First-Time Home Buyer.
Being on the path to purchasing your first home is one of the most exciting and most rewarding moments in life! While people don’t always dream of the perfect mortgage, we do grow up thinking of a white picket fence and our dream home. Even if you imagined your dream home as a 6-bedroom mansion, we all have to start somewhere!

Regardless of whether you’re buying an apartment, townhouse, rancher or two-story family house, there is nothing quite like your first home. Not only is it an amazing accomplishment and a great sense of freedom and security, but buying your first home is also a great step into the real estate market and can provide you equity and a leg-up towards future expansion.

Are You Ready to Own a Home?
Before you jump on in, there are some things you should ask yourself. As amazing as it is to be a first-time home buyer, it is important to remember that this is likely the largest financial decision you will ever make. There are a few questions you can ask yourself to make sure you’re ready to take this incredible leap!

Are You Financially Stable?
Do you have the financial management skills and discipline to handle this large of a purchase?
Are you ready to devote the time to regular home maintenance?
Are you aware of all the costs and responsibilities that come with being a homeowner? Let’s find out!

COSTS OF HOME OWNERSHIP:
There are two major costs of home ownership – let’s make sure you’re ready to take it on!

Upfront Costs: The initial amount of money you need to buy a home, including down payment, closing costs and any applicable taxes.

Ongoing Costs: The continued cost of living in a home you own, including mortgage payments, property taxes, insurance, utility bills, condominium fees (if applicable) and routine repairs and maintenance. It is also important to keep in mind potential major repairs, such as roof replacement or foundation repair, that may be needed now or in the future. In addition, if you choose a property that is not hooked up to municipal services (such as water or sewer) there may be additional maintenance costs to consider.

Buying Your First Home
If you’ve decided to take the plunge, you now need to start by figuring out what you can afford. Fortunately, there are all kinds of calculators and tools available. A great place to start is the free My Mortgage Toolbox app which can help you find a mortgage broker in your area. A mortgage broker is a great alternative to traditional banks and can help you find the best rate in the market, as well as save you time by doing the leg work for you!

Regardless of whether you choose a mortgage broker or traditional bank, the first step begins with your down payment.

SECURING YOUR DOWN PAYMENT
If you are ready to get your first mortgage, you will need a down payment. The minimum down payment on any mortgage in Canada is 5 percent but putting down more is beneficial whenever possible as it will lower the amount being borrowed. However, if you can only afford the minimum that is perfectly okay! Just remember, if you are putting down less than 20 per cent to purchase your home, default insurance will be mandatory to protect the investment.

Ideally, individuals looking to purchase their first home will have built up a nest egg of savings that they can apply towards a down payment. However, we know this is not possible for everyone so if you don’t have it all saved, don’t worry! Besides being a vital savings plan for retirement, RRSPs can be a great resource for first-time home buyers and can be cashed in up to $25,000 individually towards a down payment. In fact, most mortgage brokers will tell you nearly half of all first-time buyers use their RRSPs to help with the payment. Those first buyers who choose this option will have 15 years to pay it back and can defer these payments for up to two years if necessary. Always remember though, deferring a payment can increase the time to pay off the loan and you will still owe the full amount!

Another option for securing your down payment is a gift from a family member, typically a parent. All that is required for this is a signed Gift Letter from the parent (or family member providing the funds) which states that the money does not have to be repaid and a snapshot showing that the gifted funds have been transferred.

MORTGAGE PRE-QUALIFICATION
The first step to realizing the dream of owning your first home is pre-qualification. This process provides you with an estimate of how much you can afford based on your own report of your financial situation. The benefit of this is that it sets the baseline for a realistic price range and allows you to start looking for that perfect home within your means! Now this process is not a mortgage approval, or even a pre-approval but it helps to establish your budget. You must supply an overview of your financial history (income, assets, debt and credit score) but the real requirements come with the pre-approval process where you submit your actual documentation.

MORTGAGE PRE-APPROVAL
This is the meat of the pre-purchase process and determines the actual home price you can afford. The difference between this and pre-qualification is that pre-approval requires submission and verification of your financial history to ensure the most accurate budget to fit your needs.

A Pre-Approval Can Help Determine:

The maximum amount you can afford to spend
The monthly mortgage payment associated with your purchase price range
The mortgage rate for your first term
Not only does getting pre-approved make the search easier for you, but helps your real estate agent find the best home in your price range. Temptation will always be to start looking at the very top of your budget, but it is important to remember that there will be fees, such as mandatory closing costs, which can range from 1 to 4% of the purchase price. Factoring these into your maximum budget can help you narrow down a home that is entirely affordable and ensure future financial stability and security.

While getting pre-approved doesn’t commit you to a single lender, but it does guarantee the rate offered to you will be locked in from 90 to 120 days which helps if interest rates rise while you are still shopping. If interest rates actually decrease, you would still be offered the lower rate. Another benefit to pre-approval is that, when it comes time to purchase, pre-approval lets the seller know that securing financing should not be an issue. This is extremely beneficial in competitive markets where lots of offers may be coming in.

PROTECTING YOUR PRE-APPROVAL
Refrain from having additional credit reports pulled once you have been pre-approved
Refrain from applying for new credit, closing off credit accounts or making large purchases until after the sale is complete
Be prepared to show a papertrail – any unusual deposits in your bank account may require explanation. Also if your down payment comes from savings, the bank will want 90 days of statements to ensure the funds are accounted for.

FINANCING APPROVAL
You’re almost there! Financial approval is the last step to getting your mortgage and buying your first home! You will need to keep in mind that just because you are pre-approved, it doesn’t guarantee that the final mortgage application is approved. Being entirely candid with your home-buying team throughout the process will be vital as hidden debt or buying a big ticket item during your 90-120 day pre-approval can change the amount you are able to borrow. It is best to refrain from any major purchases (such as a new car) or life changes (such as changing jobs) until after closing and you have the keys to your new home!

In some cases, pre-approval may not be guaranteed for reasons outside of your control. For instance, if the home was appraised below the purchase price, is a heritage home or has safety issues like asbestos, the lender may deny financing. Find a realtor that will be your advocate while showing you homes and always utilize an appraisal and inspection from foundation to roof to ensure that you do not encounter any hidden roadblocks!

CLOSING DAY
Phew, you made it. Closing day is one of the most exciting moments where all the house hunting and paperwork really pays off! It is on this day that you will want to make use of your lawyer or a notary.

To complete the process of closing the sale, your lender gives your lawyer the mortgage money. You would then pay out the down payment (minus the deposit) and the closing costs (typically 1 to 4% of the purchase price). From there, the lawyer or notary then pays the seller, registers the home in your name and gives you the deed and the keys!

Congratulations, you are now a home owner!!

DLC Head Office

What is Title Insurance and Other Questions Answered!.
Title insurance can easily seem like another unnecessary add-on to the already complicated and costly process of buying a house, but nothing could be further from the truth. It can help speed up the process of closing on your new home, while protecting you and your heirs against a variety of unforeseen and expensive risks. It offers cost-effective, long-term, powerful protection, but there’s a great deal to know about it.

Your notary or lawyer is a fantastic resource to learn about this vital protection for you as a homeowner—we’ve compiled some of the most frequently asked questions they receive:

what is title insurance?
Title insurance is insurance that protects against losses from defects in your title—the legal ownership of your property. These defects can include issues with the property survey, the registration of your land title and problems you didn’t know you inherited from a previous owner, like back taxes or improper renovations. Title defects are unpredictable and expensive, but title insurance lets homeowners protect themselves.

Did you know: title insurance is also important in condos?

are title insurance and home insurance the same thing?
It’s common to confuse home insurance with title insurance, or to assume because you have home insurance, you’re fully protected. But they cover completely separate risks, and even their premiums work differently.

Home insurance deals with your home’s physical structure, and the items inside it. Title insurance deals with your legal ownership of the property, even if it’s an empty lot. Home insurance covers potential future physical damage to the home, or losses to replace stolen insured items. Title insurance covers (apart from future fraud) losses from issues that already existed, but that you didn’t know about.

Here’s a classic example of the difference:

Are you out money because your shed flooded or got broken into? You may be covered by home insurance.
Are you out money because the shed turned out to be on your neighbour’s land (a mistake by the surveyor) and you had to move it? That may be a title insurance claim.
Get a full breakdown of home insurance vs title insurance here.

what does title insurance cover?
Most title insurance policies covers losses from problems that already exist but that you don’t know about.

If the survey for your property wasn’t done correctly, you won’t know until you’re forced to move the shed you unwittingly built on your neighbour’s land.
If the previous owner of your home did renovations without a permit, you won’t know until the city forces you to bring your home up to code.
If the previous owner left taxes on the property unpaid, or there were taxes that weren’t addressed or correctly levied on the property when the deal closed, you won’t know until the government comes looking for those back taxes.
Title insurance may cover your losses in each of these scenarios, and many more. Another notable point of coverage is title fraud—a thief using your identity to borrow money against your home, or even sell it out from under you.

See the damage title fraud can do, and how to protect against it

what doesn’t title insurance cover?
It’s important to remember title insurance coverage often depends on whether or not an issue was known about when you bought the policy. While you can always get owner’s title insurance at any time, it’s best to get your policy as you’re buying the house. That way, any issues you learn about afterward can fall under its umbrella—coverage almost never applies to title defects you knew about before getting the policy. There are some instances where title insurance can still protect you from a known title defect, but it’s important to ask your lawyer or notary.

Title insurance covers the legal existence of your property, not the property itself. The losses it covers will often originate from something physical—moving a shed, bringing your home up to code—but the coverage comes from the title defect that led you to be responsible for the cost, not the issue that incurred the cost.

Here’s a quick example: A couple finds a leak in their roof and has to pay to have it repaired, as well as fixing the water damage the leak caused before it was discovered. Does title insurance apply?

It can, if the previous owner had done work involving that roof without a permit. The covered risk is from the previous owner’s lack of a permit, not the possibility the roof might leak.
If the previous work had a permit, or if the old owner never did work on the roof, title insurance unfortunately can’t cover the losses from repairing it.
The most common coverage confusion we see comes from this perceived grey area between home and title insurance. Just because the builder or previous owner did a shoddy job doesn’t always mean title insurance can cover the losses. When the government makes you bring a previous owner’s build up to code, always verify if the work was properly permitted—if it wasn’t, your next call should be to your title insurer to make a claim.

If your neighbor makes a claim against you, for instance alleging your new garage extension encroaches on their property, the issue title insurance checks for is the property survey, not the garage itself.

See more examples of confusion over coverage here.

is title insurance part of western protocol?
Western Conveyancing Protocol (also called WCP or the Protocol) is a system the law societies in the Western provinces created to help close real estate deals faster. A Protocol closing lets the deal “close” on the closing date, even though the land title registration hasn’t happened yet. The seller can get their money and the buyer can move in without waiting weeks for the title registry.

Title insurance is separate from WCP. It offers all of the same benefits—fast closing, registration gap coverage—with much more protection for the buyer. More notaries and lawyers are relying on title insurance to cover the gaps in WCP coverage and make sure you’re properly protected, especially in hotter markets like Vancouver or Calgary.

Learn more about how title insurance is helping buyers in the new Calgary market.

what is duty to defend?
In title insurance, duty to defend is the requirement that the insurer cover not just their insured’s losses, but any legal fees associated with the case. In Canada, the standard is that duty to defend applies if there is a possibility of a claim succeeding.

This clause shows up in all FCT title insurance policies and means the policy also covers legal fees involved in defending your title. There is no dollar limit to this coverage, and it does not reduce the insurance coverage going forward.

B.C.’s duty to defend standards are notably higher than Ontario’s, allowing outside evidence to play a part in determining whether the duty applies. In Alberta, a blanket duty to defend applies until the cause of an incident—and through that, the type of coverage invoked—is determined.

Title fraud is a great example of where the duty to defend clause shines in protecting policy holders. Beyond the damage to your credit score and ability to leverage equity in your home, title fraud is notoriously expensive to resolve legally. It’s not uncommon for legal fees in the tens of thousands to restore ownership of a title—sometimes more, in cases where the victim’s home has been sold and the (innocent) buyer is intent on protecting their purchase.

Duty to defend kicks in when you incur legal fees as part of resolving an issue where the risk is covered under the policy. In short: if the policy covers you in a particular situation, it also covers the legal fees involved with resolving it.

Learn more about the duty to defend included in every FCT title insurance policy here.

is title insurance mandatory?
Yes and no. There are two types of title insurance policies: one that protects the lender and one that protects the property owner—you. The law doesn’t make either mandatory, but most lenders will require you to buy the lender policy as part of securing your mortgage from them. The owner policy is optional, so it’s important to make sure your notary or lawyer includes an owner’s policy as well when you close on your home.

One more huge point in favour of an owner policy is that it lasts as long as your title does. If you refinance your mortgage with a different lender, they’ll get you to buy a new lender policy, but you’ll never need to buy a new owner policy on the same property—you’re still covered. Always make sure when you’re discussing with your notary or lawyer that you’re talking about an owner’s title insurance policy, and never be afraid to ask questions about it coverage.

Here’s how to check if you have a homeowner title insurance policy.

Insurance by FCT Insurance Company Ltd. Services by First Canadian Title Company Limited. The services company does not provide insurance products. This material is intended to provide general information only. For specific coverage and exclusions, refer to the applicable policy. Copies are available upon request. Some products/services may vary by province. Prices and products/services offered are subject to change without notice.

Published & Written by DLC Marketing Team

What is Title Insurance and Other Questions Answered!

10 First-Time Homebuyer Mistakes.
As a first-time buyer, there are some homebuyer mistakes you should avoid to ensure a smooth and successful experience:

THINKING YOU DON’T NEED A REAL ESTATE AGENT
You might be able to find a house on your own, but there are still many aspects of buying real estate that can confuse a first-time buyer. Rely on your agent to negotiate offers, inspections, financing and other details. The money you would have saved on commission can be quickly gobbled up by a botched offer or overlooked repairs.

GETTING YOUR HEART SET ON A HOME BEFORE YOU DO YOUR HOMEWORK
The house that’s love at first sight may not always be what it seems, so keep an open mind. Plus, if you jump in too fast you may be too quick to go over budget or you might overlook a potential pitfall.

CHOOSING A FIXER-UPPER BECAUSE THE LISTING PRICE IS CHEAPER
That old character home may have loads of potential, but be extra diligent during the inspection period. What will it really cost to get your home to where it needs to be? Negotiating a long due-diligence period will give you time to get estimates from contractors in case you need to back out.

COMMITTING TO MORE THAN YOU CAN AFFORD
Don’t sacrifice retirement savings or an emergency fund for mortgage payments. You need to stay nimble to life’s changes and overextending yourself could put your investments—including your house—on the line.

GOING WITH THE FIRST AGENT WHO FINDS YOU
Don’t get halfway into house hunting before you realize your real estate agent isn’t right for you. The best source: a referral from friends. Ask around and take the time to speak with your potential choices before you commit to a realtor.

DIVING INTO RENOVATIONS AS SOON AS YOU BUY
Renovations may increase the value of your home, but don’t rush. Overextending your credit to get upgrades done fast doesn’t always pay off. Take time to make a solid plan and the best financial decisions. Living in your home for a while before renovating will also help you plan the best functional changes to the layout.

CHOOSING A HOUSE WITHOUT RESEARCHING THE NEIGHBOURHOOD
It may be the house of your dreams, but annoying neighbours or a nearby industrial zone can be a rude awakening. Spend some time in the area before you make an offer and talk to local business owners and residents to determine the pros and cons of living there.

RESEARCHING YOUR BROKER AND AGENT, BUT NOT YOUR LAWYER
New buyers often put all their energy into learning about mortgage rates and offers. But don’t forget that the final word in any deal comes from your lawyer. Like finding a real estate agent, your best referral sources for a lawyer will be friends and business associates.

FIXATING ON THE LOWEST INTEREST RATE
A reasonable interest rate is important, but not at the expense of heavy restrictions and penalties. Make a solid long-term plan to pay off your mortgage and then find one that’s flexible enough to accommodate life changes, both planned and unexpected. Be sure to talk your Dominion Lending Centres mortgage professional to learn more.

OPTING OUT OF MORTGAGE INSURANCE
Your home is your largest investment, so be sure to protect it. Mortgage insurance not only buys you peace of mind, it also allows for more flexible financing options. Plus, it allows you to take advantage of available equity to pay down debts or make financial investments.

If you are ready to search for your first home, don’t hesitate to reach out to a Dominion Lending Centres mortgage professional today for expert advice you can count on.

The DLC Marketing Team

Relocate or Renovate.
Like Lighting in a Bottle. That’s how Todd Talbot describes the chemistry between him and Jillian Harris, his co-host of the reality TV series Love It or List It Vancouver. There’s an undeniable electricity that flows between the pair who have battled against each other through 104 hour-long episodes of the home-design series. Sparks fly, but ultimately, both have the same goal: to find a solution for homeowners whose spaces simply don’t suit their needs.

In the “love it” corner is Harris, an interior designer (she wore her heart on her sleeve on The Bachelor and The Bachelorette) whose strategy is to help homeowners kiss and make up with their space, thanks to her design-savvy renovation. Talbot, a realtor (he’s been acting on stage and screen since he was a kid), is firmly in the “list it” corner, coaching quarrelsome couples to sell and start fresh.

The sparring is real, but there’s no bad blood between Harris and Talbot. “Jill and I really agree with each other 99 per cent of the time,” says Talbot. “We’re like brother and sister with each other, on camera and off.”

EMBRACING CHANGE
Buy or renovate? Talbot says the answer isn’t absolute. “Generally speaking [buying a house]; it’s a really fun journey. And it can be really fun on the reno side,” he says. “Life is lived in the grey areas, the nuances in between.” Those shades of grey involve negotiation and prioritization, among other practical and philosophical considerations that happen behind the scenes.

Off set, Talbot is a dedicated DIYer. “My happy place is building and renovating. I manage all my rental properties and do almost all the maintenance,” he says. He even renovated the house he shares with his wife and two children, located in Lions Bay, a sleepy seaside town in B.C. But that doesn’t mean they’ll live there forever. Like the homeowners featured on the show, Talbot and his wife wrestle with opposing forces. “Are we going to sell? Stay? Move?” Relocation to a condo in the city is a real consideration.

That struggle is what makes the show’s appeal universal. Our lives are constantly shifting. Babies are born and kids move out. Jobs change and communities evolve. Still, many homeowners are reluctant to step outside of their comfort zones, says Talbot, noting that the people who come on the show are fixated on location. “I’m the opposite: I’m a change guy. I love the idea of a different home in a different area. Nothing excites me more.”

As the TV series closes in on its fifth year of filming in June, Harris, a new mom, reflects on how her design sensibilities have shifted. “Now that I’m a parent, especially, I’m leaning towards more colour, less clutter and softer finishes, whereas before I was all about everything being white,” she says.

No two families are alike, but all are in desperate need of change, says Harris. She eases the transition, giving growing families more functional space within the existing square footage or cozying up a family home that feels empty after the kids have moved out. Each has their own wants, needs and personal style, which Harris tries to tease out of the homeowners so she can design workable spaces they love. “It’s our job to show them their best options and help guide them towards the right choice for them,” says Harris.

The obstacles families face, however, go beyond bad design and unpredictable real estate markets. A recent episode of Love It or List It Vancouver, where the homeowner uses a wheelchair, presented a new type of design challenge for Harris. “I wanted to think about every part of her home she would experience, from the front entrance to the kitchen cabinetry to being in the living room with her family. Even though they ultimately chose to list [the house], that episode really stuck with me and reminds me not to take things for granted.”

FINANCING FIRST
Whether overhauling an aging home with a sinking foundation, or buying bigger in a hot real estate market, those decisions are guided by budget. “People don’t want to talk about money. It’s not sexy,” says Talbot. His true passion for real estate is connected with the financial side. “What I really love doing is empowering people and coaching them to be able to make the decision to fulfil their vision.”

Talbot believes that gathering information and building knowledge is essential, rather than solely relying on an expert’s perspective. When you start making decisions based on instinct, it takes lots of the worry out of homeownership. He also believes everyone should view real estate as an investment and determine the end game of the property before they buy it: when they’re going to sell it and who they’re going to sell it to.

“At the end of the day, for anyone making decisions about renos or buying and selling, that’s a very personal choice and a choice that ultimately the homeowner takes responsibility for,” says Talbot.

Harris also advises thinking long-term. “It’s so important to look at both your five and 10-year plan as a family. If your house does not have any additional square footage to work with, then maybe a lipstick reno and a quick sell is your best option,” she says. “If your home does have extra space [and] it’s just not being utilized well, but you love the neighbourhood, then I would suggest renovating it to support your family for years to come.”

HOMEOWNERSHIP FOR ALL
For his part, Talbot is rethinking the entire ethos of homeownership. “In today’s day and age, we don’t live the same way as our grandparents did, [who] lived in their houses for 50 years. [Now] houses are more designed to facilitate lifestyle than be the lifestyle themselves,” he says.

“I’m really interested in the idea of redefining the Canadian dream of what makes a great house.” I think we’ve gotten off target as a society: 5,000 square feet is indulgent!” Instead, Talbot says it’s about those shades of grey and finding the sweet spot where financial responsibility, sustainability and quality of life intersect.

That’s a tough sell for some. Especially when our social media feeds are awash with idyllic images of families frolicking in sprawling backyards and cooking in couture kitchens. Dream home envy indeed. Harris sees beyond the soft filters and careful cropping and suggests homeowners look inward.

“I think the best thing is to identify what’s important to you and then build a plan around how to achieve that,” she says. “Or, be on Love It or List It Vancouver and have Todd and I figure it all out for you!”

TODD’S FIRST MORTGAGE
“Real estate kind of snuck up on me. I didn’t get into it for the money,” says Talbot who was working as successful actor when he started renovating.

“I’ve always struggled with this: being an artist and this financial fixation.” Talbot describes his first foray into the real estate market. “I bought a two-bedroom, two bathroom condo in [the Kitsilano neighbourhood in Vancouver], which happened to be the display suite. I had no furniture so I tried to negotiate in all the staging furniture.

They didn’t go for it. The only way I could swing buying my first place was to convince my buddy to rent the other room from me and that ended up subsidizing half my monthly costs. I drew up what I would later learn was a rental contract, literally on the back of a napkin. We lived together for three years before that property turned into a rental property. I refinanced it many times and funded multiple other properties with it.

I learned huge lessons owning that first property, which I sold a few years ago.”

JILLIAN’S DESIGN SECRETS
Harris is expanding her airy aesthetic of white-on-white and introducing saturated splashes of colour. Here, she shares five tips on finding your own style. Mix it up “I like to mix vintage with all sorts of eclectic styles. I like a tad of whimsy in a space and I love to see a person’s personality and life experiences shine through in the décor.” Harris also likes blending textures: “I love mixing muslins with thick rugs and knits and sequins and sparkles.”

Build Layers: Start with a blank canvas and build layers within the room. Anchor a room with an area rug, then add larger investment pieces such as sofas and loveseats. Then add in smaller pieces such as side chairs, ottomans and table lamps.

Get Colorful: “I have had a lot of fun over the years experimenting with coloured kitchens, using finishes like olive green and royal blue.”

Add Artwork: Harris suggests finding something inexpensive yet valuable in a sentimental way to inject polish and personality into your home. Or making a piece from meaningful items. “Frame flies from your great grandpa’s fly-fishing collection.”

Accessorize: Achieve a luxe look for less with a high-low mix of accessories, such as “steals” from stores such as Home- Sense and Target and “splurges” from boutiques, which act as “the icing” on the cake. “It gives your house that look of timelessness and richness.”

DLC Marketing Team
Published April 6th, 2021

Subject Free Offers – Are They a Good Idea?

This is a question I’ve been asked a lot lately as the market heats up, multiple offers are common, homes go over asking price, and buyers become discouraged.

The short answer: don’t do it!

The long answer : You can be pre-approved – be an A+ client with excellent qualifications, great credit, established career and solid downpayment, BUT the property itself may be the issue. You cannot give 100% assurance of financing without the specific property details.

Issues that may come up in an appraisal that would provide challenges to financing:
Asbestos
Former Grow-Ops, even remediated ones
Remediated Drug Labs
Leased land
Zoning – for example – commercial/residential, resort
House size too small
Land value is significantly more than the dwelling value
Lead plumbing

If you are purchasing a Strata property, the strata docs themselves may have red flags for lenders that may provide challenges to financing:
Contingency fund too small
Mandatory rental pools
Deprecation report
Self-managed strata
Upcoming Special Assessments/Levies

Another problem we see arise is the ability to obtain fire/home insurance. This is a mandatory condition for all mortgages and there can be instances that make this tricky, such as:
Fire season, often if there is an active fire within 25 km of your home, you cannot obtain insurance
Flooding/natural disasters which can also impede the ability to obtain home insurance in your area
60-amp electrical service, you may be required to upgrade before you can get home insurance
Oil tank buried on the property, it may be causing environmental problems and need to be removed

These are just a few issues that may arise, the short answer is write in subject to financing, and work with an experienced realtor who can help present the offer in the most favourable light.

Nicole Crichton

Author:  Dominion Lending Centres

As cities continuing to grow bigger and busier, a rural home beyond those limits can seem like a dream come true! However, before you dive into country living, there are a few things you should know! Especially, how different it can be to qualify for a mortgage.

1. CHECK THE ZONING

When it comes to buying rural property, it is important to check how the property is zoned. This is vital! Zoning will determine how you are able to use the land, as well as the types of buildings that are allowed and where they can be located. Is the property zoned as “residential,” “agricultural” or perhaps “country residential”?

Zoning could affect the lenders available to you and what you qualify for, as well as what you can do with that property. Differences in lending and foreclosure processes, has caused some lenders to be hesitant with financing mortgages in agricultural/country residential zones.

2. PROPERTY BOUNDARIES

Once you have determined how a property is zoned, it is important to look at the land. Requisitioning a survey early in the process will help mark the exact boundaries of your property to avoid future disputes. This is also a good time to get an appraisal done on the land and its value.

3. CONSIDERING THE LAND AND YOUR MORTGAGE

What many borrowers don’t realize is that land has a drastic effect on mortgage qualification and what you can borrow. In fact, most lenders will mortgage: (1) house, (1) outbuilding and up to (10) acres of land. If you have a second building or extra land that is being purchased, you will need to consider additional funding on top of your typical 5% down payment.

4. WATER AND SEWAGE

When it comes to rural living, many people draw water from private wells and utilize septic tanks for sewage. To ensure everything is safe and in working order, it is a good idea to have an inspection done on the septic tank and water quality as a condition on the purchase offer. Due to the nature of these properties, be advised that inspections may cost more than it would in the city. However, it is important as lenders may request potability and flow tests!

5. COVERAGE MATTERS!

Coverage matters, especially when you are living away from the city. When it comes to rural properties, there are two types of insurance that you should consider:

1. Home Insurance: When it comes to rural living, this can be more expensive than city homes due to the size and location of the land and distance from fire stations and hydrants.
2. Title Insurance: This is vital for rural purchases and will protect you from unforeseen incidents with the deed or transfer. It will also alert you to any improper previous use of the property (such as dumping for waste).

If you are thinking about purchasing a home in a rural area, be sure to speak to a Dominion Lending Centres mortgage professional before you do anything. They can often recommend a realtor who specializes in rural properties and knows the area best. A DLC Mortgage professional can also help ensure you understand any differences in the mortgage process and qualifying that come with rural purchases.

Author:  DLC Marketing

I can’t stress enough how important an appraisal can be in the mortgage space. Many small tips and tricks to help maximize your home value. Awesome article from my colleague Kelly below check it out

Need an Appraisal – 7½ Tips for Success

Do you need to get a current value of your property? Then you are going to need an appraisal.

Banks and other lending institutions want to know the “current” market value of your home before they consider loaning money on the property. An appraiser checks the general condition of your home and compares your home to other similar homes which have recently sold in order to define a comparable market value for your home.

Here are 7½ tips that can help you get top current market value.

Short version – Prepare your home as if it was going to be sold!!

Long version… If a picture is worth a thousand words, think what kind of story the pictures from your home are telling?

In the world of mortgages, lenders seldom set foot on the property before making a loan decision.

Instead, they rely on their trusted list of approved appraisers. All a lender usually gets is the appraiser’s pictures of your property and their comments about how your home was appraised.

Tip #1 – Clean up. The appraiser is basing the value of your property on how good it looks. Before the appraisal, prepare your home as if you’re selling it. Clean and declutter every room, vacuum, and scrub. Do whatever you can to make your home as presentable as possible.
Tip #2 – Pay attention to curb appeal. An appraisal is all about first impressions. And the very first one the appraiser gets is when they walk up to your property. Spend an hour or two making sure the outside of your house, townhouse or condo is warm and welcoming.

Tip #3 – The appraiser must be able to see every room of the home, no exceptions. Refusal to allow an appraiser to see any room will be noted in the appraisal can be a game stopper. There are times when it is not appropriate for the appraiser to take pictures of certain things and appraisers and lenders understand this, but refusal to grant access could kill your deal.

Tip #4 – Make a list of upgrades and features. It’s important that the appraiser is made aware of any updates you’ve made, especially those which are hidden, like new plumbing and electrical. If possible, give the appraiser this list. That way they have a reference as to what has been updated and how recent or professional that work was done.

Tip #5 – If you need to spend to update, be prudent. Many people think “bathrooms and kitchens” are the answer for getting high prices on home value. They aren’t. First, consider that kitchen and bathroom remodels can be some of the priciest reno costs. For that reason, it may be more prudent to spend a bit of money, for just a bit of updating. Paint, new flooring, new light or plumbing fixtures don’t break the bank, but can provide a dramatic impact and improve your home’s value.

Tip #6 – You know your neighbourhood better than your appraiser does. Find out what similar homes in your neighbourhood have sold for. Your property might look like one down the street, but if you believe the value of your property is worth more, let them know why.

Tip #7 – Lock up your pets. I’m sure most appraisers like pets, but some may be put off by your cat rubbing against their leg or the dog barking or following them around.

Tip #7½ – One last tip – don’t annoy the appraiser with questions and comments and follow them around. Instead, simply be prepared to answer any of their questions and, if you do have concerns or queries, wait until they’ve completed their viewing of the property, then ask.

Mortgages are complicated, but they don’t have to be… Engage a Dominion Lending Centres mortgage expert!

5 Mistakes First Time Home Buyers Should Avoid

Buying a home might just be the biggest purchase of your life—it’s important to do your homework before jumping in! We have outlined the 5 mistakes first time home buyers commonly make, and how you can avoid them and look like a Home Buying Champ.

1. Shopping Outside Your Budget
It’s always an excellent idea to get pre-approved prior to starting your house hunting. This can give you a clear idea of exactly what your finances are and what you can comfortably afford. Your Mortgage Broker will give you the maximum amount that you can spend on a house but that does not mean that you should spend that full amount. There are additional costs that you need to consider (Property Transfer Tax, Strata Fees, Legal Fees, Moving Costs) and leave room for in your budget. Stretching yourself too thin can lead to you being “House Rich and Cash Poor” something you will want to avoid. Instead, buying a home within your home-buying limit will allow you to be ready for any potential curve balls and to keep your savings on track.

2. Forgetting to Budget for Closing Costs
Most first-time buyers know about the down payment but fail to realize that there are a number of costs associated with closing on a home. These can be substantial and should not be overlooked. They include:
• Legal and Notary Fees
• Property Transfer Tax (though, as a First Time Home Buyer, you might be exempt from this cost).
• Home Inspection fees
There can also be other costs included depending on the type of mortgage and lender you work with (ex. Insurance premiums, broker/lender fees). Check with your broker and get an estimate of what the cost will be once you have your pre-approval completed.

3. Buying a Home on Looks Alone
It can be easy to fall in love with a home the minute you walk into it. Updated kitchen + bathrooms, beautifully redone flooring, new appliances…what’s not to like? But before putting in an offer on the home, be sure to look past the cosmetic upgrades. Ask questions such as:
• When was the roof last done?
• How old is the furnace?
• How old is the water heater?
• How old is the house itself? And what upgrades have been done to electrical, plumbing, etc.
• When were the windows last updated?

All of these things are necessary pieces to a home and are quite expensive to finance, especially as a first- time buyer. Look for a home that has solid, good bones. Cosmetic upgrades can be made later and are far less of a headache than these bigger upgrades.

4. Skipping the Home Inspection
In a red-hot housing market, a new trend is for home buyers to skip the home inspection. This is one thing we recommend you do not skip! A home inspection can turn up so many unforeseen problems such as water damage, foundation cracks and other potential problems that would be expensive to have to repair down the road. The inspection report will provide you a handy checklist of all the things you should do to make sure your home is in great shape.

5. Not Using a Broker
We compare prices for everything: Cars, TV’s, Clothing…even groceries. So, it makes sense to shop around for your mortgage too! If you are relying solely on your bank to provide you with the best rate, you may be missing out on great opportunities that a mortgage broker can offer you. They can work with you to and multiple lenders to find the sharpest rate and the best product for your lifestyle.

Remember, when you are buying a home, you are not alone! The minute you decide to work with a Dominion Lending Centres Mortgage Broker you are bringing on a team of individuals who are there to help you through the process from start to finish.