ROBMILLSREALESTATE.COM The ESSENTIAL GTA Home Buyers Guide Essential Buyers Guide... · Home Buyers...

Overview No matter whether you are a first time home buyer or a seasoned buyer looking to upsize this is your ESSENTIAL guide to home buying.

Find Out Pro Tips On Buying Learn how others

have been successful

Money Saving Tips

How to save money when buying

Costs For Renovations

Find out what it will cost to Reno your

home

KNOWLEDGE Make sure you have the

KNOWLEDGE you need to make an

educated decision

1INFORMATION

Make sure you get ALL the information you will

need to be an INFORMED buyer

2EXPERIENCE

Make sure you use EXPERIENCED

professionals to help you along the way

3

ROBMILLSREALESTATE.COM

The ESSENTIAL GTA Home Buyers Guide

http://RobMillsRealestate.Com

http://RobMillsRealestate.Com

As a buyer you will have many questions that you will want answers to, you can always speak to your REALTOR to answer your questions and seek clarity, this guide is designed to help you before you start your search and as a reference as you go through the process.

If you on the fence and trying to weigh up whether to upgrade your current home or are a first time buyer there are many reasons why you should upgrade or buy nowIf you’re a first time home buyer your mortgage may not be much different than the rent you are currently paying.

• If you're already an owner and looking to upsize, with the increase in prices in the GTA in the last few years, your mortgage payment may not be much different than you're already paying.

• If you plan on starting or growing your family you will have more room to grow.

• Maybe you need to move closer to work

• Maybe you need to work from home and need more office space

• Maybe you need access to green space for kids or pets

ESSENTIAL GTA BUYERS GUIDE ROBMILLSREALESTATE.COM

PRO TIP One of the most important things you can do is to be educated in every aspect of buying a home and ensure you have the knowledge, resources and help you will need to make an educated decision. As a REALTOR I feel my job is to empower you with this information and make sure you are ready for not only the home buying process but home ownership too.

http://RobMillsRealEstate.com


Once you have decided to make a move there are some important questions you should ask before you start the home buying process.

• What research should I be doing before I start?

• What do I need to do before I start my home search?

• What do I need to budget before to buy a home and was is my buying power?

• What do I need to budget for once I have moved into my new home?

• Are there any resources to support me after I purchase a home?

“QUOTE” Real estate investing, even on a very small scale, remains a tried and true means of building an individual's cash flow and wealth.

Robert Kiyosaki

ESSENTIAL GTA BUYERS GUIDE ROBMILLSREASLESTATE.COM

http://robmillsReaslestate.com

http://robmillsReaslestate.com

As a buyer you will have many questions that you will want answers to, you can always speak to your REALTOR to answer your questions and seek clarity, this guide is designed to help you before you start your search and as a reference as you go through the process.

If you on the fence and trying to weigh up whether to upgrade your current home or are a first time buyer there are many reasons why you should upgrade or buy nowIf you’re a first time home buyer your mortgage may not be much different than the rent you are currently paying.

• If you're already an owner and looking to upsize, with the increase in prices in the GTA in the last few years, your mortgage payment may not be much different than you're already paying.

• If you plan on starting or growing your family you will have more room to grow.

• Maybe you need to move closer to work

• Maybe you need to work from home and need more office space

• Maybe you need access to green space for kids or pets

PRO TIP Get a second opinion on your financing. You dont need to shop around, you can use a QUALIFIED mortgage broker to help you do that.

They can make sure you are getting the best rates and deal you can, even a small percentage point canals a big difference to your payment.

Make sure you review paying your mortgage monthly, bi-weekly and weekly, know your best option.




Once you have decided to make a move there are some important questions you should ask before you start the home buying process.

• What research should I be doing before I start?

• What do I need to do before I start my home search?

• What do I need to budget before to buy a home and was is my buying power?

• What do I need to budget for once I have moved into my new home?

• Are there any resources to support me after I purchase a home?\

PRO TIP Overlook the sellers home decor. Your not buying their furniture, just their house. Not ever home is staged and presented “perfectly” so make sure you dont focus on the things that don’t matter.

Look at the space, layout and potential of home and not on the flowery wallpaper, bright green walls or yellow rugs.

Its not easy to do at the beginning, but a “Pro Buyer” will overlook these things and concentrate on the things that really matter.




This is one of the most important questions you need to ask before you proceed. There are some major Pro’s and Con’s for both, let’s take a closer look at them.

Pre-Construction Resale

Pros • Never been lived in • Design of your choice • Choose your own finishes • Easy to upgrade through builder • Usually but in a new community • Few maintenance costs for the first 5 -10

years • Probably has a warranty on home • Deposit payments can be flexible • You can get info on who is buying (couples,

singles, families) • More energy efficient

• Typically less expensive • Price, and what is included, can be negotiated

with the seller • Can negotiate terms of the sale such as home

inspection and and repairs • Can typically close in 30-90 days • Set closing date • Can be bought with as little as 5% down • May be built to higher standards than newer

homes • May have more charm and character • Neighbourhoods usually more established with

tree, parks, stores, schools and services easily available.

• easily accessible information on the area and demographics

• Will likely have larger gardens and more space between homes

• Can be renovated too your own tastes, maybe at a lower cost than buying a finished new home

Should You Buy A New Home or Resale?

New Construction V’s Resale




After weighing up these pros and cons you hopefully will have decided which is best for you. If it’s the renovated century home or the shiny new construction home from a builder you will need to move forward in slightly different ways, but this guide will cover all directions to help you.

Cons • Prices can be as much as 20% higher than similar resale homes

• Deposit structure higher than resale, typically 20% of purchase price

• deposit is no guarantee of home being built on time, or even at all under extreme circumstances (speak to your Realtor for more information about this)

• Once Pre-Construction condo projects are secured in a trust account, freehold deposits are not and there is a higher risk.

• HST is paid on the purchase price, you may be able to claim some or all of this back.

• Prices are usually not negotiable • Extra costs on closing (development fees,

meter fees +++) contract should be carefully studied

• Upgrades and design changes can be expensive through the builder

• will need landscaping and may need to buy your own fence

• Modern subdivisions often have little space between homes and smaller lots

• Maybe a longer commute to work as they are often built on outskirts of city

• New construction home stake time to settle, careful attention needs to be taken to observe any issues

• May need to wait for new services to be built (schools, parks, libraries, community centre etc)

• It will take time for trees and landscaping to grow.

• may be living in a “constructyion zone” for some time after first occ

• May need to compete with other buyers to buy a home

• May take t=more time to buy due to losing out on “bidding wars” (see my “Essential Guide To Winning In a Bidding War” to help with this)

• May have higher maintenance costs and need some repairs

• May need to budget for renovation costs • Cost to tear down an old home and build a new

home may be prohibitively expensive • May not comply to current builders code

(although the home would not need to comply with current standards you may want to budget for any essential upgrades/repairs needed)

•

Pre-Construction Resale




Although it's not a strict requirement, I strongly recommend this is the first thing you do. Although a pre-approval does not give you final approval what is does is set the foundations for the buying process.

There are two types of pre-approval. One will be a “soft inquiry” this means a bank will review your current financial situation and will not require much information, this will only take a few minutes but is not very accurate, don’t think this is a full approval, it’s more of a quick inquiry.

The second of a full ”pre-approval”, this is the one you really want. The bank will ask for specific paperwork such as wage slips, tax returns and any other financial

“QUOTE” “Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest


Mortgage Pre-Approval



paperwork. This review will be in much greater detail and will give you an accurate budget and interest rate you will pay.

Here are the main reasons why you should do this before starting your search and not after you find a home.

• Assess’s current financial health

• Provides a budget for buying

• Gives you a set amount for buying and how much you can borrow, you may qualify for more or less than you think

• Will hold an interest rate for a set period of time in-case interests rates rise whilst you are still looking to buy

• Gives you more power and knowledge when making an offer

A pre-approval however does not guarantee final approval of a loan, instead it’s just the first step of a 2 step process. This is where your financial health is reviewed but the banks will also want to review the home you are purchasing and judge if this is a property they are willing to lend on. Here are a few reasons a lender may refuse a loan despite you having a pre-approval.

• The home does not appraise for the value you have offered. Banks will often send an appraiser to the home to review it before they give final approval.

• It may be in a condominium they are unwilling to lend on

• It may have safety issues such as Knob and Tube wiring

• You can’t get CMHC loan insurance if you’re putting less than 20% down (see more on this below)




• You don’t purchase within the pre-approval time limits and interest rates have risen, affecting buying power

• Your credit rating has changed since getting your pre-approval - make sure you pay your loans on time and up to date and don’t increase your credit load by racking up credit cards, lines of credit or taking out a car loan

You’ll will be presented with many mortgage options by a lender. The three primary variables on the table are

• The mortgage’s amortization period (this is the length of time it will take to repay your loan, the average is 25 years)

• The payment schedule Monthly, Biweekly and Weekly payments are all an option

• Fixed rate or Variable. This needs careful consideration and you should speak to your mortgage agent in detail about these options and which is best for you.

• Interest rates - depending on which plan you go for this will change

PRO TIP Instead of looking for the “perfect home” look at how you can make a home that needs some TLC “perfect”.

If you see a home that you like but it needs updating why not look to finance the cost of renovations and add them to your mortgage?

A good mortgage broker will be able to help organize this for you,. So you can still buy the home in your dream neighbourhood but dont have to live with the “aubergine bathroom”.




It’s important to decide early what you want. Condo or freehold, apartment or mansion, it’s all about what you want, where you want to live and what you can spend.

It’s important to narrow your search early as you don’t want to be overwhelmed during the buying process. Remain open to other options but if you can narrow in on an area, condo or freehold, home style and budget early you will find the process much easier.

You need to differentiate between needs and wants and prioritize them. If you have any “must haves” make sure you identify these early as it will focus your search.

Remember this home may not be your “forever home” with the high prices right now in the GTA buyers often find they need to compromise on this home but with rising values they may soon be in that dream “forever” home. Don't wait or hesitate as that might just postpone your getting in your dream home sooner and in the meantime you will gaining equity and maybe even saving money.

Here are some of the things you will need to consider….

Define Your Search




The Neighbourhood

There is a well known saying used by industry professionals that a house can be changed, but the location cannot. It’s important that you evaluate and determine the neighbourhood you would like to live in and find what the cost of living in that neighbourhood would be.

A neighbourhood should be looked at from a broad perspective, taking into consideration its various characters, amenities, conveniences and opportunities. In addition to these, you must look at the growth of the neighbourhood based on current projects, proposed developments and existing offerings. Here are some of the things you should look for:

• Shopping options, primarily for essential items - groceries, pharmacies, etc

• Transit access

• Schools and daycares

• Housing developments – The types of housing and developments and the

• Number of new and upcoming developments

• Amenities - Banking, gas stations, libraries, community centres, hospitals and clinics

• Lifestyle and recreational elements - coffee shops, restaurants, social hubs, movie theatres, parks, bike trail, and more

The above factors play a major part in determining the value of a neighbourhood. In addition, make sure your property has a strong walk score. Walkability affects how easy it is to navigate your neighbourhood’s amenities on foot. Ask your REALTOR for a location's Walk Score if you’re unsure how. (https://www.walkscore.com/)


https://www.walkscore.com/





Type of Property

Do you want a condo or a house? It's a common question that most first-time homebuyers don’t decide until they are on their search. See both options and understand what fits your lifestyle and needs best. Here's a quick comparison between the two….

Freehold Home Condo

Pros • More bang for your buck with greater living space

• Potential for growing and renovating the property, especially when you have a growing family

• Depending on location, some properties come with substantial backyards which can serve for entertainment purposes, gardening and a space for kids to play

• May have better appreciation of value

• Opportunity to live in areas in the city where you may not be able to afford a freehold house

• Great selection of amenities in different buildings to suit your needs, such as pool, gym, concierge, and party spaces

• Less responsibilities for home owners,. No need to cut lawn, clean pool, do the gardening and snow clearing as they are usually included in monthly condo fees

• Property management should take care of general building maintenance, repairs and general upkeep

• Greater security and peace of mind • Depending on the building, all or some utilities

are covered in the monthly fees • Lower insurance costs

Cons • You are responsible for maintaining the property, including taking care of the lawn, property maintenance and much more - this can become expensive and take up free time

• Utilities are your responsibility • Budget constraints might mean you have to

buy in less convenient locations in the GTA • Higher insurance costs

• Maintenance fees can be high • Condo board is in charge of budgets/costs/fees

and individual owners have limited influence • You need management approval for major

changes to your unit, which can be a tedious process

• May be noise issues depending on condo/building/neighbours

• May not appreciate in value as much as a freehold house

Condo

V’s

Freehold




Other Factors

Define Your Priorities - It’s always a great idea to start of with a list of your “wants” and”must haves” make a list of both. A want is something that, in an ideal world, you would get in your new home, but a must have is something you simply won’t buy unless your home has it, maybe its proximity to public transport or a renovated kitchen or a large back yard. Make sure these lists are prioritized and share them with your REALTOR so they can narrow your search.

Identify costs for all your wants - For example, is having a pool worth the additional maintenance costs? Or ,maybe you would you like to make money with your property? – Considering an income property needs careful long-term thinking. If you purchase a property with the intention to rent out some of the space, you must consider any maintenance or renovations involved.

Sometimes during your search this list may change, suddenly you find having a renovated home becomes more important than location or you will find a pool or access to highways are not as important as you first thought so long as you can buy within budget.. Be adaptable and you will increase your chances of finding your dream home.

PRO TIP Be willing to look in areas you initially wouldn’t consider if your budget doesn't fit in the area you initially wanted. Don’t get “frustrated” get “creative” and you may be surprised.




Once you have found your dream home and are ready to make an offer you will need to do this in writing. In Ontario offers should always be put into writing as the law does not recognize verbal contracts in Real Estate transactions. Your REALTOR will help you draft an offer and has all the paperwork easily available to do so.

Here are some of the details that will be discussed when making an Offer to Purchase

• Names and details – your legal name, vendor details and address of the property

• Price you are offering to the vendor

• Things that you think should be included with the sale of the property. An example would be appliances and/or window treatments

• Your deposit amount

• Closing day of the sale – 30 or 60 days usually but could be more.

• Land Survey of property

• Offer expiration date

• Conditions of Purchase – this could include items such as home inspection, mortgage approval, etc.

The Offer Process

“QUOTE” “Now, one thing I tell everyone is learn about real estate. Repeat after me: real estate provides the highest returns, the greatest values and the least risk. ”

Armstrong Williams




Once an offer is made, the following three scenarios could arise:

• The vendor accepts your offer – Hooray, you own a new home! The next steps are conducted to complete the sale.

• The vendor signs back a counter-offer. This could be a change in price or a change in terms. You can either agree to the changes or make a counter-offer yourself.

• You receive a counter-offer at a higher price that you cannot afford. You don’t agree to the counter offer.

The simple lesson from all three scenarios above: know how much you can afford and keep a cap on it. There are hundreds of houses for sale and unless this is your 100% dream home, it is important to balance the books and expectations when investing in a property as a first time home buyer. Always do your due diligence.

Multiple Offers

In the busy GTA Real Estate market you will often find the home you have fallen in love with has many suitors. Often a seller will direct their REALTOR that they will not review any offers before a certain time, this allows their home to be marketed to as many people as possible. If this happens you may end up in a “bidding war”. Don’t be afraid of this scenario. It simply means you have to make your best offer as strong as your willing to and remain disciplined. Your REALTOR will be able to help you this decision by providing

you with similar recent sales and projections for future value. Homes in the GTA have averaged a gain of about 5-10% a year for the last 15-20 years so don’t be afraid of making a smart investment based on current values and price trends.




How To Increase Your Chances Of Winning A “Bidding War”

If you do end up in a “bidding war” there are things you can do to increase your chances. The winning bid in a multiple offer scenario will likely be the highest price, with the highest deposit and with the fewest conditions, but not always. There are things you can do that will greatly increase your chances, even if your offer isn’t the highest price. Here are my top tips to “winning that bid”.

• Pick an experienced REALTOR who knows there way around the local market and has the knowledge and tools needed to give you the information you need to make a decision

• Make sure your mortgage Pre-Approval is up to date

• Make sure your deposit is high, at least 5% of the purchase price but the higher the better

• Provide the seller with a certified cheque to accompany your offer, this shows you are a serious buyer

• Don’t make any “unreasonable” demands in your purchase. If the sellers want to take the blinds and drapes don’t ask for them to be included. Your REALTOR will be able to talk to you this based on what is being offered on the MLS data sheet.

PRO TIP Often home are listed on the MLS at a lower price than they should be to get more attention from buyers. In a busy market the more buyers show an interest in a home the higher the eventual sale price will likely be. Don’t fall for this “tactic”, if you see a house that seems “too good to be true” it probably is. If your working with an experienced and knowledgeable Realtor they will be able to give you an accurate market valuation of the house and a guide to what it could sell for. At that point you can decide if its worth your time doing to see the house or making an offer on.




• Do a home inspection before the offer date rather than making it a condition of the sale.

• Find out what date the seller wants to close, do your best to be able to offer this date, or as close as possible.

• Send a copy of the MLS and an idea of how much you are thinking of offering on the home to your mortgage broker and ask them to review it. They will not be able to give you a 100% guarantee but they will give you an idea of what will happen should you be successful in your offer

• Provide the seller with a copy of your pre-approval letter from the bank so they can see you have been approved (any confidential info should be blacked out)

• Put together a video or mini brochure about you and your family. Your REALTOR will be able to present this on your behalf. Sellers can be persuaded by the “emotion” of selling their home to people they like and feel they know. They have many happy memories in that home and they will love to think that their home will be taken care of the way they would.

• Most importantly…. Make your price the best you are willing to spend and not a penny more. You don’t want to overspend, but you also don’t want to live with regret by losing out either. Give it your best shot, that way if you don’t win you won’t feel you should have offered more.

• Remember, there will be more homes. If you don’t win, don’t give up.




Bully Offers

Sometime you can do all that work but still miss out to a “bully” or “pre-emptive” offer. A bully offer is when a seller has set a time and day to review offers but the buyer makes an offer to a seller before this time. A winning bully offer will need to be so strong that a seller isn’t willing to wait until the offer day for fear of missing out. There are ways to combat this also and make sure you have a chance to offer on the property also.

• See the property as soon as you can after it is listed so you can be ready to make an offer earlier if someone makes a bully offer.

• Do all of the work I listed above to increase your chances of winning

• Complete a home inspection, if you want to do one, as early as you can

• Have your deposit funds ready in an account do you can make a deposit with your offer

• Have your REALTOR set up an easy online E-signing programme for you so you can sign the offer online, that means even if you are busy you still able to make an offer.




Congratulations! You have had an accepted offer but there’s still lots of work to do immediately after your offer is accepted by the seller. Here are some of the things you will need to do in the next day or two.

•If you haven't already given the deposit you need to arrange delivery of the deposit, it will be

due within one business day of the offer being accepted at the very latest. Usually it's held in trust by the listing agency, but check with your REALTOR to be sure.

• You will need to send a copy to the agreement and the MLS data sheet to your mortgage broke to finalize financing.

• If you have an inspection clause you should book this now, complete it as soon as possible so that, if there are any issues you can find a suitable solution.

• A copy need to be sent to your lawyer. If you haven’t picked one then now is the time to do so. Your REALTOR can help you with a referral.

What Happens Once You Win

PRO TIP Make sure your deposit is in an easily accessible bank account that you can draw a “Draft Cheque” on easily. If you deposit is not in the hands of the listing agent within 24hrs of the offer being accepted then the deal officially dies and you could lose the home. If your using money from an internet bank account, mutual fund, stocks or RRSP you will need to move these funds BEFORE you make an offer.




If you are a first time buyer this won’t impact you. If however you are buying and selling a property and they don’t close on the same day you will need to set up “Bridge Financing”.

A bridge loan is short term financing to cover the time (bridging) between the two properties closing. This can be arranged through your mortgage agent or you can ask your REALTOR for advice. It’s not usually very expensive for a few days but can add up over a longer period. It is charged on a daily rate based on current interest rates.

Bridge Financing




The province of Ontario has a land transfer tax which is payable on close for every property sold within Ontario except for first time home buyers, see below. Here are the current amounts for a single family dwelling on Ontario.

Ontario Land Transfer Tax Rates

Home Purchase Price Tax Rate

Up to $55,000 0.5%

$55,000 to $250,000 1.0%

$250,000 to $400,000 1.5%

$400,000 to $2-million 2.0%

$2-million and over 2.5%

Toronto Land Transfer Tax

If you are buying within the boundaries of Toronto you will also need to pay the Toronto Land Transfer Tax on top of the provincial amount. Except for first time buyers, see below.

Toronto Land Transfer Tax Rates

Home Purchase Price Tax Rate

First $5000 0.5%

$55,000 - $400,000 1.0%

Over $400,000 2.0%

Land Transfer Tax




The government has created a number of assistance programs for first time homebuyers when they purchase their first property. Below is a list of these programs, providing insight into what they offer to reduce the financial burden of purchasing a new home.

Home Buyers’ Plan for First-Time Home Buyers

The Home Buyer’s Plan by the federal government provides home buyers, especially first time home buyers, the ability to withdraw money from their registered retirement savings plan (RRSPs) tax free to buy or build a qualifying home. Homebuyers are eligible to take up to $25,000. However, contributions must remain in the RRSP for at least 90 days before you can withdraw under the Home Buyers’ Plan, and no deductible can be made for any year.

Identifying Assistance Programs

“QUOTE” “Ninety percent of all millionaires become so through owning real estate. The wise young man or wage earner of today invests his money in real estate.”

Andrew Carnegie – Scottish businessman and philanthropist




• The following requirements must be met to withdraw funds from your RRSP:

• Qualifying home cannot be owned for more than 30 days before the withdrawal is made, by you or your spouse

• A maximum of $25,000 can be withdrawn

• You have to be a resident of Canada

• You have to complete Form T1036 for each eligible withdrawal

• You have to receive all withdrawals in the same calendar year

It is important to point out that if you are buying a house with a spouse, the spouse is eligible to take out $25,000 as well. Any funds taken out from an RRSP must be repaid within 15 years, with 1/15 being the payment amount per year. Payments begin the second year from which the funds were withdrawn. The home buyer’s plan provides first time homebuyers with the must needed financial flexibility when purchasing a new home. The $25,000 – or $50,000 if taken by the spouse as well – can be used towards the down payment of a first home, a required step towards owning a home for first time homebuyers.

Ontario First-Time Home Buyer’s Tax Credit (HBTC)

The first time home buyer’s tax credit is a non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home after January 27, 2009. By entering $5,000 to one’s personal taxes on line 369, homebuyers receive a rebate of $750. This amount must be the total claimed amount between you and your spouse.

The credit is designed to help first time home buyers with various expenses related to home buying, such as closing costs, inspections, legal work, taxes, etc. To qualify for the HBTC, you or your spouse has acquired a qualifying home and you did not live in another home owned by you or your spouse in the year of acquisition or four years prior. A qualifying home is described as “a housing unit located in Canada acquired after January 27, 2009, which can be existing homes or those being constructed”. A share in co-operative would also qualify.




Land Transfer Tax Refunds for First-Time Home Buyers In Ontario

The Government of Ontario provides a refund program for first-time homebuyers who purchase a home in the province. This interest-free refund is on the land transfer tax in Ontario, with a maximum sum of $4000 as of Jan 1st 2017. The following rules apply…

• You must occupy the home as your principal residence within 9 months of the date of transfer

• You must be at least 18 years of age

• You cannot have ever owned a home, or an interest in a home, anywhere in the world.

• This applies to your spouse during the period which she/he is your spouse

PRO TIP As a first time home buyer there are lots of programs to take advantage of in Ontario, make sure you know them all and maximize your potential refunds, rebates and savings. You realtor should be able to help you identify how to utilize these programs.




• In the case of a newly constructed home, where the agreement of purchase and sale was entered into before December 14, 2007, you must be entitled to a Tarion New Home Warranty

•

Toronto Land Transfer Tax Rebate

If you are buying in the City of Toronto it provides its own Municipal Land Transfer Tax rebate, which comes into effect on top of the provincial land transfer tax. First-time homebuyers are eligible for this rebate on the purchase of newly constructed or resale property, with a maximum of $3,725 in rebate available.

HST And HST Rebate

If you are purchasing a new home from a builder you will pay HST on the price, this is usually included in the price they are advertising the home for but you should check.

However you may be entitled to a rebate of the Ontario HST rebate for new homes. It is complicated so I have a separate guide to help you. Please request my Ontario HST New Home Rebate Guide for more information.

“QUOTE” “Buy land, they are not making any more”

Mark Twain




When your looking to buy a new home or condo it will be is very exciting time, especially if it's your first home. But what if it all goes wrong? You could experience delayed closing, issues with build quality or maybe even the builder could even go out of business. Well what protection do you have?

The Tarion Warranty program is run by the government and offers warranty

coverage for certain new homes. If you are thinking of buying a “new home or condo”, or a home that is less than 7 years old you will pleased to know that your most homes and condos will likely come with a warranty of 7 years.

There are some exemptions, for example a condo built on top of an existing building, or a home that is being rebuilt but using the existing foundations will probably not be covered, it is essential that you check with the builder to see if you are receiving Tarion Warranty coverage.

When you buy a home covered under a Tarion you will have the following coverage…

Deposit protection and delayed closing compensation

Tarion Warranty




If your builder keeps delaying your closing date you could be entitled to some form of compensation, you should check your Tarion Warranty package for details.

When you buy a pre-construction home you could be buying something that will not be built for several years. You are often required to put a high deposit down, this is trusted to the builder that they will build the project as promised. But what guarantees do you have? The good news is if you're buying into a condo project your Tarion Warranty will cover some or all of this. Unfortunately freehold projects are not covered under this program so make sure you spend extra time investigating the builder you are buying through.

In addition to deposit protection and delayed closing compensation, homeowners may be entitled to the following:

One Year Warranty

This offers a one year from the date of occupancy warranty and requires a home is built in a “workmanlike” manner and meets the Ontario Building Code with no unauthorized substitutions..

Two Year Warranty

Includes a warranty against issues such as water penetration through the basement or foundation walls. Faulty windows, doors and caulking and water penetration, defects in work or materials in the electrical, plumbing and heating delivery and distribution systems and covers defects in work or materials that result in issues with exterior cladding.

Seven Year Warranty

PRO TIP When you do your Pre-Delivery Inspection (PDI) make sure you take your Realtor with you, they are experienced in conducting these walk throughs and should be able to help identify any issues you may easily overlook. Make sure you report EVERYTHING you see as a potential issue in writing to protect yourself. You will get a second chance but its better to identify issues early.




The seven year warranty covers major structural defects (MSD) and begins on the date you take possession of the home and ends on the day before the seventh anniversary of that date.

Common Elements

For most condominium projects, warranty coverage also includes the shared areas of the building, referred to as Common Elements.

PDI

One of the most important things you will be required to do is complete a PDI (Pre Delivery Inspection). This will be scheduled through the builder but they do not work for them, they are a go between to make sure any issues are reported and resolved. It’s essential that you take a look at every area of your new home and identify any issues. These will be marked down and should be resolved by the builder.

After Move In

You will have several further times to identify any issues. At 30 days you can address any issues you missed on the initial PDI or any unresolved problems that still need work, you must complete the tarion form. At the end of the first 1st this will be your you last chance to address any issues that have may need addressing, however you will still be covered for a further 6 years for structural defects should they occur.

Once you have purchased the home there is still lots to do and plan.

Print my ESSENTIAL Moving Checklist below to help you plan the next steps. Here are a few things to think about.

• Access Visit - Your REALTOR will likely have negotiated this so you can visit your home new home before close. This will allow you to do a walk through of the




condo or house, get measurements, play furniture purchases and decide on any window covering need you may have.

• Furniture - When buying furniture think about how you can get it into the house, it may be your dream to put a home gym or sectional sofa into the basement but your plans may be scuppered if you don't check to see if they will fit.

• Register - If you have bought a condo you will need to register with property management, make an appointment and take in a copy of your agreement. You will also want to bool the moving elevator, book early as they can be very busy and find out where the moving room is located. If you haven't already, check where your parking spot and locker are located.

• Moving company or book truck - decide if you want to have a moving company help or if you want to do it yourself. The benefit to using as company is they insure your items and are experts at expediting the move.




• Utilities - Make sure you contact the utility companies and have them put into your name on the closing day. Ask them to conduct a full meter read.

• Renovations - Think you might want to do some upgrades, renovations or a major upgrade? Get an idea of costs by printing my ESSENTIAL Repair Cost Guide below.

The ESSENTIAL Moving Checklist

PRO TIP If your having a Garage Sale before you move try to organize a Super Sale with your neighbours to get more buyers in your area.




2 Months Before MovingTask ✔ Task ✔

Start a folder with all your moving info and contact details for anyone you will need

Plan new furniture purchases and arrange delivery after closing

Call moving companies and get quotes book them early as they can get busy - check insurance cover

Arrange disconnect/reconnect of utilities

Price a self drive moving truck large enough to move your belongings

Arrange transfer of schools

Depending on number of visits you could schedule a visit to take measurements

Start a budget/spreadsheet of costs

Plan what you’re taking with you, arrange donation or removal before close of anything your won’t be taking

Arrange transfer of doctors and dentists and any records

Plan a garage sale if needed Buy/organize moving boxes, tape, stuffing etc

Plan moving of cars, pets, kids on move day - arrange pet daycare/babysitter for moving day

Use up food from cupboards/freezer

If you plan to use a mover, split what they will move and what you will move.

Safely lock-away valuables till after the move

Search for storage facilities if needed Arrange change of home insurance





3-4 weeks Before Moving

Task ✔ Task ✔

Finalize moving plan, reconfirm with the moving company if using one

Cancel any memberships such as clubs and gyms

Create inventory system for belongings and items and a labelling system for boxes

Reconfirm with utilities companies that you are moving and that they you will have services in your new home for moving day

You can now start to pack items you won't need before the move

Research handyman/electrician/plumber in the area of your new home so you know who to call in an emergency.

Remember to label boxes clearly and mark which room they are from

Book them for any work you are planning on doing.

Remember to keep items you're planning to move separately , Mark - DO NOT MOVE

If packing yourself start packing less used items such as fancy dishes, nonessential clothes, art, pictures and decorative items

Start a box for items you will need on moving day, tools, light bulbs, flashlights etc

Notify credit Card companies, banks, insurance companies etc of change of address

Go to Post Office fill in a change of address form and arrange for mail forwarding (this takes about 5 days to start working)

Notify employer, family and friends of your new address

PRO TIP Get a quote to see what it will cost to have your movers pack your belongings, you may save money by packing yourself but, with the time and energy you will save in packing, it may well be worth the extra cost.





1-2 weeks Before MovingTask ✔ Task ✔

If your packing yourself, start packing now

Arrange transportation for pets and plants as movers cat move them

Try to box essential items together and label “Load Last/Open First” (bedding, pots & pans, alarm clocks etc..)

Cancel any deliveries such as newspapers & magazines

Hold a garage sale this week Service car

Change information info with Service Canada and Service Ontario, change drivers licence, health cards etc

Mow lawn for last time and empty any gas tools such as mower, snow blowers etc

Use up frozen food, plan minimum purchases till move day

Pack a trip bag with checkbook, cash, medications, first aid kit, pet food, light bulbs, flashlight, reading glasses, baby, child and pet essentials and all contact info for moving day

Arrange a cleaner for moving day for both your old and new homes

Arrange a babysitter for moving day

Contact kids schools and arrange for records to be transferred

Start packing last of your clothes

Pay all outstanding bills on old home

Remove any fixtures you are taking

PRO TIP Try to keep boxes balanced and light enough for any family member to carry.





1 Day Before and Moving DayTask ✔ Task ✔

Empty and defrost fridge and freezer - our in baking soda to keep fresh

Movers will arrive to start packing, verify all moving plans and give them directions, phone numbers and detailed floor/furniture plans so they know where things go even if your not there to tell them

Arrange payment for moving company - ask what method they accept

Take kids and pets to daycare/pet sitter/ babysitter

Check process for reporting missing/broken items from move

Double check cleaners are coming to clean both homes

Empty any safe/safety deposit boxes

Send someone early to the new home to label each room (bedroom 1/2 etc)

Plan careful move of any photos/movable hard drives/jewelry/momentos

Make sure utilities are hooked up as scheduled

Write directions and print map for directions tones home for the movers - make sure you adda any cell numbers

One person should be “move director” to work with moving company to ensure items are put in the right place

Pack all bedding, mark Open First Only unpack what you need for the next few days - take the time to unpack the rest

PRO TIP Try to keep boxes balanced and light enough for any family member to carry.

Renovation/Repair Costs




All homes will need upkeep, repairs and upkeep over time. Maybe your buying a new home, fixer upper or building a new home you will need to get an approximate idea of costs. Here is a guide for many of these costs at today prices, all these should be checked with a qualified roofer, electrician, plumber or contractor before you make a decision to buy a home. Some of these costs are DIY and some will need a qualified technician

Item 💲 Item 💲

Update all plumbing $4000 to $10000 Professionally clean house exterior

$500 to $2000

New hot water heater (rental unit is free)

$250 to $1500 Build/ replace single freestanding garage

$10000 to $15000

Sump Pump repair or replace

$300 to $1600 Exterior Paint $3000 to $5000

Insulate water pipes $150 New external door $1000 to $2000

Replace weatherstripping $150 to $500 New Windows (10) $5000 to $12000

Fill cracks in masonry, siding, basement wall

$35 New glass sliding door $1500 to $2000

Replace garage door $1000 to $2000 New vinyl siding $4500 to $12000

Replace outside tap $30 to $200 Fill cracks in window frames

$30 to $100

PRO TIP When looking to get work done get at least three quotes, make sure they are like for like quotes. You can then decide which one best fits your budget.





Item 💲 Item 💲

Replace loose shingles and repair flashing

$175 to $300 External waterproofing of basement

$10000 to $15000

Chimney maintenance cleaning

$150 to $300 Internal waterproofing of unfinished basement

$4000 to $6000

Replace asphalte shingle

$5000 to $15000 Frame and dry wall basement

$8000 to $15000

Increase insulation in attic

$1500 to $2500 Install bathroom in basement

$2500 to $5000

Add roof vent $150 Replace bathtub $800 to $1500

Add fan from bathroom $300 Replace vanity $300 $800

Regrading around home $1000 to $8000 Retile bathroom $1500 to $5000

Remove mold from attic $5000 to $10000 Internal painting of home

$3000 to $10000

Remove mold from basement

$10000 to $18000 Rewire house $8000 to $15000

Remove vermiculite insulation

$10,000 to $20,000 Replace electrical panel

$1000 to $1500

Remove asbestos tiles $5000 to $15000 Replace smoke and carbon monoxide alarm

$100 to $150

Remove asbestos from heating ducts

$3000 to $10000 Annual furnace maintenance

$150 to $300

PRO TIP Get referrals for contractors from friends, neighbours, your REALTOR or websites such as Angie's List and Facebook and ask them for examples of their work to see if they meet your expectations.





Item 💲 Item 💲

New furnace $2500 to $5000 Repair or repave driveway

$800 to $3000

New central A/C unit $2000 to $3000 Replace eavestroughs $2000 to $3000

Clean air ducts $300 to $400 Replace soffit or facia $100 to $200

Kitchen counter top - Vinyl

$1000 to $3000 Tiled floor $1000 to $5000

Kitchen counter top - granite/stone

$5000 to $15000 Broadloom house (4 bed)

$4500 to $12000

Paint/refinish kitchen units

$500 to $3000 Laminate flooring $7000 to $15000

Replace kitchen cabinets

$2000 to $20000 Engineered/bamboo flooring

$5000 to $12000

New fridge $500 to $3000 Hardwood flooring $12000 to $20000

New stove $500 to $3000

New dishwasher $450 to $1500

Fan/hood $150 to $1000

Potlights (10) $1500 - $2500

Conclusion




Purchasing a new home, especially for a first-time homebuyer, should be a well thought-out process. All the major factors including financial and logistical implications must be taken into account before deciding to go on the path of getting a new home. Due diligence and careful planning will help you make a sound home purchase, letting you focus on the more important things such as taking care of your family and work.

Follow My Guide And Your Next Home Is Within Your Reach!

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