Ready to buy?
If you’re still shopping for your home, this first step could save you thousands. Get pre-approved and hold a great mortgage rate. If you’re done shopping and have an accepted offer on your new home, confirming your financing is in order will likely be a condition of the purchase. Again, by doing your mortgage application as quickly as possible, you can be protected from a rising rate environment which would increase your payments and could cost you a lot of money.
At Taurus, we can guarantee your rate for up to 120 days from the time you’re approved; to the day you close your home purchase. If rates increase in that time, you’re still guaranteed your original rate. If rates decrease, you’ll get the lowest rate in that time period. This costs nothing to you, and could end up saving you thousands.
Why Taurus?
Our commitment to you is to develop a level of trust and understanding that will allow us to service you now and into the future. We do this by staying true to our commitment:
- Outstanding customer service built on a level of trust and information sharing
- To provide you with product/market knowledge and relevant options
- To provide advice and solutions that make sense
- To allow you to realize your dream of home ownership
- To simplify the mortgage process, remove the stress, and make things fun
What can you expect throughout the process?
Believe it or not, buying a home is a very straightforward process. The key is to seek the advice of a mortgage professional that can walk you through the steps and keep things simple. At Taurus, this is our job. To be with you side by side, explain the process in plain English, and let you enjoy this exciting step in your life.
The process of buying a home can be summed up in just a few steps:
- After finding your home, you submit an Offer to Purchase (this is your legal offer on the home which is handled by your realtor).
- Once accepted, you finalize your mortgage application and get the signed commitment from the lender (this is their legal commitment to supply you with the financing, which is handled by Taurus).
- Lastly you’ll meet with your lawyer (notary in Quebec) to sign final documentation. The lawyer will also handle the money transactions from the lender to the seller of the home. By working with professionals you can trust, you have an advisor and confidant for every step of the process.
What closing costs should you budget for?
There are a number of costs you should be aware of, and budget for in order to purchase your home. Below is a list of items to consider:
Land Transfer Tax
A tax charged to the purchaser of the property for transferring the title of the land (between 0.5% and 2.0% of the purchase price)
Legal Fees
Your lawyer will review and finalize your mortgage documents, Offer to Purchase agreement, search title registration, and have you sign final papers to take ownership of the home (range from $500 to $2,500).
Fire/Property Insurance
Required prior to closing. Covers the value and contents of your home (can cost up to $700 annually)
Adjustments
You may be required to reimburse the current owner of the home you are purchasing for fees they have prepaid. These items can include utilities, property tax, and condo fees (depends home to home, can be up to $1,000).
Estoppels Certificate
Only required for a condominium purchase. This is reviewed by your lawyer to ensure the condo corporation is stable legally and financially.
Appraisal Fees
Normally for conventional mortgages (a conventional mortgage is when the mortgage amount is less than 80% of the home purchase price. This can range from $150 to $400)
Home Inspection
Used to identify potential issues with the property you are about to purchase, and is done prior to finalizing your Offer to Purchase. Not mandatory, but a good idea to protect your investment and give you peace of mind (ranges from $150 to $400)
Title Insurance
Protects you against title fraud or defects to the legal title (ownership) of your home and land (between $150 to $250)
Interest Adjustments
From the date your mortgage is advanced (the day you become the home owner) until the day you make your first mortgage payment, you will owe the interest incurred in that time period (depending on how many days, it can range from $50 to $1,000).