Sassy Invest - Real Estate in Canada

BUY

One of the main advantages of buying property is the sense of ownership and control that comes with it. When you own a property, you have the freedom to make changes and improvements to it as you see fit, and you can potentially build equity over time as the property appreciates in value. Buying a property can provide stability and predictability in terms of housing costs and long-term financial planning.

If you are planning to buy a house in Ontario, Canada, there are several important things you should know before making your purchase. Here are some of the key considerations:

Contact a real estate agent: In Ontario, buyers are not required to pay for the services of a real estate agent, as the seller usually covers the costs.

Mortgage pre-approval: Before you start looking for a home, it is recommended that you get pre-approved for a mortgage. This will give you an idea of your budget and help you narrow down your search to homes that you can afford.

Home inspection: It is important to have a professional home inspection done before you finalize the purchase of a home. This will help you identify any potential issues with the property that could end up costing you money down the line.

Closing costs: In addition to the purchase price of the home, you will also need to budget for closing costs, which can include legal fees, land transfer taxes, and other expenses.

Home insurance: You will need to purchase home insurance before you take possession of the property. This will protect you in case of damage to the home or its contents.

Property taxes: You will be responsible for paying property taxes on the home, which can vary depending on the municipality.

Condo fees (if applicable): If you are buying a condo, you will need to budget for monthly condo fees, which can cover maintenance, utilities, and other expenses.

Title insurance: It is recommended that you purchase title insurance, which can protect you against any issues with the title of the property.

By keeping these important considerations in mind, you can help ensure that your home buying experience in Ontario, Canada is a successful and stress-free one.

FAQS

What is the breakdown of the estimated costs associated with buying a home?

Down Payment: This is the upfront payment you'll make towards the purchase of the home. The amount will depend on the purchase price and your mortgage lender's requirements, but typically ranges from 5% to 20% of the purchase price.

Mortgage Insurance: If your down payment is less than 20% of the purchase price, you may be required to pay mortgage insurance, which protects your lender in case you default on your mortgage. The cost of mortgage insurance varies, but can be up to 4% of the mortgage amount.

Home Inspection: It is recommended that you get a home inspection to identify any potential problems with the property before making an offer. The cost of a home inspection typically ranges from $300 to $500.

Appraisal Fee: Your lender may require an appraisal to determine the fair market value of the home. The cost of an appraisal typically ranges from $300 to $500.

Legal Fees: You'll need a lawyer to handle the legal aspects of your home purchase, including title searches, drafting the purchase agreement, and registering the property in your name. Legal fees vary, but can be around $1,500 to $2,500.

Land Transfer Tax: This tax is paid when you transfer ownership of a property. In Ontario, the land transfer tax is calculated based on the purchase price and ranges from 0.5% to 2.5%.

Property Insurance: You'll need to obtain property insurance to protect your investment in case of damage or loss. The cost of property insurance varies, but can be around $1,000 per year.

Moving Expenses: You'll need to factor in the cost of hiring a moving company or renting a truck to move your belongings to your new home. The cost of moving varies depending on the distance, amount of items, and other factors.

Closing Costs: These are additional costs associated with closing the purchase of your home, such as title insurance, registration fees, and disbursements. These costs can vary, but typically range from 1.5% to 4% of the purchase price.

If you purchased a home for $1 million in Ontario, Canada, here's a rough estimate of the costs you may encounter:

Down Payment: If you make a 20% down payment, that would be $200,000.

Mortgage Insurance: If your down payment is less than 20%, you may need to pay for mortgage insurance. Assuming a down payment of 20%, this cost wouldn't apply.

Home Inspection: A home inspection typically costs between $300 to $500.

Appraisal Fee: An appraisal typically costs between $300 to $500.

Legal Fees: Legal fees for a home purchase can range from $1,500 to $2,500.

Land Transfer Tax: The land transfer tax in Ontario is calculated on a sliding scale.

For a $1 million property, the land transfer tax would be approximately $32,200.

Property Insurance: Property insurance for a $1 million home could cost around $1,000 to $2,000 per year.

Moving Expenses: The cost of moving can vary depending on a number of factors. For a $1 million home, it could cost several thousand dollars.

Closing Costs: Closing costs can range from 1.5% to 4% of the purchase price, so for a $1 million home, these costs could range from $15,000 to $40,000.

So, in total, the estimated costs of buying a $1 million home in Ontario could range from approximately $249,000 to $275,000, including the down payment. It's important to keep in mind that these costs are estimates and can vary depending on a number of factors, such as location, lender requirements, and specific fees charged by professionals involved in the transaction.

Can foreigners buy home in Canada?

Yes, foreigners can buy a home in Canada. However, there are some additional requirements that they need to fulfill. These requirements include:

A valid passport: Foreign buyers need to have a valid passport to prove their identity and citizenship.

A Canadian bank account: To purchase a property in Canada, foreigners need to have a Canadian bank account to transfer funds for the purchase.

Proof of income and employment: Foreign buyers need to show proof of income and employment to demonstrate their ability to make mortgage payments and other related expenses.

A down payment: Foreign buyers are required to provide a larger down payment than Canadian citizens and permanent residents. The minimum down payment required for non-residents is 35% of the purchase price.

A tax identification number: Foreign buyers are required to obtain a tax identification number from the Canada Revenue Agency (CRA) to pay taxes on any rental income or capital gains from the property.

Legal representation: Foreign buyers need to have legal representation to guide them through the home buying process and ensure that they comply with all relevant laws and regulations.

It is important to note that each province and territory in Canada may have additional requirements and regulations for foreign buyers. It is recommended to consult with a real estate lawyer and a mortgage broker to understand the specific requirements and regulations for purchasing a home in Canada as a foreigner.

HOW MUCH CAN I AFFORD?

Mortgage Affordability Calculator

CHECKLIST

Checklist for buyers moving 2-3 weeks before the move:

Confirm the move-in date with your landlord or property management company.

Contact your utility providers to arrange for the disconnection of services at your current home and the connection of services at your new home.
Begin packing non-essential items, such as off-season clothing, books, and decorative items.
Label boxes with the contents and the room they belong in at the new home to make unpacking easier.
Donate or sell items that you no longer need or want.
Notify your bank, credit card companies, and other important contacts of your change of address.
Make arrangements for the transportation of large items, such as furniture and appliances.
Confirm the date and time of your move with your moving company.
Pack a bag of essentials that you'll need during the move and for the first few days at your new home, such as clothing, toiletries, and medications.
Make arrangements for the care of pets and children during the move.
Notify your employer of your change of address and any time off you may need for the move.
Clean your current home and arrange for a final inspection with your landlord or property manager, if applicable.
Prepare your new home for your arrival, such as cleaning and setting up utilities.
Confirm the details of your move with your moving company, including the delivery date and any special instructions.

Checklist for buyers on the day of the move:

Verify that the moving truck is on schedule and will arrive at the agreed-upon time.
Make sure you have all important documentation related to the move, such as contracts, inventory lists, and receipts.
Conduct a final walkthrough of your current home to ensure that everything has been packed and loaded onto the moving truck.
Take note of any damages to your items or property during the move, and document them with photographs if possible.
Ensure that any keys or garage door openers are left behind for the new owner or property manager.
Check that all utilities are turned off and that all doors and windows are locked before leaving your current home.
Communicate with the moving team to ensure that they are following your instructions and that all items are being handled with care.
Verify that all items are accounted for before leaving your current home and before unloading them at your new home.
Direct the movers to place boxes and furniture in the appropriate rooms in your new home.
Inspect your new home for any damage or issues that may have occurred during the move.
Verify that all utilities are turned on and functioning properly in your new home.
Make arrangements to have any large items assembled or installed as needed.
Unpack essentials boxes first, such as bedding, kitchen essentials, and toiletries.
Take note of any missing or damaged items and communicate these issues to your moving company and insurance provider.

By following these checklists, you can help ensure that your move is organized, efficient, and as stress-free as possible.

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