Frequently Asked Questions

Question: Is an inspection of the house necessary at this point?

Answer: Despite the expense, the answer is yes. A professional inspector will carefully examine the structure (walls, floors, foundation, etc.) as well as electrical, plumbing and heating aspects. The inspector’s report is critical to your decision whether or not to buy or to propose a reduced purchase price.

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Question: Is it better to buy a new home or existing one?

Answer: Consider the pros and cons of each option.

  • In favour of buying a new home:
    1. You choose the style of house you like, its interior and exterior finishing, etc.
    2. You benefit from the builder’s registration in a new home certification program.
    3. Your house will meet the most recent building standards.
  • Against buying a new home:
    1. Some finishing work can be costly and isn’t included in the purchase price, such as landscaping.
    2. Construction delays are possible.
    3. GST and QST are added to the purchase price.
  • In favour of buying an existing home:
    1. Landscaping is already done.
    2. No GST or QST.
    3. There aren’t likely to be any construction sites nearby.
  • Against buying an existing home:
    1. Some repairs and improvements may be costly.
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Question: Is it really worth increasing the frequency or amount of mortgage payments?

Answer: Yes. The shorter your mortgage’s amortization period, the less you will pay in total, since interest costs will be lower. For example, a $100 000 mortgage at 8% over 20 years instead of 25 years will cost you over $30 000 less in interest.

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Question: How are real estate agent’s fees determined?

Answer: Agents have office expenses, advertising and photo costs, and often must share their commission with another agent (Multiple Listing Service, etc.), which reduces their take-home pay, which is itself subject to taxes.

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Question: Do I have to give a deposit when I make a promise to purchase?

Answer: A deposit may be required when you make your promise to purchase. A deposit shows the seriousness of your offer. If the seller accepts your promise, the deposit will then be considered part of the payment for the property.