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EXPENSES TO EXPECT WHEN PURCHASING A PROPERTY Before signing : • Inspection by a building inspector;• Opening a mortgage file at the • Loan insured by CMHC (less than a) Municipal taxes;
Meters for electricity ((Hydro-Québec) and gas (Gaz Métropolitain) The purchaser and the vendor must advise Hydro-Québec and Gaz Métropolitain (as appropriate) of the date of the change of ownership so that the dials will be read on that date, and so that the amounts will be allocated to the purchaser and vendor respectively on the date of occupation of the property. Homeowner's insurance EXPENSES TO EXPECT AFTER THE BILL OF SALE IS SIGNED Real estate transfer taxes or “Welcome tax”. In the four to six months following the sale, the municipality you have moved into will send you a bill for transfer taxes, which will be calculated on the sale price and based on the following sliding scale: 0.50 % on the first $50,000 Expenses for moving, painting, decorating, etc. Determine your specific needs The motivation and features related to property purchase vary from one person to another. That’s why it’s highly important to discuss your specific needs with Anne-Marie Perno your real estate agent before visiting a property. Before meeting with your real estate agent, make a list of important features and identify your specific requirements such as location, price, the kind of property you’re looking for, the number of rooms, surroundings, public utilities, etc. Check with your financial institution the size of mortgage that you can manage so you can get a preauthorized loan. Use your RRSP. You don’t have to use funds from an existing RRSP to take advantage of the HBP (Home Buyers’ Plan) program. Perhaps you don’t have the usual 25 per cent down payment. No problem — Increase the leverage by arranging a high-ratio mortgage. This kind of mortgage, which is focused on customer needs, is making the dream of home ownership a reality for an increasing number of happy Canadians. Other important elements you should be aware of The notary will undertake a title search to be sure that the vendor is truly the owner of the home, and will ensure that the proposed or existing use of the property conforms to municipal zoning by-laws. The notary will also obtain all the required documents, including: 1- A letter of compliance stipulating that there exists no lien (legal claim) on the property and that no work order is in effect; 2- Proof from the tax department stipulating that the taxes on the property have been paid and are up to date; Will take care of having you sign all the legal documents and the submission of the amounts due which have not been provided by the lending institution or institutions; Coordinates the signing of the sales transaction with the property vendor’s notary. |
The financial mainstay of your real estate project. In the current mortgage market, it’s to your advantage to shop around, as there are a number a lending institutions and a variety of financing options. Save yourself time and bother. Relax and let us find you a lending institution that will give you the most advantageous rate on the product that best meets your needs. As the entity lending the money, the financial institution wants to be sure that you represent a good credit risk and that the mortgage that you’re asking for is in line with the value of the property you wish to purchase. Will define the legal loan criteria that you must meet to qualify for a mortgage. The evaluator The evaluator evaluates the value of the property for the lending institution. When you purchase a property, it’s important that the lending institution be sure that the price accurately reflects the real market value of the property. An evaluator is an officially accredited person engaged by the lending institution to conduct an inspection of the property in order to evaluate it and certify as to its value. He will provide the lending institution with an accredited opinion as to the market value of the property (to be) purchased, which can be compared to the purchase price. The building inspector The building inspector will provide a second opinion and be able to see details of the property which may have escaped you. If you purchase a house which is already occupied, it’s always a good idea to have it inspected by a building inspector and to make this a condition of purchase. This person (who in most cases does not need a provincial permit) will inspect the property looking for major defects or flaws which may not be apparent. The results are presented in the form of a written inspection report. He checks the solidity of the structure and notes improvements that have been made; He makes note of all specific defects and of its (or their) impact on the value of the property; He estimates the cost to repair all such defects. Every owner will tell you that a house represents an excellent investment that’s hard to match. Why so? 1- Tax-free capital gains — Any capital gain realized on the sale of a principal residence is non-taxable — IN OTHER WORDS, IT’S 100% YOUR MONEY! To obtain a return similar to an appreciation of 6 % on your home, another investment, such as a GIC, would have to be at 12 per cent interest. 2- Leverage effect — You don’t have to come up with the whole purchase price to own your home. A constant presence! Since its founding, the La Capitale real estate network has been ubiquitous in the Quebec real estate market thanks to its large-scale advertising campaigns on television, radio, roadside billboards and newspapers, its distinctive residential signage, its website – popularized via the mass media – and its avant-garde marketing tools. La Capitale agents are everywhere in Québec and form a solid team that’s spread out among more than 50 offices. La Capitale is in alliance with one of the largest brokerage firms in North America, Coldwell Banker, which has more than 113,000 agents in Canada and the United States. This association permits La Capitale to extend its influence throughout North America. “La Capitale Real Estate Network” — or “Réseau immobilier La Capitale” — is a network of franchised certified real estate brokers, independent from each other and from the franchisor. In the texts on this website, the term “La Capitale” refers, depending on its context, to the franchisees as a whole, to one of the franchisees in particular, or to the franchisor. |
