Building your Toronto home buying team
by Mark Salerno
Aside from you and your family, a lot of people are involved in buying a home. Some - like your lender and lawyer - are often an essential part of the process. Without them, buying a home would be nearly impossible. Regardless of who is on your home buying team, it’s up to you to make sure they look after your interests and meet your needs.
A good real estate representative can advise you on current market conditions, what price offers are realistic, and which conditions to add when making an offer to purchase. Plus, they can save you time and trouble by showing you only those homes or neighbourhoods that suit your requirements and budget. So when discussing your needs with a realtor, be as specific as possible about the kind of home you’re looking for - and your price range.
To help you finance the purchase of a home, you will need a mortgage. An ever-increasing range of mortgage types, terms, and rates are available, so be sure to look at what’s on offer from a variety of lenders, including banks, trust companies, credit unions, pension funds, insurance companies, finance companies, and mortgage brokers.
Hiring a lawyer is a good way to ensure that your legal interests are protected. Your lawyer will review any contracts you need to sign, especially the Offer to Purchase, to make sure that all documents say exactly what you intend.
If you’re buying a new home, are custom-building your house, or are carrying out extensive renovations, you may need to deal with a builder or contractor. To ensure their quality and credibility, ask for references, talk to previous customers about their work, and visit other housing developments they’ve worked on. You can also check with Tarion, Ontario’s Home Warranty Corporation. Find out if they are a member of the local home builders’ association or ask for a provincial license number to ensure your contractor is registered.
Before making an offer, you may also wish to have an independent appraisal carried out or make your offer conditional on completion of an appraisal. By giving you an unbiased assessment of the property’s physical and functional characteristics, an analysis of recent comparable sales, and an assessment of current market conditions, an appraiser can help protect you from paying more than the market value for a home.
Finally, hiring a home inspector can help you better understand a home’s true condition, habitability, and safety. Home inspectors perform a comprehensive visual inspection to assess the condition of the house and all of its systems. They will also identify areas where repairs may be needed or where there may have been problems in the past.
Remember that the key to finding the right professional match is to shop around. A good way to start is through local associations, the Yellow Pages, or simply by asking for referrals from satisfied family or friends.
For more information or for a free copy of CMHC’s Homebuying Step By Step consumer guide and workbook, please visit our website at www.cmhc.ca or call our toll-free line at 1-800-668-2642.
Mark Salerno is district manager for the GTA at the Canada Mortgage and Housing Corporation. For over 60 years, CMHC has been Canada’s national housing agency and a source of objective, reliable housing expertise.
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