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Shantoo Patel and Marlene Auspitz
Broker and Sales Representative

Royal LePage Real Estate Services Ltd.

55 St. Clair Avenue West, Toronto, ON M4V 2Y7

Office: 416-921-1112  Fax: 416-921-7424

Tips for Buying


Your home will likely be your most expensive purchase. That is why you should have all the facts before you make the decision to buy a new home. This report explains important tips to consider when purchasing a home.


* Do a Thorough Inspection
Don’t expect the seller to confess all the problems with the home. Be sure to conduct proper home inspection early on and consider hiring an inspector to examine the home.


* Get Pre-Approved
A pre-approved mortgage can be easily obtained and saves you time and energy when placing an offer. With a pre-approved mortgage, you can shop with freedom, confidence and security because you know the money will be there to purchase the home you choose.


* Think About the Hidden Costs
Make a list of all the fees you may incur in closing the home so that you know exactly what you will be paying. Having unexpected expenses when moving is something you’ll want to avoid. Sit down with your Realtor® if need be, and ask them what you should be considering. This way you will know what to expect and will be prepared.


* Buy What You Need
Determine what your are looking for in a home. Often times, buyers get swept up in the emotion and excitement of the buying process and purchase the wrong home. Take the time upfront to clearly define your wants and needs. Put it in writing and measure every home you look at with it.


* Visit After Signing
Have a clause added to your contract that allows you a couple of visits to the home before your closing. Many owners begin neglecting the home once they know it is sold. By visiting before closing, you can identify this and put a stop to it.


* Making Extra Payments
Paying extra amounts on your mortgage can make a big interest saving over time. When we select a mortgage company, privilege payments options are something that we look for. A 20% privilege payment will allow you to pay off up to $20,000 per year on a $100 000 mortgage. It is important that the privilege payment also be flexible to allow you to pay smaller payments on the mortgage and as often as you wish. An extra $1000 periodically paid on a mortgage can help you become mortgage free faster.


* Reducing the CMHC Fees On Your Purchase
When you require a mortgage for more than 80% of the purchase price of a property, that mortgage must be insured by Canada Mortgage and Housing (CMHC) or GE Mortgage insurance. The premium charged by these decreases as the down payment increases. When you finance your property at 95%, a premium of 2.75% is added to the mortgage. By increasing the down payment to 10% of the purchase price the premium can be reduced to 2.0%. If you can put down 20%, you can avoid any additional insurance fee. Depending on your situation there are ways that you can structure this financing to avoid the CMHC or GE insurance premium.


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