FAQs
Our global real estate experts are here to help you in this ever-changing market.
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Read most frequent questions
What is the minimum down payment?
Before you bother asking any further questions, you should find out the minimum down payment required. This will help determine if the home is within your budget or not. If the minimum down payment is too much for you, the smartest choice is to move on to another home. For those who don’t know, a down payment is an initial, upfront payment for a home. It is typically the largest expense you will incur when you first buy a home. In Canada, the down payment cannot be less than 5% of the purchase price if the price is $500,000 or less. For homes between $500,000 and $1,000,000, a 10% down payment is required. Finally, for homes priced over $1,000,000, as many are in major urban centres like the Greater Toronto Area (GTA), a 20% down payment is required. These rules apply nationwide and to all kinds of homes, from condos and townhouses to detached homes.
How much will I pay in closing costs?
The down payment isn’t the only cost associated with buying a home in Canada. Buyers are also responsible for paying what are known as closing costs. Closing costs are the legal and administrative fees homebuyers are required to pay when the sale closes. Examples include loan origination fees or third-party fees relating to title research, home appraisal, or the processing of paperwork. Closing costs in Canada vary depending on the location, but buyers should budget between 1.5% and 5% of the purchase price. If you’re getting serious about a property, ask how much the closing costs will be so that you can factor this into your budget.
How much do utilities typically cost? May I have a copy of the hydro and gas bills?
Before making an offer on a home, ask the seller or their REALTOR® about the average cost of utilities. You may even request a copy of the utility bills. After all, if you buy the home, you will become responsible for paying monthly heating, cooling, electricity, and internet bills, so it’s important to be prepared for such costs. Once you know the average cost of utilities, you can decide if it fits within your budget. We also recommend comparing the cost of utilities for the home with that of other homes in the area. If it seems to be above average, learn more about the energy systems and appliances in the home to determine what might be responsible.
What are the neighbours like?
Buying a home isn’t just about the property itself, it’s also about the neighbourhood. The neighbours living on your street can impact how much you enjoy living there. For this reason, we recommend asking the seller about their neighbours. They might respond by saying how warm and friendly they are and how close everyone is on the street, or they might say that they don’t have much of a relationship with their neighbours. You can also ask if there have ever been any incidents with neighbours, but keep in mind that the seller may be hesitant to disclose such issues for fear of scaring buyers off. Try to gauge from their initial reaction, body language, and tone of voice whether they’re being truthful.
What is included in the sale?
Always find out exactly what’s included in the sale of the home. This might seem like an obvious question that doesn’t need to be asked (the house is included in the sale — duh!), but you never know what the seller intends to leave behind. Ask about everything from light fixtures and appliances to outdoor structures like above-ground pools, hot tubs, or play structures. It’s important to know which items come with the home and which you’ll need to buy.
How long has the property been on the market?
Don’t forget to ask your REALTOR® how long the property has been on the market. If it’s been on the market a while, especially if the market is hot, this could signify an issue. Should you still decide to proceed with an offer, knowing how long the property has been on the market can help you determine the offer price. As a general rule of thumb, buyers shouldn’t be too quick to make a low offer, which can be insulting to the seller. We recommend making a low offer only after the property has been available for 90 days or more. Submitting a lowball offer too early, such as within a few weeks of the property hitting the market, can be a major turnoff for the seller.
