This is a guide to help make the experience of buying a home a pleasant and exciting one. It will answer questions, eliminate surprises and explain how you and we will work as a team to achieve your goals.
Choosing your own REALTOR® is the first step. We will work to find a home that is the perfect match for you using the Saint John Real Estate Boards MLS® System.
* Pre-approved Mortgage
There are several advantages to getting a pre-approved mortgage. Your mortgage lender can determine how much of a mortgage you qualify for so that you see only houses you can afford. A pre-approved mortgage has a guaranteed rate of interest for 90-120 days so when you find your home you will get your guaranteed rate, or if interest rates have gone down, you'll automatically get the lower rate.
* Down Payment
A down payment is the amount of money needed up front in order to buy a home. You typically will need 5% of the purchase price for a down payment. (Sometimes down payments may be available through a cash-back option offered by a lender)
* Mortgage Loan Insurance
If your mortgage is for 80% of the purchase price or more you will need what is known as a high ratio mortgage. This type of mortgage must be insured by the Canada Mortgage and Housing Corporation (CMHC) or by GE Capital Mortgage Insurance Company of Canada. You obtain this insurance as part of the mortgage process. There is the application fee which ranges from 1.25% to 2.95% of the mortgage. (if your down payment is 19% or less)
An inspection of your home is not mandatory, but it's a very wise step to make it a condition of your offer. A home inspector provides you with a written report after checking that the building is sound, and will identify potential repairs and their estimated costs. An inspection usually costs in the vicinity of $400 plus hst.
*Property Survey Cost
A survey indicates the property boundaries and measurements, position of major structures, and any registered or visible easements or encroachments on the property. An easement is, among other things, a right to access your land for a specific purpose such as a driveway or public utilities. An encroachment is any intrusion on your land by a neighbor's fence, structure or overhang. If there isn't a current survey available from the seller, it is not typically required. Survey costs vary depending on the property. In lieu of a survey, Land Titles Insurance is recommended and carries a cost of approximately $250 plus hst.