Purchasing a House

Purchase

Definition of Purchase: To acquire something by paying for it or the action of buying something.

Below are different types of purchase options, please contact me to out which is best suited for you.

First Time Home Buyer

Definition- Someone that has not owned a residential property in the last 4 years.

Now that you have decided that homeownership is something you want, let’s get together and discuss the following steps to make this a reality for you:

• Assess your financial situation to find out what payments you will be comfortable with so you will not become house poor;
• Discuss your down payment options. In Canada, you will require at least 5% of purchase price/value of home as a down payment. Different down payment options available are as follows:
  1. From your own resources;
  2. Gifted down payment from immediate family member; or
  3. Home Buyer’s Plan, which allows you to borrow up to $25,000 (per person) tax free from your RRSP.
  4. However, the following are stipulations to the Home Buyer’s Plan:
     1. You must be a Canadian Resident whom has not owned a residence in the last 5 years; and
     2. You must have the funds in your RRSP for at least 90 days and to avoid paying the tax, you have 15 years to repay it).
• Getting pre-approved and getting a rate hold in place; and
• As a First Time Home Buyer, you may be eligible for up to $4,000 credit in Land Transfer Tax.

Having these first steps in place, you will now be ready to start looking for your new home.

I have access to several different Lenders, so we have several different possibilities. I also have connections with lawyers, appraisers, real estate agents, home insurance brokers, etc, to ensure a seamless transaction.

The first time you purchase a home, it can be exciting and scary all wrapped up in a ball of stress. Please contact me so I can take some of the pressure off of you and make this process an enjoyable one.

Primary home

Definition: A person’s principal or primary residence is a home where they usually live, typically a house, condo or apartment. A primary residence is considered to be a legal residence for the purpose of income tax and/or acquiring a mortgage.

This is where you love to entertain your family and friends, but also to wind down and relax after a tough day. Please allow me to help you navigate through the details so you are free to do both.

Rental Property

Definition: A property from which the owner receives payment from the occupant(s), known as tenants, in return for occupying or using the property. Rental properties may be either residential or commercial. The owner of a rental property may be allowed to take certain tax deductions such as mortgage interest and depreciation.

Rental properties can generate regular rental income or it can be a longer-term real estate investment. Requiring at least 20% down payment, please contact me so we can transform you into a landlord.

2nd home/Cottage

Definition: A 2nd home is a one-unit property owned and occupied by the borrower for some portion of the year, and not subject to any timesharing ownership agreement. The property must also be in a location where it can function reasonably as a second home.

A Cottage is a small, usually simple house, typically one near a lake or beach.

The following are 2 different types of properties. With each different type comes different requirements.

Type A – Foundation must be permanent and installed beyond the frost line. This includes concrete/concrete block or preserved wood foundation certified by a professional engineer or post/pier foundations on solid bedrock;

• Must be zoned and used as residential, rural, or seasonal. Mixed uses or rental pooling are not acceptable;
• Freehold or condominium title. Co-ops or ¼ interest ownership is acceptable;
• At minimum, property must have a kitchen, 3-piece bathroom, bedroom, and common area;
• Remaining economic life must be 25 years;
• Year-round road access on reasonable quality public roads, serviced by the local municipality. Privately serviced roads are also allowed, provided there is a maintenance contract in place;
• Property must be winterized with a permanent heat source. For example, heating can be baseboard, forced air, water radiator, radiant, coal, propane, geothermal heat pumps, or heat pumps;
• Good quality construction with no signs of deferred maintenance;
• Water source: Well, municipal serviced, and cistern. Water source must be drinkable. Lake or river water is acceptable, provided the property has its own filtration system. For example, a reverse osmosis system;
• There must be good market appeal in the area with no adverse influence/neighborhood nuisances; and
• Qualified home buyers may use traditional 5% down payment sources (personal savings, RRSP withdrawal, non-repayable gift from immediate family member, sweat equity, existing home equity, or proceeds from sale of property).

Type B – All Type A property requirements apply to Type B, except for the following:
• No permanent heat source is required. For example, a wood stove, fireplace, stove, or heat blower is acceptable;
• Foundation may be floating. For example, sitting on blocks;
• Seasonal road use is acceptable. This means the road does not have to be plowed during the winter;
• Water source doesn’t need to be drinkable. However, there must be running water in the home;
• Boat access only accepted; and
• Qualified home buyers must have 10% down payment from own resources which may include personal savings, RRSP withdrawal, existing home equity, or proceeds from sale of property.
• Either a 2nd home in the city to reduce your weekly commute or a lakefront cottage for your weekend getaways (Type A or B property), please contact me to guide you through these steps.

Purchase Plus Improvement/Renovations

You’ve found your “almost” dream home…if you could renovate the kitchen it would be perfect! Here’s how to get the funds for the renovation included in your mortgage:

• Come see me to review your financial situation;
• Receive an accepted Offer to Purchase on your “almost” dream home;
• Send me a copy of the Offer to Purchase along with quotes for the renovations you would like to complete. (FYI-Some Lenders require you to complete the work with the same vendors you got the quotes from). Please note that your Offer to Purchase price is added to your quotes to become the new value of your home, which your down payment is now based upon;
• The Lender and Insurer will review and advise if they think the quoted renovations will add the value to your home;
• On closing, the Lender sends the renovation funds to your Solicitor, where they sit in trust;
• Once the renovations are complete, please contact me so I can arrange for an Appraiser to complete an inspection of the renovations. The Appraiser is inspecting to ensure that the work originally quoted is the work that is completed; and
• Once inspection is completed, I will send the report to the Lender for review. If they are satisfied with the inspection report, your Solicitor will be instructed to release the funds to you.
• Please note…
  • What is quoted has to be the work that is completed after funding; and
  • Currently, you can add up to 20% of the purchase price to a maximum of $40,000 into your mortgage.

When you finally find the perfect house but need to update or change something, you can include the costs of the improvements in your mortgage. Please let me show you how to accomplish this.

New to Canada

Homebuyers who have immigrated or relocated to Canada, welcome to this beautiful Country we call home!

Now that you have made Canada your new home, you are looking for a place to call your own. Buying a house is an exciting experience that can be both rewarding and challenging. To qualify for a mortgage, Lenders typically use credit history. Since you are new to Canada, this will prove difficult to provide. However, there are programs to assist with this process. So, whether you are permanent resident with strong credit or don’t meet the general qualifications, we have Canadian insurers (CMHC, Genworth, and Canada Guaranty) that offer “New to Canada” programs.

If you are one of the approximate 250,000 newcomers to Canada each year, please contact me so we can discuss how the Canadian housing system works.

Military/Employer Relocation

Military: First of all, thank you for all you do! And welcome to our Military City of Kingston! Once you have received your posting, release paperwork, and your Brookfield benefits, please contact me so together we can start this process for you.

Employer Relocation: Welcome to Kingston! Whether you have some assistance from your employer or none at all, I, having been born and raised here, have a lot of connections to help with the relocation process. Relocating can be stressful enough, so please allow me to help ease the process and welcome you into your new home and city.

Building a Home

Can’t find a place you love so you need to build it instead? From owning your own lot, drawing blueprints, getting permits, starting to dig, doing construction draws to keep the tradesmen going, to getting your takeout mortgage, let me walk you through all of these steps of building your dream home.