurance Brokers
An insurance broker can help you to shop around for your insurance needs.
Lenders require property insurance because your property is their security for your mortgage loan. Property insurance covers the replacement cost of your home, so the size of your premium depends on the value of your home.
Home inspectors
In order to avoid costly surprises, consider having the home you are thinking of buying inspected by an experienced home inspector. The home inspector's role is to inform you if something is not functioning properly, needs to be changed or repaired, is unsafe or maybe even identify where there were problems in the past. In most areas of Canada there are no licensing or certification requirements for home inspectors, so look for one who belongs to a provincial or industry association.
by Mark Salerno of CMHC
Your team will likely include a realtor, a lender or mortgage broker, a lawyer, an insurance broker and a home inspector. Take your time and do some research before choosing any of these professionals.
RealtorsIf you are buying a resale home there's a very good chance that you will work with a realtor. Your realtor's job is to help you find the ideal home, write an Offer to Purchase and negotiate on your behalf to get you the best possible deal. Realtors can also provide important information about the community you are considering and help you arrange a home inspection.
When you are ready to select a realtor, don't be afraid to ask questions – especially about possible service charges. Normally the seller pays a commission to the realtor but some realtors charge buyers a fee for their services. To learn more about realtors including their ethical obligations, visit the Canadian Real Estate Association's website at www.crea.ca or contact your local real estate association.
For most people, buying a home means taking out a mortgage. There are many different institutions that lend money for mortgages including banks, trust companies, credit unions, caisses populaires (in Quebec), pension funds, insurance companies and finance companies.
Mortgage brokers don't work for any specific lending institution. Their role is to shop around and find the lender with the terms and rates that are best for the buyer.
To find a lender or mortgage broker you can ask for a referral from your realtor, family members, friends or other professionals. You can also contact the Canadian Association of Accredited Mortgage Professionals (CAAMP) at www.caamp.org.
Lawyers
The lawyer on your homebuying team is there to protect your legal interests by making sure the home you are buying does not have any building or statutory liens (a claim against a property for money owing), charges or work or clean-up orders. Your lawyer will review all contracts before you sign them, especially the Offer (or Agreement) to Purchase.
Lawyer fees range widely and depend on the complexity of the transaction and the lawyer's expertise so be sure to shop around for rates. To find lawyers who specialize in real estate law, check with your local law association.
Insurance Brokers
An insurance broker can help you to shop around for your insurance needs.
Lenders require property insurance because your property is their security for your mortgage loan. Property insurance covers the replacement cost of your home, so the size of your premium depends on the value of your home.
Home inspectors
In order to avoid costly surprises, consider having the home you are thinking of buying inspected by an experienced home inspector. The home inspector's role is to inform you if something is not functioning properly, needs to be changed or repaired, is unsafe or maybe even identify where there were problems in the past. In most areas of Canada there are no licensing or certification requirements for home inspectors, so look for one who belongs to a provincial or industry association.
by Mark Salerno of CMHC
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