Steps to Buying Property
1. Create a Wishlist
Write a wishlist for your dream home by listing five non-negotiable features you can't compromise on, along with five features you'd love to have included.
2. Research Information
Based on your wishlist, begin exploring properties that align with your ideal criteria.
Even if there isn’t a perfect match among current listings, your agent can use your wishlist as a guide to help you find the best possible options.
3. Choose a Realtor
All realtors have access to the same listings.
So, when selecting a realtor, it’s more important to focus on qualities like experience, strategic insight, and strong communication skills rather than simply the number of properties they have.
4. Set a Budget
While a mortgage specialist will help your budgeting,
it's important for buyers to set a personal budget in advance.
*Without a clearly defined overall budget, including your mortgage, it may cause issues later during the closing process.
5. Viewing
At this stage, it’s important to stick to the criteria you set earlier. Pay close attention to fixed factors like location, floor level, ceiling height, and view. Don't worry too much about variable details like furniture or decor.
6. Submit an Offer
The buyer’s agent submits the offer to the seller’s agent.
This offer includes key terms such as price, closing date, conditions, and payment method.
7. Closing
Before closing, you may visit the property for a final walkthrough to ensure everything is in order. Use a checklist to verify that appliances are working and the property is in the same condition as when you made the offer, then proceed with the final payment.
Benefits for First-Time Home Buyers
You can withdraw up to $35,000 from your RRSP (Registered Retirement Savings Plan) tax-free to purchase a home. For couples, each person can withdraw $35,000, totaling up to $70,000. This amount must be repaid to the RRSP within 15 years.
Some provinces offer land transfer tax rebates for first-time home buyers. Since the details vary by province, make sure to check the specific eligibility for your region.
For example:
Ontario - First-time buyers can receive up to $4,000 in land transfer tax rebates
Toronto - An additional refund up to $8,475 is available when purchasing within the City of Toronto.
CLOSING COSTS
1. Lawyer Cost
The cost may vary, but it typically ranges from $1,800 to $2,400.
2. CMHC Insurance (If Down Payment is Less Than 20%)
For primary residences, a minimum down payment of 5% is required for homes priced up to $500,000. For homes priced between $500,000 and $1,000,000, the down payment is 5% on the first $500,000 and 10% on the remaining amount.
In both cases, CMHC mortgage insurance is mandatory.
3. Land Transfer Tax
This is a tax paid by the buyer to the government. The rate varies by region and the property price - higher-priced properties incur higher taxes.
Example of land transfer tax rates in Ontario:
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$0 – $55,000: 0.5%
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$55,000 – $250,000: 1%
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$250,000 – $400,000: 1.5%
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Over $400,000: 2%
4. Title Insurance
Title insurance protects the buyer against ownership issues that may arise during the period of homeownership. It is arranged by the lawyer at the time of closing and typically costs around $600.
Ontario & Toronto Land Transfer Tax (Provincial & Municipal)
For single or semi-detached homes outside the City of Toronto:
Up to $55,000: 0.5%
$55,000.01 – $250,000: 1% minus $275
$250,000.01 – $400,000: 1.5% minus $1,525
$400,000.01 – $2,000,000: 2% minus $3,525
Over $2,000,000: 2.5% minus $13,525
First-time home buyers may receive a provincial land transfer tax rebate of up to $4,000 for residential properties.
For single or semi-detached homes within the City of Toronto:
Both municipal and provincial land transfer taxes apply.
Up to $55,000: 0.5%
$55,000.01 – $250,000: 1% minus $275
$250,000.01 – $400,000: 1.5% minus $1,525
$400,000.01 – $2,000,000: 2% minus $3,525
Over $2,000,000: 2.5% minus $13,525
First-time home buyers in Toronto may qualify for a rebate of up to $4,475 on the municipal land transfer tax and up to $4,000 on the provincial land transfer tax.
2022–2024 Royal LePage Chairman’s Club Award
Ranked #18 for Royal LePage Sales in 2024
Top 1% in Sales Across Canada (2022–2024)
Named to the Top 35 Under 35 List (2022–2024)
Daniel Kim
In challenging times, a tailored strategy is essential to avoid losses and identify homes that truly hold value.
Your dream home — I, Daniel Kim, am here to make it happen.