HOMEBUYING STEP BY STEP. A Consumer Guide and Workbook

Transcription

1 HOMEBUYING STEP BY STEP A Cosumer Guide ad Workbook

2 CMHC HOME TO CANADIANS Caada Mortgage ad Housig Corporatio (CMHC) has bee Caada s atioal housig agecy for more tha 65 years. Together with other housig stakeholders, we help esure that the Caadia housig system remais oe of the best i the world. We are committed to helpig Caadias access a wide choice of quality, evirometally sustaiable ad affordable housig solutios that will cotiue to create vibrat ad healthy commuities ad cities across the coutry. For more iformatio, visit our website at or follow us o Twitter, YouTube ad Flickr. You ca also reach us by phoe at or by fax at Outside Caada call or fax to Caada Mortgage ad Housig Corporatio supports the Govermet of Caada policy o access to iformatio for people with disabilities. If you wish to obtai this publicatio i alterative formats, call

3 Homebuyig Step by Step A Cosumer Guide ad Workbook CMHC offers a rage of housig-related iformatio. For details, visit our website at or call Cette publicatio est aussi dispoible e fraçais sous le titre : L achat d ue maiso étape par étape : Guide à l itetio des cosommateurs (61143)

4 This book is provided for geeral iformatio purposes oly. Ay reliace or actio take based o the iformatio provided is the sole resposibility of the user. Readers are advised to cosult appropriate professioal resources to determie what is suitable i their particular case. CMHC assumes o resposibility for ay cosequeces arisig from use of the iformatio provided i this guide. Caadia Cataloguig i Publicatio Data Mai etry uder title: Homebuyig Step by Step: A Cosumer Guide ad Workbook Rev. ed. Issued also i Frech uder the title: L achat d ue maiso étape par étape: guide à l itetio des cosommateurs Cat. o. NH15-114/2004E ISBN House buyig Caada Hadbooks, mauals, etc. 2. House buyig Caada Costs Hadbooks, mauals, etc. 3. Homeowership Caada Hadbooks, mauals, etc. I. Caada Mortgage ad Housig Corporatio. HD1379.H C Caada Mortgage ad Housig Corporatio. All rights reserved. No portio of this book may be reproduced, stored i a retrieval system or trasmitted i ay form or by ay meas, mechaical, electroic, photocopyig, recordig or otherwise without the prior writte permissio of Caada Mortgage ad Housig Corporatio. Without limitig the geerality of the foregoig, o portio of this book may be traslated from Eglish ito ay other laguage without the prior writte permissio of Caada Mortgage ad Housig Corporatio. Prited i Caada Produced by CMHC Revised: 2002, 2003, 2004, 2007, 2008, 2010, 2011, 2012, 2013 Reprited: 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013

5 TABLE OF CONTENTS Itroductio Step 1: Is homeowership right for you? 5 Step 2: Are you fiacially ready? 7 Step 3: Which home is right for you? 21 Step 4: The buyig process 37 Step 5: Now that you re a homeower 47 Words to kow whe buyig a home...52

6 Itroductio So, you ve fially decided to fulfill a lifelog dream ad buy your ow home... how excitig! You will fially have a place to call your ow, ad the power to make decisios about home improvemet ad reovatios. A home may also be a importat way for you to grow fiacially. Buyig a home ca be a challege. You ll have to deal with may differet people alog the way. Ad, you re sure to have lots of questios, such as: What should I ask my realtor? What kid of questios should I prepare for my leder? What is the differece betwee a appraisal ad a ispectio report? Ca I add reovatio costs to my mortgage? Where ca I fid iformatio that I ca trust? CMHC s Homebuyig Step by Step guide will make thigs easier for you by givig you the iformatio ad tools you eed to make a iformed ad resposible homebuyig decisio. This hads-o workbook provides examples ad worksheets to guide you through the etire homebuyig process. The iformatio i this guide is clear ad straightforward. It will help you kow who to ask, what to ask, ad what to do every step of the way. Whe preparig to buy a home you may read or hear words that are ufamiliar. At the ed of this guide you will fid defiitios for may of the words you ecouter durig the process. This guide will help make your homebuyig experiece excitig ad rewardig which it should Home with CMHC Our e-ewsletter is your ultimate source for depedable home care advice. Check out some of the past issues ad sig up today at

7 STEP 1 Is homeowership right for you?

8 Homebuyig STEP BY STEP Buyig a home is oe of the biggest emotioal ad fiacial decisios you ll ever make. Prepare by learig about the process of homebuyig ad the resposibilities of homeowership. The differeces betwee retig ad buyig a home are vast, ad there s a log list of pros ad cos for both optios. Ad, remember there is o oe best decisio for everyoe. Before movig forward, though, here are some questios to cosider: Do you have the ecessary fiacial maagemet skills? How fiacially stable are you? Are you ready to take o the resposibility of all the costs ivolved i homeowership, icludig mortgage paymets, repairs, ad maiteace? Are you able to devote the time required for home maiteace? There are pros ad cos for both retig ad buyig. Everyoe must make his or her ow best decisio. Buyig a home is ot for everyoe. Take a momet to thik through the advatages ad disadvatages of both owig ad retig. Use this worksheet to guide you. Advatages of Retig Disadvatages of Retig Advatages of Owig Disadvatages of Owig Read over your completed worksheet ad the thik carefully. Are the advatages of owig your home really bigger tha the advatages of retig? Are the disadvatages of owig your ow home really smaller tha the disadvatages of retig? If homeowership is for you, you must be both fiacially ad emotioally ready. Buyig a home is t oly about moey. You should liste to your heart ad take a hoest look at your lifestyle. 6 Caada Mortgage ad Housig Corporatio

9 STEP 2 Are you fiacially ready?

10 Homebuyig STEP BY STEP Olie Calculators Easy to use mortgage tools help you better uderstad your fiacial situatio. Determie how much house you ca afford, ad the maximum price that you should cosider. CMHC offers o-lie iteractive tools to calculate household budgets ad mothly debt paymets. For these ad other quick ad easy calculatios, visit ad follow these liks: Buyig a Home Homebuyig Step by Step Step 2: Are you Fiacially Ready? How ca you kow if you are fiacially ready to become a homeower? This step guides you through some simple calculatios to figure out your curret fiacial situatio, ad the maximum home price that you should cosider. How Much are You Spedig Now? The first thig you eed to figure out is how much you are spedig ow. To figure this out you ll eed to calculate: Your mothly household expeses Your mothly debt paymet Calculate Your Household Expeses What is your preset household budget? How much are you ow spedig each moth o household expeses? The Curret Household Budget worksheet o the ext page helps you take a realistic look at your curret mothly expeses. Fill i all the figures that apply to you, ad add them up. Calculate Your Mothly Debt Paymets Do you kow how much debt you are carryig? You eed this iformatio to figure out whether you are fiacially ready for homeowership. If you decide to buy a home, mortgage leders will ask for this iformatio. Use the form below to determie your curret mothly debt paymets. Fill i all the figures that apply to you. MONTHLY DEBT PAYMENTS AVERAGE MONTHLY AMOUNT Loas for property you ow $ Car loas or leases $ Persoal loas or lies of credit $ Credit cards $ Studet loas $ Other loas $ Total Mothly Debt Paymets (Add up all of the above costs) $ Calculate Your Total Mothly Expeses Your total mothly expeses are your household expeses plus your debt paymets. To calculate your mothly expeses, add the total from the Curret Household Budget form to the total from Mothly Debt Paymets form, usig the form below. Total Mothly Expeses Debt Paymets (Total from Mothly Debt Paymets form) TOTAL 8 Caada Mortgage ad Housig Corporatio

11 STEP 2 CURRENT HOUSEHOLD BUDGET Details Average mothly paymet Curret Housig Expeses Ret $ Electricity (if paid separately) $ Heatig costs (if paid separately) $ Water (if paid separately) $ Maiteace/Repair $ Parkig fees (if paid separately) $ Curret No-Housig Expeses Cable TV/Satellite/Video retal $ Car fuel $ Car isurace ad licese $ Car repairs ad service $ Charitable doatios $ Child care $ Child support/alimoy $ Clothes $ Cotets isurace $ Detal expeses $ Etertaimet, recreatio, movies $ Furishigs $ Groceries $ Iteret $ Life isurace $ Luches/Eatig out $ Medical expeses, prescriptios, eyewear $ Newspapers, magazies, books $ Persoal items $ Public trasportatio $ Savigs (bak accout, RRSPs) $ Telephoe/Cell phoe $ Other expeses $ Total Mothly Expeses $ Note: You may have other costs ot show o this worksheet. Additioal Curret Household Budget worksheets are available at the ed of this Guide. Caada Mortgage ad Housig Corporatio 9

12 Homebuyig STEP BY STEP How Much Ca You Afford? Before you begi shoppig for a home, it s importat to kow how much you ca afford to sped o homeowership. You will wat to pla ahead for the various expeses related to homeowership. I additio to purchasig the home, other sigificat expeses will iclude heatig, property taxes, home maiteace ad reovatio as required. Two simple rules ca help you figure out how much you ca realistically pay for a home. You must uderstad these rules to uderstad if you will be able to get a mortgage. Affordability Rule 1 The first rule is that your mothly housig costs should t be more tha 32% of your average gross mothly icome. Housig costs iclude your mothly mortgage paymets (pricipal ad iterest), property taxes ad heatig expeses. This is kow as P.I.T.H for short Pricipal, Iterest, Taxes ad Heatig. If you are thikig of buyig a codomiium or leasehold teure, you should kow that: For a codomiium, PITH also icludes half of the mothly codomiium fees. For leasehold teure, PITH also icludes the etire aual site lease. Leders add up your housig costs ad figure out what percetage they are of your average gross mothly icome. This figure is called your Gross Debt Service (GDS) ratio. To be cosidered for a mortgage, your GDS must be 32% or less of your gross household mothly icome. Use the table below to calculate your GDS ratio or use CMHC s olie calculators at GDS RATIO Your average gross mothly salary (before deductios)* $ Your spouse s average gross mothly salary (before deductios) Other mothly icome (from ivestmets or other o-employmet sources) $ $ (A) Total average mothly icome (add up all amouts) $ (B) Multiply amout (A) X 0.32 = GDS $ * Gross salary is icome before taxes. Affordability Rule 2 The secod rule is that your etire mothly debt load should ot be more tha 40% of your average gross mothly icome. Your etire mothly debt load icludes your housig costs (P.I.T.H.) plus all your other debt paymets (car loas or leases, credit card paymets, lies of credit paymets etc.). You have calculated these o the Mothly Debt Paymets form. This figure is called your Total Debt Service (TDS) ratio. 10 Caada Mortgage ad Housig Corporatio

13 STEP 2 Use the table below to calculate your TDS ratio ad to determie the mothly housig costs you ca afford after makig other mothly debt paymets. TDS RATIO (A) Total average mothly icome (A) from your GDS calculatio $ (B) Multiply (A) X 0.40 = TDS $ Add up your mothly paymets for loas, credit cards ad other debts Mothly auto paymet $ Mothly lie of credit or persoal loa paymet $ Mothly credit card paymet $ Mothly studet loa paymet $ Ay other mothly paymets $ (C) Add up the total mothly paymets listed above $ (D) Subtract (C) from (B) to fid the mothly housig costs you ca afford $ Your Maximum Home Price The maximum home price that you ca realistically afford depeds o a umber of factors. The most importat factors are your household s average gross mothly icome, your dow paymet ad the mortgage iterest rate. For may people, the hardest part of buyig a home especially their first oe is savig the ecessary dow paymet. NOTE: For CMHC-isured mortgage loas, the maximum purchase price or as-improved property value must be below $1,000,000, whe the loa-to-value ratio is greater tha 80%. Mortgage Loa Isurace Mortgage loa isurace helps protect leders agaist mortgage default, ad eables cosumers to purchase homes with a miimum dow paymet of 5% with iterest rates comparable to those with a 20% dow paymet. Olie Calculators Easy to use mortgage tools help you better uderstad your fiacial situatio. Determie how much house you ca afford, ad the maximum price that you should cosider. CMHC offers o-lie iteractive tools to calculate household budgets ad mothly debt paymets. For these ad other quick ad easy calculatios, visit ad follow these liks: Buyig a Home Homebuyig Step by Step Step 2: Are you Fiacially Ready? Caada Mortgage ad Housig Corporatio 11

14 Homebuyig STEP BY STEP The CMHC mortgage loa isurace premium is calculated as a percetage of the loa ad is based o a umber of factors such as the iteded purpose of the property (ower occupied or retal), the type of loa (i.e. purchase/costructio or refiace loa), the ability of a self-employed borrower to supply icome verificatio, ad the size of your dow paymet. The higher the percetage of the total house price/value that you borrow, the higher percetage you will pay i isurace premiums. The cost for mortgage loa isurace premiums is usually offset by the savigs you get from lower iterest rates. FINANCING REQUIRED PREMIUM % OF LOAN AMOUNT Up to ad icludig 65% 0.50 Up to ad icludig 75% 0.65 Up to ad icludig 80% 1.00 Up to ad icludig 85% 1.75 Up to ad icludig 90% 2.00 Up to ad icludig 95% Traditioal Dow Paymet 2.75 No-traditioal Dow Paymet 2.90 Exteded Amortizatio Surcharges Add 0.20% for every 5 years of amortizatio beyod the 25 year mortgage amortizatio period. Note: The amortizatio caot exceed 25 years for mortgage loa-to-value ratios > 80%. * Premiums i Otario, Quebec ad Maitoba are subject to provicial sales tax. The provicial sales tax caot be added to the loa amout. This table gives you a idea of the maximum home price you ca afford. HOUSEHOLD INCOME 5% DOWN PAYMENT MAXIMUM HOME PRICE 10% DOWN PAYMENT MAXIMUM HOME PRICE 25% DOWN PAYMENT MAXIMUM HOME PRICE $25,000 $3,000 $60,000 $6,300 $63,000 $18,900 $75,600 $30,000 $3,900 $78,000 $8,200 $82,000 $24,700 $98,800 $35,000 $4,800 $96,000 $10,100 $101,000 $30,300 $121,200 $40,000 $5,700 $114,000 $12,000 $120,000 $36,000 $144,000 $45,000 $6,600 $132,000 $13,900 $139,000 $41,700 $166,800 $50,000 $7,500 $150,000 $15,800 $158,000 $47,400 $189,600 $60,000 $9,300 $186,000 $19,600 $196,000 $58,800 $235,200 $70,000 $11,050 $221,000 $23,400 $234,000 $70,100 $280,400 $80,000 $12,500 $250,000 $27,200 $272,000 $81,500 $326,000 $90,000 $14,400 $288,000 $31,000 $310,000 $92,800 $371,200 $100,000 $16,275 $325,500 $34,800 $348,000 $104,300 $417,200 Figures are rouded to the earest $ Caada Mortgage ad Housig Corporatio

15 STEP 2 Do Your Calculatios Show You Are Ready? After doig the calculatios, do you feel fairly cofidet about begiig the homebuyig process? You re ready to proceed with homeowership. Do Your Calculatios Show Adjustmets Are Needed? You may eed to step back ad make some adjustmets. Did your calculatios show that you might have trouble meetig mothly debt paymet? If that s the case, you may fid it difficult to get approved for a mortgage. Here are some thigs you ca do to improve your situatio: Pay off some loas first. Save for a larger dow paymet. Take aother look at your curret household budget to see where you ca sped less. The moey you save ca go towards a larger dow paymet. Lower your home price remember that your first home is ot ecessarily your dream home. Here are some more helpful strategies: Meet with a credit cousellor. He or she ca help you figure out how to miimize your debts. Buy your home through a ret-to-ow program. These are sometimes provided by the builder or a o-profit sposor. Fid out about programs through which you ca help build your ow home. Ask the housig departmet of your muicipality if ay special programs exist. What are Your Next Steps? Get a Copy of Your Credit Report Before approvig a mortgage, leders will wat to see how well you have paid your debts ad bills i the past. To do this, they cosider your credit history (credit report) from a credit bureau. This tells them about your fiacial past ad how you have used credit. Before lookig for a mortgage leder, get a copy of your ow credit history. There are two mai credit-reportig agecies: Equifax Caada Ic. ad TrasUio of Caada. You ca cotact either oe of them to get a copy of your credit report. There is ofte a fee for this service. Oce you receive your credit report, examie it to make sure the iformatio is complete ad accurate. If You Have No Credit History If you have o credit history, it is importat to start buildig oe by, for example, applyig for a stadard credit card with good iterest rates ad terms, makig small purchases ad payig them as soo as the bill comes i. Caada Mortgage ad Housig Corporatio 13

16 Homebuyig STEP BY STEP If You Have Poor Credit History If you have poor credit, leders might ot be able to give you a mortgage loa. You will eed to re-establish a good credit history by makig debt paymets regularly ad o time. Most ufavourable credit iformatio (icludig bakruptcy) drops off your credit file after seve years. Cosider gettig some credit cousellig if you have a history of poor credit or talk to your leder to discuss optios. Get a Mortgage Pre-Approval It s a very good idea to get a pre-approved mortgage before you start shoppig. May realtors will ask if you ve bee approved. A leder will look at your fiaces ad figure the amout of mortgage you ca afford. The the leder will give you a writte cofirmatio, or certificate, for a fixed iterest rate. This cofirmatio will be good for a specific period of time. A pre-approved mortgage is ot a guaratee of beig approved for the mortgage loa. Eve if you have t foud the home you wat to buy, havig a pre-approved mortgage amout will help keep a good price rage i mid. Brig these with you the first time you meet with a leder: Your persoal iformatio, icludig idetificatio such as your driver s licese Details o your job, icludig cofirmatio of salary i the form of a letter from your employer All your sources of icome Iformatio ad details o all bak accouts, loas ad other debts Proof of fiacial assets Source ad amout of dow paymet ad deposit Proof of source of fuds for the closig costs (these are usually betwee 1.5% ad 4% of the purchase price) Make Your Mortgage Work for You Your leder or broker will offer you several choices to help fid you the mortgage that best matches your eeds. Here are some of the most commo: Amortizatio Period Amortizatio refers to the legth of time you choose to pay off your mortgage. Mortgages typically come i 25 year amortizatio periods but ca be as short as 15 years. Usually, the loger the amortizatio, the smaller the mothly paymets. However, the loger the amortizatio, the higher the iterest costs. Total iterest costs ca be reduced by makig additioal (lump sum) paymets whe possible. Paymet Schedule You have the optio of repayig your mortgage every moth, twice a moth every two weeks or every week. You ca also choose to accelerate your paymets. For example, for a $250,000 mortgage (5% iterest rate ad 25 year amortizatio) choosig a accelerated bi-weekly paymet over a bi-weekly regular paymet ($727 vs. $670) allows you to pay dow your mortgage more quickly. You could pay off the mortgage i just over 21 years ad reduce your iterest costs by almost $30,000. This usually meas oe extra mothly paymet per year. 14 Caada Mortgage ad Housig Corporatio

17 STEP 2 Iterest Rate Type You will have to choose betwee fixed, variable or protected (or capped) variable. A fixed rate will ot chage for the term of the mortgage. This type carries a slightly higher rate but provides the peace of mid associated with kowig that iterest costs will remai the same. With a variable rate, the iterest rate you pay will fluctuate with the rate of the market. Usually, this will ot modify the overall amout of your mortgage paymet, but rather chage the portio of your mothly paymet that goes towards iterest costs or payig your mortgage (pricipal repaymet). If iterest rates go dow, you ed up repayig your mortgage faster. If they go up, more of the paymet will go towards the iterest ad less towards repayig the mortgage. This optio meas you may have to be prepared to accept some risk ad ucertaity. A protected (or capped) variable rate is a mortgage with a variable iterest rate that has a maximum rate determied i advace. Eve if the market rate goes above the determied maximum rate, you will oly have to pay up to that maximum. Mortgage Term The term of a mortgage is the legth of time for which optios are chose ad agreed upo, such as the iterest rate. It ca be as little as six moths or as log as five years or more. Whe the term is up, you have the ability to reegotiate your mortgage at the iterest rate of that time ad choose the same or differet optios. Bleded Paymet: A mortgage paymet that icludes pricipal ad iterest. It is paid regularly durig the term of the mortgage. The paymet total remais the same, although the pricipal portio icreases over time ad the iterest portio decreases. Lump Sum Prepaymet: A extra paymet, made i lump sum, to reduce the pricipal balace of your mortgage, with or without pealty. A closed mortgage typically restricts the amout ad frequecy of the prepaymets you ca make. With a ope mortgage, however, you ca make a lump sum prepaymet at ay time without pealty. Makig prepaymets ca help you pay off your mortgage sooer ad ultimately save o iterest costs over the life of your mortgage. Ope or Closed Mortgage A ope mortgage allows you to pay off your mortgage i part or i full at ay time without ay pealties. You may also choose, at ay time, to reegotiate the mortgage. This optio provides more flexibility but comes with a higher iterest rate. A ope mortgage ca be a good choice if you pla to sell your home i the ear future or to make large additioal paymets. A closed mortgage usually carries a lower iterest rate but does t offer the flexibility of a ope mortgage. However, most leders allow homeowers to make additioal paymets of a determied maximum amout without pealty. Typically, most people will select a closed mortgage. Figure Out the Up-frot Costs There are may up-frot costs whe you buy a home. Early plaig will help make sure thigs go smoothly. Dow Paymet A dow paymet is the part of the home price that does ot come from the mortgage loa. The dow paymet comes from your ow moey. You ca buy your home with a miimum dow paymet of 5%, if you have mortgage loa isurace from CMHC. You eed a dow paymet of at least 20% for a covetioal mortgage. Caada Mortgage ad Housig Corporatio 15

18 Homebuyig STEP BY STEP Deposit The deposit is paid whe you make a Offer to Purchase to show that you are a serious buyer. The deposit will form part of your dow paymet with the remaider owig at time of closig. If for some reaso you back out of the deal without havig covered yourself with purchase coditios, such as fiacig, home ispectio, etc., your deposit may ot be refudable ad you may be sued for damages. The size of the deposit varies. Your realtor or lawyer/otary ca help you decide o the amout. Appraisal Fee Your mortgage leder may ask you to pay for a recogized appraisal i order to complete a mortgage loa. A appraisal is a estimate of the value of the home. The cost is usually betwee $250 ad $350 ad must be paid whe you cotract for those services. Havig a idepedet appraisal doe o a property before you make a offer is a good idea. It will tell you what the property is worth ad help esure that you are ot payig too much. The appraisal should iclude: Assessmet of the property s physical ad fuctioal characteristics Aalysis of recet comparable sales Assessmet of curret market coditios affectig the property Ask your realtor or other member of your team to help you fid a appraiser. Mortgage Loa Isurace Premium If you make less tha a 20% dow paymet, you have a high-ratio mortgage. With a high-ratio mortgage your leder will eed mortgage loa isurace. Mortgage loa isurace lets you buy a home with a miimum dow paymet of 5%. Most Caadia ledig istitutios require mortgage loa isurace because it protects the leder. If the borrower defaults (fails to pay) o the mortgage, the leder is paid back by the isurer. You pay a premium for mortgage loa isurace. Your leder will add the mortgage loa isurace premium to your mothly paymets, or ask you to pay it i full upo closig. Mortgage Broker s Fee You may have decided to use a mortgage broker. The job of the mortgage broker is to fid you a leder with the terms ad rates that will best suit you. Home Ispectio Fee CMHC recommeds that you make a home ispectio a coditio of your Offer to Purchase. A home ispectio is doe by a qualified home ispector to provide you with iformatio o the coditio of the home. Costs rage depedig o the age, size ad complexity of the house ad the coditio that it is i. For example, it may be more costly to ispect a large, older, home, or oe i relatively poor coditio or that has may pre-existig problems or cocers. Survey or Certificate of Locatio Cost The mortgage leder may ask for a up-to-date survey or certificate of locatio. If the seller has a survey, but it is more tha five years old, it will probably eed to be 16 Caada Mortgage ad Housig Corporatio

19 STEP 2 updated. You should ask the seller to provide a updated survey, especially if there has bee a ew additio, deck or fece built close to the property lie. If the seller does ot have oe, or does ot agree to get oe, you may have to pay for it yourself. Remember, you must have permissio from the property ower before hirig a surveyor to go oto the property. Ask your realtor to help co-ordiate this with the ower. A survey or certificate of locatio ca cost $1,000 to $2,000. Title Isurace Your leder, lawyer, or otary may suggest that you get title isurace. This will cover loss caused by defects of title to the property. Lad Registratio Fees Lad Registratio fees are sometimes called Lad Trasfer Tax, Deed Registratio Fee, Tariff or Property Purchases Tax. I some provices ad territories, you may have to pay this provicial or muicipal charge whe you close the sale. The cost is a percetage of the property s purchase price. Check o the iteret or with your lawyer (or otary) or other team member to fid out about the curret rates. These fees ca cost a few thousad dollars. Water Tests If the home has a well, you will wat to have the quality of the water tested to esure that the water supply is adequate ad the water is drikable. You ca egotiate these costs with the vedor ad list them i your Offer to Purchase. Septic Tak If the house has a septic tak, it should be professioally checked to make sure it is i good workig order. You ca egotiate the cost with the vedor ad list it i your Offer to Purchase. Estoppel Certificate Fee (does ot apply i Quebec) This applies if you are buyig a codomiium, or strata uit, ad could cost up to $100. Also called a Status Certificate it outlies a codomiium corporatio s fiacial ad legal state. Prepaid Property Taxes ad/or Utility Bills Property taxes are charged by the muicipality where the home is located. They are based o the value of the home. The seller may have already paid property tax or other expeses that apply to the time after the house passes ito your hads. You eed to pay back the seller for taxes ad other costs (icludig items like fillig the oil tak). Property Isurace The mortgage leder requires you to have property isurace because your home is security for the mortgage. Property isurace covers the cost of replacig your home ad its cotets i case of loss. Property isurace must be i place o closig day. Legal Fees Legal fees ad related costs must be paid o closig day. The miimum cost is $500 (plus GST/HST). I additio, your lawyer or otary will charge you direct costs to check o the legal status of the property. Ted ad Shayla Ted ad Shayla have foud a ewly built home. The askig price is $200,000 icludig the GST. After addig together weddig gifts, a small iheritace ad other savigs Ted ad Shayla foud that they have $28,900. Ted ad Shayla wet to a leder ad got a mortgage pre-approval of $196,000. They decided o a dow paymet of $20,000. Because the dow paymet is less tha 20% of the price, they eed to get mortgage loa isurace. At the bak, they are advised that the premium for their mortgage loa isurace is 2% of the total loa amout they would have to pay $3,600 for their mortgage loa isurace. They were happy to lear that the mortgage loa premium could be added to their mothly mortgage. Ted ad Shayla s Up-frot Expeses Whe Ted ad Shayla made a offer o the bugalow, they provided a $1,000 deposit. Sice their dow paymet would be $20,000, they eed to pay a further $19,000 at time of closig. A appraisal was ot requested by the Leder. They hired a professioal Home Ispector for $500 to visually ispect the home to idetify potetial problems. They were required to obtai a lad survey which cost them $1,000. Because their provice requires lad registratio, they had to pay $3,000. Ted ad Shayla s realtor advised that she had heard about water problems i the area so they decided to get a water test doe for $175. I order to get a mortgage they had to pay $50 for their first moth of property isurace. Property taxes will be added to their mortgage paymets. But Ted ad Shayla had to pay the taxes that were left for the first year which was $1,250. Their lawyer s fees were $950. They did t eed to buy appliaces, or sow removal ad gardeig equipmet. Their movig costs were $250. For their cable, iteret ad telephoe package they paid a small hook-up fee of $75. Dow paymet $20,000 Closig Costs $7,250 Total Up-Frot Expeses $27,250 Caada Mortgage ad Housig Corporatio 17

20 Homebuyig STEP BY STEP Other Costs Depedig o your situatio, you may have some other iitial expeses to cosider: Movig expeses Whether you ll be hirig a movig compay or retig a truck ad askig frieds for help, there are likely to be movig expeses. Reovatios or repairs Ca reovatio or repair be delayed, or are some ecessary to do immediately? Codomiium fees Do you have to make the iitial paymet for these mothly fees? Service coectio fees Telephoe, gas, electricity, cable TV, satellite TV, Iteret, ad so o, may charge service coectio fees. Some utilities may ask you to pay a deposit. Appliaces Does your ew home come with appliaces? Do you already have your ow? Gardeig equipmet Will you eed to buy gardeig equipmet the first summer i your ew home? Sow-clearig equipmet Will you eed to buy sow-clearig equipmet the first witer i your ew home? Widow treatmets Do blids or curtais come with the house? Decoratig materials Do you wat to re-pait or apply wallpaper? Do the floors eed to be refiished or re-carpeted? Do you have all the tools you eed for decoratig? Had tools Do you have the basic had tools you ll eed for your ew home? Dehumidifier Will you eed a dehumidifier to cotrol moisture levels? Use the Home Purchase Cost Estimate form o the ext page to help figure out your estimated up-frot costs. 18 Caada Mortgage ad Housig Corporatio

21 STEP 2 HOME PURCHASE COST ESTIMATE Descriptio of cost Average mothly paymet Cost of Home Purchase price $ GST/HST (if applicable) $ Total Cost of Home (add the purchase price ad GST if applicable) $ Up-frot Costs Appraisal fee (if applicable) $ Deposit (to be paid whe you sig the Offer to Purchase) $ Dow paymet $ Estoppel certificate fee (for codomiium/strata uit) $ Home ispectio fee $ Lad registratio fee $ Legal fees ad disbursemets $ Mortgage broker s fee (if applicable) $ Mortgage loa isurace premium (ca be icluded i your mortgage) $ Prepaid property taxes ad/or utility bills adjustmet $ Property isurace $ Survey or certificate of locatio cost $ Title isurace $ Other $ Total Upfrot Costs $ Other Costs Appliaces $ Gardeig equipmet $ Sow-clearig equipmet $ Widow treatmets $ Decoratig materials $ Had tools $ Dehumidifier $ Movig expeses $ Reovatios or repairs $ Service hookup fees $ Codomiium fees $ Total Other Costs $ Total Costs (add up Total Cost of Home, Total Up-frot Costs ad Total Other Costs) Additioal Home Purchase Cost Estimate worksheets are available at the back of this Guide. $ Caada Mortgage ad Housig Corporatio 19

22 Homebuyig STEP BY STEP NOTES 20 Caada Mortgage ad Housig Corporatio

23 STEP 3 Which home is right for you?

24 Homebuyig STEP BY STEP Oce you have a good idea about your fiaces, you ll eed to thik clearly about the home you d like to buy. Your Needs Now ad i the Future Try to buy a home that meets most of your eeds for the ext 5 to 10 years, or fid a home that ca grow ad chage with your eeds. Here are some thigs to cosider: Size How may bedrooms do you eed? How may bathrooms do you eed? Do you eed space for a home office? What kid of parkig facilities do you eed? For how may cars? Special features Do you wat air coditioig? If so, what type? Do you wat storage or hobby space? Is a fireplace or a swimmig pool high o your list? Do you have family members with special eeds? Do you wat special features to save eergy, ehace idoor air quality, ad reduce evirometal impact? Lifestyles ad stages No matter what type of housig you choose, you must have a clear idea of your eeds today as well as your possible future eeds. These are some examples of questios home buyers might ask: Do I eed a home office? Do I pla to have childre? Do I have teeagers who will be movig away soo? Am I close to retiremet? Will I eed a home that ca accommodate differet stages of life? Do I have a older relative who might come to live with me? The CMHC worksheet Home Features Checklist o the ext page ca help you thik about what you eed today, ad what you may eed i the future. Is FlexHousig for you? FlexHousig TM is a housig cocept that icorporates, at the desig ad costructio stage, the ability to make future chages easily ad with miimum expese to meet the evolvig eeds of its occupats. FlexHousig TM allows homeowers to live i their home for a loger time perhaps a etire lifetime. By addig or removig walls you ca make the home suit your lifestyle. 22 Caada Mortgage ad Housig Corporatio

25 STEP 3 HOME FEATURES CHECKLIST Resale Type of Home Detached Towhouse Highrise New Semi-detached Duplex Low-rise Bedrooms Bathrooms Master bedroom e suite Yes No Groud floor bathroom Yes No Type of owership Freehold Codomiium Age of home Lot size Small Medium Large Quiet street Yes No Type of exterior fiish Brick Wood Alumium sidig Viyl sidig Combiatio brick ad sidig Widows Glazig Sigle Double Triple Low-E Costructio Wood Viyl Alumium Other Eat-i kitche Yes No Separate diig room Yes No Separate family room Yes No Fireplace Yes No Woodstove Yes No Spare room for de or home office Yes No Basemet for storage or workshop Yes No Apartmet for retal icome Yes No Deck or patio Yes No Isulatio values Basemet Walls Ceilig Private driveway Yes No Garage Attached Detached Foudatio costructio Cocrete Cocrete block Preserved wood Sewer Muicipal Septic system Water Muicipal Well Water heatig Gas Electric Oil Carport Yes No Security features Yes No Barrier-free Yes No Close to (approximate km) Electrical system 100 amp 200 amp Other Fuses Circuit breakers Eergy Ratig Yes No Ratig Type of heatig fuel Oil Gas Electric Wood Heat recovery vetilator Yes No Air coditioig Cetral Widow Work Public trasportatio Shoppig Recreatio facilities Places of worship Police statio Hospital Veteriaria Spouse s work Schools Parks/playgrouds Restaurats Doctor/detist Fire statio Additioal Home Features Checklists are available at the back of this Guide. Caada Mortgage ad Housig Corporatio 23

26 Homebuyig STEP BY STEP The Right Choice for Keith ad Joy Keith ad Joy hoped to have two childre, ad room to ivite oe of their parets to live with them, if eeded. After learig about FlexHousig, they decided to buy a three-bedroom FlexHouse that could chage with their eeds. After three years, Keith ad Joy had a little boy, amed Jake. He took the secod bedroom, ad their may overight guests used the third oe. Whe Jake was three, Joy had the guest bedroom divided ito a home office for herself, ad a smaller guest bedroom. Each room had its ow widow, closet, wirig, ad lightig. Two years later, baby Ella was bor ad the small bedroom became hers. To create a guest bedroom, the attic was reovated to iclude a bathroom ad closet. Because this was a FlexHouse, the space already had wirig ad plumbig. The roof desig allowed for useable attic space. Sadly, a few years later, Keith s mother passed away ad they ivited his father, Robert, to come live with them. Their FlexHouse had pre-desiged ad prebuilt features so that they could create a exteral additio. This gave Robert the idepedece of his ow space. Whe Jake had become a teeager, ad Robert had passed away, Jake asked if he could move to the attic bedroom. Ella moved ito Jake s larger bedroom. Her smaller bedroom became a readig room. I a adaptable home, space ca be arraged ad re-arraged without expesive retrofits ad reovatios. Desigig a adaptable home ivolves aticipatig possible ew uses for rooms, potetial traffic flow, ad future requiremets at the desig stage. What Locatio Should You Choose? Locatio is a critical factor. A home with everythig you eed but i the wrog locatio is probably ot the right home for you. Here are some thigs to cosider: Do you wat to live i a city, a tow or i the coutryside? How easy will it be to get to where you work? How much will the commutig cost? Where will your childre go to school? How will they get there? Do you eed a safe walkig area or recreatioal facility, such as a park, earby? How close would you like to be to family ad frieds? What is a Sustaiable Neighbourhood? A sustaiable eighbourhood meets your eeds while protectig the eviromet. Homes i a sustaiable eighbourhood are located ear shops, schools, recreatio, work ad other daily destiatios. This helps reduce drivig costs ad lets residets ejoy the health beefits of walkig ad cyclig. Lad ad services, like roads, are used efficietly. Sustaiable eighbourhoods also feature a choice of homes that are affordable. I your search for a sustaiable eighbourhood, here are some thigs to cosider: Easy trasportatio Are stores, schools, recreatio facilities, restaurats, ad health services withi walkig or cyclig distace? Will your childre eed to take a bus to school? Ca they walk to the park? Ca you do most of your shoppig without a car? Are there earby bus stops ad cyclig laes? How log is the bus ride to work, or school? Ca you safely bike? House size ad features Are the homes compact with shared walls to reduce heatig costs? Are homes reasoably sized with lots requirig less upkeep? Are there differet dwellig types (such as sigle-detached, semi-detached, towhouse ad apartmets) i the eighbourhood? Are the lots modestly sized? Roadways arrow? Driveways/parkig areas small? Do atural drai ways lead to streams or park lads? Is there ative vegetatio ad streams with woodlad edges? 24 Caada Mortgage ad Housig Corporatio

27 STEP 3 Look ad feel Safety Do the buildigs have a friedly face to the street? Are the commuity cetres, shops ad meetig places welcomig? Are there trees liig the street? Do you fid the homes iterestig to look at? Do the buildig sizes feel comfortable to you? Are the roads easy to walk alog or cross? Do the homes have eyes o the street? I other words, are there people aroud who might watch out for you? Is there somewhere to go i a emergecy? Is there adequate street lightig? Are there safe places for childre to play? Are the streets safe for cyclists ad pedestrias? Is traffic slow movig ad light? Do You Wat a New Home or a Previously-Owed Home? A ew home is oe that has just bee built o oe else has lived i it yet. You might buy a ew home from a cotractor who has built it, or you might hire a cotractor to build it for you. A previously-owed home (ofte called a resale) has already bee lived i. Here are some characteristics of each type of home: New Home Up-to-date A ew home has up-to-date desig that might reflect the latest treds, materials ad features. Choices Costs You may be able to choose certai features such as style of sidig, floorig, cabiets, plumbig ad electrical fixtures. You may have to pay extra if you wat to add certai features, such as a fireplace, trees ad sod, or a paved driveway. Make sure you kow exactly what s icluded i the price of your home. Taxes such as the Goods ad Services Tax (GST) (or, i certai provices, the Harmoized Sales Tax (HST)) apply to a ew home. However, you may qualify for a rebate of part of the GST or HST o homes that cost less tha $450,000. For more iformatio about the GST New Housig Rebate program, visit the Caada Reveue Agecy website at A ew home will have lower maiteace costs because everythig is ew, ad may items are covered by a warraty. You should set aside moey every year for future maiteace costs. Sigle-family Detached Home: Free-stadig home for oe family, ot attached to a house o either side. Sigle-family Semi-detached Home: Home for oe family, attached to aother buildig o oe side. Stacked Towhouse: Two two-story homes are stacked oe o top of the other. The buildigs are usually attached i groups of four or more. Each uit has direct access from the outside. Strata (or Codomiium): A uit, usually i a highrise or lowrise, or a towhouse that ca be owed. You ow the uit you live i ad share owership rights for the commo space of the buildig. Commo space icludes areas such as corridors, the grouds aroud the buildig, ad facilities such as a swimmig pool ad recreatio rooms. Strata owers together cotrol the commo areas through a owers associatio. The associatio makes decisios about usig ad maitaiig the commo space. Caada Mortgage ad Housig Corporatio 25

28 Homebuyig STEP BY STEP Warraties A New Home Warraty may be provided by the builders of the home or the provice. Be sure to check all the coditios of the warraty. It ca be very importat if a major system such as plumbig, or heatig, breaks dow. New Home Warraties may be provided by provicial govermets. There are also private ew home warraty programs. I some provices a warraty may be provided by the builder of the home. Check with your realtor or lawyer/ otary to fid out what the ew home warraty program i your provice covers ad the umber of years it is i effect. Check the iteret for Home Warraty Programs i your provice. Neighbourhood ameities Schools, shoppig malls ad other services may ot be completed for years. Buildig Your Ow Home Some people prefer the challege ad flexibility of buildig their ow home. O oe had, you make all the decisios about size, desig, locatio, quality of material, level of eergy-efficiecy ad so o. O the other had, expect to ivest lots of time ad eergy. Resale Home Whe the home already exists, you ca see what you are buyig. Sice the eighbourhood is established, you ca see how easy it is to access services such as schools, shoppig malls, libraries, etc. Ladscapig is usually doe ad fecig istalled. Previously owed homes may have extras like fireplaces or fiished basemets or swimmig pools. You do t have to pay the GST/HST uless the house has bee reovated substatially, ad the the taxes are applied as if it were a ew house. You may eed to decorate, reovate or do major repairs such as replacig the roof, widows ad doors. What Type of Home Should You Buy? What types of homes will you be visitig with the idea of buyig? Do you see yourself livig i a detached sigle-family home? Or, perhaps a towhouse? Maybe, a duplex? Sigle-family Detached A sigle-family detached home is oe dwellig uit. It stads aloe, ad sits o its ow lot. This ofte gives the family a greater degree of privacy. Sigle-family Semi-detached A semi-detached home is a sigle-family home that is joied o oe side to aother home. It ca offer may of the advatages of a sigle-family detached home. It is ofte less expesive to buy ad maitai. Duplex A duplex is a buildig cotaiig two sigle-family homes, located oe above the other. Sometimes, the ower lives i oe uit ad rets the other. 26 Caada Mortgage ad Housig Corporatio

29 STEP 3 Row House (Towhouse) Row houses (also called towhouses) are several similar sigle-family homes, side-byside, joied by commo walls. They ca be freehold or codomiiums. They offer less privacy tha a sigle-family detached home, although each has a separate outdoor space. These homes ca cost less to buy ad maitai, athough some are large, luxury uits. Stacked Towhouse Stacked towhouses are usually two-storey homes. Two two-storey homes are stacked oe o top of the other. The buildigs are usually attached i groups of four or more. Each uit has direct access from the outside. Lik or Carriage Home A lik, or carriage home, is joied by a garage or carport. The garage or carport gives access to the frot ad back yards. Builders sometimes joi basemet walls so that lik houses appear to be sigle-family homes o small lots. These houses ca be less expesive tha sigle-family detached homes. Maufactured Home A maufactured home is a factory-built, sigle-family home. It is trasported to a chose locatio ad placed oto a foudatio. Modular Home A modular home is also a factory-built, sigle-family home. The home is typically shipped to a locatio i two or more sectios (or modules). Mobile Home Mobile homes, like maufactured or modular homes, are built i factories ad the take to the place where they will be occupied. While these homes are usually placed i oe locatio ad left there permaetly, they do retai the ability to be moved. Apartmet A self-cotaied uit i part of a buildig cosistig of a room or set of rooms icludig kitche ad bathroom facilities. Caada Mortgage ad Housig Corporatio 27

30 Homebuyig STEP BY STEP Forms of Owership People who do ot ret their home, ow it. There are two forms of owership. Freehold Freehold meas that oe perso (or two, such as joit owership by spouses) ows the lad ad house outright. There is o space co-owed or co-maaged with owers of other uits. Freehold owers ca do what they wat with their property up to a poit. They must obey muicipal bylaws, subdivisio agreemets, buildig codes ad federal ad provicial laws, such as those protectig the eviromet. Detached ad semi-detached homes, duplexes ad towhouses are usually owed freehold. Codomiium Codomiium owership meas you ow the uit you live i ad share owership rights for the commo space of the buildig. Commo space icludes areas such as corridors, the grouds aroud the buildig, ad facilities such as a swimmig pool ad recreatio rooms. Codomiium owers together cotrol the commo areas through a owers associatio. The associatio makes decisios about usig ad maitaiig the commo space. Lad Surveyor: A professioal who ca survey a property i order to provide a certificate of locatio. Appraiser: Certified professioal who carries out a appraisal. Leder: A mortgage leder is a istitutio (bak, trust compay, credit uio, etc.) that leds moey for a mortgage. Mortgage Broker: The job of the mortgage broker is to fid you a leder with the terms ad rates that will best suit you. What Professioals Should You Call O? Eve if this is t your first homebuyig experiece, you ll wat to get help from a team of professioals. Experieced ad kowledgeable professioals ca provide you with reliable iformatio ad aswers to your questios. These are the people who ca help you: Realtor Leder or mortgage broker Lawyer or otary Isurace broker Home ispector Appraiser Lad surveyor Builder or cotractor You will be doig a lot of iterviewig to establish your team. Use this hady CMHC worksheet o the ext page to help you keep track of the people you iterview ad the oes you fially choose. 28 Caada Mortgage ad Housig Corporatio

31 STEP 3 YOUR TEAM OF PROFESSIONALS Role Name Compay ame Address Stregths Weakesses Referral Telephoe Fees Role Name Compay ame Address Stregths Weakesses Referral Telephoe Fees Role Name Compay ame Address Stregths Weakesses Referral Telephoe Fees Role Name Compay ame Address Stregths Weakesses Referral Telephoe Fees Additioal Your Team of Professioals worksheets are available at the ed of this Guide. Caada Mortgage ad Housig Corporatio 29

32 Homebuyig STEP BY STEP The Realtor Your realtor s job is to: Help you fid the ideal home Write a Offer of Purchase Negotiate to help you get the best possible deal Give you importat iformatio about the commuity Help you arrage a home ispectio Fidig a Realtor Whe lookig for a realtor, do t be afraid to ask questios especially about possible service charges. Normally, the seller pays a commissio to the realtor but some realtors charge buyers a fee for their services. Use the CMHC worksheet Checklist for Evaluatig Realtors, below, to help you. If you would like to kow more about a realtor s ethical obligatios, go to the Caadia Real Estate Associatio s website at or call your local real estate associatio. CHECKLIST FOR EVALUATING REALTORS Name of Realtor: Cotact: Questio Which real estate compay do you work for? How log have you bee a realtor? Do you have a salesperso s licese or a broker s licese? Do you hold ay professioal desigatios? Do you work with other realtors or use assistats? What is the amout of commissio that you charge? What areas of the city/tow do you work i or are most familiar with? Do you uderstad what I am lookig for i a home? Do you have experiece workig with first-time buyers? (oly relevat if you are a first-time buyer) How may other buyers or sellers are you curretly represetig? Is there aythig I have t asked about you or your compay that you thik I should kow? Ca I have three refereces from other buyers you have worked with recetly? Aswer 30 Caada Mortgage ad Housig Corporatio

33 STEP 3 The Leder or Mortgage Broker May differet istitutios led moey for mortgages baks, trust compaies, credit uios, caisses populaires (i Quebec), pesio fuds, isurace compaies, ad fiace compaies. Differet istitutios offer differet terms ad optios shop aroud! Mortgage brokers do t work for ay specific ledig istitutio. Their role is to fid the leder with the terms ad rates that are best for the buyer. Fidig a Leder or Mortgage Broker Ask aroud. Your realtor, aother professioal, family members, or frieds may give you helpful suggestios. Look i the Yellow Pages uder Baks, Credit Uios or Trust Compaies for a leder ad uder Mortgage Brokers for a broker. Cotact the Caadia Associatio of Accredited Mortgage Professioals at , or visit the Associatio s website at The Lawyer/Notary Havig a lawyer/otary ivolved i the process will help esure that thigs go as smoothly as possible. You eed a lawyer (or a otary i Quebec) to perform these tasks: Protect your legal iterests by makig sure the property you wat to buy does ot have ay buildig or statutory lies, charges, or work or clea-up orders. Review all cotracts before you sig them, especially the Offer (or Agreemet) to Purchase. Offer to Purchase: A writte cotract settig out the terms uder which the buyer agrees to buy the home. If the Offer to Purchase is accepted by the seller, it forms a legally bidig cotract that bids the people who siged to certai terms ad coditios. Certificate of Locatio (or Lad Survey): A documet that shows property boudaries ad measuremets, specifies the locatio of buildigs o the property ad states easemets or ecroachmets. Estoppel Certificate: Also called a certificate of status, it outlies a codomiium corporatio s fiacial ad legal state. Fees may vary ad may be capped by law (does ot apply i Quebec). Lie: A claim agaist a property for moey owig. A lie may be filed by a supplier or a subcotractor who has provided labour or materials but has ot bee paid. Assumptio Agreemet: A legal documet siged by a homebuyer that requires the buyer to assume resposibility for the obligatios of a mortgage by the builder or the previous ower. Fidig a Lawyer Law associatios ca refer you to lawyers who specialize i real estate law. I Quebec, cotact the Chambre des otaires du Québec for the ames of otaries specializig i real estate law. Remember that a lawyer/otary should: Be a licesed full-time lawyer/otary Live/work i the area Uderstad real estate laws, regulatios ad restrictios Have realistic ad acceptable fees Be able ad willig to explai thigs i laguage you ca easily uderstad Be experieced with codomiiums, if that s what you are buyig Caada Mortgage ad Housig Corporatio 31

34 Homebuyig STEP BY STEP Lawyer/otary fees deped o the complexity of the trasactio ad the lawyer s expertise. Shop aroud for rates whe choosig your lawyer/otary. Use the worksheet Checklist for Selectig a Lawyer/Notary to guide you: CHECKLIST FOR SELECTING A LAWYER/NOTARY Name of Lawyer/Notary: Cotact: Questio Are you a full-time lawyer licesed to practice i this provice/territory? Do you specialize i real estate law? How much do you charge? What services will you provide? Do you help cliets whe they are egotiatig the price of a house? Ca you give me the ames ad telephoe umbers of three of your recet cliets who have purchased homes? Do you have experiece workig with first-time buyers? (oly relevat if you are a first-time home buyer) Is there aythig I have t asked about you or your firm that you thik I should kow? Aswer The Isurace Broker A isurace broker ca help you with your property isurace ad mortgage life isurace. Leders isist o property isurace because your property is their security for your loa. Property isurace covers the replacemet cost of your home, so the size of your premium depeds o the value of the property. Your leder may also suggest that you buy mortgage life isurace. Mortgage life isurace gives coverage for your family if you die before your mortgage is paid off. Your leder may offer this type of isurace. I this case, the leder adds the premium to your regular mortgage paymets. However, you may wat to compare rates offered by a isurace broker ad by your leder. Do t cofuse property isurace, or mortgage life isurace, with mortgage loa isurace. 32 Caada Mortgage ad Housig Corporatio

35 STEP 3 The Home Ispector Whether you are buyig a resale home, or a ew home, cosider havig it ispected by a kowledgeable ad professioal home ispector. The home ispector s role is to iform you about the property s coditio observed at the time of the ispectio. The home ispector will tell you if somethig is ot workig properly, eeds to be chaged, or is usafe. He or she will also tell you if repairs are eeded, ad maybe eve idetify where there were problems i the past. A home ispectio is a visual ispectio. It should iclude a visual assessmet of at least the followig: Foudatio Doors ad widows Roof ad exterior walls (except witer) Attics Plumbig ad electrical systems (where visible) Heatig ad air coditioig systems Ceiligs, walls ad floors Isulatio (where visible) Vetilatio The lot, icludig draiage away from buildigs, slopes ad atural vegetatio Overall opiio of structural itegrity of the buildigs Commo areas (i the case of a codomiium/strata or co-operative) Fidig a Home Ispector It s importat to hire a kowledgeable, experieced ad competet home ispector. I most areas of Caada, there are o licesig or certificatio requiremets for home ispectors. Ayoe ca say that they are a home ispector without havig take ay courses, passed tests or eve ispected houses. So look for a home ispector who belogs to a provicial or idustry associatio, holds a accreditatio that demostrates traiig ad experiece, provides ispectio reports, carries isurace, provides refereces ad has strog experiece with the type of home to be ispected. While CMHC does ot recommed ay idividual home ispector or associatio, CMHC supports a commo atioal occupatioal stadard for home ispectors such as the home ispectio idustry s volutary ad idepedet atioal certificatio program. Home ispector fees rage, depedig o the size ad coditio of the home. Caada Mortgage ad Housig Corporatio 33

36 Homebuyig STEP BY STEP The Appraiser Before you make a offer, a idepedet appraisal ca tell you what the property is worth. This will help esure that you are ot payig too much. I order to complete a mortgage loa, your leder may ask for a recogized appraisal. The appraisal should iclude: Ubiased assessmet of the property s physical ad fuctioal characteristics Aalysis of recet comparable sales Assessmet of curret market coditios affectig the property Fidig a Appraiser Ask your realtor to help you fid a appraiser. The Lad Surveyor If the seller does ot have a Survey or Certificate of Locatio, you will probably eed to get oe for your mortgage applicatio. If the Survey i the seller s possessio is older tha five years, it eeds to be updated. Remember that you must have permissio from the property ower before hirig a surveyor to go oto the property. Ask your realtor to help co-ordiate this with the ower. Fidig a Lad Surveyor Search the web or Yellow Pages or ask your realtor to help you fid a lad surveyor. 34 Caada Mortgage ad Housig Corporatio

37 STEP 3 The Builder/Cotractor If you are buyig a ewly costructed home, you will have to hire a builder or cotractor. If you are buyig a resale house that eeds reovatios, you may also require a builder or cotractor. Here are some thigs to keep i mid whe choosig a builder or cotractor: Ask for refereces. Talk to other customers about the builder s performace. Check with the New Home Warraty program i the area (if applicable). Visit other housig developmets that the compay has built. Ask builders or cotractors if they are members of a local homebuilders associatio. Ask them for their provicial licese umber. If you are havig a custom home built, remember that: You may wat to hire a architect to desig the house ad supervise costructio. Builders of custom homes usually work o either a fixed-price or a cost-plus basis. Authorize ay chages to your cotract by writig your ame or iitials beside the chage. Make sure your cotract with the builder or cotractor is very specific about costructio details. You ca eve require that the brad ames or model umber of fiishes be specified. If you agree to a chage i the cotract, write your iitials ext to the chage. Ravi ad Amita s Experiece Ravi ad Amita saved a substatial amout for a dow paymet ad the up-frot costs o their first home. After lookig a little o their ow, Ravi thought they should try to fid a real estate aget. He was cocered that the aget might charge for her services. They iterviewed a few agets ad settled o Jaie. She had sold may houses i their part of tow ad did t charge the buyer. After visitig a few leders ad mortgage brokers, they decided o Robert who offered the best terms ad optios ad gave them a pre-approved mortgage certificate. They would meet with Robert agai durig the coditioal offer period to get a fial mortgage approval. Ravi hired his family lawyer. Youssef uderstood property law ad would esure that o buildig or statutory lies or charges existed. Youssef would review all cotracts before Ravi ad Amita siged them. Their isurace broker, Jea-Paul, set up their ew accout. After lookig at a few houses ad housig developmets, they decided to buy a existig home. Now they could cross off builder or cotractor from the list of professioals they would eed. They foud a three-year-old house with some time left o the home warraty. The preset owers agreed to give them the lad survey that they had doe whe they built the house. They ll eed to fid a professioal home ispector ad a appraiser. They wo t eed a lad surveyor or a cotractor. Caada Mortgage ad Housig Corporatio 35

38 Homebuyig STEP BY STEP NOTES 36 Caada Mortgage ad Housig Corporatio

39 STEP 4 The buyig process

40 Homebuyig STEP BY STEP Startig Your Search Here are some ways to begi lookig for your ew home: Word-of-mouth Tell everyoe you kow that you are lookig for a ew home. Surprisig thigs sometimes happe. For example, you might hear about a home that is just becomig available o the market. Newspapers ad real estate magazies Check the ew homes sectio i daily ewspapers. Look for the free real estate magazies available at ewsstads, coveiece stores ad other outlets. These publicatios are free ad give pictures ad short descriptios of homes for sale. The Iteret Check out real estate websites, such as realtor.ca. These websites give iformatio ad pictures of a wide rage of properties. Most sites let you search by locatio, price, umber of bedrooms, ad other features. For Sale sigs Drive, bike or walk aroud a eighbourhood that iterests you ad look for For Sale sigs. This is a good way to fid homes that are beig sold by the ower ad are ot listed with a aget. Visit ew developmet sites If you are lookig for a ewly built home, you ca see available models ad get iformatio from builders. Work with a realtor For most buyers, a realtor is key to fidig the right home. Useful Tips for Your Search Keep records Whether you have a realtor or are lookig by yourself, visit lots of homes before choosig oe. Some thigs to compare are the home s eergy ratig, utility costs, property taxes ad major repairs. These will affect your mothly housig expeses. You ca ask to see copies of utility ad other bills. Use the CMHC Home Hutig Worksheet at the ed of this sectio to make sure you get all the iformatio you eed to compare homes. Check out the property s curret fiacig If the existig mortgage o the home is favourable, it may be possible to take it over from the vedor. It may eve be possible to get a vedor take back mortgage, to help close the deal. Thik twice Eve if a home seems perfect, go back ad take a closer, more critical look at it. Visit it o differet days ad differet times of the day. Chat with the eighbours. Look deeper do t be distracted by attractive surface details. Eergy Ratig Some houses ad ew homes i Caada have a Eergy Ratig that describes the eergy efficiecy of the home. A eergy-rated home usually has a sticker with the ratig o the electrical pael. The eergy ratig is o a 0 to 100 scale. The higher the ratig, the more eergy-efficiet the home, ad the less it costs to operate. CMHC statistics ad aalysis CMHC has the latest statistical iformatio ad aalysis of housig treds. Our Market Aalysis Cetre tracks iformatio for local, provicial ad atioal markets. 38 Caada Mortgage ad Housig Corporatio

41 STEP 4 Use the CMHC Home Hutig Worksheet to make sure you get all the iformatio you eed to compare homes. HOME HUNTING WORKSHEET Attach real estate listig iformatio sheet or fill i below. Address CHATTEL WHICH REMAINS WITH HOUSE Make a comprehesive list (floor coverigs, widowdrapes, appliaces, etc.) Real estate represetative Type of home Telephoe Square footage Number of bedrooms Lot size Additioal structures o property Occupacy date Askig price $ Air coditioig Cetral Widow Smoke detectors Heat recovery vetilator (HRV) ANNUAL COSTS Property taxes $ Garbage collectio $ Other $ Utilities Heatig type Oil Natural gas Electric Wood $ Electricity 60 amp 100 amp 200 amp Other $ Water Muicipal Well $ Other $ Other $ TOTAL ANNUAL COSTS $ Distace to work Public trasportatio Adequate proximity to: Schools Shoppig Playgrouds Medical Hospital Fire statio Police Place of worship NEIGHBOURHOOD Distace to spouse s work Yes No Yes No Yes No Yes No Yes No Yes No Yes No OTHER CONSIDERATIONS Existig evirometal problems (oisy traffic, railway, floodig, etc.) Yes No Yes No Future eighbourhood developmet plas Eergy Rated Ratig Yes No Additioal Home Hutig worksheets are available at the back of this Guide. Caada Mortgage ad Housig Corporatio 39

42 Homebuyig STEP BY STEP EXTERIOR Fiish Brick Sidig Wood Coditio Fair Good Excellet Roofig Fair Good Excellet Other Widows Wood Viyl clad Alumium Coditio Fair Good Excellet Number of etraces Driveway Paved Gravel Other Garage No Yes Heated Not heated Ladscapig Fair Good Excellet Fecig Wood Chai lik Other Patio or deck Yes No Special features (e.g. pool, barbecue) INTERIOR Etrace area Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Special features Livig room Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Special features (e.g. fireplace) Diig room Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Special features De Study Family room Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Special features Kitche Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Cupboards ad storage Fair Good Excellet Special features Appliaces icluded Master bedroom Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Special features (e.g. e suite bathroom, walk-i closet) Bedroom #2 Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Special features Bedroom #3 Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Special features Bathrooms #1 Bath/shower Sik Toilet #2 Bath/shower Sik Toilet #3 Bath/shower Sik Toilet Special features Basemet Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Separate etrace Yes No Special features Utility room Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Special features Furace Age Coditio Fair Good Excellet Hot water tak Age Coditio Fair Good Excellet Additioal for codomiiums Parkig Udergroud Above groud Balcoy; size Storage Recreatio room Exercise room Pool No Yes Idoor Outdoor Lobby Fair Good Excellet Security ad special features Geeral commets Additioal Home Hutig worksheets are available at the back of this Guide. 40 Caada Mortgage ad Housig Corporatio

43 STEP 4 Makig a Offer to Purchase After you have foud the home you wat to buy, you eed to give the vedor a Offer to Purchase (sometimes called a Agreemet of Purchase ad Sale). It is very helpful to work with a realtor (ad/or a lawyer/otary) to prepare your offer. The Offer to Purchase is a legal documet ad should be carefully prepared. These items are typically icluded: Names Your legal ame, the ame of the vedor ad the legal civic address of the property. Price The price you are offerig to pay. Thigs icluded Ay items i or aroud the home that you thik are icluded i the sale should be specifically stated i your offer. Some examples might be widow coverigs ad appliaces. Amout of your deposit The closig day The closig day is the date you take possessio of the home. It is usually 30 to 60 days after the date of agreemet. But, it ca be 90 days, or eve loger. Request for a curret lad survey of the property Date the offer expires After this date the offer becomes ull ad void that meas it s o loger valid. Other coditios Other coditios may iclude a satisfactory home ispectio report, a property appraisal, ad leder approval of mortgage fiacig. This meas that the cotract will become fial oly whe the coditios are met. What Happes After You Make a Offer to Purchase? Imagie that your realtor has helped you prepare a Offer to Purchase. This offer icludes all the details of the sale. To be extra cautious (sice you kow a Offer to Purchase is legally bidig) ask your lawyer to look at it before showig it to the vedor. The realtor presets the offer to the vedor. What ca you expect to happe ext? There are three possible resposes: Respose 1 Respose 2 Respose 3 The vedor accepts your offer. The deal is cocluded ad you move o to the ext steps i the buyig process. The vedor makes a couter-offer. The couter-offer might ask for a higher price, or differet terms. You ca sig the offer back to the vedor, offerig a higher price tha your origial offer, but lower tha the vedor s couteroffer. If the veder accepts this couteroffer, the deal is cocluded. The vedor makes a couter-offer, askig for a higher price or differet terms. If a couter-offer is retured to you at a higher price, esure that you kow exactly how much you ca afford before you start egotiatig. You do t wat to get caught up i the heat of the momet with costs you ca t afford. You reject the couteroffer because the price is still too high, or you ca t agree to the coditios. The sale does t go through, ad your deposit is retured. Caada Mortgage ad Housig Corporatio 41

44 Homebuyig STEP BY STEP Rita: A Homeower s Experiece Rita made a Offer to Purchase o a older property. Her real estate aget, Nissa, suggested that a home ispectio should be doe ad that approval of mortgage fiacig be a coditio of the offer. The ispectio showed repairs that would have cost more tha Rita could afford. Happily, withi a couple of weeks, Nissa foud aother listig at $115,000. Rita hoped the vedors would egotiate the price. With Nissa s help, Rita filled out aother Offer to Purchase for $100,000. The vedors refused the offer. Rita was a little discouraged. But, Nissa poited out aother eighbourhood that had similar features ad that teded to be a little less expesive. O the secod visit, Rita foud it. Eve her so got excited ad quickly foud his bedroom. Although the backyard was smaller tha the first home o which Rita made a Offer, it was adequate. The askig price was $99,900 well below Rita s pre-approved mortgage amout. Because the square footage ad lot were smaller, she offered $90,000. This time, the ispectio was very positive. Rita could t have bee happier she was fially goig to be a homeower! Gettig a Mortgage Oce your Offer to Purchase has bee accepted, go to see your leder. Your leder will verify (ad update, if ecessary) your fiacial iformatio ad put together what s eeded to complete the mortgage applicatio. Your leder may ask you to get a property appraisal, a lad survey, or both. You may also be asked to get title isurace. Your leder will tell you about the various types of mortgages, terms, iterest rates, amortizatio periods ad, paymet schedules available. Depedig o your dow paymet, you may have a covetioal mortgage or a high-ratio mortgage. Types of Mortgages Covetioal Mortgage A covetioal mortgage is a mortgage loa that is equal to, or less tha, 80% of the ledig value of the property. The ledig value is the property s purchase price or market value whichever is less. For a covetioal mortgage, the dow paymet is at least 20% of the purchase price or market value. High-ratio Mortgage If your dow paymet is less tha 20% of the home price, you will typically eed a high-ratio mortgage. A high-ratio mortgage usually requires mortgage loa isurace. CMHC is a major provider of mortgage loa isurace. Your leder may add the mortgage loa isurace premium to your mortgage or ask you to pay it i full upo closig. Mortgage Term Your leder will tell you about the term optios for the mortgage. The term is the legth of time that the mortgage cotract coditios, icludig iterest rate, will be fixed. The term ca be from six moths up to te years. A loger term (for example, five years) lets you pla ahead. It also protects you from iterest rate icreases. Thik carefully about the term that you wat, ad do t be afraid to ask your leder to figure out the differeces betwee a oe, two, five-year (or loger) term mortgage. 42 Caada Mortgage ad Housig Corporatio

45 STEP 4 Mortgage Iterest Rates Mortgage iterest rates are fixed, variable or adjustable. Fixed Mortgage Iterest Rate A fixed mortgage iterest rate is a locked-i rate that will ot icrease for the term of the mortgage. Variable Mortgage Iterest Rate A variable rate fluctuates based o market coditios. The mortgage paymet remais uchaged. Adjustable Mortgage Iterest Rate With a adjustable rate, both the iterest rate ad the mortgage paymet vary, based o market coditios. Ope or Closed Mortgage Closed Mortgage A closed mortgage caot be paid off, i whole or i part, before the ed of its term. With a closed mortgage you must make oly your mothly paymets you caot pay more tha the agreed paymet. A closed mortgage is a good choice if you d like to have a fixed mothly paymet. With it you ca carefully pla your mothly expeses. But, a closed mortgage is ot flexible. There are ofte pealties, or restrictive coditios, if you wat to pay a additioal amout. A closed mortgage may be a poor choice if you decide to move before the ed of the term, or if you wat to beefit from a decrease i iterest rates. Ope Mortgage A ope mortgage is flexible. That meas that you ca usually pay off part of it, or the etire amout, at ay time without pealty. A ope mortgage ca be a good choice if you pla to sell your home i the ear future. It ca also be a good choice if you wat to pay off a large sum of your mortgage loa. Most leders let you covert a ope mortgage to a closed mortgage at ay time, although you may have to pay a small fee. Caada Mortgage ad Housig Corporatio 43

46 Homebuyig STEP BY STEP Amortizatio Amortizatio is the legth of time the etire mortgage debt will be repaid. May mortgages are amortized over 25 years, but loger periods are available. The loger the amortizatio, the lower your scheduled mortgage paymets, but the more iterest you pay i the log ru. If each mortgage term is five years, ad the mortgage is amortized over 20 years, you will have to reegotiate the mortgage four times (every five years). Paymet Schedule A mortgage loa is repaid i regular paymets mothly, biweekly or weekly. More frequet paymet schedules (for example weekly) ca save some iterest costs by reducig the outstadig pricipal balace more quickly. The more paymets you make i a year, the lower the overall iterest you have to pay o your mortgage. Closig Day Closig day is the day whe you fially take legal possessio ad get to call the house your home. The fial sigig usually happes at the lawyer or otary s office. These are the thigs that happe o closig day: Your leder will give the mortgage moey to your lawyer/otary. You must give the dow paymet (mius the deposit) to your lawyer/otary. You must also give the remaiig closig costs. Your lawyer/otary Pays the vedor Registers the home i your ame Gives you the deed ad the keys to your ew home Movig Hirig a Mover Whe plaig your move, frieds or relatives may be able to recommed a professioal movig compay. Do t forget to ask the mover for refereces. Ask the mover for a estimate ad outlie of fees (do they charge a flat rate or hourly fee?). Oce you ve chose a mover, ask them to come to your home to see what will be moved ad provide a estimate. 44 Caada Mortgage ad Housig Corporatio

47 STEP 4 You ll wat to esure that your belogigs are isured durig the move. Your home or property isurace may cover goods i trasit. Call your broker or isurace compay to be sure. Ask if you are fully covered. May movig compaies offer additioal isurace coverage. Be aware that professioal movers are ot resposible for items such as jewellery, moey, or importat papers. Move these yourself to keep them safe. If you decide to do your ow packig, keep i mid that you will eed the proper materials, ad that packig ca take a lot of time. Movig Day O movig day, go through the house with the va supervisor ad give him or her ay special istructios. The supervisor will ote the coditio of your goods o a ivetory list. Go through the house with the supervisor to make sure the list is complete ad accurate. Whe the va arrives at your ew home, mark off the items o the mover s list as they are uloaded. If you paid for the movers to upack boxes ad remove packig materials, remember that they will ot put dishes or lies ito cupboards. Movig day is almost always tirig. But, plaig ahead will make the trasitio as smooth as possible. Movig Costs The amout you sped depeds o your decisios about may thigs. Here are some to thik about: Do you wat to hire professioal movers? If so, will it be a large compay or a smaller local movig compay? Will you eed to buy isurace to protect your items i trasit? If you pla to move yourself, will you ret a vehicle? Will your curret auto or home isurace policy cover your items durig the move? Will you have to pay utility compaies a fee to coect their services i your ew home? Are there other utility charges (such as a deposit)? Caada Mortgage ad Housig Corporatio 45

48 Homebuyig STEP BY STEP Post-Closig Costs Chagig the Locks Whe you move ito your ew home you ll wat to chage the exterior door locks for security. After all, you wat oly the people you choose to have the key to your ew home. You ca chage the locks yourself or call a locksmith to do the job. Cleaig Both your old home ad your ew home should be give a thorough cleaig at movig time. Whether you re buyig cleaig supplies ad doig it yourself, or hirig someoe to clea for you, the costs ca really add up. Pla for this expese. Decoratig You might wat to re-pait, replace some light fixtures, refiish the floor, re-carpet, or do ay umber of other decoratig tasks. Pla your budget ad cosider postpoig some projects for a period of time. Appliaces If your offer to purchase did t iclude appliaces, ad if you do t have your ow, you will have to buy them whe you move ito your ew home. Some appliaces might have istallatio charges. Tools ad Equipmet Whe you ow your ow home, you ca o loger call the ladlord to do repairs. You ll eed to ow some basic had tools ad possibly some gardeig ad sow clearig equipmet. 46 Caada Mortgage ad Housig Corporatio

49 STEP 5 Now that you re a homeower

50 Homebuyig STEP BY STEP Credit Bureau: A compay that collects iformatio from various sources ad provides credit iformatio o a perso s borrowig ad bill payig habits to help leders assess whether or ot to led moey to the perso. Default o Paymet: Failure to make a mortgage paymet. Gross Mothly Icome: Mothly icome before taxes ad deductios. Household Budget: A pla that allocates icome for household expeses. Operatig Costs: The expeses that a homeower has each moth to operate a home. These iclude property taxes, property isurace, utilities, telephoe ad commuicatios charges, maiteace ad repairs. Reserve Fud: This amout is set aside by the homeower o a regular basis so that fuds are available for emergecy or major repairs. Settig aside 5% of your mothly take-home pay will give you a well-fuded reserve. Your Fiacial Resposibility Make Your Mortgage Paymets o Time You ca make your mortgage paymets mothly, biweekly or weekly. But, whichever timetable you ve chose, it s importat to always make paymets o time. Makig late paymets is called deliquecy. Deliquecy may result i late charges ad egatively affect your credit ratig. Failig to make paymets ca eve lead to very serious cosequeces, like foreclosure. A good way to prevet late paymets is to have the amout automatically deducted from your accout every moth. It s also recommeded that you keep at least three moths worth of mortgage paymets i savigs for emergecy situatios. If you are havig trouble makig paymets, discuss the situatio with your leder. Pla for the Costs of Operatig a Home Besides your mortgage, property taxes ad isurace, operatig a home has may other ogoig costs. Maiteace ad repair costs are at the top of the list. There may be other costs as well, for example a security alarm moitorig system, sow removal, or gardeig. If you have a codomiium or strata, some of these expeses may be icluded as part of your mothly maiteace fee. Save for Emergecies Eve whe you ca do repairs yourself, there are costs. Whe you have to pay for repairs, the costs are higher. As your home ages, it will eed major repairs or replacemet this happes to every buildig. For example, whe you bought your home, you might already have kow that the roof would eed to be replaced i a few years because of its age. These are expected repairs ad ca be plaed for. However, may repairs are uexpected, ad ca sometimes be costly. Set aside a emergecy fud to deal with uexpected problems ragig from major repairs to illess ad job loss. A good guidelie is to save 5% of your take-home pay, ad to keep the moey i a special accout. Live Withi Your Budget Prepare a mothly budget ad stick to it. Take a few miutes every moth to check your spedig ad see if you are meetig your fiacial goals. If you sped more tha you ear, you must fid ew ways to save. If you are havig trouble stickig to your budget, ask a professioal moey maager for help. If you have t already reviewed your budget, ow is the perfect time. Use the helpful CMHC worksheet Household Budget as a Homeower. 48 Caada Mortgage ad Housig Corporatio

51 STEP 5 HOUSEHOLD BUDGET AS A HOMEOWNER Details Average mothly paymet Housig Expeses Mortgage (pricipal ad iterest) $ Electricity $ Heatig costs $ Water $ Maiteace/Repair $ Parkig fees (if paid separately) $ Property isurace $ Property taxes $ No-Housig Expeses Cable TV/Satellite/Video retal $ Car fuel $ Car isurace ad licese $ Car repairs ad service $ Charitable doatios $ Child care $ Child support/alimoy $ Clothes $ Detal expeses $ Etertaimet, recreatio, movies $ Furishigs $ Groceries $ Life isurace $ Luches/Eatig out $ Medical expeses, prescriptios, eyewear $ Newspapers, magazies, books $ Persoal items $ Property ad cotets isurace $ Public trasportatio $ Savigs (bak accout, RRSPs) $ Telephoe/Cell phoe $ Iteret $ Other expeses $ Total Mothly Expeses $ Note: You may have other costs ot show o this worksheet. Make sure you add these other items whe you fill out this form. Additioal Household Budget as a Homeower worksheets are available at the ed of this Guide. Caada Mortgage ad Housig Corporatio 49

52 Homebuyig STEP BY STEP Is your Home Safe? Fire Evacuatio Pla Do you have a fire evacuatio pla? A pla meas that you make sure everyoe i your home kows how to get out from each room, i case of a fire. If your home has a secod floor, you eed a special escape pla to get to the groud. Check to see that widows have ot bee paited shut. Although doors ad widows should always be securely locked, you have to be able to ope them i a emergecy. Fire Extiguishers Fire extiguishers must always be easy to reach. If you have a two storey home, there should be a fire extiguisher o each floor. Remember to check your fire extiguishers at least oce a year. To help you remember, make a habit of doig it whe you set your clocks to Daylight Savig Time. Replace a fire extiguisher that is 10 years or older. Smoke Alarms I some areas, it is a legal requiremet to have smoke alarms i your home. Whether or ot it is a legal requiremet, havig smoke alarms is a excellet precautio. Check smoke alarm batteries at least oce a year. Carbo Mooxide Detectors Carbo mooxide is a ivisible, odourless, poisoous gas. Carbo mooxide detectors are importat to have. They will let you kow if there are high levels of carbo mooxide i your home. This ca save you from illess, or eve death. Check them at least oce a year. Make a habit of checkig your fire extiguishers, smoke ad carbo mooxide detectors all at the same time. Fire Hazards Paper, pait, chemicals ad other clutter ca be a fire hazard. Make sure these are stored i a safe place. Whe you o loger eed the hazardous materials, you must dispose of them at a commuity toxic waste ceter. Never put hazardous materials ito the garbage. Valuables Collect your papers ad store them i a safe place for example, a fireproof box, or a safety deposit box. Emergecy Numbers Keep a list of emergecy phoe umbers (icludig 911, poiso prevetio lie, doctors, relatives, eighbours ad frieds) close to the phoe. Make sure your childre are aware of the list. 50 Caada Mortgage ad Housig Corporatio

53 STEP 5 Home Improvemets Besides doig regular maiteace ad repairig your home, you might also wat to cosider reovatig or makig improvemets. These chages will ot oly make the home more pleasat for you to live i, they may also icrease its value. How Much is Just Right? Whe plaig reovatios, be careful ot to go overboard uless you pla to stay i your home for may years. If you are plaig to sell your house, make sure that your chages wo t make your home worth a lot more tha the other homes aroud you. The value of your home is closely related to the other homes i your area. Over time, some reovatios ca practically pay for themselves, especially if they result i savigs o utility bills, a higher sellig price or years of greater comfort ad ejoymet i your home. Some Thigs to Keep i Mid Here are some thigs to keep i mid whe plaig a chage or reovatio: Ask yourself, How appealig will this chage be to someoe buyig my home i the future? You ca make very persoalized chages with pait. Pait is iexpesive ad ca easily be chaged. But, floorig, cabiets ad coutertops have a loger life make choices that will also appeal to others. Thik about gettig your home eergy-rated. This will tell you how eergy efficiet your home is ad what improvemets are possible. Visit Natural Resources Caada at to fid iformatio o curret eergy programs. Updatig the bathrooms ad kitche i a older home ca icrease its resale value. Ladscapig is importat. The right platig ca improve the appearace ad value of your home. Updatig your exterior pait, istallig ew roofig, resurfacig your walkways ad driveway, ad addig attractive mailboxes ca help make your home more appealig. CMHC Resources Visit to dowload free publicatios such as: Low-Maiteace Laws Water-Savig Tips For Your Law Ad Garde Healthy Housig Practical Tips Household Guide to Water Efficiecy CMHC has a mothly e-ewsletter filled with practical tips ad helpful advice relatig to a variety of homeowership iterests. Sig-up today at Caada Mortgage ad Housig Corporatio 51

54 Homebuyig STEP BY STEP Words to Kow Whe Buyig a Home Adjustable mortgage iterest rate: With a adjustable rate, both the iterest rate ad the mortgage paymet vary, based o market coditios. Amortizatio: Legth of time over which the debt will be repaid. Appraisal: Process for estimatig the market value of a property. Appraiser: Certified professioal who carries out a appraisal. Appreciatio: The icrease i value of somethig because it is worth more ow tha whe you bought it. Approved leder: A ledig istitutio desigated as a approved leder by CMHC uder the Natioal Housig Act. Oly Approved Leders may qualify for CMHC Mortgage Loa Isurace. Assumptio agreemet: A legal documet siged by a homebuyer that requires them to assume resposibility for the obligatios of a mortgage by the builder or the previous ower. Bleded paymet: A mortgage paymet that icludes pricipal ad iterest. It is paid regularly durig the term of the mortgage. The paymet total remais the same, although the pricipal portio icreases over time ad the iterest portio decreases. Builder: A perso or compay that builds homes. Carriage home: A carriage, or lik home, is joied by a garage or carport. Certificate of status: Also called a Estoppel Certificate, it outlies a codomiium corporatio s fiacial ad legal state. Fees may vary ad may be capped by law (does ot apply i Quebec). Closed mortgage: I some cases, a closed mortgage caot be paid off, i whole or i part, before the ed of its term. I other cases, the leder may allow for partial prepaymet i the form of a icreased mortgage paymet or a lump sum prepaymet. However, ay prepaymet made above stipulated allowaces may icur pealty charges. Closig costs: Costs i additio to the purchase price of the home, such as legal fees, trasfer fees ad disbursemets, that are payable o closig day. They rage from 1.5% to 4% of a home s sellig price. Closig day: Date o which the sale of the property becomes fial ad the ew ower takes title to the home. CMHC: Caada Mortgage ad Housig Corporatio. A Crow corporatio that admiisters the Natioal Housig Act for the federal govermet ad ecourages the improvemet of housig ad livig coditios for all Caadias. CMHC also develops ad sells mortgage loa isurace products. CMHC isurace premiums: Whe a home buyer takes out a mortgage loa with less tha a 20% dow paymet, a isurace premium is paid to a CMHC mortgage isurer, ad a mortgage loa isurace policy is issued to the leder. The CMHC Mortgage Loa Isurace premium is calculated as a percetage of the loa ad is based o a umber of factors such as the purpose of the property (ower occupied or retal), the type of loa (i.e. purchase/costructio or refiace loa), the ability of a self-employed borrower to supply icome verificatio, ad the size of your dow paymet (i.e. the higher the percetage of the total house price/value that you borrow, the higher percetage you will pay i isurace premiums). Commitmet letter (or Mortgage Approval): Writte otificatio from the mortgage leder to the borrower that approves the advacemet of a specified amout of mortgage fuds ad other terms uder specified coditios. Compoud iterest: Iterest calculated o both the pricipal ad the accrued iterest. Coditioal offer: A Offer to Purchase that is subject to specified coditios, for example, the arragemet of a mortgage. There is usually a stipulated time limit withi which the specified coditios must be met. Codomiium (or strata): You ow the uit you live i (eg: highrise or lowrise, or a towhouse) ad share owership rights for the commo areas of the buildig alog with the developmet s other owers. Cotractor: A perso resposible for overall costructio of a home, icludig buyig, schedulig, workmaship, ad maagemet of subcotractors ad suppliers. Covetioal mortgage: A mortgage loa up to a maximum of 80% of the ledig value of the property. Typically, the ledig value is the lesser of the purchase price ad market value of the property. Mortgage isurace is usually ot required for this type of mortgage. Couteroffer: If, for example, your origial offer to the vedor is ot accepted, the vedor may couteroffer. This meas that the vedor has ameded somethig from your origial offer, such as the price or closig date. As this ew offer varies the terms of the origial offer, this rejects the origial offer. If a couteroffer is preseted, the idividual has a specified amout of time to accept or reject. 52 Caada Mortgage ad Housig Corporatio

55 GLOSSARY Credit bureau: A compay that collects iformatio from various sources ad provides credit iformatio o a perso s borrowig ad bill payig habits to help leders assess whether or ot to led moey to the perso. Credit history or Credit Report: The mai report a leder uses to determie your creditworthiess. It icludes iformatio about your ability to hadle your debt obligatios ad your curret outstadig obligatios. Curb appeal: How attractive the home looks from the street. A home with good curb appeal will have attractive ladscapig ad a well-maitaied exterior. Deed: A legal documet that trasfers owership i the real property to the purchaser. This is ofte called a Trasfer. This documet is registered as evidece of owership. Default o paymet: Failure to make a mortgage paymet i accordace with the mortgage documet. Deliquecy: Failig to make a mortgage paymet o time. Deposit: Moey placed i trust by the purchaser whe a Offer to Purchase is made. The sum is held by the real estate represetative or lawyer/otary util the sale is closed ad the it is paid to the vedor. Depreciatio: The decrease i value of somethig because it is ow worth less tha whe you bought it. Dow paymet: The portio of the home price that is ot fiaced by the mortgage loa. The buyer must pay the dow paymet from his/her ow fuds or other eligible sources before securig a mortgage. Duplex: A duplex is a buildig cotaiig two sigle-family homes, located oe above the other. Easemet: A iterest i lad owed by aother perso that beefits the perso who has the easemet, for a specific limited purpose (i.e. right of way permittig passage over a particular strip of lad) such as with public utilities. Equity: The differece betwee the price for which a home could be sold ad the total debts registered agaist it. Equity usually icreases as the mortgage is reduced through regular paymets. Market values ad improvemets to the property may also affect equity. Estoppel certificate: Also called a certificate of status, it is a certificate that outlies a codomiium corporatio s fiacial ad legal state. Fees may vary ad may be capped by law (does ot apply i Quebec). Fixed mortgage iterest rate: A locked-i rate that will ot icrease for the term of the mortgage. FlexHousig : A housig cocept that icorporates, at the desig ad costructio stage, the ability to make future chages easily ad with miimum expese, to meet the evolvig eeds of its occupats. Foreclosure: A legal process where the leder takes possessio of your property ad sells it to cover the upaid debt Freehold: A freehold title is a iterest i lad that gives the holder full ad exclusive owership of the lad ad buildig for a idefiite period. A leasehold title is a iterest i lad that gives the holder the right to use ad occupy the lad ad buildig for a defied period. Gross Debt Service Ratio (GDS): The percetage of gross icome that will be used for paymets of pricipal, iterest, taxes ad heat (P.I.T.H.) ad 50% of ay codomiium maiteace fees or 100% of the aual site lease for leasehold teure. Gross mothly icome: Mothly icome before taxes ad deductios. High-ratio mortgage: A mortgage loa higher tha 80% of the ledig value of the property. This type of mortgage must be isured - by CMHC or a private compay, for the beefit of the approved leder, agaist paymet default. Home ispector: A perso who visually ispects a home to tell you if somethig is ot workig properly, or is usafe. He or she will also tell you if repairs are eeded, ad maybe eve where there were problems i the past. Household budget: A pla that allocates icome for household expeses. Isurace: Isurace provides coverage to esure a loa is paid. See also Mortgage Loa Isurace ad Mortgage Life Isurace for more details. Isurace premium: Paymet for isurace. Iterest: The cost of borrowig moey. Iterest is usually paid to the leder i regular paymets alog with repaymet of the pricipal (loa amout). Iterest rate: The price paid for the use of moey borrowed from a leder. Lad registratio: A system to record iterests i lad, icludig the owership ad dispositio of lad. Lad surveyor: A professioal who ca survey a property i order to provide a certificate of locatio. Lawyer: A legal advisor who is licesed to practice law ad who assists people by represetig them o legal matters. Lie: A claim agaist a property for moey owig. A lie may be filed by a supplier or a subcotractor who has provided labour or materials but has ot bee paid. Life isurace: See Mortgage life isurace. Lik home: A lik, or carriage home, is joied by a garage or carport. Lump sum prepaymet: A extra paymet, made i lump sum, to reduce the pricipal balace of your mortgage, with or without pealty. Caada Mortgage ad Housig Corporatio 53

56 Homebuyig STEP BY STEP Maufactured home: A factory-built, sigle-family home. It is trasported to a chose locatio, ad placed oto a foudatio. Maturity date: The last day of the term of the mortgage. O this day, the mortgage loa must either be paid i full or the agreemet reewed. Mobile home: These are built i factories, ad the take to the place where they will be occupied. While these homes are usually placed i oe locatio ad left there permaetly, they do retai the ability to be moved. Modular home: A factory-built, sigle-family home. The home is typically shipped to a locatio i two, or more, sectios (or modules). Mortgage: A mortgage is a security iterest give i the property you are purchasig which secures repaymet of the loa related to the property. That security iterest is discharged o paymet of the pricipal ad iterest owig o the loa i accordace with the mortgage documet. I Quebec, mortgages are called hypothecs. Mortgage approval: Writte otificatio from the mortgage leder to the borrower that approves the advacemet of a specified amout of mortgage fuds uder specified coditios. Mortgage broker: The job of the mortgage broker is to fid you a leder with the terms ad rates that will best suit you. Mortgage life isurace: Mortgage life isurace gives coverage for your family, if you die before your mortgage is paid off. Mortgage leder: A mortgage leder is a istitutio (bak, trust compay, credit uio, etc.) that leds moey for a mortgage. Mortgage loa isurace: Mortgage loa isurace is required for residetial mortgage loas with a loa-to-value ratio of more tha 80%, ad is available from CMHC or a private compay. Because mortgage loa isurace protects the leder agaist losses i the evet that a borrower fails to pay his or her mortgage, it eables more Caadias to purchase their homes earlier, at competitive iterest rates ad beefit from the growth i home equity sooer. Mortgage paymet: A regular paymet to the leder that icludes both the iterest ad the pricipal. Mortgage term: Legth of time that the mortgage cotract coditios, icludig iterest rate, is fixed. MLS Multiple Listig Service: A multiple listig service that cotais descriptios of most of the homes that are for sale. This computer-based service is used to keep up with properties that are listed for sale. Net worth: Your fiacial worth, calculated by subtractig your total liabilities from your total assets. New Home Warraty Program: Coverage i the evet that a item uder the warraty eeds to be repaired withi a specific warraty period. The repair will be made by the orgaizatio that provided the warraty. Notary: I Quebec a otary hadles the legal matters related to homebuyig. I most other provices, a otary oly admiisters oaths, certifies documets ad attests to autheticity of sigatures ad could ot, i his/her capacity as otary, advice o legal matters. Offer to purchase: A writte cotract settig out the terms uder which the buyer agrees to buy the home. If the Offer to Purchase is accepted by the seller, it forms a legally bidig cotract that bids the people who siged to certai terms ad coditios. Ope mortgage: A flexible mortgage that allows you to pay part before the ed of its term. Ope-house: A period of time durig which a house or apartmet for sale or ret is held ope for public viewig. Operatig Costs: The expeses that a homeower has each moth to operate a home. These iclude property taxes, property isurace, utilities, telephoe ad commuicatios charges, maiteace ad repairs. Paymet schedule: The mothly, biweekly, or weekly mortgage paymets Premium: See CMHC Isurace Premiums. Pricipal: The amout that you borrow for a loa (ot icludig iterest). P.I.T.H.: Pricipal, iterest, taxes ad heatig costs used i both the Gross Debt Service ratio (GDS) ad Total Debt Service ratio (TDS) calculatios. Property isurace: Isurace that you buy for the buildig(s) o the lad you ow. This isurace should be high eough to pay for the buildig to be re-built if it is destroyed by fire or other hazards listed i the policy. Property taxes: Taxes charged by the muicipality where the home is located, usually based o the value of the home. I some cases the leder will collect a amout as part of the mortgage paymet to cover your property taxes, which is the paid by the leder to the muicipality o your behalf. Real estate: Property cosistig of buildigs ad lad. Realtor or real estate aget: A perso who acts as a itermediary betwee the seller ad the buyer of a property. Reserve fud: A fud required to be set up by the codomiium corporatio for major repair ad replacemet of commo elemets ad assets of a corporatio. This amout is set aside by the homeower o a regular basis so that fuds are available for emergecy or major repairs. Row house: Also called a towhouse, a row house is oe uit of several similar sigle-family homes, side-by-side, joied by commo walls. 54 Caada Mortgage ad Housig Corporatio

57 GLOSSARY Security: Property that is pledged to guaratee the fulfillmet of a obligatio ad that ca be claimed by a creditor if a loa is ot repaid. Sigle-family detached home: Free-stadig home for oe family, ot attached to a house o either side. Sigle-family semi-detached home: Home for oe family, attached to aother buildig o oe side. Stacked towhouse: Two two-story homes are stacked oe o top of the other. The buildigs are usually attached i groups of four or more. Each uit has direct access from the outside. Strata (or codomiium): You ow the uit you live i (e.g.: a highrise or lowrise, or a towhouse) ad share owership rights for the commo areas of the buildig alog with the developmet s other owers. Survey or Certificate of locatio: A documet that shows property boudaries ad measuremets, specifies the locatio of buildigs, feces, ad other improvemets o the property ad states easemets or ecroachmets, at a specific poit i time. Sustaiable eighbourhood: Neighbourhood that meets residets eeds while protectig the eviromet. Term: Mortgage term is the legth of time that the mortgage cotract coditios, icludig iterest rate, are fixed. Title: A freehold title is a iterest i lad that gives the holder full ad exclusive owership of the lad ad buildig for a idefiite period. A leasehold title is a iterest i lad that gives the holder the right to use ad occupy the lad ad buildig for a defied period. Title Isurace: Isurace agaist loss or damage arisig from a matter affectig the title to real property (e.g.: by a defect i the title or by the existece of a lie, ecumbrace or servitude). Total Debt Service Ratio (TDS): The percetage of gross icome that will be used for paymets of pricipal, iterest, taxes ad heat (P.I.T.H.) ad other debt obligatios, such as car paymets or paymets of other loas. Towhouse: Also called a row house, a towhouse is oe uit of several similar sigle-family homes, side-by-side, joied by commo walls. Variable mortgage iterest rate: Fluctuates based o market coditios but the mortgage paymet remais uchaged. Vedor: The seller of a property. Vedor take-back mortgage (Sometimes called take-back mortgage): The vedor, ot a fiacial istitutio, fiaces the mortgage. The title of the property is trasferred to the buyer who makes mortgage paymets directly to the seller. Caada Mortgage ad Housig Corporatio 55

58 Homebuyig STEP BY STEP CURRENT HOUSEHOLD BUDGET Details Average mothly paymet Curret Housig Expeses Ret $ Electricity (if paid separately) $ Heatig costs (if paid separately) $ Water (if paid separately) $ Maiteace/Repair $ Parkig fees (if paid separately) $ Curret No-Housig Expeses Cable TV/Satellite/Video retal $ Car fuel $ Car isurace ad licese $ Car repairs ad service $ Charitable doatios $ Child care $ Child support/alimoy $ Clothes $ Cotets isurace $ Detal expeses $ Etertaimet, recreatio, movies $ Furishigs $ Groceries $ Iteret $ Life isurace $ Luches/Eatig out $ Medical expeses, prescriptios, eyewear $ Newspapers, magazies, books $ Persoal items $ Public trasportatio $ Savigs (bak accout, RRSPs) $ Telephoe/Cell phoe $ Other expeses $ Total Mothly Expeses $ Note: You may have other costs ot show o this worksheet. 56 Caada Mortgage ad Housig Corporatio

59 WORKSHEETS HOUSEHOLD BUDGET AS A HOMEOWNER Details Average mothly paymet Housig Expeses Mortgage (pricipal ad iterest) $ Electricity $ Heatig costs $ Water $ Maiteace/Repair $ Parkig fees (if paid separately) $ Property isurace $ Property taxes $ No-Housig Expeses Cable TV/Satellite/Video retal $ Car fuel $ Car isurace ad licese $ Car repairs ad service $ Charitable doatios $ Child care $ Child support/alimoy $ Clothes $ Detal expeses $ Etertaimet, recreatio, movies $ Furishigs $ Groceries $ Life isurace $ Luches/Eatig out $ Medical expeses, prescriptios, eyewear $ Newspapers, magazies, books $ Persoal items $ Property ad cotets isurace $ Public trasportatio $ Savigs (bak accout, RRSPs) $ Telephoe/Cell phoe $ Iteret $ Other expeses $ Total Mothly Expeses $ Note: You may have other costs ot show o this worksheet. Make sure you add these other items whe you fill out this form. Caada Mortgage ad Housig Corporatio 57

60 Homebuyig STEP BY STEP HOME PURCHASE COST ESTIMATE Descriptio of cost Average mothly paymet Cost of Home Purchase price $ GST/HST (if applicable) $ Total Cost of Home (add the purchase price ad GST if applicable) $ Up-frot Costs Appraisal fee (if applicable) $ Deposit (to be paid whe you sig the Offer to Purchase) $ Dow paymet $ Estoppel certificate fee (for codomiium/strata uit) $ Home ispectio fee $ Lad registratio fee $ Legal fees ad disbursemets $ Mortgage broker s fee (if applicable) $ Mortgage loa isurace premium (ca be icluded i your mortgage) $ Prepaid property taxes ad/or utility bills adjustmet $ Property isurace $ Survey or certificate of locatio cost $ Title isurace $ Other $ Total Upfrot Costs $ Other Costs Appliaces $ Gardeig equipmet $ Sow-clearig equipmet $ Widow treatmets $ Decoratig materials $ Had tools $ Dehumidifier $ Movig expeses $ Reovatios or repairs $ Service hookup fees $ Codomiium fees $ Total Other Costs $ Total Costs (add up Total Cost of Home, Total Up-frot Costs ad Total Other Costs) $ 58 Caada Mortgage ad Housig Corporatio

61 WORKSHEETS HOME FEATURES CHECKLIST Resale Type of Home Detached Towhouse Highrise New Semi-detached Duplex Low-rise Bedrooms Bathrooms Master bedroom e suite Yes No Groud floor bathroom Yes No Type of owership Freehold Codomiium Age of home Lot size Small Medium Large Quiet street Yes No Type of exterior fiish Brick Wood Alumium sidig Viyl sidig Combiatio brick ad sidig Widows Glazig Sigle Double Triple Low-E Costructio Wood Viyl Alumium Other Eat-i kitche Yes No Separate diig room Yes No Separate family room Yes No Fireplace Yes No Woodstove Yes No Spare room for de or home office Yes No Basemet for storage or workshop Yes No Apartmet for retal icome Yes No Deck or patio Yes No Isulatio values Basemet Walls Ceilig Private driveway Yes No Garage Attached Detached Foudatio costructio Cocrete Cocrete block Preserved wood Sewer Muicipal Septic system Water Muicipal Well Water heatig Gas Electric Oil Carport Yes No Security features Yes No Barrier-free Yes No Close to (approximate km) Electrical system 100 amp 200 amp Other Fuses Circuit breakers Eergy Ratig Yes No Ratig Type of heatig fuel Oil Gas Electric Wood Heat recovery vetilator Yes No Air coditioig Cetral Widow Work Public trasportatio Shoppig Recreatio facilities Places of worship Police statio Hospital Veteriaria Spouse s work Schools Parks/playgrouds Restaurats Doctor/detist Fire statio Caada Mortgage ad Housig Corporatio 59

62 Homebuyig STEP BY STEP HOME PURCHASE COST ESTIMATE Descriptio of cost Average mothly paymet Cost of Home Purchase price $ GST/HST (if applicable) $ Total Cost of Home (add the purchase price ad GST if applicable) $ Up-frot Costs Appraisal fee (if applicable) $ Deposit (to be paid whe you sig the Offer to Purchase) $ Dow paymet $ Estoppel certificate fee (for codomiium/strata uit) $ Home ispectio fee $ Lad registratio fee $ Legal fees ad disbursemets $ Mortgage broker s fee (if applicable) $ Mortgage loa isurace premium (ca be icluded i your mortgage) $ Prepaid property taxes ad/or utility bills adjustmet $ Property isurace $ Survey or certificate of locatio cost $ Title isurace $ Other $ Total Upfrot Costs $ Other Costs Appliaces $ Gardeig equipmet $ Sow-clearig equipmet $ Widow treatmets $ Decoratig materials $ Had tools $ Dehumidifier $ Movig expeses $ Reovatios or repairs $ Service hookup fees $ Codomiium fees $ Total Other Costs $ Total Costs (add up Total Cost of Home, Total Up-frot Costs ad Total Other Costs) $ 60 Caada Mortgage ad Housig Corporatio

63 WORKSHEETS HOME FEATURES CHECKLIST Resale Type of Home Detached Towhouse Highrise New Semi-detached Duplex Low-rise Bedrooms Bathrooms Master bedroom e suite Yes No Groud floor bathroom Yes No Type of owership Freehold Codomiium Age of home Lot size Small Medium Large Quiet street Yes No Type of exterior fiish Brick Wood Alumium sidig Viyl sidig Combiatio brick ad sidig Widows Glazig Sigle Double Triple Low-E Costructio Wood Viyl Alumium Other Eat-i kitche Yes No Separate diig room Yes No Separate family room Yes No Fireplace Yes No Woodstove Yes No Spare room for de or home office Yes No Basemet for storage or workshop Yes No Apartmet for retal icome Yes No Deck or patio Yes No Isulatio values Basemet Walls Ceilig Private driveway Yes No Garage Attached Detached Foudatio costructio Cocrete Cocrete block Preserved wood Sewer Muicipal Septic system Water Muicipal Well Water heatig Gas Electric Oil Carport Yes No Security features Yes No Barrier-free Yes No Close to (approximate km) Electrical system 100 amp 200 amp Other Fuses Circuit breakers Eergy Ratig Yes No Ratig Type of heatig fuel Oil Gas Electric Wood Heat recovery vetilator Yes No Air coditioig Cetral Widow Work Public trasportatio Shoppig Recreatio facilities Places of worship Police statio Hospital Veteriaria Spouse s work Schools Parks/playgrouds Restaurats Doctor/detist Fire statio Caada Mortgage ad Housig Corporatio 61

64 Homebuyig STEP BY STEP YOUR TEAM OF PROFESSIONALS Role Name Compay ame Address Stregths Weakesses Referral Telephoe Fees Role Name Compay ame Address Stregths Weakesses Referral Telephoe Fees Role Name Compay ame Address Stregths Weakesses Referral Telephoe Fees Role Name Compay ame Address Stregths Weakesses Referral Telephoe Fees 62 Caada Mortgage ad Housig Corporatio

65 WORKSHEETS YOUR TEAM OF PROFESSIONALS Role Name Compay ame Address Stregths Weakesses Referral Telephoe Fees Role Name Compay ame Address Stregths Weakesses Referral Telephoe Fees Role Name Compay ame Address Stregths Weakesses Referral Telephoe Fees Role Name Compay ame Address Stregths Weakesses Referral Telephoe Fees Caada Mortgage ad Housig Corporatio 63

66 Homebuyig STEP BY STEP HOME HUNTING WORKSHEET Attach real estate listig iformatio sheet or fill i below. Address CHATTEL WHICH REMAINS WITH HOUSE Make a comprehesive list (floor coverigs, widowdrapes, appliaces, etc.) Real estate represetative Type of home Telephoe Square footage Number of bedrooms Lot size Additioal structures o property Occupacy date Askig price $ Air coditioig Cetral Widow Smoke detectors Heat recovery vetilator (HRV) ANNUAL COSTS Property taxes $ Garbage collectio $ Other $ Utilities Heatig type Oil Natural gas Electric Wood $ Electricity 60 amp 100 amp 200 amp Other $ Water Muicipal Well $ Other $ Distace to work Public trasportatio Adequate proximity to: Schools Shoppig Playgrouds Medical Hospital Fire statio Police Place of worship NEIGHBOURHOOD Distace to spouse s work Yes No Yes No Yes No Yes No Yes No OTHER CONSIDERATIONS Existig evirometal problems (oisy traffic, railway, floodig, etc.) Yes No Yes No Yes No Yes No Future eighbourhood developmet plas Other $ TOTAL ANNUAL COSTS $ Eergy Rated Ratig Yes No 64 Caada Mortgage ad Housig Corporatio

67 WORKSHEETS EXTERIOR Fiish Brick Sidig Wood Coditio Fair Good Excellet Roofig Fair Good Excellet Other Widows Wood Viyl clad Alumium Coditio Fair Good Excellet Number of etraces Driveway Paved Gravel Other Garage No Yes Heated Not heated Ladscapig Fair Good Excellet Fecig Wood Chai lik Other Patio or deck Yes No Special features (e.g. pool, barbecue) INTERIOR Etrace area Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Special features Livig room Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Special features (e.g. fireplace) Diig room Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Special features De Study Family room Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Special features Kitche Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Cupboards ad storage Fair Good Excellet Special features Appliaces icluded Master bedroom Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Special features (e.g. e suite bathroom, walk-i closet) Bedroom #2 Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Special features Bedroom #3 Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Special features Bathrooms #1 Bath/shower Sik Toilet #2 Bath/shower Sik Toilet #3 Bath/shower Sik Toilet Special features Basemet Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Separate etrace Yes No Special features Utility room Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Special features Furace Age Coditio Fair Good Excellet Hot water tak Age Coditio Fair Good Excellet Additioal for codomiiums Parkig Udergroud Above groud Balcoy; size Storage Recreatio room Exercise room Pool No Yes Idoor Outdoor Lobby Fair Good Excellet Security ad special features Geeral commets Caada Mortgage ad Housig Corporatio 65

68 Homebuyig STEP BY STEP HOME HUNTING WORKSHEET Attach real estate listig iformatio sheet or fill i below. Address CHATTEL WHICH REMAINS WITH HOUSE Make a comprehesive list (floor coverigs, widowdrapes, appliaces, etc.) Real estate represetative Type of home Telephoe Square footage Number of bedrooms Lot size Additioal structures o property Occupacy date Askig price $ Air coditioig Cetral Widow Smoke detectors Heat recovery vetilator (HRV) ANNUAL COSTS Property taxes $ Garbage collectio $ Other $ Utilities Heatig type Oil Natural gas Electric Wood $ Electricity 60 amp 100 amp 200 amp Other $ Water Muicipal Well $ Other $ Distace to work Public trasportatio Adequate proximity to: Schools Shoppig Playgrouds Medical Hospital Fire statio Police Place of worship NEIGHBOURHOOD Distace to spouse s work Yes No Yes No Yes No Yes No Yes No OTHER CONSIDERATIONS Existig evirometal problems (oisy traffic, railway, floodig, etc.) Yes No Yes No Yes No Yes No Future eighbourhood developmet plas Other $ TOTAL ANNUAL COSTS $ Eergy Rated Ratig Yes No 66 Caada Mortgage ad Housig Corporatio

69 WORKSHEETS EXTERIOR Fiish Brick Sidig Wood Coditio Fair Good Excellet Roofig Fair Good Excellet Other Widows Wood Viyl clad Alumium Coditio Fair Good Excellet Number of etraces Driveway Paved Gravel Other Garage No Yes Heated Not heated Ladscapig Fair Good Excellet Fecig Wood Chai lik Other Patio or deck Yes No Special features (e.g. pool, barbecue) INTERIOR Etrace area Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Special features Livig room Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Special features (e.g. fireplace) Diig room Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Special features De Study Family room Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Special features Kitche Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Cupboards ad storage Fair Good Excellet Special features Appliaces icluded Master bedroom Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Special features (e.g. e suite bathroom, walk-i closet) Bedroom #2 Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Special features Bedroom #3 Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Special features Bathrooms #1 Bath/shower Sik Toilet #2 Bath/shower Sik Toilet #3 Bath/shower Sik Toilet Special features Basemet Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Separate etrace Yes No Special features Utility room Approximate size Walls Fair Good Excellet Floorig Fair Good Excellet Lightig fixtures Yes No Widows Fair Good Excellet Special features Furace Age Coditio Fair Good Excellet Hot water tak Age Coditio Fair Good Excellet Additioal for codomiiums Parkig Udergroud Above groud Balcoy; size Storage Recreatio room Exercise room Pool No Yes Idoor Outdoor Lobby Fair Good Excellet Security ad special features Geeral commets Caada Mortgage ad Housig Corporatio 67

70 Homebuyig STEP BY STEP MOVING TO YOUR NEW HOME - CHANGE OF ADDRESS NOTIFICATION Relatives ad frieds Ladlord (if ecessary): Isurace broker(s): Schools: Post office: Phoe compay: Electricity/Hydro: Natural gas: Heatig fuel compay: (ask if you receive a deposit refud) Cable televisio: Doctor: Detist: Lawyer/Notary: Veteriaria: Bak: Employer: Icome tax: Family allowace: CPP/QPP: Telephoe Old Age Security: Driver s licese: Car owership: Credit cards Clubs, associatios ad charities Subscriptios: Newspapers Magazies Other Telephoe 68 Caada Mortgage ad Housig Corporatio

71 CMHC CAN HELP YOU PROTECT YOUR BIGGEST INVESTMENT HEALTHY HOUSING TM Practical Tips for Your Home Healthy Housig Practical Tips Approximately 25 per cet of Caadias suffer from some form of allergy or chemical sesitivity. For them ad for all Caadias, clea idoor air ad a healthy idoor eviromet is essetial. Check out ways to make your home a healthier place to live HOUSEHOLD GUIDE TO WATER EFFICIENCY Household Guide to Water Efficiecy A publicatio for residetial cosumers. Fid optios for water-efficiet fixtures ad appliaces, ad how to test for ad repair leaks. Make the most efficiet use of your water whe doig daily chores ad plaig residetial ladscapes with water efficiecy i mid. LANDSCAPE GUIDE FOR CANADIAN HOMES Ladscape Guide for Caadia Homes Wat a radical makeover or wat to spruce up a old garde? Fid your home ladscapig eeds while respectig the atural eviromet. Illustrated with may colour photos ad drawigs, this Guide describes the desig process, materials, types of plats, soils ad so much more. Lear about low-maiteace gardes ad laws, water coservatio, atural pest cotrol methods, ad how to hire a ladscape cotractor. Order your copies today. Visit cmhc.ca or call

72 protect your most importat ivestmet iside ad out... E-Newsletter Beefit from over 65 years of housig kow-how delivered to your i-box each ad every moth! WITH CMHC e-ewsletter is your ultimate source for depedable home care advice. Full of simple tips ad helpful iformatio. All at the click of a butto! Sig up today at ad check out some of the past issues. Housig for Newcomers Helpig ew Caadias make iformed housig-related decisios ad fid safe, affordable homes for their families is our goal. CMHC offers a multi-laguage olie resource for housig-related iformatio divided ito three areas: Retig a Apartmet, Buyig a Home ad Lookig After Your Home. All resources are available i Eglish ad Frech as well as i Madari/Simplified Chiese, Arabic, Pujabi, Spaish, Tagalog ad Urdu. Visit CMHC at today!