The London Condo Professionals 
Ty Lacroix Broker of Record 181 Commissioners Road W London, ON N6J 1X9
Phone: 519-435-1600 Email Ty

First Time Buyer


 FAQ

 

   What benefits are there to having you represent me in buying my first place?

  All our associates have two ears; they are here to listen to what you want, what your concerns are & then guide you through the process.

  We have developed a program that breaks down a property’s true worth and helps remove some of the emotion from the buying process. We take time up front to understand your needs, reviewing your criteria and designing a strategy to meet your goals. We then, (at no cost to you, we only get paid AFTER you have successfully taken possession of your home) undertake extensive research to match your buying criteria with properties for sale.

  We  have access to properties that never appear on the open market (sometimes called “exclusive listings” or "pocket listings")

  In most cases, viewings of places for sale can be arranged quickly, we have access to all properties listed on the MLS system.

  Our Realtor's Listen

   How much do I need for a down payment?

 A down payment is the amount of money you pay upon closing and is required to obtain a mortgage.  

• For homes with a purchase price less than or equal to $500,000 the minimum down payment is 5%
• For homes with a purchase price higher than $500,000 and less than $1 million, the minimum down payment is 5% of the first $500,000 plus 10% of the remaining balance
• For homes with a purchase price of $1 million or more, the minimum down payment is 20%

  Don't have a down payment yet?

  If you don’t have a down payment saved for your first home, you have other options.  One is borrowing up to $25,000 of your RRSP savings (per person; $50,000 per couple) under The Government of Canada Home Buyer’s Plan program, (HBP).

 There is also lease-to-own and 100% financing that may enable you to achieve homeownership sooner. A word of Caution: 100% funding and lease-to-own can be quite costly in the long run. We have excellent relationships with many mortgage specialists that can outline your options.

  Why should I get pre-approved?

 You’ll find house-hunting is much easier when you have mortgage pre-approval. You’ll save time, you will only see homes that fit your budget, you can lock in the interest rate which is typically guaranteed for 120 days, and your pre-approved status will show home sellers and their Realtors® that you are a serious buyer, which can help during negotiations.

 The Envelope Group works with exceptional mortgage specialists who will guide you on your home buying journey and offer great rates that save you money. There’s no cost to you and you’re not obligated to accept the mortgage when it comes time to buy.

 Do I really need a Home Inspection?

  Home Inspection

 A home inspection is an investment, not an expense when purchasing a home, and we highly recommend it. The purpose of a home inspection is to reveal all deficiencies in the house, even in newer homes!

 However, at times, there may be more significant deficiencies that may need to be corrected. Conducting a Home Inspection will help alleviate any unwanted surprises. A home inspection is a cost incurred by you, the buyer, and the day the service is performed. Home inspection costs range from $300-$700 depending on the size of the home and the type of service provided. Typically a home inspection is anywhere from 2-3 hours depending on the size of the property.

 There are also other forms of inspections that we may advise such as Environmental Testing, Wood Burning Fireplace Inspections, Septic Systems, HVAC (heating, ventilation, and air conditioning ) or an ESA Certificate (Electrical Safety Authority)

 What expenses are there when buying my first home, and when?

 There are many costs to think about when buying, we have a detailed breakdown of costs to consider, and we will walk you through a full list of expenses to expect when it comes time to buy. Make sure you identify and uncover all costs-large and small, way ahead of time. Again, we will discuss this with you, and you should review all fees and costs with your lender, your lawyer and any other professional you may use.

 What is the fee to work with The Envelope Group?

 As a valued buying client, you work with one of our Realtors® at no cost to you.  The fee for our service is paid by the home seller, which is the industry standard.

 Do I have to pay HST on the purchase of a resale home?

 No. HST does not apply on the purchase of a resale home, so you only have to budget for this expense if you are buying a new home. If you do purchase new, keep in mind that you can claim a rebate for some of the provincial portion of the tax incurred on homes priced up to $500,000.

 What is the First-Time Home Buyers’ Tax Credit (HBTC)?

  The First-Time Home Buyers’ Tax Credit (HBTC) is a non-refundable tax credit intended to help first time buyers cover costs associated with purchasing a home and must be claimed in the year the property is purchased. You can request an amount of $5,000 for the purchase of a qualifying home if both of the following apply:
• you or your spouse or common-law partner acquired a qualifying home; and
• you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or any of the four preceding years (first-time home buyer).

  Do I have to pay Land Transfer Tax?

 When you buy land or an interest in property in Ontario, you pay a land transfer tax. First-time homebuyers of an eligible home may qualify for a refund of all or part of the fee.

 To claim a refund, you must be at least 18 years of age, you cannot have owned a home or an interest in a home anywhere in the world, and your spouse cannot have owned a home or interest in a home, anywhere in the world while he or she was your spouse. Previous ownership in a home means you do not qualify for the land transfer tax first-time homebuyer’s refund. The method of acquiring the home (e.g., purchase, gift or through inheritance) is not relevant.

 You cannot re‑qualify as a first‑time homebuyer. This rule may be different from other federal programs for first‑time homebuyers (e.g., the Canada Revenue Agency Home Buyers' Plan).

Land Transfer Tax Refunds for First-Time Homebuyers

Next Steps

 As you have read, there are quite a few steps in the home buying process, having a trusted Realtor® to guide you is the next step.  We invite you to meet with one of our buyer specialists to further discuss how we can help you find the perfect home.

  Contact us

 


What Can You Afford To Buy? Rent or Buy?


   Let us help you find out what you can afford! Our mortgage calculator will help you determine loan amounts, mortgage qualification, or whether you should be renting or buying.

  Complete the fields below (e.g., Cost of Home, Down Payment, Monthly Income) and click Calculate Now. To view the different results of your calculation, click on the various tabs. To mail yourself a copy of your results, click the Receive this Detailed Analysis link.

 

Required Fields
Term In Years:     
Interest Rate:      %
Cost of Home:  $
Down Payment:  $  
Annual Insurance:  $  
Estimate Insurance to 0.43% of Cost
Annual Property Tax:  $  
Estimate Tax to 1.2% of Cost
Monthly Income:  $
Monthly Debt:  $
Optional Fields
Gross Debt Service Ratio (GDS):     
Total Debt Service Ratio (TDS):     
Condos Fees:  $
Results
  Receive this Detailed Analysis

Your Monthly Payments
 
Loan Amount:
Loan Insurance (%):
Total Loan (Mortgage) Amount:
 
Principal & Interest:
Homeowners Insurance:
Property Taxes:
Condo Fees:
Monthly Loan Insurance (%):
Total Monthly Payment:
Income Needed to Qualify for the Mortgage
Total Monthly Loan Payment:
Total Monthly Debt Payment:
Monthly Loan Insurance (%):
Qualifying Income of % GDS Ratio:
Qualifying Income of % TDS Ratio:
What You Can Afford
We are using the % ratio.
Cost of House:
Down Payment:
Loan Value:
Monthly Principal & Interest:
Monthly Insurance:
Monthly Property Tax:
Monthly Condo Fees:
 
Cost of House = [(Monthly income x Debt Ratio) – monthly tax – monthly insurance – condo fee] /
(monthly interest rate/ function of interest rate)
Renting
Monthly Rent: $
Annual Rental Increases:  %
Monthly Renter Insurance: $
Savings or Investment Rate:  %
 
Owning
Planned # of years in home: 
Yearly appreciation of the home:  %
Annual home maintenance:  %

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Sutton Group Envelope Real Estate Brokerage Inc


Sutton Group Envelope Real Estate Brokerage Inc.

181 Commissioners Road W. London Ontario N6J 1X9

Phone 519-435-1600 

www.enveloperealestate.com

www.condosinlondon.com

Ty Lacroix Realtor

Contact UsMLSSutton Group Envelope Real Estate Brokerage Ind    CREALSTAR