How to Qualify for a Mortgage as a Self-Employed or Small Business Owner

In 2018, there were 2.9 million self-employed Canadians, accounting for 15 per cent of the total workforce. In 2017, Small business owners in Canada accounted for 97.9 per cent of entire employer businesses or 1.15 million.  Those numbers continue to rise. Self-employed and small business owners can deduct certain business expenses; they can keep more of what they earn. Pretty attractive gig, would you think?

Unfortunately, the fortune runs dry when applying for a mortgage. If small businesses are thriving, making an income, having a bright future, why is it so difficult for lenders to hand over a mortgage loan?

"Those who are self-employed or own a small business have the opportunity to claim or write off many business expenses against their income. So their taxable income looks much less on paper, reducing the amount of taxes they pay," says Mary Major Allen. Mary is a Mortgage Broker with The Mortgage Group in Halifax.

By lowering their taxable income by maximizing business expenses and personal deductions, they may be limiting their mortgage potential. There is a discrepancy between what's on their tax return and how much money they earn.

What Do You Need When Applying For A Mortgage

The earlier in the home buying process as possible, consult a Mortgage Broker or Specialist. Knowing what you will need to produce upfront will decrease the feeling of frustration and disappointment down the road. For an in-depth look at the different stages of the mortgage approval process, you may want to check our previous blog.

Homebuyers are required to contribute a 10 per cent down payment on the portion of the price of a home above $500,000, plus 5 per cent on the amount up to that amount. The average small business owner's salary in 2019 was $66,373, according to PayScale data. Eighty-three per cent of small business owners take an annual salary of less than $100,000, and 30 per cent report they take no pay at all. With this in mind, it is crucial not to overextend yourself – so you have adequate income to qualify for a mortgage and also to ensure you have money to reinvest in your business.

"You will have to show two to three years' notice of assessments for reliable proof of income," says David McDill, Mortgage Consultant with Mortgage Insight: The Mortgage Centre in Cobble Hill on Vancouver Island.

If you are new to the self-employed scene or just opened your business, you will have to produce other evidence of income.

You may want to consider completing a statement of income. A Stated Income or grossing up your income to qualify for a mortgage is an option with some lenders. You should be able to show the extra income you are claiming to make in retained earnings in the company or your investments.

If you are taking the Stated Income route, remember to stay reasonable in your declaration of income. Your lender will look at an average salary for someone of similar experience and occupation.

"So, for example, as a plumber, you say you make $100,000, but the average self-employed plumber only makes $75,000, the lender is going to want to know why there is such a discrepancy," says McDill.  You also cannot be stating your income higher than the gross business income.

McDill says there are three mortgage insurance companies to consider: Canada Mortgage and Housing Corporation, Canada Guaranty, and Genworth Canada. Genworth is the only one currently taking Stated Income as an option as an unverified income.

And remember, being self-employed can mean tax savings, which should be taken into account when offered a higher rate. It is often more advantageous in the long run to accept a higher rate mortgage than paying additional income tax.

Be Pro-Active

The bottom line: Best rates are for those who are income-qualified and are reporting their income.  To ensure the best possible success, and possibly the best interest rate, make sure you have your ducks in a row when meeting with your mortgage professional. Here are things you should put on your must-have list:

  • Accountant-prepared business financial statements for the last two years (particularly crucial if you are incorporated)
  • Business license documentation
  • Accountant-prepared personal T1 general tax returns
  • Most recent and possibly the previous three years' Notice of Assessment and proof that taxes are up-to-date. Owing taxes can do more damage than anything else. If you owe, pay off immediately.
  • Corporate bank statements illustrating current cashflow. These statements are not necessary, but it is a great document to have handy.  
  • Bank statements showing regular income for the past six months or longer.
  • Be ready to discuss your business. Things like income, business expenses, and specific milestones will be among the topics addressed.

Are You a Sole Proprietor or Are You Incorporated?

Depending on your credit, and the way your business is registered, some lenders may add between 15 and 20 per cent to your total income as a way of "adding back some expenses." If you are incorporated and have verifiable income, some financial institutions can gross-up your income by as much as 15 per cent. If you are issuing a T4 to yourself as an employee of your company, the lender will use whatever salary you are reporting.

"If you are a proprietor, many lenders will look at your statement of business activities and things you may have written off, such as the depreciation on a work vehicle," says McDill. "Those things may be added back in as income or at least taken into consideration and averaged out in terms of your previous income."

These tips are not exhaustive of everything your lender might ask from you.

"Lenders usually take each case individually. They do not want to find a reason to turn you down. They want things to work out if it makes sense," says McDill. Take your time to prepare your materials, save for your down payment, and consult a mortgage broker or banker as early in the process as possible, and you will find yourself in your dream home before you know it.

By Catherine Musgrove

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Multi-generational living—where two or three generations of a family live under the same roof—continues to grow in Canada and the real estate market is taking note.

According to Statistics Canada, multi-generational households are fastest growing type of households in the country. Between 2001 to 2016, multi-generational households rose 37.5%, which was well above the median increase (21.7%) for all households.

From an ageing population (more seniors living with their children and grandchildren) to increasing levels of immigration, there are a number of factors influencing the demand.

“I think of it as going back to times of yore, where parents are now living with their children,” says Pauline Aunger, REALTOR® and former president of the Canadian Real Estate Association. “What we're seeing is a widowed parent coming back to live with their children.”

Increasingly, retired parents are selling their homes and moving into their children's in-law suites, allowing them to play a bigger role in their children's and grandchildren's lives.

a woman holding up a baby girl while the woman's mother gives her a kiss on her cheek

But while older parents moving in with their children is the most common generation-combination, extended families purchasing homes together—whether siblings or with extended family like cousins—is also part of the growing phenomenon.

two kids, their parents, and grandparents baking together in a kitchen

Indigenous and immigrant families, which account for a growing share of Canada's population, are more likely to live with their extended families. In 2016, multi-generational households were most common in Nunavut (12.2%) and the Northwest Territories (4.3%), followed by Ontario (3.9%) and British Columbia (3.6%).

The two largest markets for multi-generational households are Toronto and Vancouver. Besides both cities have high proportions of immigrants, they're also Canada's priciest housing markets, where sharing expenses might a lot of financial sense.

Homebuilders have responded by offering homes accommodating multi-generational living. “We definitely see opportunity in providing multi-generational living options to our customers,” says Justin Castelino, marketing manager at Brookfield Residential in Calgary.

two kids, their parents, and grandparents relaxing on a sectional couch

Castelino says fully developed basement suites are popular because they provide a sense of independent living while also maintaining a connection to the rest of the house. Those suites typically have separate entrances, their own kitchen and full bathroom, bedrooms and living area. Use the “keyword search” filter to find homes with particular keywords like “accessible” or “in-law”, etc. to find the perfect fit for your family.

a basement apartment

Multi-generational living has a lot of benefits. It fosters a sense of familial and cultural connection—keeping families closer together. Another key driver is cost. Sharing household expenses can make a lot of financial sense for big families.

Keep in mind, however, there are also costs associated with buying suitably large abodes with multiple configurations. To get a better idea of what your family can buy, make sure to use's Affordability Calculator.

two kids, their parents, and grandparents watching television on a couch

For example, Castelino says a traditionally developed basement could cost $25,000 to $30,000 but adding a self-contained suite can run up to the $40,000 to $50,000 range. And of course, there will be additional hydro, maintenance, insurance and other costs to consider.

Additionally, the greater the number of people living in a home, the greater the challenges; often, a healthy dose of patience is needed. This living arrangement is best suited for families who get along.

Still interested? Work with a trusted and informed REALTOR® to help you find the best property for your family.

Original Article from: Realtor

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The idea of quitting your 9-to-5 and working from home, a beach or on the opposite side of the world may sound like a dream, but if you ask the 4.2 million Canadians who are either temporarily employed or self-employed (without employees of their own) they might tell you it's great—until you want to put down roots.

Buying a home is often seen as a milestone towards adulthood. But as the real estate market grows, mortgage criteria has become stricter and the path to homeownership more challenging—especially if you freelance.

Intuit Canada predicts 45% of Canadians will be self-employed by 2020, so whether you freelance by choice or by circumstance, knowing the ins and outs of getting a mortgage in the gig economy could have you into your dream home in no time. Here's what you need to know:

Have all your documents ready

a T1 tax document next to a calculator and a calendar

Before you even start looking at properties, you need to know how much you can borrow, which means you'll have to speak to a mortgage lender or a bank. The bank will look at the two most recent years' Notice of Assessment (NOA) and T1 Generals, and use either an average of the two years or the most recent year, whichever is lower.

Ramón Pérez, a freelance comic book artist based in Toronto, was rejected the first time he applied for a mortgage, even after nearly four years of self-employment. “My requests fell on deaf ears, even though I could prove to maintain a monthly rent that exceeded my monthly mortgage commitment,” he says.

This was before the mortgage stress-test that came into effect in 2018 (also known as B-20), which now requires banks to use one of two qualifying rates: the five-year benchmark rate (5.34% today) or the rate your lender negotiates with you plus 2%.

It wasn't until nearly a decade later Pérez was successful, but the path to homeownership remained rocky. “I had 15 years more experience and a higher income, but I still was given poor deals by my personal financial institution,” he says.

Most lenders are hesitant to approve a freelancer's mortgage application from the get-go — even with a high income and years of experience — so it helps to show up to your first meeting with as much proof as possible you can handle a mortgage. If you have clients on monthly retainer and you feel comfortable asking them for a letter confirming they pay you X-amount each month, it will strengthen your case in the eyes of the underwriters.

Declare your income

a woman at a desk working on tax forms

Many freelancers don’t declare 100% of their income, and while an extra hundred dollars here and there may not seem like a big deal, it can add up over the year. Not declaring enough of your income will hurt you when applying for a mortgage—especially now that most banks have tightened up their lending policies.

If you're planning to purchase a home shortly after starting your freelance career, it may be worth slowly transitioning from a full-time job to self-employed life rather than jumping straight into freelancing. Banks can only accept your income as stated on your NOA, so if your first year as a freelancer was slow, even if you're on track to meet your financial goals for the year, it won't make a difference to your application. You would have to wait until the following year when that income has been recorded on your NOA, to be considered for your mortgage.

Consider speaking to a broker

two businessmen in a meeting

Even if you're approved by a bank, your income instability may get you a higher interest rate. “As a freelancer, no matter how much you make, your income looks irregular and unstable—even though in today's economy I would consider it far more stable,” Pérez says. “I would say a freelancer has to prove themselves much more and will have a harder time acquiring a comparable mortgage to an individual with a comparable income.”

Ultimately, a less-than-ideal interest rate led Pérez to seek out a mortgage broker. “When I ended up getting what I thought was a poor deal, even though the bank touted it as great, I decided to go through a broker based on the recommendation of a friend.”

The broker will work with you and explain where you need to make adjustments, if any, to increase your chances of approval and they'll negotiate with lenders on your behalf to get you the best possible interest rate.

Talk to your accountant

a husband and wife in a meeting with a businessman

As soon as you've decided you want to buy a home, talk to your accountant. Tell them about your financial goals and give them an approximate timeline for when you think you'll be ready to buy. Your accountant can then begin preparing your taxes in an appropriate way to increase your chances of being approved when the time comes for your lender to submit your application.

Team up

two females seated on a bed looking through documents and on a laptop

If you have the option, you can always team up with someone you trust to either co-own the property or co-sign for you, which simply means they would help guarantee to the lender they will always get paid—if not by you, by them.

When it came time to buy his second property, Pérez opted for the former: “[B]y teaming up with a friend on the investment property—a friend who looked “better” on paper in the bank's eyes—the second mortgage went much smoother.”

If you're not quite ready to buy a home with your (full-time-employed) significant other but think you'd eventually like to, it may be worth it to hold off until you're both ready. Not only are two incomes better than one (and the closer you can get to your 20% down payment, the less you'll have to pay in mortgage insurance), but their income stability may get you a better term and lower interest rate.

Ultimately, if you're organized, know where to look and take the necessary steps to prove your ability to make your monthly payments, you'll be in your new home and adulting like a pro in no time.

The article above is for information purposes and is not financial or legal advice or a substitute for financial or legal counsel.

Original Article from: Realtor
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Are you thinking about breaking your fixed-rate mortgage? While traditionally considered a financial faux-pas, many Canadians choose to break their fixed-rate mortgage when they find their current terms and conditions no longer meet their needs.

“Breaking a fixed-rate mortgage occurs more often than you would think,” Jared Ksenica, Regional Vice-President, Mortgage Specialist, with BMO Bank of Montreal said.

Of course, there are penalties to pay for breaking a mortgage. When you break a mortgage contract, the penalty is supposed to cover the lender's costs related to unwinding the loan, while also recouping part of their lost profit. The amount is dependent on the interest rate and the mortgage balance.

According to Ksenica, some of the most common reasons for breaking a mortgage include refinancing for debt consolidation, purchasing a second property and helping children with their education or helping them buy a home.

an application for a fixed percentage rate mortgage application

Another reason to break a mortgage is to take advantage of a lower interest rate. If you've been watching rates lately, you may be wondering if you could break your fixed-rate mortgage to save money in the long-term with a cheaper interest rate.

This may sound like a good idea, but be forewarned: trying to figure out what you'll be charged for breaking a fixed-rate mortgage is very difficult, with homeowners often miscalculating the cost of their penalty.

What are the advantages of breaking a fixed-rate mortgage?

a calculator on top of a sheet of calculations

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John Tarnowski, Executive Vice President, Retail Financial Services at ATB Financial, says it's important customers look beyond the rate and compare the full mortgage package to determine what's best for them.

“If moving to a variable or new fixed-rate term will save interest costs over the remaining mortgage term, it might be worth doing, even if they have to pay a prepayment penalty,” he says. “If a person’s life or lifestyle has changed, it might also be a good time to consider this option.”

These kinds of decisions shouldn’t be taken lightly and it’s best to discuss options with a mortgage specialist. Despite paying the penalty upfront for breaking a mortgage, there may or may not be effective savings in the long-term—especially if you're facing high penalties.

What are the penalties for breaking a mortgage?

a person at a desk doing some financial-related work

Photo by from Pexels

The biggest disadvantage of breaking a mortgage is the out-of-pocket penalties. And they're often much, much higher than you might have anticipated.

Fixed-rate mortgage penalties are always calculated based on whichever is greater: “the greater of a) three months interest or b) the interest-rate differential (IRD),” with the IRD being the difference between the existing mortgage rate and the interest rate currently charged.

However, there are key differences in the actual rates lenders use to calculate your IRD and this can greatly impact your penalties. The Standard IRD is what most people think of when breaking a mortgage, whereby the lender takes the difference between your contract rate and their current rate that most closely matches your remaining term.

But there's also the Discounted Rate IRD Penalty (used by RBC, BMO, TD, Scotia and National Bank). Banks who use this IRD format take your contract rate, compare it to the posted rate that most closely matches your remaining term and then subtract the original discount you got off of their five-year posted rate.

This small tweak that can make a huge difference in terms of the penalties you can incur. Using this calculation, it's possible for an IRD to jump from the Standard $1,500 to $9,000.

The Posted Rate IRD Penalty (used by CIBC) can have even steeper penalties. In this variation, the bank calculates your IRD penalty using the five-year posted rate they offered when you initially got your mortgage.

Get informed about the penalty calculators your particular lender will use before signing any mortgage contract so there are no nasty surprises down the road.

people at a table looking over contracts

Photo by rawpixel on Unsplash

If you decide to break your fixed-rate mortgage but you want to stay with the same lender, ask if they offer penalty discounts. While not all lenders offer this type of incentive, some may be willing to reduce your penalties if you decide to stay with them. mortgage contract but still stay with them. In this case, Tarnowski says you can break your mortgage “in conjunction with a new mortgage,” minimizing the penalty by making a lump sum payment on their mortgage.

Be sure to check out our affordability calculator to find out how much you can afford and use our handy mortgage calculator to determine your ideal amortization period and down payment options.

The article above is for information purposes and is not financial or legal advice or a substitute for financial or legal counsel.

Original Article from: Realtor

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There are many factors to consider when searching for your dream home, including cost, number of bedrooms, layout and neighbourhood. But if you have children—or plan to someday soon—you need to think about another important selling feature: schools.

After all, you don't want to buy a house only to discover the local schools don't get a passing grade.

Find the perfect school with Local Insights Local Insights map

Home buyers can access comprehensive schools and catchment information across Canada while searching for properties on To make finding the perfect school easier, you can narrow down your search by using filters like public or private, elementary or secondary, and language. To get started from the map page, click on the “stacked paper” icon found in the bottom left corner. Love a home but want to learn more about the neighbourhood? On a listing, it’s as easy as:

  1. clicking on the “Neighbourhood” tab;

  2. selecting the amenities to get a list view of nearby schools, groceries, transit routes and more; and

  3. clicking on a school to see nearby schools and their catchments.

You can also dive into demographic details like household income, population by age and number of children at home.

Here are a few more tips to help you find the right school for your children, whether you’re moving across town or to the other side of the country.

Do your homework

young children in a classroom with a teacher at the front of the class

Most provinces offer online directories of school boards and individual schools, which can be useful for learning about class sizes, student-teacher ratios and whether they can accommodate children with special needs. Just as you would research a hotel before going on vacation, you'll want to read what others have to say about a given school. Many parents rate schools online, based on teacher quality, curriculums and enrichment programs.

For academic information, the Fraser Institute's handy tool,, provides detailed school-by-school performance reports. In addition, don't forget to scroll through a school's social media feed, which can yield a wealth of great information, such as photos and newsletters.

Talk to your future neighbours

two families with young children sitting on stairs in front of an apartment

Take a walk through your prospective neighbourhood and check out the area's parks and community centres. Don't be afraid to approach parents pushing kids on a swing or watching their child's swimming lesson. Strike up a friendly conversation and tell them you're thinking about moving to the neighbourhood. Ask about schools in the area and if they have any advice for choosing the right one for your children. Find out whether the local schools encourage parent volunteers or how many field trips are organized each year.

Map out the commute

young students standing in a single file, waiting by a school bus

Is a home within walking distance of the school at the top of your priority list? Will your children need a drive twice a day? You can calculate your potential commute by walk, bike, public transportation or car using the neighbourhood tab on your favourite listings. Additionally, call the school board to find out if they offer bus services or if you'll be juggling carpool schedules as part of your morning routine.

Visit the schools

a father and daughter holding hand while walking out the gates of a school

Make an appointment with the principal to tour each school you're interested in and arrive with a list of questions, such as whether special programs are offered. Ask to see classes in progress, along with the facilities and grounds, to help you evaluate which school works best for your children. If your children are athletic, ask about extracurricular sports teams; if they're artistic, inquire about their music, arts or drama programs. Can't go in person? Set up phone calls with the principal, administration and ideally the teachers who'll be teaching your children.

Armed with all this information, you'll be sure to get top marks in your housing search.

Original Article from: Realtor

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Home buyers might assume there's no need to work with a REALTOR® when purchasing a pre-construction build. After all, the builders and developers have on-site representatives promising to take care of all the paperwork, right?

Not so fast. There are a number of advantages to working with someone who has your best interests in mind. Here's what you need to know if you're thinking about buying a brand-new build.

A REALTOR® makes the sales process less overwhelming

GIF of a man saying: "Calm down, beathe."

Via Giphy

Buying a new build can be a lot more complicated than purchasing a resale. You'll benefit from working with a local expert who knows the project's neighbourhood, target audience, materials used and sales data. Enhance your search for homes by saving your search and getting notifications from favourites. Most importantly, they'll know which builders are most reputable for delivering on time. A REALTOR® can also offer information on what is the best time to buy—pre-construction, mid-construction or after the building is completed—since they might have intel on upcoming promotions. For example, builders may be a free parking spot during pre-construction or they may lower the purchase price when the building is unloading the last few units.

A REALTOR® can negotiate on your behalf

GIF of a woman in a store saying: "I'l give you a dollar for all of this"

Via Giphy

Sure, you can simply trust a sales representative to haggle with the builder, but that may not get you the best deal or added perks, like free upgrades or new appliances. Understanding the fine print in a purchase contract is not for the faint of heart. A real estate professional can point out the confusing clauses you're better off negotiating on.

You'll get the low-down on the up-sells

GIF of a man signalling to another man to not do/go for something

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Immaculately designed model homes offer all the bells and whistles, tempting buyers into adding all sorts of extras onto the standard price. Sometimes, these upgrades aren't worth it. Your REALTOR® can help you decide what's worth doing and what can wait.

You won't fall for sales pitches that seem too good to be true

GIF of a man in a suit asking: "Are you sure?"

Via Giphy

Buyers are led to believe if they don't use an agent, the builder will subtract the price of a REALTOR®'s potential commission from the purchase price. But since the seller (i.e. the builder) pays your agent's commission, it only makes sense to insist on having one. Builders are reluctant to reduce prices because those discounts are available for other buyers to see.

A REALTOR® will provide guidance and support throughout the transaction

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When it comes to pre-construction, home buyers must navigate multiple steps and interact with several people before closing. In addition to making decisions around design, buyers must also make technical choices about electrical work or construction add-ons during the build. In addition, some buyers will be dealing with loan officers, appraisers, notaries and home inspectors. Having a trusted REALTOR® means you can access their vast network to find the best professionals.

Bottom line? The builder's rep has the builder's goals in mind, while your own agent is a valuable resource with just one person to satisfy: You.

a illustrated quiz about whether of not you should use a REALTOR when buying pre-construction

Original Article from: Realtor 

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Buying a house can be an exciting, but complex process. So when you embark on your journey, one of your first stops should be familiarizing yourself with the lingo.

We've curated helpful information from our Homebuyers' Road Map and Tips for Buyers, to share with you some of the most important terminology a new buyer needs to know—from pre-purchase to post-purchase.

Man and woman meeting with a real estate agent in their home

Before you buy

First things first, you need to find yourself a REALTOR®. A REALTOR® can bring you peace of mind thanks to their experience and professionalism. From helping you find a home that meets your needs and price range, to negotiating your purchase price, directing you through complex contracts, a REALTOR® is an important part of your home buying journey. 

While it's exciting to start visiting open houses, you must first determine how much a mortgage lender is willing to let you borrow to purchase your first home. Your mortgage is a loan that can help you cover the cost of buying a home. How much you're able to borrow will depend on factors including your total current debt, monthly household income, how long you’ve been at your current job and how long it will take you to pay it back: Introducing theamortization period. A longer amortization period means lower monthly payments but higher interest rates. 

Mortgage lenders use Principle, Interest, Taxes and Heating (PITH) as a tool to ensure mortgage affordability by determining the monthly payments that can be made by the home buyer. The mortgage affordability calculators can help you perform your own PITH test to estimate affordable mortgage payments.

When taking out a mortgage, home buyers grant the bank a lien on the property. This gives the bank the right to seize your property in the event you don't repay your mortgage.

Couple smiling while approaching a man

Types of mortgages: 

  • Fixed-rate mortgage: Your interest rate is locked in for a specified period called a term. Your payments stay the same for the mortgage's term so you will not pay more even if interest rates increase over time.

  • Variable rate mortgage: The rate of interest you pay may change if rates go up or down.

  • Conventional mortgage: Requires a down payment of 20% or more of the property's value. You're not required to get mortgage default insurance with a conventional mortgage.

  • Closed mortgage: The mortgage cannot be paid off early without paying a prepayment charge.

  • Open mortgage: A mortgage that can be paid off at any time during the term, without having to pay a charge. The interest rate for an open mortgage may be higher than for a closed mortgage with the same term.

Now that you know how much you can afford, your REALTOR® can help determine what type of neighbourhood you want to live in and what type of house you want to buy.

Two people looking at a map on their phone while driving

Buying a home

You've found your dream home…now what? It's not time to pack your bags just yet. There are many expenses you must consider beyond the purchase price(the price you're willing to pay for the house). 

You need to consider how much of a down payment you can afford. This refers to the initial up-front portion you pay against your home purchase. The larger the down payment, the smaller your mortgage. Are you a first-time home buyer with a Registered Retirement Savings Plan (RRSP) account? You can now withdraw up to $35,000 without paying income tax through the Home Buyers' Plan.

Man wearing hard hat and pointing to something on exterior of home

Other factors you may want to consider at this stage are:

  • Property taxes: This annual fee, imposed by the local government, pays for services like public education, local police and libraries. 

  • Home insurance: This is a form of property insurance protecting you financially in the event of damages or losses to your home and its contents. In most cases, you can include these payments in your monthly mortgage payment. 

  • Home inspection: Even if the home appears to be flawless, many home buyers arrange a home inspection as a condition of their purchase. Hiring a professional to inspect the overall condition of the home can cost a few hundred dollars, but can reveal any serious defects.

Now that you have figured out all of the costs associated with your purchase, you're ready to make an offer. An offer to purchase is a formal, legal agreement made between the buyer and seller which often contains certain conditions. This is commonly known as a conditional offer and includes factors that must be met in order for the sale to be successful such as financing terms, appliances and fixtures, inspections and the physical condition of the house. 

Generally, the seller has between 24 and 48 hours to accept, reject or counter-offer. This is known as irrevocability of the offer, the length of time the seller has to consider your offer. 

Once your offer is accepted, you will need to determine your closing costs. This includes your mortgage broker's fee, real estate commissions, moving costs, title insurance—an insurance policy protecting you against challenges related to the title of your home—and more. 

While there's a lot more lingo in the real estate dictionary, hopefully you now have a better understanding before taking plunge into one of the biggest single purchases you’ll ever make. These resources available on may also help you along your journey to homeownership:

Original Article from: Realtor

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Moe Pourtaghi

"Nothing brings me more joy than seeing my buyers & sellers have success in their Real Estate endeavours. I hope you find the articles on my blog inspiring and educating in your ventures." - Moe Pourtaghi

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