Committed to your needs.
At L/G Realty we understand that buying a home is a major decision that can be filled with apprehension and concerns. Our job is to help you find the right home that meets your needs and to make the home buying process efficient, stress-free and successful.
Whether this is your first time or you’re an experienced homebuyer, an important first step is to choose a real estate professional and company that you feel comfortable working with and trust. We will make a written commitment to you on our professional services through our exclusive Guaranteed Service Commitment.
Not only are we dedicated to serving your needs, we can help you save valuable time. If you are currently searching newspapers, buyer guides and the internet for properties, please keep in mind that we have access to any property for sale, plus possible new ones that haven't reached the open market yet.
Your Needs Come First.
Our Service Pledge to you is:
-
We will communicate with you in a timely and efficient manner.
-
We will plan a home search based on your needs.
-
We will inform you of your choices of the various types of representation.
-
We will introduce you to properties and neighbourhoods that meet your requirements.
-
We will help you obtain the financing you may need for a home purchase.
-
We will assist you in preparing a purchase offer on the property of your choice.
-
We will represent you in the transaction with the seller and the sellers real estate representative.
-
We will help you coordinate the closing of your transaction.
Let us help you find your dream home.
BUYING A HOME MAKES SENSE
If You Buy
-
Your capital gain on your home is tax-free.
-
You are not at the mercy of your landlord.
-
Your housing expenses may never go up.
-
You can use, decorate and enjoy your home as you see fit.
-
You may build a large equity with long-term appreciation.
-
Your house will become a Home. You will develop a sense of pride of ownership.
If you rent
-
You can be evicted.
-
Your rent can and normally will go up.
-
You must get permission to make improvements or changes.
-
There is no equity build-up.
-
It is always temporary.
Buying a Home is still the best investment! Its easier than you think!
5Cs OF CREDIT
When it comes time to approve a mortgage, a lenders decision is based on how well the application supports the 5 Cs of credit, which are:
Capacity: (cash flow) income from all sources
Collateral: (the real estate) the house itself
Credit-Worthiness: (credit history) self explanatory
Character: (financial maturity) your money management
Capital: (financial reserves) cash, other assets
Should you wish to find out more about your capability of obtaining a mortgage or be referred to a competent Mortgage Specialist, please contact us.
INSURANCE
TYPES OF INSURANCE & REQUIREMENTS
Mortgage Insurance (MI) Mortgage insurance applies to high-ratio (non-conventional) mortgages. This type of insurance, obtained through CMHC or an approved private insurer, protects the lending institution against loss if the borrower (mortgagor) is unable to repay the mortgage. Fees may vary from 0.5% to 3.5% of the loan amount, depending on the percentage of the purchase price or home's appraised value borrowed, whichever is less..
Homeowner's Insurance (Fire +)
Normally required prior to obtaining a mortgage. Coverage must at least be equal to the loan amount or the building value, whichever is less.
Mortgage Life Insurance (MLI)
An insurance policy on the life of the mortgagor(s) that protects the family or beneficiaries by paying off the outstanding mortgage in the event of the death of one or both spouses (mortgagors). Premiums may be added to your mortgage payment. It may be advantageous to seek this coverage outside the lending institution.
Disability Insurance (DI)
This insurance provides replacement income if an accident or serious illness prevents you, the mortgagor(s), from working. Premiums could be added to your mortgage payment.
Job Loss Mortgage Insurance (JLMI)
JLMI covers the mortgage payments in the event that you involuntary lose your job.
Title Insurance (TI)
Title insurance protects an owner of residential (or commercial) real estate against loss or damage suffered because of defects, fraud, liens or encumbrances relating to the owner's "title" - or right to property ownership. In the past, a lawyer issued a letter of opinion on title based on title search results. That opinion relied upon the accuracy of the title documents. Title insurance provides protection to homebuyers and their heirs on title.
Home Warranty (HW)
Protects the purchaser from unexpected repair bills while helping the vendor improve the odds of selling the home. The policy also protects the home against unexpected repairs during the listing
LAND TRANSFER TAX FOR THE PROVINCE OF ONTARIO
For residential properties
Example: Purchase Price: $275,000.00
0.5% on 1st $55,000.00 of purchase price
Plus:1.0% on the amount exceeding $55,000.00
up to and including $250,000.00
Plus: 1.5% on the amount exceeding $250,000.00
up to and including $400,000.00
Plus: 2.0% on the amount exceeding $400,000.00
Example: Purchase price: $275,000.00
55,000 X 0.5% = $275.00
195,000 X 1.0% = $1950.00 (250,000 - 55,000=195,000)
25,000 X 1.5% = $375.00
Land Transfer Tax:$2600.00
HOME INSPECTION
A home inspection, performed by a professional, benefits every person buying a home or selling a home. It can make you feel confident in making an informed decision about one of the biggest investments you will make during your lifetime.
A home inspection will also build a foundation of knowledge about the house and its systems, thus allowing you to take pride in its ownership.
A home inspection will provide you with information you may need for any repairs or maintenance that your new home may need.
A home inspection will cover the whole house from the roof to the foundation and everything in between.
A home inspection allows you to join the inspector as he/she goes through your home pointing out and explaining any problems as well as the good features of the property. Most often you will receive a written report after the inspection.
Types of HOME INSPECTIONS Available:
Pre- purchase inspections of new and resale homes
New construction 4 phase
1 year end of warranty
Home wellness inspections
Special Inspections
Septic system
Well
We can provide you with a list of competent Inspectors
ADDITIONAL COSTS FOR HOME BUYERS
In addition to the purchase price, legal fees and disbursements, you will normally incur a number of additional expenses, including land transfer tax, GST, and adjustments.
Land Transfer Tax
One of the largest additional expenses when purchasing a property in Ontario is the provincial Land Transfer Tax. This is calculated at $5 per $1000 of the first $55,000 of the purchase price, then $10 per $1000 from $55,000 to $250,000, and $15 per $1000 of the purchase price above $250,000. For example, the total land transfer tax payable by the purchaser of a $100,000 property would be $725, while the land transfer tax on a $300,000 property is $2,975. There is no tax payable by the seller. If you are a first time home buyer, you may qualify for a rebate from the Ontario government. Your lawyer or your real estate agent can provide you with more information about land transfer taxes and the first time buyers rebate.
GST on the purchase price
GST does not normally apply to the purchase price of used homes. If you buy a new home, GST will be payable. GST is 7% of the purchase price, but most purchasers who buy a property for personal use are entitled to a rebate of up to 2.5%, depending on the purchase price and area. Many builders include the GST in the purchase price, while others charge the GST in addition to the purchase price. If you are buying a newly built home, you should make sure you know what the total purchase price is including GST.
GST on transaction costs
Even if GST is not payable on the purchase price of your home, GST is payable on most transaction costs, such as legal fees and disbursements, real estate commissions, appraisals, home inspections, and survey fees. GST is not payable on Land Transfer Tax or mortgage insurance fees.
PST
If your purchase includes appliances, furniture or other items which are left in the home, you may also have to pay Ontario retail sales tax of 8% on the value of these items.
Adjustments
On the closing date of your purchase or sale, the amount of money due on closing will be "adjusted" to reflect the expenses of the property that should be paid by the seller and those that should be paid by the purchaser for the number of days of the year each of the parties will own the property. For example, the purchaser will be required to reimburse the seller if the seller has prepaid any property taxes. If a home is heated by an oil furnace, the seller will usually fill the tank before closing and the purchaser will pay the seller the cost of the full tank.
In addition to taxes and adjustments, purchasers are also responsible for a number of general administrative transaction costs. These include expenses such as legal fees, document searches and registration costs. Purchasers may also need to pay for mortgage insurance if they have less than a 25% down-payment, or for a survey of the property if the seller is not able to provide them with one.
How to determine your total expenses
It is very important to know in advance how much money you will actually receive from the sale of a property and how much you will need for your purchase. Your lawyer will be able to calculate most of these costs for you and provide you with an estimate of these total
