Tina Kaizer — your real estate expert for the Sunshine Coast, British Columbia, Canada

Understanding the Buying Process

The following steps are designed to explain the property buying process for those of you who are new to buying and also to refresh the memory of those who have not purchased a property recently.

Step 1: Mortgage Pre-Approval

1. What price range can you afford
2. Time to speak to a mortgage specialist at your bank or financial lending institution to obtain a pre-approved purchase price
3. Do you need to sell first?

Step 2: Home Search

1. What type of home are you looking for?

Remember to be flexible with your parameters so when you are looking you don't narrow your search too much and miss a good property.

• Location
• Price range
• Style of property - Attached vs Detached
• Site influences: ie. view, waterfront, rural, schools, exposure, subdivision
• Lot size
• Age of property
• Bedrooms / Bathrooms

Step 3: Viewing Houses

1. View chosen houses

Step 4: Making An Offer

1. A detailed CMA ( Comparative Market Analysis) will be prepared for that home, this will clearly define it's market value. As well as reviewing previous listings, sales and length of time on the market

Step 5: Follow- Up Process

1. To follow through from helping you to arrange finance
2. Review relevant documents
3. Streamlining the completion process
4. Handing you the keys on moving day
5. Keeping in touch for the long term

» View important buyers contact numbers on the Sunshine Coast

#1 Objective is to obtain your chosen home for the best price. I produce an offer to purchase that customizes your best interests, and use clauses and phrases as safeguards to protect you in the process.

Typical offers make the purchase subject to the following:

• to you receiving suitable financing
• obtaining a professional building inspection
• approving and receiving the title search and property condition disclosure statement

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Awareness of Additional Costs

Upon completion of the transaction there are a number of additional costs which will be due and payable in addition to the agreed purchase price.

These costs include:

• Adjustments - prepaid or payable annual expenses will adjusted on a prorated basis for the year and either credited or debited to the funds you will need. These generally include property taxes, condo/home ownership fees, rental income, etc
• Property Purchase Tax – the province of BC charges 1% on the first 200,000 of the agreed price and 2% of the balance on all real estate transactions. In the event that you are a first time home purchaser and the price is under 375,000 for a primary residence this tax will be waived.
• GST- if you are buying a new residential property or a property owned by a company, or that has been used for commercial properties, The Federal Goods and Services Tax(GST)of 6% of the purchase price may be payable. Often the responsibility for the payment of this tax is part of the negotiation. H0w you plan on using your property may also allow you to defer any payment owing. GST is a complex topic and applies differently from transaction to transaction, you should ask for accounting advice from a professional on how to proceed with these costs.
• Legal Fees –Vary depending on the lawyer and the complexity of the transaction. 1500-2000 is not unusual. Ask you legal representative what his fee structure is. Your realtor can provide you with a list of lawyers familiar with transactions in Whistler.

I am a first time buyer-do I have to pay Property Purchase Tax?

If the property you are buying is to be used as your primary residence and is less than $375,000 the BC Property purchase tax is waived. You also must not own a property anywhere else in the world, have lived in Canada and BC full time for the last 12 months , and move in within 90 days and live full time for a minimum of a year. This exemption does not apply to rental or commercial properties.

How much Down Payment do I need?

If this is a second home purchase you will need a minimum down payment of 25% of the purchase price. (30-35% if you are a non-resident of Canada). Down Payments will vary depending on what type of property you are considering and at what price range.(Land requires a higher percentage down payment)A number of High Ratio solutions may be available as well. Please consult with your realtor or a mortgage specialist for specific details on a particular property.

I am not from Canada, do I need to use a Canadian Bank for Financing or I can use my bank back home.

Although you are not required to use a Canadian Bank for financing, it is unlikely that conventional financing will be made available from a financial institution from outside the country. However, individual situations will vary and you are encouraged to investigate all potential sources of potential financing prior to making a purchase decision.

I am from overseas, are there any restrictions on buying in Canada?

There are no restrictions on foreign ownership of real estate in Canada. However, there are financing and taxation considerations that will determine the ideal form of ownership for an overseas owner that should be reviewed. Your realtor will be familiar with these issues or can direct you to an expert to assist you

How do I arrange Financing?

Financing for your purchase is available for from a variety of sources in Canada. Your realtor will direct you to a selection of choices or will introduce you to an expert in arranging financing on your behalf (a mortgage broker). It is likely that you will need to provide a net worth statement and proof of income as part of this process.

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