Buyer

For first time home buyers

2015-09-01_11.55.14Purchasing a property? Are you a first time home buyer?

Eligible Canadians can pay as low as 5% on down payments with the help of an insurance provider such as Genworth or CMHC.

Apart from the down payment, every buyer must have the necessary capital available for the closing expenses.

Closing Expenses & Down payment

Closing cost expenses

Brokerage fees (If applicable)
Building inspection
Legal fees (Notary fees in Quebec)
Adjustments (Property related expenses)
Transfer tax (Welcome tax in Quebec)
(Based on the nature of the transaction, other costs may be applicable)

Down payment for first time home buyers

Condominium: down payment starting as low as 5%
Single family home: down payment starting as low as 5%
Duplexes: down payment starting as low as 10% (5% in rare cases with low debt ratio)
Triplexes & Four units: down payment as low as 10%
Five units & more: down payment as low as 20% (15% in rare cases with low debt ratio)
Last update: August 21, 2015

Legal Warranty of Quality

Apart from the down payment & closing costs, protecting yourself from visible, latent and/or hidden defects is very important. When purchasing a property, request the vendor or vendor's representative for a written declaration of the present and past conditions of the property. Make sure the declaration is signed by the vendor and you as a buyer, be provided with a receipt of acknowledgement with the time, date and location.

In many cases, properties are sold without "the legal warranty of quality". Building inspection reports by a professional is a must but is not mandatory during real estate transactions. However, when purchasing a property without "the legal warranty of quality", it is recommended to have a written building inspection report prior to purchasing.

Have a question on how to buy your first home? Do not hesitate to "Ask Sudha" or visit the links below in "references".

References

Genworth Financial

Canadian Mortgage & Housing Corporation (CMHC)

OACIQ

 

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