FAQ  >>  Advice  |   Incentives  |  Home Buying Steps  |  About The Offer  |  Choosing a REALTOR

Buying Advice Summary

1. Ensure you have an adequate down payment & closing cost funds
2. Get pre-approved for a mortgage (vs. pre-qualified)
3. Find an agent who works as an advisor, not a salesperson
4. Make your agent work for you
5. Using the listing agent may have drawbacks
6. Buy what you are comfortable with, not what the bank allows
7. Your agent should help you evaluate repair issues in every home you view
8. Only make an offer after evaluating the market comparables
9. Beware of Industry Secrets
10. Consider using Government sponsored first time home buyer programs

    Ownership Considerations

• How long will you live in the home (future plans/resale/family growth)
• Short term ownership (job transfer) could result in loss of money (low appreciation).  Home in the GTA on average appreciate 5% per year
• Do you have a good credit history
• Are you financially ready for the mortgage commitment and house upkeep/maintenance
• If you are unable to make mortgage payments, the bank can re-possess your home

    Buying Risks & Responsibilities

• Maintenance/Repairs – ongoing upkeep cost or condo maintenance fee
• Long Term Investment - Buying and selling within a short period of time could incur costs if the property hasn't significantly increased in price or due to real estate fees
• Depreciation – A decline in value due to ageing, wear and tear OR due to a reduction in demand for homes due to economic conditions
• Financial Responsibility – monthly mortgage payments & maintenance

Credit Score

A Credit history is created when you borrow money or apply for credit. They are maintained by Canada's major credit-reporting agencies: Equifax Canada and TransUnion Canada. You may obtain your credit report for free by contacting them. This credit report/history is one of the tools lenders use when approving you for a loan/mortgage.

Credit companies (including banks, finance companies, credit unions, retailers) send ongoing updates to these credit reporting agencies about your financial situation such as:

Payment History - Recency, late payments (>30 days), collections, judgments, and bankruptcies. A single 30-day late payment can drop your score 15-20 points.  

Current Debts - How much you currently owe compared to your credit limits, number of creditors, maxed-out available credit.

Age of credit - The longer your credit history, the better; preferably >1 year. 

Type of Credit - loans, credit cards, and revolving credit accounts have different impacts.

Credit Enquiries - Numerous credit applications/inquires in a short time have a detrimental effect.

Top Credit Score killers: Bankruptcies, judgments, collections; Payments over 30-days late; Maxing out credit cards (>75% of credit limit)