Three Not-so-obvious Things About Buying a House   A lot of people want to buy houses in Canada but don't know how many steps there are, where to start, and the legal requirements. This post will try to cover most aspects of buying a house and give you an idea about this process. Before starting with anything else, we should define what we mean when we say "house". Here, we're going to talk about residential real estate: single-family homes, condos, townhouses, and multi-family homes. Before we dive into some juicy specifics, here are some general things you might want to consider. Location is an important factor when buying a house. It all starts with having a glimpse of your ideal future in mind. Are you looking for a cozy oasis in a busy city centre or a peaceful getaway away from the hustle and bustle? Think about local schools, stores, and transportation systems (subway stations, bus stops etc.). Don't neglect your hobbies or your favourite haunts either! Nevertheless, location comes at a cost, and now you have to consider the financial aspect of home buying. House prices depend on many factors, not just its size and location but also the state of it (renovation costs), the house's features that are not visible from the outside (condition of house's foundation, roof etc.), renovations that need to be made before moving in etc. It is important for your financial future to take all these variables into account. First, let's talk mortgages. Mortgages, what do you need to know? In essence, a mortgage is a loan to purchase a house. Approval of your mortgage will depend on your credit history. It involves an assessment of your income, debts, assets etc., so make sure you fill out all tax returns and monitor your credit card statements. Keep all of your financial documents in order. Ideally, you want to avoid mortgage loan insurance. That means that your down payment should be equal to or more than 20% of the house's price. Let's talk a little more about the two main types of mortgages in Canada: Variable Rate Mortgage A variable rate mortgage means that your interest rate will switch from being fixed to variable after a certain period (usually between one and five years). Your mortgage provider should give you at least two months notice before happens so that you can arrange for alternative mortgage plans, if you so wish. The advantage of this type of mortgage is that should interest rates fall, your mortgage payments will be lower. The disadvantages are that should interest rates rise or you wish to remortgage before the end of the variable term, you may find yourself unable to do so unless you pay an early repayment fee. Fixed Rate Mortgage A fixed mortgage is a mortgage where the monthly payments are set at a certain interest rate for the entire duration of the loan. The advantage of this type of mortgage is that while you are committed to paying out a fixed rate until the end of the term, you are safe from rate fluctuations. One of the main disadvantages is that if you intend to move or remortgage before your mortgage is up for review, it can be difficult to do so. If you make a mortgage transfer request within the fixed term, your current mortgage provider will usually charge you an early repayment fee. This type of fee can make moving house more expensive, and therefore less desirable. Now that you know more about the financial side of things, it's important to make sure all that research doesn't go to waste. That's where the home inspection comes in. Home inspections and why have them? A home inspection is a pretty standard part of buying a home, but it's not something that can be left to amateurs. Inspectors will make sure no surprises pop up later on when it comes time to close the deal. Read on for tips on what to look out for! Water Heater Your home inspector will be looking into the water heater. They should check that it is big enough for how many people live in the home and that it's up to code with everything else around your home. Most people don't know about the costs of replacing and maintaining a hot water heater until it dies and they take time to research replacement options. This is an expensive piece of equipment, making sure that you understand the lifespan of the device in the new house can save you some nasty surprises. House Foundation The house foundation needs to be inspected because there are major concerns that can impact you for a long time. Improper excavations and tree roots can create cracks in the house's foundation. It doesn't just sound like bad news. Cracks in the foundations threaten the integrity of your home and open up your lower floors to issues like water seeping in and more. Cracks are fixable, but you need to know about them as soon as possible. Electrical System The home inspector will look over your home's electrical system and make sure all of it is up to code. This includes things like where it comes into the home (exterior), how good the insulation is on it outside, if there are enough sockets per room, and more. If you're moving from a home with an old electrical system, this part of the inspection might cause some anxiety - but don't worry! Your home inspector will find out if anything needs to be done to update your home's electrical system to code. Roofing System Sleeping under starlight is supposed to be a special experience, not one you want to happen before the top of your house is missing. Though a situation as drastic as a missing roof is easy to see for any layman, a home inspector can find more realistic issues that may need swift fixes. It's better to know there's a problem and to get it fixed than to try and cover it up with paint; raccoons might look cute but they shouldn't sneak in through a hole along with the rain and the snow. Walls and Ceilings The home inspector will also check for any water damage on the walls or ceiling of your home, especially if there is visible mold growth. If your home inspection doesn't catch this kind of thing before closing you might find yourself dealing with some pretty hefty costs later on, not to mention the potential health and safety risks. This can be hidden behind drywall or inside wall cavities so make sure everything has been inspected thoroughly! If you want a home inspection done in your home but aren't sure what exactly your home inspector should be looking at, you can always ask them for a list of home inspections that they've done in the past. That way you can have an idea of what they're going to cover when it comes to your home! The inspection can reveal hidden costs or maybe nice surprises. After taking a big bet on the right house, it's only right to make sure moving in is as smooth as possible. But beyond material matters, you need to make sure all your ducks are in a row. Legal Matters When you buy an existing house there are legal issues that must be dealt with during the title registration process.  It is very important to understand legalities related to buying a home in Canada so you can avoid any legal challenges after you've made your purchase. Legal Requirements for Title Registration Before the legal transfer of title takes place, the legal owner must register legal proof of their ownership with a government land registry office or "LRO" (Land Registry Office). There might be legal fees associated with this step in the process however these expenses are usually minor when compared to potential costs encountered if legal complications arise later on. For example, legal expenses to defend yourself in a legal dispute can be significant. Rights of Occupants A legal land registry document should have the legal right-of-occupancy clause included so that occupants are protected from being removed from the property. If you are buying a house with tenants living in it, make sure that there is no legal "entitlement" period that will allow your future tenant to stay in the house for an extended period of time after their lease expires. You want to avoid any legal complications where tenants believe they have the right to stay even if their tenancy agreement has ended. If these types of legal issues exist, get legal help before agreeing to buy this home or get legal advice before signing legal documents. Environmental Contamination If you are purchasing a house that has been previously used for industrial or commercial purposes and there is any possibility that environmental contamination might exist, get legal help to ensure your legal rights and remedies are protected. Your legal rights should be registered so you can take action if any disputes arise later on concerning environmental issues. If the seller doesn't provide legal disclosure about environmental concerns, make sure these types of issues are addressed by the seller in writing even though this information cannot be legally enforced - it will simply allow you to make an informed decision when deciding whether or not you buy the property. Buying a house can feel overwhelming and daunting, but armed with the right knowledge you can take on the process to find the home that's right for you. View All Homes For Sale in Greater Vancouver >>> About Search Home Listings SearchHomeListings.ca has simplified the home buying and selling process by giving you superior tools with up-to-the-minute information including active homes for sale, sold homes, market reports, and a home valuation tool! We have a team of success managers on standby to support you with setting up your saved home search and agents ready to take you out on a tour. Tap into our industry experts from inspectors, to contractors to interior designers to provide you with the best prices and service possible. Everyone attached to our website has been rigorously vetted and is made up of caring, knowledgeable professionals that work tirelessly to help you to make your home buying experience as stress-free as possible. Contact us today to see how we can help!  Sites We Follow Google Facebook Twitter