CONTENTS
CENTURY 21 CHOICE REALTY
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SAUTE STE MARIE
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REALTOR GOVERNANCE & I NEED A REAL ESTATE LAWYER
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BENEFITS OF USING A MORTGAGE BROKER/AGENT
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WHAT TO EXPECT FOR CLOSING COSTS
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MOVING CHECKLIST
pg11-12 ONTARIO LAND AND TRANSFER TAX
ABOUT SAULT STE. MARIE
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Whether you’re from the Sault or your coming here for the first time, there is always something new to discover along our shores and in our community. The Sault is a vibrant place full of creative talents, entrepreneurs and natural beauty. We run festivals throughout the year, whatever the season. Two of our largest festivals are the Bon Soo Winter Carnival which takes place in February each year and is the third largest winter festival in the province. There are fireworks, ice slides, games, music, contests and fun for the entire family. In July we have Rotaryfest, which provides music in the park, in the streets, food, games, a carnival and a parade. This festival truly provides an opportunity to see some of the music talent we have here as the stages are graced with local musicians. We also have festivals in all seasons at Searchmont Ski Resort just North of the city, plus skiing, snowshoeing, hiking and more for all year round activities at the resort and the Algoma Fall Festival brings in big names and a cross-section of genres each September and our Shadows of the Mind Film Festivals grows each year. Campgrounds, the local bars that bring in talent from across the country weekly to perform wonderful concerts, the Essar Centre who hosts big name concert events and of course we’re home to the Greyhound Hockey team. There is something for everyone! As our city grows and more people get involved in our community to put on unique events, bring blockbuster and artistic film crews here, and as business minded individuals open new hang-outs, breweries, pubs, shops and facilities, we are truly developing into a uniquely vibrant place in the North.
REALTOR® GOVERNANCE Did you know that in working with a registered Real Estate Professional in the province of Ontario provides you with peace of mind and there are courses of action available to you if you feel wronged? All Realtors® in Ontario are governed by the Real Estate Council of Ontario (RECO). This not-for-profit organization regulates brokerages, brokers and salespersons. Its main focus is to administer the Real Estate Business Brokers Act, 2002 (REBBA), enforce standards to acquire and maintain a license to practice Real Estate, and it enforces a Code of Ethics that defines the conduct expected and how Realtor®s may do business in the province which protects the public interest through a fair marketplace. RECO regularly address inquiries, concerns and complaints about the conduct of licensed Realtor®’s and will take appropriate action to protect the public interest. To learn more about RECO, the Code of Ethics and what is in place in Ontario to protect your interests, please visit www.reco.on.ca.
Good representation is important in any real estate transaction. Wondering how to best choose a real estate lawyer? Good question. First off, any lawyer you work with should be in good standing with the Law Society of Upper Canada. Once you’ve found a reputable lawyer, make sure he/she is up to speed with processing residential deals. In Ontario, approximately 90% of transactions are done electronically. Be sure your lawyer is familiar with this process and is able to store your information electronically as well. Here are some other tips to help you find the best representation for your deal:
CENTURY 21 CHOICE REALTY
• Be sure your real estate lawyer and supporting staff have extensive experience in residential real estate. • Ask for a quote which includes all disbursements. • Work with a lawyer who is authorized by the Ontario Government to close your transaction electronically. • Find a lawyer who will meet with you personally to discuss your file. • Your lawyer should arrange and obtain title insurance. Happy House Hunting!
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HELP! I NEED A REAL ESTATE LAWYER
PROTECT
BENEFITS OF USING A MORTGAGE BROKER/AGENT
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INTELLIGENCE
When you are ready to start looking at financing options for the purpose of purchasing a home there are many different types of loans available. One of the most important aspects to choose from is to determine do I want to work with a Bank or a Mortgage Broker/Agent. The differences between working with a Bank or a Mortgage Broker/Agent can to very different in the benefits between the two. Benefit #1: Brokers/Agents are Trained and Licensed; While most bank mortgage loan officers do not require any training or licensing, the same is not true for Mortgage Brokers/Agents. Many Provinces require mortgage brokers/agents to many requirements, Mortgage Brokers/ Agents must be licensed and must complete continuing educational courses in order to stay licensed in their Province. You can be assured the Mortgage Broker/Agent is updated in the latest mortgage financing rules and regulations. Benefit #2 The Mortgage Broker/Agent works for you; Remember the greatest benefit of working with a Mortgage Broker/Agent is that they work for you not the bank. They can get the banks to compete for your business. When you go to a bank the loan officer is only concerned with the interest of their bank. The Mortgage Broker/Agent is always looking out for your best interest as they search out for the best loan suited for you. Benefit #3 Choose from a Wider base of Lending Institutions; When you go to a Bank Loan officer they only represent their bank and their own set of requirements. When you work with a Mortgage Broker/Agent however they will work with many different lending institutions which represent many different options and requirements. Not only is this going to help you the client this can also get you the best rates, but also your chances are greatly increased of obtaining approval even with bruised credit. Benefit #4 Flexibility and Information Required only Once; The flexibility of the Mortgage Broker/Agent to meet the requirements of their clients whenever or wherever is very noticeable. Try and reach your Bank Loan officer on a Sunday almost impossible not so with most Mortgage Brokers/Agents. The gathering of necessary information to your Mortgage Broker/Agent will pass the required information onto those mortgage lenders that they have determined to be an excellent fit for you. This way you are able to submit your information to many different lenders while only filling out the necessary documents one time. Where as with the Bank they only have their One set of requirements with no flexibilty. Benefit #5 Credit Report Inquires; Credit reports being pulled each time will lower your credit score. So each time you inquire at a bank they will pull a credit report. Working with a Broker/Agent your credit report will be pulled only once. ty.
WHAT TO EXPECT FOR CLOSING COSTS The associated costs of buying a home is often underestimated or not considered/calculated until you’re well into the paperwork and it comes as an unwelcome surprise. A good rule of thumb is to budget 1.5% to 2% of the actual purchase price for closing costs. Here is a list of common closing costs you will/may encounter as a purchaser: LAND TRANSFER TAX Is a fee payable to the provincial government upon closing, it is commonly a certain percentage of the purchase price (see Land Transfer Tax herein). MORTGAGE DEFAULT APPRAISAL PAYMENT FEES Are all in relation to your mortgage provider and these items should be discussed at the outset of your mortgage application/discussions.
PROPERTY INSURANCE Lenders will require insurance to be in place at closing as the home acts as collateral for the mortgage. Contact an insurance agent for rates and coverage. LEGAL FEES Lawyer’s fees relate to title searches, drafting title and the deed, preparing documents, registration fees and other disbursements. A reliable estimate of $1500 usually covers them. Ask your lawyer for a quote.
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HST (harmonized sales tax) There is no HST charged on resale homes or new homes under $400,000 (subject to changes). Outside of the “Closing” picture you can expect added costs for moving, service utility connection fees, home inspection (average between $300 and $600), unexpected clean-up and short term storage.
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PROPERTY SURVEY Your particular lender may ask for a survey prior to finalizing the mortgage and this could cost between $1000, and $2000.
SUCCESS
MOVING CHECKLIST
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VIBRANT
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So you’ve made the big decision to move. It is a lot of work and there is no way around that, but you can reference this check list and timeline to help make your move smooth. Eight weeks before your move: • Inventory - Create an inventory sheet of all which is to be moved. • Moving Options - Do-it-yourself or using a moving company. • Moving Quotes - Request quotes from moving companies and movers. • Discard Unnecessary Items - Moving is a great time for ridding yourself of unnecessary items. Have a yard sale or donate unnecessary items to charity. The Sault offers a freecycle event which is a great opportunity to get rid of some stuff. You can find more information about it online. • Collect Packing Materials - Gather moving boxes and packing materials. The local LCBO is a great place to start for boxes. • Contact Insurance Companies - Contact your insurance agent to cancel / transfer your insurance policy. Four weeks before a move checklist: • Contact Utility Companies - Set utility turnoff date, seek refunds and deposits and notify them of your new address. • Obtain Medical Records - Contact your doctors, physicians, dentists and other medical specialists who made currently be retaining any of your family’s medical records. You’ll also want to contact OHIP to ensure they have a record of your move. • Use Perishable Foods - Check your cupboards, refrigerator and freezer to use up as much of your perishable food as possible. One week before the move checklist: • Change Of Address - Go to the Postal Service and fill out a change of address form so mail will be rerouted if you’ve forgotten to notify some people. It’s a good reminder of who still needs to be notified. Ie; Banks, family, cell phone companies, etc. • Cancel Services - Notify any remaining service providers including, newspapers, lawn services, etc. • Start Packing - Begin packing all things destined for your new location. • Furniture Inventory - Examine your furniture for scratches and dents before you want to compare notes with your mover on your moving day. Moving day checklist: • Itinerary - Make plans to spend the entire day at the house or at least until the movers are on their way. • House Review - Once the house is empty, check the entire house (closets, the attic, basement, etc) to ensure no items are left or no home issues exist. • Double Check Your Mover - Ensure your mover has the proper new address and all of your most recent contact information should they have any questions during your move. • Vacate - Make sure utilities are off, doors and windows are locked and notify your real estate agent you’ve left the property.
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ONTARIO LAND AND TRANSFER TAX This is a Provincial Tax and if you are purchasing a property it is payable upon closing of the transaction at the registry. Your solicitor usually pays the tax on your behalf on the closing date less any refunds for first-time home buyer status. Land Transfer Tax is calculated as follows: .0.5% on the first $55,000 of the purchase price; .1.0% on the amount exceeding $55,000 up to and including $250,000, plus;
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.1.5% on the amount exceeding $250,000 up to and including $400,000, plus; .2.0% on the amount over $400,000 NOTE: if you are a new home purchaser from a builder the Land transfer Tax is calculated on a price less the HST.
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