BUYING A HOME

Buying a home is one of the biggest purchases you’ll ever make. Whether you’re a first-time buyer or if you’ve purchased a home before, Paula can help you navigate the process with ease, from determining your budget to signing the final paperwork.

Determine Your Budget Outline Your Priorities Consider the Costs Working with Paula

DETERMINE YOUR BUDGET

The first step you need to take when buying a home is determining your budget. How much can you afford to spend on a new home?

Before you make an appointment with a bank or mortgage broker, take an honest look at your living expenses and your current savings plan. Once you understand your current financial situation, you can approach your bank or mortgage broker about getting pre-qualified for a mortgage. If you aren’t sure where to start, your banker or mortgage broker will help you understand your finances.

When you buy a new home, it’s important to choose a property that is within your means. If your home ownership expenses are too high to maintain your lifestyle, you may be considered “house poor”. A professional mortgage broker will help you determine how much you can afford to spend on a house so you don’t invest in a property that exceeds your means. To get a rough idea of how much you can afford to spend on a new home, try using our mortgage calculator.

Step 1: Determine your Budget (you're here)

Step 2: Outline your Priorities

Step 3: Consider the Costs

Step 4: Working with Paula

OUTLINE YOUR PRIORITIES

Once you know how much you can afford to spend on a new home, you can begin thinking about the house you want to purchase. Understanding your priorities will help Paula find you the best home to suit your needs. Paula will sit down with you and your family to help you create a wish list of the features and amenities you are seeking in your new home. There are a number of factors you should consider when shopping for a new home, including:

• Location: Do you want to live in a city, town, or in the countryside? Are there any neighbourhoods you’d prefer to live in? Would you prefer to be near your family and friends? These are just a few of the things you should consider when deciding where you might like to live.
• Size and House Layout: Considerations of size and house layout may include how many rooms you want or need, how the home is situated on the property, or whether you prefer a single- or multi-storey home.
• Nearby Schools: If you have or are planning to have kids, research whether any schools are nearby. Visit the Thames Valley District School Board or London District Catholic School Board websites to learn more about schools in London, Ontario. School performance rankings are available from the Fraser Institute. (links below)
• Commuting Times: How far is your new home from work? Is it important for you to live near your workplace or public transit?
• Nearby Amenities: Do you want to live near locations like grocery stores, malls, parks, or other frequently visited places? Learn more about parks in London, Ontario and discover what else you can explore in the Forest City at the City of London website. (links below)
• Upgrades or Renovations: Consider whether any upgrades or renovations have been completed, as well as whether your new home will require expensive upgrades in the next few years

CONSIDER THE COSTS

There are a number of costs beyond the purchase price of the home to consider, including:

• Deposit cheque: Your deposit cheque is the first expense you will encounter when you purchase a new home. It acts as consideration for your purchase, and also binds you as the buyer to your contract. Deposits are usually between $20,000 and $50,000.
• Home inspection: When you buy a new home, you may wish to have it inspected by a professional home inspector. A home inspector will complete a comprehensive and thorough investigation of the home you’re interested in purchasing. After the inspection, they will provide you with an inspection report that outlines the condition of the property at the time of inspection, including any defects that may require your attention.Home inspection fees cost approximately $500, depending on the size and condition of the home. When you hire a home inspector, search for one that belongs to a provincial or industry association, such as the Canadian Association of Home and Property Inspectors. Paula can connect you with a home inspector in your area.
• Legal fees: Every home sale and purchase requires the services of a lawyer. Your lawyer will make sure you obtain what you are entitled to in your agreement. Legal fees for a home purchase cost approximately $1,750, including disbursements (the costs incurred by your lawyer).
• Land Transfer Tax: The buyer, not the seller, always pays any Land Transfer Tax. This tax will be arranged by your lawyer, and will be paid on your closing date when the deed to your new home is transferred to your name.
  In Ontario, Land Transfer Tax is based on a sliding scale:
  0.5% First $55,000
  1.0% $55,000-$250,000
  1.5% $250,000-$400,000
  2.0% Over $400,000
  2.5% over $2,000,000 where land contains one or two single familly homes.

• Other possible costs include property tax prepayment, surveys, appraisals, title insurance, status certificates, new home warranties, and moving expenses.
• If you’re seeking a home inspector or real estate lawyer, Paula can connect you with a reputable professional who can help you complete your home purchase.

Please note: All costs are approximate and must be verified by the buyer/seller. Additionally, there may further costs incurred when buying/selling a property.

Step 1: Determine your Budget

Step 2: Outline your Priorities

Step 3: Consider the Costs (you're here)

Step 4: Working with Paula

WORKING WITH PAULA

Paula knows to ask you the right questions in order to guide you in making the right decisions. She will help you find the perfect property that suits your lifestyle and equally important, a property that has great resale value.

“I know London and have been through hundreds of homes. I will listen with care to what you tell me. I will be by your side until we find what you are looking for.” – Paula Hodgson

Paula also has a vast network of realtors, clients and other contacts in order to assist in your search. She will negotiate the best possible price for you and will support you through the entire process. You do not want to buy a house without Paula looking at it first!