Toronto Condo and Real Estate Blog

#1. Choose the type of home that meets your lifestyle

Do you like being close to downtown, or would you prefer living outside the city? Do you like or dislike the prospect of maintaining a lawn and garden? Where would you like your children to attend school? These are lifestyle decisions that play a large role in the new home buying process.

You also have more design choices than ever before. Would you like a ’smart’ home that’s pre-wired for your media and entertainment needs, or a gourmet kitchen for entertaining? Or both?

It’s also helpful to read the home sections in major newspapers as well as real estate publications such as www.newdreamhomes.ca to find out more about new developments that may suit your specific needs.

One other point to consider is that there are two major types of new homes available to you - freehold and condo - and each has different types of new home warranties (these warranties are discussed in more depth in Tip #7) and varying construction timelines. Generally, condos take longer to build than freehold homes.

#2. Determine what you can afford

Once you’ve chosen the location and the type of new home that fits your needs, meet with a financial representative to determine a mortgage amount that you can comfortably afford. This will ensure that you spend your time wisely on homes within your price range. You should also consider getting a pre-approved mortgage, which will allow you to shop with added confidence.

For more information on new home financing, visit the Canadian Bankers Association website. It offers two helpful brochures called Mortgage Wise and Managing Money. Visit www.cba.ca/en/publication_list.asp or call (toll-free) 1-800-263-0231

#3. Research your builder

Talk to homeowners in the neighbourhood(s) you’re interested in. Find out if they were satisfied with the level of after-sales service that they received from their builder.

We also recommend that you look up any builder you’re considering on the Tarion website. Simply visit the Find a Builder section to ensure the builder is registered with Tarion and to review their track record. You’ll learn how many homes they have built in the last ten years, and whether they have had any claims with Tarion over this period.

J.D. Power and Associates, a U.S.-based consumer research firm, also offers ratings on new home builders in the Greater Toronto Area, which you can view on their consumer website.

#4. Attend Tarion’s educational seminars and explore the services on our website

You can learn directly from industry professionals about the new home buying process and new home warranty coverage by attending Tarion’s popular consumer seminars.

And if you haven’t had a chance to explore Tarion’s website, the New Home Buyers section provides a wide range of information about your rights and responsibilities as a new homeowner in Ontario.

Tarion’s website also provides informative Publications, a number of Forms that are required for Tarion processing, up-to-date News and Events about the new home industry as well as helpful FAQs. If you have any questions about how Tarion can assist you, please don’t hesitate to contact them.

#5. Talk with a real estate lawyer

Before you sign your Agreement of Purchase and Sale (APS), which is the contract for the construction of your home or condominium, there are a number of steps to take. One of the most important is to have your APS reviewed by a qualified real estate lawyer. There are additional steps and issues for you to consider, andTarion has created a list of them for you to review when you’re making the deal.

If you would like help selecting a real estate lawyer, you can contact the Law Society of Upper Canada’s lawyer-referral service (toll free) at 1-800-268-8326 or visit www.lsuc.on.ca/public_en.jsp. In Toronto, call 416-947-3330

#6. Read our Homeowner Information Package

This document outlines a number of very important items: your new home’s statutory warranty, the responsibilities of both you and your builder, and how Tarion will handle a statutory warranty claim.

Whether you purchase a freehold home or a condo, we encourage you to read this document in its entirety - and because of its importance, we recommend that you file your booklet with your other new home documents so that you can refer to it in the future.

A copy of the Homeowner Information Package should be given to you by your builder before or during your Pre-Delivery Inspection. You can also view or download a copy from the Tarion website.

#7. Prepare for your Pre-Delivery Inspection (PDI)

The Pre-Delivery Inspection is probably the first time you’ll visit your new home in its completed state - and it’s your primary opportunity to learn how to operate and maintain your new home as well as to ensure that everything has been built according to your Agreement of Purchase and Sale (APS).

To help you prepare for this important stage of the home buying process, read more about the Pre-Delivery Inspection, order a copy of Tarion’s brochure Getting Ready for the Pre-Delivery Inspection or print off a copy of our comprehensive PDI Checklist.

#8. Complete and submit any required Statutory Warranty Forms on time

A new home is a complex structure, and even though most builders will do everything they can to produce a perfect home, sometimes items are missing, not working properly, or appear to be defective.

To help you better understand what is and isn’t covered under the Statutory Warranty, we encourage you to review the Construction Performance Guidelines prior to submitting a Statutory Warranty Form. Additionally, if you believe that there is an item(s) missing from your home, we recommend that you refer to your PDI Form or your Agreement of Purchase and Sale (APS) to confirm this before you submit a Statutory Warranty Form.

To get an item resolved, you should contact your builder and you can follow Tarion’s statutory warranty process that is also outlined in the Homeowner Information Package. If you are submitting a 30-Day Form, please ensure that it is filled out correctly and submitted on time. Tarion will only accept and act on the first 30-Day Form that is properly completed and submitted on time. If they do not receive a 30-Day Form from you on time, then you will have to wait until the last 30 days of the first of year of possession of your new home to notify them of outstanding warranty items.

If you’d like additional assistance on warranty related issues, we invite you to attend Tarion’s consumer seminar, “Understanding Warranty Coverage”.

#9. Maintain your home through the seasons

You’ve made a big investment in your home, so you should take care of it all year round. It’s important to remember that the ongoing maintenance of your new home helps to ensure that your statutory warranty rights are protected.

To help you, Tarion has created a maintenance guide that addresses common questions and provides tips on how to look after your new home through all four seasons.

#10. Enjoy all your new home has to offer!

You’ve done a lot of research, decision making and waiting by the time you reach this point.

Now it’s time to enjoy your new home!

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Contact the Jeffrey Team for more information - 416-388-1960

Resale housing activity in the first half of May was three per cent higher than mid-May a year ago, Toronto Real Estate Board President John Meehan announced today.In the first half of the month, 4,522 homes changed hands compared to the 4,367 transactions recorded in mid-May 2005. Sales also increased by 9% over the first half of last month.

“Activity has picked up in the first half of the month, and overall the spring market is in excellent shape,” Mr. Meehan said. “The stability we are seeing from month to month is very encouraging.”

Home prices also trended upward in the first half of May, with the average price rising about one per cent over mid-April to $369,543. This price is also an increase of 6% over the $346,704 recorded halfway through May of 2005.

Among the most active pockets of the Toronto Area to mid-month was the Scarborough waterfront area. From Victoria Park to Guildwood, brisk sales of detached homes helped the area see 61% more overall transactions compared to the first half of last May.

Meanwhile in Downsview, a jump in semi-detached home sales contributed to 53% more homes changing hands overall to mid-month, compared to mid-May figures from last year.

Toronto condominium activity was the driving force behind Willowdale’s 42% overall increase in transactions during the first half of the month, compared to the same timeframe a year ago.

According to Ted Tsiakopoulos, Ontario regional economist for the Canada Mortgage and Housing Corporation, Toronto condominiums represent a growing component of the housing landscape.

“Rising home prices are encouraging a demand shift towards more modestly priced multi-family homes such as condominiums,” Mr. Tsiakopoulos said.

With Canadian Real Estate Association (CREA) statistics showing that each resale in Ontario generates about $27,000 in economic activity outside of direct transaction costs, sales to mid-month contributed $122 million to the provincial economy through renovations and other activity.

“A home is a great investment,” Mr. Meehan added. “Consumers have good reason to be confident in the Toronto Area market whether they are just starting out or making a switch to a different home.”

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Contact the Jeffrey Team for more information - 416-388-1960

TV show guides couple through search, purchase
Get finances in order before you go shopping

Excerpt from an article By Heather Greenwood Davis - The Toronto Star

There were only four things that Glen and Sarah Bullen wanted in a new home: It needed to be detached with a driveway, have a spot for a barbecue in the backyard, a good-sized kitchen and cost no more than $300,000.

It seemed like a lot to ask of a Toronto housing market that is usually spoken about in million-dollar figures.

But within six weeks of telling their wishes to the production team of Property Virgins, a new HGTV show about first-time buyers, the couple had not only found what they wanted, they were living in it.

“My wife saw an ad in a real estate magazine and we thought, ‘can’t hurt,”’ says Glen, 32, an independent agent with a financial services company.

Three days later, on May 25, they purchased their first home for $285,000 - a two-bedroom, one bathroom, detached bungalow with a finished basement and an addition on the back of the house.

The fact that the Bullens’ purchase seemed to happen so seamlessly might be surprising to anyone who has ever entered the three-ring circus of buying a first home.

Understand financials

Start by understanding your own financial situation. “It’s important that you have your financials in order before going shopping,” stresses Rinomato. “When you get your credit score done there can be things in there you’re unaware of. The last surprise you want to get is one that shows up on your credit score when you go to close a deal.”

It’s also important to understand your mortgage options and obligations. “Really sit down and learn about mortgages. There’s literally hundreds of options for you. You don’t have to just walk into a bank and take what is offered,” she says.

“My advice is to find a mortgage specialist who will look at your entire profile and then suggest the best lending institution for you.”

Think starter not finisher

“We work with first-time buyers and we interview them and investigate what their needs are and what their wish list is,” she explains.

“We usually find out that their wish list is out of whack with reality.” She points out that the average Canadian is going to move every three to five years, so there will be plenty of opportunities for you to move up to the house of your dreams when you can afford it.

“A lot of first-time buyers tend to expect to get their dream home right off the bat,” she says. “Just think of it as a stepping stone to your ultimate goal.”

“Have a good long look at your lifestyle. There may be things you’re going to have to give up to get what you want,” she points out.

Don’t forget your closing costs. Fees from CMHC (Canada Mortgage and Housing Corporation), Land Transfer Tax, lawyer fees and more can hit you where it hurts if you’re not prepared.

Get help from professional

“Hiring a realtor is a great value for the buyer,” says Rinomato, “because the seller pays the realtor. Hook up with a great realtor and listen to their advice.”

But don’t expect your real estate agent to bring you a millionaire estate when you can only afford a cute shack.

“Don’t start the whole process until you’re really serious. It will save everyone a lot of time and heartache,” she says.

Read the full article

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Contact the Jeffrey Team for more information - 416-388-1960