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Home Purchase Checklist
- Determine your needs and wants: Do you want a detached home, a condo, or row house? A two-story, bungalow, side-split or ranch? What are your priorities: a garage, a fenced yard, and proximity to schools or shopping?
- Visit your bank to find out how large a mortgage you can assume.
- Get a pre-approved mortgage.
- Decide whether you'd prefer a fixed-rate or variable-rate mortgage, and choose your term if opting for the former. Investigate the advantages of an all-in-one account, where your income and expenses are combined in one account and any unused income is applied against your mortgage daily.
- Consider hiring a mortgage broker if you're uncomfortable negotiating mortgage rates.
- Find yourself a real estate agent by asking friends or family members for references.
- Choose a lawyer. Ask how much they charge first, as rates can vary.
- Decide what price range you are comfortable shopping in and how large a down payment you'll make.
- Visit potential homes at different times of the day and talk to neighbours.
- Make sure you have sufficient funds to cover closing costs, such as an advance deposit; lawyers' fees and land transfer tax (approximately two per cent of the purchase price).
- Research potential homes: How long have they been on the market? What are similar homes in the neighbourhood selling for?
- When you've found the right house, make your offer.
- Make sure your offer is contingent on building inspection, as well as any other conditions you deem appropriate, such as financing.
- Detail specifics in the offer to include appliances, light fixtures, drapery and hardware – don't assume anything.
- If there are no unpleasant surprises, waive your conditions.
- If not part of your mortgage payment, find out from your municipality when taxes are due and if there are any other special taxes that apply.
- Be sure you have insurance on your new home (fire, contents, liability, mortgage protection).
- Check with your insurance company to see if there is anything that could negate your policy, such as knob and tube wiring, lead piping or wood stoves.
- Arrange to take over the utility bills - telephone, cable, gas, electricity and water.
- Pick up the keys from your lawyer (or builder, registry office or owner, as the case may be) on the day you take possession.
- If the home you're buying is new, or is a condominium, get the information you need about matters like the builder's reputation, condo fees and rules and the Ontario Home Warranty Program.
For more information about buying a home, visit the Multiple Listing Service web site at www.mls.ca.
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