Below, we have outlined some FAQs to help guide you through the next steps. Of course, every scenario is different and we are always here to help. The below answers are typical scenarios, but Rob and our Team will be here to support you and advise you of any exceptions.
Once your purchase goes firm, the completed paperwork is forwarded by our Team to your lawyer and mortgage broker. At this time, if you haven’t already, it would be best to decide on the lawyer you would like to represent you for your purchase.
How will the property be financed by the Mortgage Lender?
Your lender will schedule an appraisal to be completed on the property to assess its value*. Once completed, the lender will provide the properties assessed value to your mortgage broker. This will affect the amount they will lend to you for your new mortgage.
Your mortgage broker will prepare all of the documents for you to sign off on for your new mortgage. Signing for the mortgage documents typically occurs a couple of days before your closing date.
*Please note, the appraisal should come in at around the same price at which you purchased your property. If the appraisal comes in at a higher price, unfortunately, you will still be responsible to pay for the difference.
When do I visit my lawyer to finalize the details?
The final signing will take place at your lawyer’s office prior to or on the closing day. The paperwork is required to be signed at your lawyer office in person. If you are not able to be physically present because you are out of the country, you will be required to visit a lawyer/notary in your area and have them forward the documents to your acting lawyer here.
How do I set up utilities?
Some lawyers take care of transferring the utilities from the previous owner to you. If this is not a service your lawyer provides, you can utilize our moving concierge to assist you in the steps to complete this.
What happens on closing day?
To complete the process, your lender will give your lawyer the mortgage money. You will then give your lawyer the down payment (minus the deposit) and the closing costs (usually 1.5% to 4% of the purchase price).
Your lawyer will then pay the seller, register the home in your name and will provide you with the deed as well as the keys to your new home.
On closing, what fees will I be responsible for?
Aside from your lawyer, real estate and closing fees, you may be subject to payment adjustments on closing for any fees or expenses you pre-paid by the seller for the property (taxes, condo fees, etc.). This will be adjusted by the lawyer prior to closing. On closing, this will be a credit to the Seller and prorated to the applicable payment owed to the Seller.
Please be sure to stop any future payments (pre-authorized debits or post-dated cheques) that occur after your closing date.
On closing day, what time should I expect everything to be finalized?
Your sale will technically be complete once the lawyer registers the title transfer in the Land Registry System and releases the key.
Closings typically happen later in the day, and you should be aware of this when scheduling your move.
With a condo, you will have to consider any of the condo rules and regulations about moving, especially planning to book a moving elevator with property management. Typically, you will have to leave a deposit for booking a moving elevator, and the condo corporation will have rules or regulations surrounding which times you can book. As closings can happen later in the day, it is best to plan your move around this.
How will I get my keys?
You will receive your keys on the closing date and usually the keys will be located at your lawyer’s office but they can also be arranged to be picked up at the Seller’s lawyer’s office, depending on what was arranged with your lawyers/you.
In some cases, a secondary set of keys is sometimes made available via the lockbox at the property or the listing brokerage. We will do our best to keep you apprised of this, along with your lawyer.
How do I pay my maintenance fees?
The maintenance fees will often be paid via automatic withdrawal or by cheque. This will have to be set up with the Property Management of your Condo. They will most likely have a form that you must fill out, where you will identify what your maintenance fees are, etc. You will have to provide a void cheque if you would like the funds to be automatically withdrawn from your account.
It is important to note when these payments will come out as the mortgage is often taken on the 1st of every month, whereas the maintenance fees can be taken out on a different date. To determine which date this will come out, it is best to re-confirm with Property Management.
Should I work with a Mortgage Broker or my bank?
It’s entirely up to you. Choosing to work with a mortgage broker is a good alternative to going through a bank. A licensed mortgage broker has access to multiple lenders and mortgage rates. Mortgage Brokers “shop around”, negotiate for you and find you the lowest rates whereas banks are only allowed to offer you their own rates and products. You do not have to pay a Mortgage Broker to use their service. They are paid by the lender through commission once they secure a mortgage for their clients. If this is an option you are considering, let us know and we can introduce you to our preferred mortgage brokers.
What if I have a home inspection clause? What does the home inspector do?
A home inspector is an individual that inspects a home for any potential issues that could otherwise be missed by the Buyer. The cost of a home inspector depends on the size of the home, but you can expect to pay any from $400 to $500 for a full inspection.
We have a list of preferred home inspectors who are trusted and reputable, and we would be happy to provide this to you. If your agreement is conditional on a home inspection, we will help facilitate booking this for you.