As a real estate team, one of our most important relationships is with the mortgage brokers we work with. Aside from finding your ideal property, the most significant part of the home buying process is securing a mortgage and payment terms. 

At the Katherine Barnett Team, we work closely with several mortgage brokers. The reason we work with several is that much like choosing a real estate agent, choosing a mortgage broker is a very personal decision. It’s important to choose an individual who gels with your personality and can help you achieve your goals and meet your budgetary needs. 

In this post, we’re talking Agnes Mocko of Mortgage with Agnes and Joanna Skowron of The 6ix Mortgage Group to answer the questions you’ve always wanted to know about working with a mortgage broker. 

1. First of All, What’s the True Difference Between a Mortgage Broker and a Bank?

Joanna: When you go straight to the bank, you only have access to what that particular bank offers, and those mortgage programs may not be in alignment with what you need. However, working with a broker is a one-stop-shop! We collect the same information the bank does, but what’s different is that we have access to the whole spectrum of lenders at our fingertips, which includes the bank you were considering going to!

Agnes: Also, a bank has a certain type of box they need their applicants to fit into, which is why a lot of people get turned down. Mortgage Agents provide expert advice and work alongside their clients throughout the entire process. It’s almost as if you have a Google search engine in your back pocket throughout your entire homeownership journey.

Looking for more first-time homebuyer resources? You’ve come to the right place! Check out some of our other blogs:

• The True Cost of Buying a Home: What You Need to Know
• Our Top 8 First-Time Homebuyer FAQs
• How to Hire a Real Estate Agent as a Buyer

2. How Soon Should You Start the Mortgage Application Process when Buying a Home? 

Agnes: You should at least have a conversation with a Mortgage Agent as soon as you begin considering buying a home. The reason for this is because sometimes applications need some tweaking in order to get to the desired purchase price. A good mortgage agent can provide you with advice on how to meet your goal once that time comes. When it comes to a pre-approval, it is important to get one done prior to contacting a realtor. The reason for this is because once you have your pre-approval, you can confidently look for homes within your budget, avoiding any disappointment or wasted time on homes that may not be in your reach. 

Joanna: I would also add that the speed at which a client gets pre-qualified mainly depends on how quickly the required documents get sent over. I would recommend speaking with a mortgage agent about a week prior to house hunting to give a client adequate time to collect their paperwork and enough time for a mortgage agent to input all the information and ask for clarification if need be! 

The great thing about getting a pre-approval is that it offers a ‘rate hold’ that lenders will honour the interest rate the client has been pre-approved for or will adjust the interest rate if it drops for up to 120 days. 

3. Fixed-Rate Vs. Variable: Which Type of Mortgage is Better? 

Joanna: I wouldn’t necessarily say one is better than the other because it depends on what the client is comfortable with. If you’re the type of person who likes to know exactly how much you’re paying each month for peace of mind, I would recommend a fixed rate. If you’re the type of person who is okay with fluctuation in the payment, paying a little bit more or a little less, depending on how interest rates are looking, a variable rate could be the way to go. 

However, generally speaking, variable rates tend to be lower, and historically have shown to be less expensive in the long run.  

Agnes: It’s important to understand the penalties within the mortgage contract when making your decision. It’s quite common to see Canadian homeowners break their fixed mortgages. And fixed-rate penalties use either the greater of three months interest or a calculation known as the “Interest Rate Differential” (IRD). This is the difference between the interest rate attached to your mortgage and how it compares to a current rate that most closely matches your remaining term at that point in time. The issue is no one knows where interest rates are heading, making it impossible to predict. 

Variable mortgage penalties, on the other hand, typically only consist of up to three months of interest. 

Check out more homebuyer resources right here:

• 5 First-Time Homebuyer Mistakes to Avoid
• Download Our Buyer’s Guide

4. What’s the Number One Thing First-Time Homebuyers Should Know? 

Joanna: Get pre-approved! In a market where homes are flying off the shelves, it is extremely important to know what your budget is. Something I say all the time is house hunting without a pre-approval is like going shopping without knowing how much money you have in your wallet.

And with this pre-approval, the actual submission of your mortgage application is a lot easier. Because the majority of work has been completed in advance, you won’t have to worry about scrambling for paperwork in such a fast-paced environment. 

Agnes: I would say to get into the market as soon as you can afford it. You can buy a home with as little as 5% down. Be open-minded when looking for your first home. Remember, you are making an investment.

5. What’s the Difference Between a Mortgage Renewal and Mortgage Re-Finance?

Joanna: When the term of your mortgage is close to expiring, you’ll receive a notice from your lender offering you the option of renewing that mortgage with a new rate, and term. It’s a straightforward process stating that you’d like to move forward with your current lender, under the new specifications. 

Agnes: Refinancing a mortgage means you are replacing your existing mortgage with a new mortgage to do things like fund a renovation, take out money to buy an investment, secure a better rate, consolidate debt, etc. 

In order to get the money to refinance, an appraisal needs to be conducted on the home and the current mortgage balance is subtracted from this total. A borrower can then access up to 80% of the remaining amount. However, the borrower needs to qualify for this new mortgage amount.

Interested in learning more about mortgage rules and working with a mortgage broker? We host two webinars with Joanna and Agnes each month! Register for the next webinar here and join us live! 

Basement apartments are an increasingly popular trend we’re seeing among homeowners these days. As housing prices continue to rise, and the housing supply continues to diminish, people are looking for alternative ways to navigate the market. 

If you followed the recent federal election, you’d know that housing affordability was a major part of each party’s platforms. However, policies and laws can only go so far and many Canadians want to take things into their own hands. This is where secondary suites and basement apartments come into play. 

Here’s everything you need to know about buying a home in Milton with a basement apartment…

What Defines a Basement Apartment?

Basement apartments, sometimes also called secondary suites or accessory apartments are defined as a “self-contained dwelling” created by converting a section of the main dwelling into a secondary dwelling. 

Basements make popular accessory suites because it’s often fairly easy and inexpensive to turn a basement into its own apartment. 

What are The Benefits of Basement Apartments? 

Whether you’re a first-time homeowner or an empty nester, there are many benefits to having a basement apartment as part of your house. 

Getting your foot into the real estate market as a first-time buyer can be difficult. As home prices in Canada continue to rise, it’s becoming increasingly hard for young people to afford to buy a home. For these types of buyers, a basement apartment is a great option because it means they can collect rent from a tenant to help supplement their mortgage payments, improving affordability overall. 

Empty nesters can also reap the benefits of a basement apartment. These types of homeowners are typically dealing with excess space in their homes. If they aren’t quite ready to downsize but want to maximize the use of their space and make a little extra money, a basement apartment is a great option. 

Basement apartments are essentially real estate investments and can be used to further your space in the market, give exceptional landlord experience, and help you increase your investment portfolio. 

Buying a House with an Existing Basement Apartment vs. Building New

Basement apartments can significantly increase the value of a home. So if you are in the market for a property with an existing basement apartment, expect to pay a higher price initially. 

However, building a basement apartment might take an initial lump sum investment on your part, but in turn, will increase the property value should you want to sell later. 

If you’re currently in the market for a home, and you know you want to rent out the basement, it’s certainly worth looking into buying a house that has an existing basement apartment. It would save a lot of work and time on your part. 

However, it’s also important to consider the ROI. Do some research into how much building an accessory suite would cost vs. how much rent you could charge in that neighbourhood. This might give you a better idea of whether or not buying an existing house with a basement apartment is better for your unique situation rather than renovating and building your own. 

Ready to buy a home? Get started here:

• Our Top 8 First-Time Buyer FAQs
• The True Cost of Buying a Home: What You Need to Know
• A Buyer’s Guide to Pre-Emptive Offers

Thinking About Building a Basement Apartment? Don’t Forget About the Legalities

Building a basement apartment in Milton requires some careful planning and consideration on the homeowner’s part. For example, before you start building, you need to obtain a building permit and ensure your apartment meets certain regulatory standards:

• The basement apartment must be located in a detached single-family home. 
• It must have access to municipal sewer and water with either laundry in-suite, laundry connections, or shared laundry services.
• There must be at least three legal parking spaces on the property.
• Ceiling height must be at least 6′ 11″ (2.11 m), and 6’5″ under beams
• It must not be greater than 85m² or 915sq/ft in size. 
• 45 min floor and wall fire separation (requirements are different in older buildings)
• The dwelling must have its own private entrance.
• The home must have a walkout egress or window egress with a minimum 3.8 sq/ft clear opening.
• The building must have all the appropriate permits and inspections.

Legal vs. non-legal basement apartments is a hot topic in Milton and the GTA. Learn more about it in our blog What Makes a Basement Apartment Legal in Milton here.

How to Maximize Your Basement Apartment Income

Building a basement apartment is more than just sectioning off a part of your home and collecting rent. You are essentially becoming a landlord, which comes with significant responsibility. 

Although no two renters are alike, here are some general features that renters look for in a basement apartment:

• High-quality appliances and finishes (think, faucets, tub, shower, sink)
• Higher-than-average ceilings
• Large, bright windows
• Nice lighting 
• Open-concept floorplans
• All-inclusive utilities 
• Proximity to public transit, healthcare, grocery, and amenities

Read our quick guide to Milton Real Estate here to learn more about the best neighbourhoods for your unique needs.

It’s also important to attract the right type of tenant for your property. Consider your location and your ideal tenant and ensure that you are doing everything you can to attract that type of person to your listing. It’s also a good idea to complete credit checks and have your tenants fill out applications before agreeing to rent the apartment. 

Did you know we host first-time buyer webinars every month? Sign up to join our next webinar for FREE here.

During the restrictive lockdowns of 2020, most Realtors® across the GTA and Ontario recognized that they needed to pivot their business to help cater to an increasingly online demographic. Although real estate is considered an essential service and home showings were permitted during the lockdown, many agents decided to take a more digital approach to showcase properties. This meant investing more in high-end photography, video, and virtual tours.

As COVID cases in Ontario decline, many buyers and sellers are feeling more comfortable with the idea of entering a stranger’s home for a showing or an open house. In fact, the province also recently announced that open houses are now permissible under new guidelines, although, our team still prefers to avoid them for now. However, things are not completely back to normal in our area. There are many things we need to do to ensure our clients are safe, comfortable, and confident during showings.

Here are a few of the things we’re doing to make sure your next in-person home showing in Milton is a smooth, enjoyable experience — whether you’re a buyer or a seller.

At the Barnett Real Estate Team, we’ve been following the latest COVID-19 safety protocols since the start of the pandemic. To learn more, read about What We Are Doing To Keep Our Clients Safe here.

We Typically Start Online

For our buyer clients, we suggest starting off your home showing process virtually. We call this stage our Market Education stage, and it takes place after our initial consultation. Once we’ve established a solid understanding of the types of properties you’re interested in, we present the listings we believe you’ll feel excited about via our virtual Market Education stage.

Here, we’ll detail all of the important features of each listing we’ve identified for you during an in-depth digital presentation and discussion. We’ll sort out what you like about the properties, what you dislike about the properties, and further inform you about the current state of the listings market to help you gain a better understanding of what you’re most likely to find available.

Once we’ve found a listing of interest that you want to view in more detail, we’ll book an in-person showing with the selling party. This way, we not only save on time by not having to physically visit each listing, but things are also much safer for everyone involved.

If you’re thinking about buying a home, you deserve to feel confident that your Realtor® is always looking out for your best interests. Learn more about How We Help Buyers here.

Showing Time Slots

No matter if you’re a buyer viewing a home in person or a seller navigating through the home showings process, every in-person home showing must follow a pre-established time slot guideline.

While this is no new invention in the world of real estate, gone are the days of mass open houses (for our team, anyway) and loosely scheduled showing periods. Today, we need to respect rigid rules need for the benefit of everyone’s health and safety.

The new guidelines are simple — there can only be one showing at a time with solely the potential buyers and their real estate representative present. Additionally, the showings must respect a 30-minute time block, with no overlap between showings.

Are you planning on selling your home for the first time? You’ve probably got a lot of questions. Read through Our Top 7 First Time Seller FAQs here, or Contact Us here to ask us anything more specific.

How to Prepare for a Showing for Sellers

When acting as listing agents, our team also insists on conducting a stringent set of COVID safety measures during each in-person home showing. No matter who they are, each person who enters a listing we’re showcasing must follow our precautionary measures.

For starters, face masks are mandatory for anyone on the premises. Additionally, we also place hand sanitizer dispensers at the primary entryway of the home and in other high-traffic areas as well.

Should there be any specific items or areas within a home the seller doesn’t want visiting potential buyers to touch, we place clear “No Touching” signs near or on them.

Selling a home is no easy task, even if it isn’t your first time around. To see how we help make the entire home selling process easier for our clients, learn more about how we help sellers from the link below or via our Seller’s Guide.

• How We Help Sellers
• Get Our Seller’s Guide

Your Home Away From Home

In order to mitigate the number of people present during a home showing, we always require our selling clients to leave their homes while potential buyers are viewing the property in person. Sometimes it’s just for a few hours, or occasionally it can be for the better part of a day or two.

However, in some instances, when our selling clients have an extensive amount of home showings scheduled over the course of a short period of time we’ll extend our services to find more comfortable accommodations for them that better suit the time period which they’ll be away from home for.

For example, should a selling client need to vacate their homes for a weekend, we would explore the option of putting them up in a hotel room nearby for the duration of their showings. We find this not only alleviates stress levels for our sellers but also allows us to not have to worry as much about timing issues from visiting buyers.

From a health and safety standpoint, knowing our selling clients are far away from any potential exposure to COVID during their home showings also offers us a lot of peace of mind. And from our client’s perspective, they’re able to enjoy the convenience of staying in one stable location during the showing process, which is especially meaningful to them if they have kids, pets, or work from home.

At the end of the day, it’s our goal to ensure all of our clients feel as safe, satisfied, and happy when working with us a possible.

Whether you want to buy or sell a home, the job of a professional Realtor ® is to make your entire experience as easy and enjoyable as possible. Learn more about Why You Should Work With a Realtor® here.

Whether you’re a keen follower of the real estate market or not, chances are you’ll most likely have heard all about how our local Ontario and GTA markets have been bustling over the past year or so.

Low interest rates coupled with multiple lockdowns forcing people to spend more time at home due to the COVID-19 pandemic have spurred our local markets on to new heights, with Canadians more eager than ever to invest in where they live.

With such a high demand for homes, the supply simply hasn’t been able to keep up, resulting in what’s known as a seller’s market. With such strong competition between buyers, many have resorted to using more bold negotiating tactics to help increase their chances of landing a home.

One common negotiating tactic we’ve seen from buyers over the past year or so is the pre-emptive offer. To learn more about what they are and when they come in handy, use this post as your introductory (or reminder) to the power of the pre-emptive offer.

What Is A Pre-Emptive Offer?

A pre-emptive offer, or ‘bully offer,’ as it’s also commonly referred to, is an offer to purchase a home submitted by a buying party to the selling party.

A pre-emptive offer can only be submitted when the selling party has set what’s known as an Offer Date, meaning they will only receive and review offers for their listing at a certain time and date. As the name suggests, a pre-emptive offer is when a buyer submits an official offer for a home before the set Offer Date.

This is where the term ‘bully offer’ comes from, as this eager buyer is essentially skipping the line to get their offer in front of the eyes of the sellers first.

These days, buying a home isn’t as simple as just paying the ticket price. Learn more about bidding tactics and rules in the related posts here:

• Multiple Offer Scenarios: Tips for Home Buyers
• Should Open Bidding Come To Ontario Real Estate Markets?

Why Do They Happen?

While submitting a pre-emptive offer is completely legal, they do directly challenge the requests of the selling party. However, when they are submitted, they’re generally submitted by buyers in order to make a clear statement of intent to the selling party.

If a buyer is willing to break the requests of the sellers so that they can get their offer in front of the eyes of the seller before any other buyers have had a chance to, it usually means that the pre-emptive offer will be of predictably high interest to the sellers.

How are They Different?

Most often, a pre-emptive offer includes a pricepoint that far exceeds the sellers’ original asking price and expectations and comes with a set of terms and conditions that are favourable to the selling party.

When buyers submit a pre-emptive offer to a seller, they obviously run the risk of aggravating or annoying sellers who have made it clear they wish to wait to receive offers to purchase until a set offer date. Therefore, in choosing to submit a pre-emptive offer, it must be convincing enough that the sellers don’t experience that negative reaction. In fact, Seller’s often sign forms instructing their Realtor® not to present any offers to them until the set date. So, if a Bully Offer arrives the Sellers may not even see the offer depending on how the Realtor® handles it. For the Seller to review the offer, the Seller must agree and the written instructions for the Offer Date must be changed and all interested parties must be notified of the Offer Date change.

That being said, sometimes Offer Dates are set by selling parties with the hope that a strong pre-emptive offer does come in, in fact. Understanding when that’s the case can prove to be quite tricky, however.

Are you a first-time buyer? Don’t let inexperience get in the way of buying your dream home — read these useful links for first-time buyers:

• 5 First-Time Home Buyer Mistakes To Avoid
• Our Top 8 First-Time Buyer FAQs

When Should You Submit A Pre-Emptive Offer?

An Offer Date is sometimes set by sellers when they would, in actuality, like to entertain the idea of receiving a “blow your socks off” bid. In that case, your Realtor® needs to have had some kind of indication from the selling party’s Realtor® that this is the case.

If that’s not the case and your Realtor® isn’t exactly sure the sellers are hoping to receive pre-emptive offers, you must navigate your approach to submitting one carefully. Here are two rules we suggest you follow:

1. Only submit a pre-emptive offer if it’s significantly higher than the initial asking price of the sellers and higher than the expected market value sale price — an amount that will truly raise their eyebrows and consider the bid before reviewing the others.

2. Additionally, the bid should contain terms and conditions that are very favourable to the sellers, which more often than not means little-to-no terms or conditions and an agreement you’ll buy the home “as-is,” and without the requirement of a secondary home inspection.

No matter what you’re trying to accomplish in the real estate market, having proven, qualified real estate guidance by your side makes everything easier. Here’s our best advice on How To Hire a Real Estate Agent As a Buyer.

When Should You Avoid A Pre-Emptive Offer?

The first rule here should be to trust the experience of your real estate advisor. If they advise that you don’t go down the route of submitting a pre-emptive offer, it’s best to trust them — especially if they have comprehensive experience in negotiations and/or dealing with the selling party’s real estate advisors.

In addition, it’s also not a great idea to submit a pre-emptive offer if it doesn’t significantly exceed the sellers’ initial asking price. The last thing you want is for your sellers to feel “low-balled” before they’re even prepared to start reviewing offers.

Most likely than not, if your pre-emptive offer includes terms and conditions that aren’t minimal at most, then it simply won’t be considered by the sellers. With that in mind, if you don’t already have a great knowledge of the home you want to buy, it can be risky submitting an offer for it as-is.

At the Barnett Real Estate Team, we help clients of all experience levels and price points buy the homes of their dreams. Learn more about what we do and how we can help you here:

• How We Help Buyers
• Start Buying Today

When eager new homebuyers begin saving up for a home, it’s easy to fall into the trap of putting on the blinders and fixating on saving up towards one number in particular.

However, buyers can often forget to factor in the additional secondary and tertiary costs it takes to buy a home. For all buyers, new or recurring, these are critically important costs to know about.

So, whether you’re a first-time buyer or have set your sights on moving up, here’s a breakdown of some of the true costs you need to consider when buying a home.

The Deposit

The first expense you should plan for is the deposit. This is a percentage of the total cost of the home that gets paid to the seller or Seller’s agent brokerage right away to essentially “hold” the sale and show the seller you are committed to the purchase. Typically, a deposit is 5-10% of the total purchase price and is required to be paid within 24 hours of the offer.

The deposit also must be made in the form of a certified check, bank draft, wire transfer or Etransfer, which means a homebuyer will need fast access to funds when putting in offers. This money is typically paid to the Seller’s Realtor’s Brokerage company or sometimes to the seller’s lawyer to be held in trust until the home closes.

The higher your deposit, the more committed you may look to sellers and the more desirable your offer comes across. Once the deal is finalized, your deposit money can go towards closing costs or towards your down payment, which brings us to the next cost you need to plan for.

The Down Payment

A down payment is different from a deposit. The down payment is a lump sum payment that goes toward the final purchase of your home. In Canada, there are some rules around down payments. The minimum down payment you can pay is 5% for a home valued at $499,000 or less and 10% for homes valued at $500,000-$999,000. For homes over $1 million, buyers are required to pay at least 20%.

If possible, paying more than the minimum down payment amount is better because it means you will pay your mortgage off sooner, pay less interest, and build equity more quickly.

There’s nothing more fun than fantasizing about what your next home could look like. However, with the help of our Featured Listings page here, you don’t have to daydream quite as hard.

Your Mortgage And Interest Rates

Once your down payment has been accepted, you can deduct that amount from the final sales price of your new home. To account for the rest of the sales price, you’ll need to take out a mortgage.

Mortgages are essentially loans for homes. The total amount of your mortgage depends on a few factors, such as the cost of the home you’d like to buy, the amount of your down payment, what you qualify for based on your annual income, what your monthly expenses are, and your employment history.

Generally speaking, it’s either banks or private mortgage brokers who grant you a mortgage. Whoever you secure your mortgage from, you’ll have agreed on the total amount of your loan and the structure of how you’ll pay it back. In most cases, it’s in the form of a monthly payment to your lender, which will include an interest rate.

This means that if you’ve agreed to put down $2,000 per month towards your home, for example, this fee, plus whatever your mortgage interest rates are, will go to your lender.

What About Mortgage Insurance?

If you are unable to pay the minimum down payment for your purchase, you may still be able to get a mortgage, however, you will be required to purchase mortgage insurance

Mortgage insurance is an added cost that protects the lender since the lender is typically taking on more risk with a lower down payment.

Are you planning on becoming a first-time homebuyer? Ensure you’re well-informed about everything you need to know about your upcoming purchase by reading these related posts:

• 5 First-Time Home Buyer Mistakes To Avoid
• First-Time Home Buyer Grants in Ontario
• Our Top 8 First-Time Buyer FAQs

Land Transfer Tax

The province of Ontario requires homebuyers to pay them an additional fee called the Land Transfer Tax. Essentially, this reflects the provincial government’s cost of permitting you to transfer the title of property between their jurisdiction.

While each province has its own set of Land Transfer Tax rates, the amount you have to pay increases depending on the cost of your new home. The more expensive your new home, the higher the percentage of its value you have to pay in Land Transfer Tax.

In Ontario, the set of Land Transfer Tax rates ranges from 0.5% to up to 2.5% of your home’s value. However, if you’re buying a home in the Greater Toronto Area, the City of Toronto requires buyers to pay an additional municipal Land Transfer Tax alongside the provincial tax.

The good news for first-time homebuyers is that you may be eligible to have all or part of this one-time fee refunded. Eligibility for this refund requires buyers to qualify based on these criteria:

• The buyer must be a Canadian citizen or permanent resident of Canada
• The buyer must be older than 18 years
• The buyer must occupy the home within nine months of purchase
• The buyer cannot have previously owned a home anywhere in the world
• The buyer’s spouse cannot have owned a home while being your spouse

If that applies to you, then you can apply for a refund of the full amount of your Land Transfer Tax or up to a maximum of $4,000.

Lawyers’ Fees

In order for both the buying and selling parties to ensure they’re conducting a legitimate and viable transaction, it’s a real estate lawyers’ duty to review and approve all of the necessary paperwork and legal documents that are included in a transaction.

While both the buying and selling parties hire their own respective lawyers, both legal representatives work together to ensure the real estate transaction is completed smoothly and no contractual or legal details are overlooked.

As you might imagine, there are a lot of formalities and details that go into a real estate transaction, which is why it’s crucial you hire a dedicated real estate lawyer who has experience facilitating these types of deals. As with all lawyers, though, their services come with a fee, which you’ll need to factor into your overall budget as a homebuyer.

Whether you’ve already got an idea of who you’d like to hire or need help finding a legal representative, we work with a set of highly respected and experienced real estate-specific lawyers that we’re always prepared to recommend to our clients should they need it.

There are no ifs, ands, or buts about it — the safest way to buy a new home is through the help of a knowledgeable and experienced local Realtor®. Learn more about what we do, how we help, and how you can find the Realtor® that’s right for you here:

• How To Hire a Real Estate Agent As a Buyer
• Why You Should Work With a Realtor®
• 8 Steps to Finding the Right Real Estate Agent

Your Homeowners’ Insurance

Homeowners’ insurance is a form of property insurance that protects you, the homeowner, from any damages to you or your property once you own your new home. It’s also a requirement to get a mortgage.

In paying a monthly fee to a homeowners’ insurance provider, you are in essence paying for peace of mind. If any damages were to occur to you or your new home, your insurance provider would provide you with funds (up to a certain number) to pay for the cost of fixing the damages.

Although all insurance plans and providers are different, most homeowners’ insurance policies generally cover the costs of things like interior damage, exterior damage, the loss or damage of personal assets or possessions, and any personal injury that occurs on your property.

Interested in learning more about how we can help you make your upcoming home purchase the best buy of your life? Read all about our buying process and how we’ve helped buyers just like you find their dream homes the first time here:

• How We Help Buyers
• Our Buyers’ Guide

For many people, buying a home is the single biggest purchase of their life. It’s important to go into the process of homebuying with all the information you need to feel confident in your decisions. 

Working with a professional real estate agent is an excellent first step toward making sure you have access to the most accurate information and advice for your unique situation. However, there are several common questions we get asked by almost everyone. 

Here are the top 8 first-time buyer frequently asked questions:

1) Do I need mortgage pre-approval?

Mortgage pre-approval is not an absolute requirement to start house-hunting, but it is strongly recommended. Getting pre-approved helps you determine the type of budget you should be working with. It will paint a clear picture of exactly what you can afford. Additionally, in a fast-paced market, it’s critical to move quickly on a sale. If you are not yet pre-approved, sellers might not take you seriously. It also puts more obstacles in your way and can hold up the process, resulting in missed opportunities. 

2) What amount should my deposit be?

The first thing to know is that a deposit is not the same as a down payment. A deposit is a cash transaction that is made from the buyer to the seller, held in trust by the agent pending closing. The purpose is to essentially secure the sale of the home in good faith. 

There is no “set” deposit amount, but a deposit is typically around 5% of your total offer. However, sellers often see higher deposits more favorably and may contribute to an offer being accepted. A deposit must be made in cash, in most cases, by money order or certified check. If your offer is accepted, your deposit amount will go towards your down payment. 

3) How much will working with an agent cost me?

In short, not a thing! In Ontario, buyers do not pay commissions to the agents. All of the buyer agent’s commission is paid by the seller. 

4) How much will I pay for my down payment?

In Ontario, first-time buyers can generally purchase a home with a minimum 5% down payment, depending on the home’s purchase price. If you are able to come up with a 20% down payment, your lender will not require you to purchase mortgage insurance.  

5) How much home can I afford?

This is one of the top reasons to seek mortgage pre-approval. It will show you the mortgage you can afford, allowing you to base your home buying decisions around that. However, as a general rule, many lenders recommend that your debt expenses (mortgage, credit card payments, and miscellaneous loans) do not exceed 36% of your gross monthly income. So if your family’s combined monthly income is $10,000 and you have no debt other than a mortgage, you can likely afford a mortgage payment of roughly $3,600 per month. 

6) What is the MLS®, and why does it matter?

MLS® stands for Multiple Listing Service®. It’s a computer service that encourages collaboration between real estate agents. It’s available to all REALTORS® to use to help their clients. By hosting listings in one central location, buyers can see all the available listings, not just the ones associated with their chosen agent. Think of it as a way to even the playing field and help ensure you find your dream home, no matter which agent the listing is with.

7) What happens if there are multiple offers for my dream home?

This is a common scenario in a busy market. When there are multiple offers on a property. As a buyer, there are a few things you can do to help your offer get accepted. For example, submitting an offer over the asking price, close to the seller’s desired closing date, with a high deposit, and fewer conditions might be enough to encourage the seller to accept your offer in a competitive market.

8) How much are closing costs?

Closing costs encompass basically everything that needs to be paid at closing, not including the mortgage. This includes real estate lawyer fees, land transfer tax, moving expenses, and more.

This number can vary depending on several factors, but closing costs add up to about 1.5-4% of the purchase price in most cases. This means, for example, if you are purchasing a home for $700,000, you should have at least $10,500 – $28,000 set aside for closing costs. 

There’s no denying it. Buying a home can be challenging, especially when the market is hot. While saving up for your down payment is one thing, competing with other home hunters who all want the same property is quite another. Fortunately, if you find yourself in a multiple-offer scenario, there are steps you can take to increase your chances of success—and make the process as stress-free as possible.

Here are a few tips you can try if you’re competing for your dream home…

1) Understand the market

Whether you’re purchasing in Milton, Burlington, or elsewhere, it pays to understand the local market. That’s because current conditions will directly impact what constitutes a good offer—which is especially important when there are multiple bids on the table. Fortunately, an agent with up-to-the-minute insight on market trends, local prices, and comparable homes will be well-positioned to help you craft a winning strategy.

2) Know your own limits

Of course, it’s not just the market you should have a handle on. Understanding your financial situation is equally crucial. It’s all too common to get swept up in a bidding war and offer more than you can comfortably afford. As a rule of thumb, your housing expenses (including mortgage payments) should be no more than 30 per cent of your monthly take-home pay. Obtaining pre-approval can also help you budget, as it will give you a strong sense of how much financing you’ll likely receive.

3) Be prepared to act quickly

Here’s another great reason to obtain mortgage pre-approval: it will allow you to act fast when you find the perfect property. You’ll know what you can afford—and sellers will see you as a serious buyer. In a market where inventory moves fast, it could make all the difference. Other tips for taking quick, decisive action include setting thorough home-buying criteria, understanding your dealbreakers, and ensuring you’re mentally prepared to make a move when you find the right place.

4) Make the strongest offer possible

Buyers often assume that they’ll have an opportunity to up their bid during negotiations. It certainly happens. That said, in a multiple-offer scenario, you may not get that second chance. That’s why it’s often wise to make your best bid the first time around. Of course, every set of circumstances is different, and there are times when leaving room to bargain is the best course of action. Luckily, a skilled local agent can help you determine which strategy is right for you.

5) Work with a true professional

Buying a home presents challenges in the best of circumstances. When there are multiple bids on the table, the process only becomes more complex—and the consequences of making a small misstep can be much steeper. In other words, getting it right is key. From understanding seller motivations to crafting the ideal offer, a local agent with a proven track record can walk you through the process, answer all your questions, and empower you to make a truly informed purchase!

To help you make an informed home purchase, we’re providing our handy buyer’s guide.

It may be no surprise to hear that March 2021 was yet another record-breaking month in real estate. Home sales are reportedly largely driven by low interest rates and consumer confidence remains high, even though we’re stepping into more COVID related restrictions right now. While inventory and sales are way up again in March they have yet to catch up to the backlog of buyers so we’re still in a seller’s market.

March 2021 – GTA Housing Market News

Milton Real Estate Market

The average price in Milton is $1,037,207.

Burlington Real Estate Market

The average price in Burlington is $1,099,362.

Oakville Real Estate Market

The average price in Oakville is $1,526,414.

Previous Reports on GTA Housing Market News – February, January, December,

Are you searching for the ideal family-friendly community? When you drive down peaceful tree-lined streets, see kids and parents out and about, and immediately picture you and your loved ones living there, too—that’s when you know you’ve found it.

Here are a few things to look for as you begin your search…

1) The Right Feel

The neighbourhood that’s right for you will depend on your family’s unique needs. But whether you’re in the suburbs, city, or a small town, being near other parents with kids will likely make you feel at home. You’ll probably want a place where you can get to know your neighbours—and be a part of a close-knit community. Many families also prefer quieter areas outside the downtown core, where there’s less traffic.

2) School District

Now’s the time to do your homework and look into local school districts. The Fraser Institute is a trusted resource when it comes to rankings for both elementary and secondary options. Once you’ve narrowed it down to a couple of schools, you may also want to book a time to visit each one. Taking this step will give you a better feel for the potential environments. You should also look into nearby daycares if you have a younger child or need extra support.

3) Amenities

To us, a family-friendly neighbourhood isn’t complete without convenient amenities. When you need to do a quick grocery run or pick up some supplies for a last-minute school project, you’ll be thankful you have all the shops you need nearby. And when it’s finally time to relax, having a great selection of local restaurants, cafes, and maybe even a local wine shop nearby may be just what you need to unwind.

4) Parks

Need a bit of fresh air? Kids and family members of all ages can appreciate a beautiful green space, especially when it’s within walking distance of your home. Whether it’s a playground with splash pads and basketball courts or a wide-open park with biking and walking trails, having a place to enjoy the great outdoors could greatly improve your family’s quality of life. In fact, the more options you have around, the better!

5) Family-Friendly Houses

Finally, let’s get to what matters most: your future home. Your ability to find the right house, condo, or attached living space will depend in part on how well you know your family’s current and future needs. Do you need an extra parking space for more than one car? How many bedrooms and bathrooms will you likely require in the years ahead? Should there be room for a potential in-law suite one day?

Finding the right home for your family can take some effort, but the right guidance will simplify the process. With our team, you’ll get all the help you need to plan for the immediate future—and far beyond.