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Our mission is to go FULL OUT® for our clients and provide the best real estate experience in the world.
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table of contents home buying 101 What can you afford?................................................................................................... 2 Mortgage basics............................................................................................................ 4 Closing costs.................................................................................................................. 7 Tips to help you save money..................................................................................... 10
home selling 101 Questions to ask when interviewing Realtors® to sell your home...................... 12 Pricing strategies for top dollar................................................................................ 13 Most sought-after improvements home buyers are looking for in today’s market................................................................. 14 Your home, showcased to its fullest potential....................................................... 14
Joanna Faris President
Mark Faris CEO & Broker
Marketing & exposure................................................................................................ 16 Photography, videography & showing preparation............................................................................................... 18
Welcome Here at the Faris Team, we endeavour to be leaders in the real estate profession and provide our clients with the best real estate experience in the world. We have developed this reference guide to help you on your real estate journey. More importantly, we don’t want to just equip you for your real estate journey, we want you to be excited about it.
home ownership 101 MoveSnap.....................................................................................................................20 Moving checklists........................................................................................................ 21 Welcome to closing day.............................................................................................24 Safety checklist...........................................................................................................25
We look forward to going full out for you®! Sincerely,
Mark & Joanna Faris 22
TEAM IN CANADA
Royal LePage Since 2015
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home buying
101 home buying 101
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What can you afford?
here are two affordability rules to keep in mind: monthly housing costs and entire monthly debt load.
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Your mortgage professional is there to help you discover the maximum house price you can afford. The most important factors considered are your income, down payment, and mortgage interest rate. There are two affordability rules to keep in mind:
Rule #1 Your monthly housing costs (principal mortgage, interest on mortgage, property taxes, heating) shouldn’t be more than 32% of your gross monthly income. For a condominium, this would also include half of the condo fees. For a leasehold, this price would include the entire annual site lease.
Rule #2 Your entire monthly debt load (housing costs plus other debt payments) should not be more than 40% of your gross monthly income.
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Don’t know who to go with? The Faris Team has a list of preferred mortgage contacts that will give our clients both exceptional service and the best deals possible. Even if you already have a mortgage contact in mind, we highly recommend getting a second opinion. This one hour time investment could result in saving you thousands of dollars in interest.
Mortgage basics The mortgage broker/specialist: a vital piece of the real estate puzzle Whether you choose to go with a mortgage broker or a mortgage specialist with a financial institution, we recommend booking a meeting early in the real estate process. Meeting with a mortgage specialist/broker will provide insight into your financial position. This can help ensure that your search qualifications are on track with your financial needs.
What is the difference between a specialist and a broker? A mortgage broker represents various financial institutions. They shop around at multiple financial institutions to seek the best deal.
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eeting with a mortgage specialist/ broker will provide insight into your financial position.
Visit our Preferred Vendor page on FarisTeam.ca for an up-to-date directory or give us a call at 1 888 444 9533.
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Understanding mortgage options During your meeting with a mortgage specialist, you will not only discuss your finances, but also the ins and outs of mortgage options available in today’s market. Take the time to inquire about:
Mortgage insurance, if the down payment is less than 20% of purchase price (Genworth or CMHC) The required down payment What your monthly carrying costs will be Your mortgage specialist may also detail money-saving options and strategies like portable mortgages, how to pay the mortgage down quicker, and how to avoid reapplying if the mortgage expires.
Alternatively, a mortgage specialist with a financial institution works directly for that financial institution. They have access to great deals that their financial institution has to offer.
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Get a mortgage pre-approval Being a pre-approved buyer has real advantages:
Consider bridge financing Bridge loans are short-term loans that bridge the gap between two different closing dates. These are more commonly used when an existing home owner sells their home and then buys another home with two different closing dates. Closing both homes on the same day can be very stressful and costly, particularly if your closing times don’t line up properly or if your lawyer can’t accommodate the close on that day. For example: if you ordered moving trucks, they would have to wait until your new home closes before they could unpack. Moving trucks typically charge by the hour. It could become quite the juggling act to pack and unpack your moving truck all in one day.
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You will know what you can afford and be able to confidently put in an offer.
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A pre-approval could potentially save you thousands of dollars. Rates are typically guaranteed for 90-120 days. By locking in to an interest rate, you are protected if the interest rates should rise. Conversely, if the interest rate happens to drop, you will still have access to the lower rate offer.
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Being pre-approved gives you an edge over the competition. Having a pre-approval demonstrates to sellers and their Realtors® that you are a serious buyer with solid financial backing. This can help when negotiating your home purchase.
Closing costs During the meeting with your lawyer, you will need to provide a cheque that will include your down payment, adjustments, and any other costs accrued. This amount will be less the initial deposit that was submitted with your offer (upon acceptance). Your lawyer will provide you with a complete breakdown of the amount owing. Closing costs incurred on the day of closing:
Recently, bridge loans have also become a very popular way to take possession of a new home a couple of days or weeks in advance to allow for renovations. Bridge financing is a tool that you can use to relieve stress so that the purchase of a new home is a pleasurable one. Typically inexpensive, we recommend you speak to your mortgage broker/financial institution to get more information.
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Down payment Mortgage insurance Adjustments Legal fees HST (if applicable) Other potential costs
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Mortgage insurance
Adjustments
Legal fees
HST (if applicable)
If you have a Genworth or Canada Mortgage and Housing Corporation (CMHC) insured mortgage, there will be a cost for the insurance coverage. Anything below a 20% down payment typically requires this insurance. This fee is usually blended into the mortgage payment, however you will owe tax (HST 13%) on your insured mortgage total amount. The tax portion will be a part of the cheque given to the lawyer.
Adjustments are common. Any applicable adjustments will be made on closing. For example: If the seller has paid for six months of the property taxes and you are closing with three months remaining of that prepaid tax, the seller will need a reimbursement from you, the buyer, on closing. This will be part of the cheque given to the lawyer.
You should anticipate legal fees starting at $1,000 to handle the purchase and mortgage for your property.
If you are buying a new home, commercial property, vacant land or a property generating income (i.e. agricultural land), HST could be applicable. We recommend that you consult with your lawyer to both confirm if HST is applicable and determine the exact amount required. This will be part of the cheque given to the lawyer.
Please note: CMHC Green Home offers a premium refund of up to 25% to borrowers who either buy, build, or renovate for energy efficiency using CMHC-insured financing.
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In addition, you will be responsible for the lawyer’s disbursements (out-of pocket expenses) including the title search, title insurance, off-title searches, registrations, and administration fees. The disbursements are impacted by the purchase price and can range from $600 to $900. In addition, you will also have to pay HST on applicable items.
Other potential costs Additional costs to plan for include fees associated with moving, like utility hookups, movers, storage rentals and cleaning services. Note, the price for these costs will vary for each property.
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Government
Tip 3: Pay interest semi-annually
programs, grants and incentives exist to assist you. Find out if you qualify.
We recommend that you arrange with your mortgage representative/financial institution to pay interest semi-annually and not monthly. This will result in significant savings.
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Tip 4: Plan ahead
Tips to help you save money Tip 1: Consider mortgage life insurance through a broker A home/property purchase is a major investment. We recommend taking a moment to consider providing valued life insurance protection for you and your loved ones. Life insurance can be purchased through a variety of providers, including your financial institution, mortgage broker, or a life insurance
broker. We recommend using a life insurance broker, as we have found that these industry experts can typically insure you for more coverage with less investment, thus saving you money. If you select this route, be prepared to decline your mortgage life insurance through your financial institution.
Tip 2: Pay your taxes directly to the city/township Prior to the closing date, arrange for your taxes to be paid directly to the city/ township. As there will be no interest charged and no extra bank fees, this could potentially save you $200. Paying taxes through your mortgage could be more costly.
In the event that you move before your mortgage expires, there could potentially be a penalty. The mortgage penalty is typically calculated on the remaining amount of the mortgage, after you make your pre-payment to the financial institution for that year. Most financial institutions allow an annual pre-payment privilege (a lump sum, typically 10-15% of your original mortgage) to pay down your mortgage faster. Simply paying your annual pre-payment privilege prior to moving your mortgage could reduce your mortgage penalty by 10-15%.
Tip 5: Research government programs Check to see if you qualify for the following government programs:
Tax-Free Savings Account (TFSA) Home Buyers’ Plan (HBP) Land Transfer Tax Refund for First-Time Homebuyers
CMHC Green Home Program The Government also offers programs, grants and incentives to help with the renovation of your home: Federal
GST/HST New Housing Rebate Enbridge Gas Residential Rebates
Smart Thermostat Program Home Energy Conservation (HEC) Program Provincial/Municipal
Ontario Energy and Property Tax Credit Healthy Homes Renovation Tax Credit Ontario Senior Homeowners’ Property Tax Grant For the most up-to-date information, please contact your mortgage professional or refer to Service Canada’s website, servicecanada.gc.ca.
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home home selling selling
101 home selling 101
Questions to ask when interviewing Realtors® to sell your home
Pricing strategies for top dollar Your Realtor® will take many facets into consideration to determine a list price for your home. Ensure you’re up-to-date on the following so you can confidently agree that your home is strategically priced:
Review prices of what’s currently listed on the market and make sure your home is positioned competitively Ask for recent sales that are comparable to your property. Compare apples-to-apples – everything from square footage, location, style of home to quality of finishes and sold date should be similar Take note of what is happening in the market. If it has increased, you want to make sure your property isn’t undervalued Be sure to communicate any upgrades and renovations you’ve made to your Realtor®
Many people don’t know that they can interview Realtors®. We recommend that you interview two to three Realtors® and compare what they have to offer. Ask questions like:
How many homes has the real estate team sold? (Select a team with experience!)
What is your average list-to-sale price ratio? On average, how many days do your listings stay on the market? Which complimentary services do you provide? What is your marketing plan? Are you advertising to the Toronto market? What happens if I am not happy with the service I receive?
Additionally, ask for, and take the time to review, testimonials about them and their team. Your prospective Realtors® should have these references and accolades readily available for your convenience.
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Most sought-after improvements home buyers are looking for in today’s market It is important to prepare your home for sale so that it appeals to a large pool of buyers. Here are some of the most sought-after qualities and upgrades that buyers are looking for in today’s market, as well as some home improvement steps we recommend.
Clean and declutter Install hardwood flooring throughout main level (if highly recommended by your home stager)
Paint neutral colours throughout Replace worn carpet and underpad Update light fixtures Update kitchen and bathroom counters (if highly recommended by your home stager) Remove signs of pets Update hardware Fix foundation cracks (interior and exterior) Neutralize odours
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Professional videography Potential buyers can attend a 24/7 tour of your home in vivid detail thanks to professional home video tours. Offering instant, convenient access to your home will result in more qualified and serious buyers booking an in-person visit.
Compelling content Make sure a creative write-up or description of your home is produced that includes all important details and is used to market your home. A creative marketing write-up should include:
A headline/title that is eye-catching A sense of what it’s like to live in the home including highlights of special features Details such as square footage, style of home, age of home, bedrooms, and bathrooms Summary of all upgrades, renovations, and improvements A description of nearby amenities, schools, and other attractions in the area
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t is important to prepare your home for sale so that it appeals to a large pool of buyers.
Your home, showcased to its fullest potential Look for a Realtor® who offers high-quality, complimentary services to showcase your home. A few must-haves include:
Professional photography In the real estate industry, it is extremely important to present professional photos that showcase your home to its fullest potential. According to the 2017 National Association of REALTORS® Profile of Home Buyers and Sellers, 89% of buyers rated photos and 84% found detailed information about properties for sale very useful.
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our listing advertised to numerous brokerages will significantly increase the exposure of your home.
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Marketing & exposure Local and global real estate boards Work with a Realtor® who is registered with and will advertise your home on Realtor.ca (MLS) and the following boards:
This means that thousands of Realtors® will have access to your listing for their clients who are moving or relocating. Your listing advertised to numerous brokerages will significantly increase the exposure of your home.
Exposure
Barrie & District Association: 950 Realtors®
Toronto Real Estate Board: 50,000 Realtors®
International Real Estate Boards (Proxio): 600,000+ Realtors®
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Make sure that buyers can easily access your property on a website where they can see videos, photos, property information and have a clear way to get in touch to book a showing. Make sure you have international exposure as well.
Online marketing
Reputable signage
Your home should be featured on a user-friendly website with comprehesive information about your home, neighbourhood, area amenities, as well as professional photography and videography.
Having appealing “for sale” signage makes a difference. A sign with a reputable brand will add a prestigious element and sense of familiarity to your home.
Social media In today’s world, many buyers and sellers use social media platforms such as Twitter, YouTube, Facebook, and Instagram on a regular basis. Make sure your listing is accessible through multiple social media channels.
For more information Check us out online at faristeam.ca,read our Faris Team blog which is full of useful information about home buying, selling, and home ownership, or call us at 1.888.444.9533.
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Photography, videography & showing preparation When preparing your home for professional photography, videography and in-person showings, these guidelines can help ready your home to achieve optimal results.
Exterior
Remove cars, trailers, boats and basketball nets from the driveway Turn on all exterior lights Delay putting up seasonal ornaments and decorations or remove temporarily if possible
Remove toys from the yard Remove waste bins, yard tools and equipment Remove barbeque cover Remove hot tub cover Interior
Turn on all interior lights (for showings) Remove pet dishes and crates 20 20
Remove waste bins from all rooms Remove interior winter door mats Remove magnets from refrigerator Remove items from the top of the refrigerator Leave instructions if you have a gas fireplace that’s not operated by a switch
Turn off ceiling fans Close all windows Hide electrical cords (where possible) Remove tea towels from the stove (can keep for showings) Remove coats and bags from coat racks and hooks (can keep for showings)
Remove items from under the bed (if visible) Ensure beds are neatly made Turn off televisions and computer monitors Visit FarisTeam.ca for more great resources to assist you on your home selling journey, such as:
See Why Thousands Trust the Faris Team Free Home Evaluation
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home ownership
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MoveSnap
Moving checklists
There’s an app for everything — including moving. Faris Team clients have free access to MoveSnap, an app to help them streamline their moving process before, during, and after their move. MoveSnap is an easy, seamless way to help organize and complete all moving-related tasks in minutes.
1-2 Months before your move
Create a “move file” to keep track of quotes, receipts and other important information. Purchase a home insurance policy for your new home (insurance binder letter). Plan your moving method (truck rental, packers, movers, etc.) and get cost estimates. Plan how you will move vehicles, plants, pets, important files, and valuables. Plan how you will arrange furniture in the new place using a floor plan or sketch. This will help the movers know where to place the furniture. Use items that can’t be easily moved such as frozen foods. Order boxes and moving supplies; moving companies have regular and specialized boxes such as wardrobe boxes for added convenience. Begin organizing your home (separate items into those you will keep, donate or discard). Pre-pack items you will not be using until you move (i.e. seasonal items). Clearly label each box with its contents and the room it belongs in. We provide complimentary Faris Team room labels for your convenience.
1 Month before your move (address change checklist) Notify the following companies, organizations, and professionals of your move and the effective date of your change of address:
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Change your address either online or at your local post office with Canada Post and set up mail forwarding to your new address. Please note: Complimentary Move Announcement Cards are offered to customers at post offices to notify correspondents of a new address. However, the customer must apply the applicable postage.
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Change the address on your health card, driver’s license,
Utilities (gas, hydro, water). Advise
and/or vehicle permit online. Visit ServiceOntario’s website and click on “Change your address” under ID and Certificates. You can also visit a ServiceOntario Centre in person. Canada Customs and Revenue Agency: child tax benefit, Canada Pension Plan, GST rebate, income tax. Update your Canada Pension Plan program and/or Old Age Security information, if applicable, so that you will continue to receive your benefits on time. You can easily update your personal information using My Service Canada Account. Change your address with the Employment Insurance program, if applicable, so that you will continue to receive your benefits on time. You can easily update your personal information using My Service Canada Account. Employer(s), friends, relatives, landlord (if renting) Doctor, dentist, optician, veterinarian Financial institutions/banks/credit card companies, lawyer(s) Insurance companies (life, vehicle, medical, pet, contents) Phone/cellular phone/internet/cable/satellite company Schools, daycares
them of both your new address and move-in date. Subscriptions (newsletters, magazines) Other: workplace, memberships (i.e. clubs, gym), Canadian Firearms Centre, other License organizations (i.e. hunting or fishing license)
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ack an ‘essentials’ box to keep with you during the move.
Week before your move
Book a final walk-through to view your new property several days prior to the closing date. This will allow you to see and handle any concerns before you move in. Review your moving plans with your moving company, truck rental company, or other parties involved in your move. Pack an “essentials” box to keep with you during the move. Keep medications close at hand during the move.
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e highly recommend moving in at least one day AFTER closing.
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Welcome to closing day
On closing day, your lawyer will provide the keys to your new home, usually at their office. This typically occurs in the afternoon, once the seller’s lawyer has received the funds. As closing times may vary, we highly recommend moving in at least one day AFTER closing. Due to fluctuating closing times, we also recommend you do not book any moving services on closing day.
Once you arrive at your new property:
Check all appliances, garage door openers, central vac, hot tub etc. again to ensure that everything is in good working order. Inform your Realtor® immediately if they are not. Take photos and notify your Realtor ® of anything unexpected. If you are not using a mover, place carpet, floor and door frame protectors throughout the home. Replace locks for safety and make at least two copies of your new keys. Enjoy your new home!
Services you may want to consider for your new home:
Duct cleaning Professional cleaners Painters/decorators Carpet cleaning Window cleaning Furnace maintenance and filter change Faris Team clients have access to a list of preferred vendors. For more information on how we go FULL OUT® for our clients, call us at 1 888 444 9533. 26 26
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fter the unpacking is done,review this safety checklist to ensure you’ve covered all your bases.
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After the unpacking is done, review this safety checklist to ensure you’ve covered all your bases.
Safety checklist
Change locks Store valuables and important files in a safe place Test and change batteries in carbon monoxide detectors and smoke alarms Fire evacuation plan Fire extinguisher (one on each level) Keep medications handy Visit FarisTeam.ca for more great resources to assist you on your home buying journey, such as:
Community Guides Condo Catalogue See Why Thousands Trust the Faris Team 27 27