HOME BUYERS A-Z RESOURCE GUIDE - Helping You Become a more Educated Real Estate Investor

Buying your first home can be both exciting and stressful. It also tends to be very expensive, especially if you don’t have any pre-existing assets to help you get a mortgage, as is the case with most first-time homebuyers. Instead, you’ll rely heavily on your savings to pay for your down payment, and for the closing costs that come with purchasing a home.

This page includes all of the resources you’ll need to get started on your home buying journey. Read the pages linked below to find out more about the first-time homebuyer tax credits and rebates, grants, and programs available in Canada. You can also scroll down for an in-depth summary of the programs first-time homebuyers should know about in Canada.

From the first conversation with Us, buyers know they are working with qualified professionals who know the local inventory. Professionals who love living in the area.

Buyer's Guide- HOME BUYERS RESOURCE | www.lolaoduwole.com


In an effort to make buying your first home easier, the Canadian government offers a variety of incentives for first-time homebuyers. First-time homebuyers in BC, , for example, can qualify for a land-transfer tax rebate. 

That’s just one of many different first-time homebuyer programs you may be eligible for. 


WHAT KINDS OF HOMES ARE AVAILABLE TO YOU AS A HOME BUYER? - Find your Dream Home 

To meet the many kinds of needs that people have, a number of different housing styles and types of ownership have developed over the years.
Your individual requirements and your income level will govern the housing type which is most suitable for you at the present time.

  • Single Family, Detached Home – A detached home is one which has no common walls with any other residential structure, resting on its own land with front, rear, and side yards. It may be any size from a small, one-storey bungalow to a huge mansion.
  • Semi-Detached Home – A semi-detached home is two single family dwellings joined together by a common middle wall. It is sometimes called a “side-by-side” duplex.
  • Duplex – A duplex is two separate dwellings which are attached either side-by-side (a semi-detached home) or one unit above the other. It is important to note that this type of structure may be a strata titled property and therefore subject to the Strata Property Act.
  • Townhouse – In British Columbia, the term “townhouse” is usually used to describe one of a group of dwellings (most often two-storey) joined together by common walls, each with its own entrance from the outside.
  • Apartment – An apartment is one of several dwellings (most often single storey dwellings built one above the other) joined together by common walls, each having its entrance from a common hall. The overall building containing the apartments may be from three to 33 or more storeys.
  • Mobile or Manufactured Home – A manufactured home is a factory-built residential structure designed to be moved from one place to another, although wheels are not necessary. It is often placed on a rented space (called a “pad”) in a manufactured home park.
Buyer's Guide- HOME BUYERS RESOURCE | www.lolaoduwole.com
TYPES OF HOME OWNERSHIP
While there are a variety of housing ownership interests, the most common include the following:

  • Freehold – A freehold interest (also known as a fee simple) is the more precise term for what we ordinarily refer to as “ownership” of a home. The owner of the freehold interest has full use and control of the land and the buildings on it, subject to any rights of the Crown, local land-use bylaws, and any other restrictions in place at the time of purchase.
  • Strata Title – The strata title form of ownership is designed to provide exclusive use and ownership of a specific housing unit (the strata lot) which is contained in a larger property (the strata project), plus shared use and ownership of the common areas such as halls, grounds, garages, elevators, etc.
This type of ownership is used for duplexes, apartment blocks, townhouse complexes, warehouses, and many other types of buildings. In addition, some single family home developments may be part of a bare-land strata development. Because ownership of the common space is shared, the owners also share financial responsibility for its maintenance.
  • Leasehold – In some cases, you might purchase the right to use a residential property for a long, but limited, period of time. The owner of this right of use has a type of ownership called a leasehold interest.
  • Cooperative – In the cooperative form of ownership, each owner owns a share in a company or cooperative association which, in turn, owns a property containing a number of housing units. Each shareholder is assigned one particular unit in which to reside.



FIRST TIME HOME BUYER PROGRAMS
The Government of Canada has three programs to assist first-time home buyers – the Home Buyers’ Amount tax credit, the Home Buyers’ Plan (HBP), and the First-Time Home Buyer Incentive. In addition to these federal programs, most provincial governments offer land transfer tax refunds to first-time home buyers. As well, mortgage loan insurance is available from Canada Mortgage and Housing Corporation (CMHC).
  • Home Buyers’ Amount tax credit
    The Home Buyers’ Amount tax credit (formerly known as the First-time Home Buyers’ Tax Credit) exists to assist first-time home buyers with the costs associated with the purchase of a home, such as legal fees, disbursements and land transfer taxes. 
  • Home Buyers’ Plan (HBP) 
    The Home Buyers’ Plan (HBP) allows you to borrow money from your RRSP to buy or build a home for yourself or for a related person with a disability. There are a number of conditions that apply to the Plan.
  • First-Time Home Buyer Incentive 
The First-Time Home Buyer Incentive helps people across Canada purchase their first home. The program offers 5 or 10% of the home’s purchase price to put toward a down payment. This addition to your down payment lowers your mortgage carrying costs, making homeownership more affordable.


GETTING THE RIGHT MORTGAGE 
Although the loan itself is often referred to as a mortgage, the “mortgage” is actually what the bank takes as legal security for giving the loan. By taking a mortgage on your home, the bank has legal rights to your home, and can sell it if you are unable to repay the mortgage loan.

Different financial institutions and lenders offer different mortgages with a variety of different features. 

  • Open mortgage - First, a mortgage can be open or closed. An open mortgage means that you have the flexibility to make extra payments on your mortgage loan beyond your regular set payments, and you can pay off your mortgage completely at any time without penalty. For example, if you received a $2,000 bonus from your employer, an open mortgage would allow you to pay that money toward your outstanding mortgage amount. However, open mortgages usually have slightly higher interest rates and are usually for a shorter term.
  • Closed mortgage - Closed mortgages have a lower interest rate, a longer term, and reduced flexibility. In closed mortgages, you can only make regular payments and cannot pay off your mortgage at any time without penalty. If you are expecting a promotion to a higher paying job in the near future or if you think interest rates are going down, you may prefer the flexibility and shorter term of an open mortgage.
  • Fixed and variable interest rate - A a mortgage can also have a fixed or variable interest rate. A fixed interest rate means you lock in at a certain rate for a set term. A variable interest rate means your interest fluctuates with changing market conditions. The benefit of a fixed interest rate is the security and certainty of a set interest rate. The drawback of a fixed interest rate is that it is usually higher than the variable interest rate. If you think interest rates are on the rise or if you dislike risk, you may prefer a fixed rate of interest. If you think interest rates will go down and you do not mind risk, a variable interest rate may be better for you.
  • Short or Long Term - A mortgage can be for a short or a long-term. A term is the length of time that your agreement with the lender exists. Terms usually range anywhere from six months to five years. During this time, you agree to pay a certain interest rate on a certain schedule. When interest rates are low, short-term mortgages usually have lower interest rates than long-term mortgages. When interest rates are high, short-term mortgages usually have higher interest rates than long-term mortgages. If you think interest rates are going to drop, you may want to opt for a short-term. However, if you think interest rates are going to rise, you may want to lock in a long-term.
  • Amortization period - The term of a mortgage is different from the amortization period of a mortgage. 
           The amortization period is the total length of time you will be making payments on your mortgage before it is completely paid off. The traditional amortization period is 25 years, although it can be longer. For home buyers with less than a 20% down payment, however, the maximum amortization period allowed is 25 years. In addition, the CMHC will not insure mortgage loans with amortization periods that exceed 25 years. 
            The length of your amortization period affects the amount of your monthly payments and the total amount of interest you will have paid on your mortgage loan once it is completely paid off.  
            Shorter amortization periods result in higher monthly payments, but greater total savings because you pay less interest. Longer amortization periods result in lower monthly payments, but more is spent on interest overall. 
            The term and amortization period are usually not the same. 
             At the end of the term, if the amortization period is longer than the mortgage term, you will still owe money to the lender and will either have to repay it or arrange new financing.

FORMS /TERMS AND DOCUMENTS TO EXPECT IN THE REAL ESTATE TRANSACTION 

The Contract of Purchase and Sale (CPS) form in BC is the document that outlines the terms of the offer from a buyer to a seller in a real estate transaction. VIEW FORM HERE 

Disclosure of Representation in Trading Services (DORTS) for Realtors in BC.
The Benefits of Representation
When considering a real estate transaction, consumers must decide if they wish to be a Client of a licensed real estate professional or act independently as an Unrepresented Party.
When choosing a licensed real estate professional to represent you, you can expect as their Client:
Expert advice: BC Realtors receive specialized training.
Protection: licensed BC Realtors are regulated by the provincial Real Estate Services Act which aims to protect the rights of consumers.  Oversight: the Real Estate Council of BC works to ensure BC Realtors are competent and knowledgeable. They can investigate and discipline individuals for professional misconduct. VIEW FORM HERE

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is Canada’s financial intelligence unit (FIU).  VIEW FORM HERE 

What is an Offer?
Your Offer is in your Contract of Purchase and Sale.
An offer to purchase real estate is a legal document, which outlines a buyer’s terms they’re willing to offer the seller. This is in no way binding. The buyer has put their intention in writing to purchase with specific terms. However, it’s up to the seller whether or not they want to accept the terms being offered. VIEW FORM HERE 

In Greater Vancouver, the PDA is a document is filled out by the seller, with the assistance of the realtor, and is called the “Property Disclosure Statement.” (PDS) 
The PDS contains specific information about the property that must be disclosed by the seller. 
The seller signs this prior to or upon listing the property, and then the buyer will review it either prior to writing an offer or upon an accepted offer. It reviews details about the property for sale such as whether it has even been a marijuana grow-op, whether there has been any history of flooding or insect infestation, when the hot water tank and roof were last replaced, and if there are any latent or patent defects.

Subjects are essentially conditions that must be met in order for the deal to become firm, or official. These subjects might include: subject to financing, inspection, property disclosure statement, title search, or strata documents – to name a few.
You can ask for an extension, but that doesn’t mean it’s guaranteed. In order to extend a deal, the seller(s) and buyer(s) both have to sign an addendum to the contract stating that the subject removal date has been extended, with the date included. 

GLOSSARY OF TERMS 

Metrics define the residential real estate queries that areas and statistics come up against. Some are counts, some are calculations. All SnapStats calculations are median. All data in our Reports is based on the MLS ‘processed date’ which is the same variable used by the REBGV and FVREB for their statistic packages and dynamic reporting. Therefore our data can be verified against both board’s data.

Median

The median value is one of the most common measurements used to compare real estate prices and other data in different markets, areas and periods. It is said to be less biased than the mean (average) price since it is not as heavily influenced by small numbers of very highly priced home sales, or extraordinarily low priced home sales. SnapStats therefore subscribes to the principle of median measurements for data reporting purposes as requested by Managing Brokers and recommended by university professors.

Sales Price

Calculations are based on MLS sold data and ‘processed date’ (not sold date.)

Sale Price to List Price %

Percentage found when dividing a listing’s sales price by its original list price, then taking the median for all sold listings in a given month. Calculations are based on MLS sold data.

Days on Market

Median number of days between when a property is listed and when an offer is accepted in a given month. Calculations are based on MLS sold data.

Price Per Square Foot

Calculations are based on MLS sold data. Calculated by taking a median of closed sales price divided by square footage for each individual listing in the current period. Calculations are based on sold data.

Inventory (Active Listings)

The number of properties available for sale in active status on the first business day morning of each month with a maximum list date from the preceding month end. Calculations are based on MLS listing data.

Sales

A count of the actual sales that closed in a given month. Calculations are based on MLS sold data.

Sales Ratio % (based on the Sales-to-active listing ratio)

The number of home sales divided by total active inventory for the specified period. Calculations are based on MLS sold and active listing data. Helps identify the market type such as Seller, Balanced or Buyer. Is indicative of the speed of homes selling (higher the number, faster the market) and percentage of homes selling.

MLS HPI Price (not represented in our reports)

The MLS Home Price Index (HPI) measures the rate of price change of housing features. Thus, the HPI measures typical, pure price change (inflation or deflation) and reflects general trends in the market place. It is for this reason that the HPI is not used in our reporting as we drill the data down to the point that the HPI cannot be applied (in fact the data is not even available.)


GUIDE TO DOING BUSINESS IN CANADA: REAL ESTATE & URBAN DEVELOPMENT

Posted on May 02, 2021

Real estate & urban development


Real estate is a broad category that covers buying, selling, developing, leasing and financing across a wide range of sectors 

- from mining, forestry, and oil and gas to light-to-heavy industrial, commercial, residential, recreational, retail, office, condominiums, subdivisions, urban development, brownfields and mixed...

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The Multiple Listing Contract, Real Estate in British Columbia 

Posted on Apr 10, 2021 in SELLERS

The Listing Contract legally defines your arrangement with the brokerage and, in accordance with the Real Estate Rules, it must contain:
The Multiple Listing Contract, Real Estate in British Columbia
  •    your name and the name of the brokerage that you have chosen to work with;
  •    the address of the property you are selling;
  •    the effective date of the agreement;
  •    the date the agreement expires;
  • a general description of ser...

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Unauthorized Accommodations/Secondary Suites ... Read before you Buy.  

Posted on Apr 09, 2021 in BUYERS

Mortgage Helpers. There's quite a bit of demand these days for additional income to help reduce the costs of  mortgage expenses so a lot of buyers are looking for properties with rental or Secondary suites. 
Unauthorized Accommodations/Secondary Suites ... Read before you Buy. www.lolaoduwole.com

Secondary suites provide affordable, ground-oriented rental housing and contribute to the amount and diversity of housing available in the city...

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March 2021 Housing Report 

Posted on Apr 06, 2021 in Housing Market Report

"In March, residents bought and listed homes across our region at levels not seen before. This surge in activity is increasing upward pressure on prices. We’re beginning to see double-digit price gains for single-family homes and townhomes over the last 12 months."
Taylor Biggar, REBGV Chair


Last month’s sales were 72.2 per cent above the 10-year Mar...

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Lola Oduwole

RE/MAX All Points Realty

101, 1020 Austin Avenue  Coquitlam,  BC  V3K 3P1 

Phone: 6048096317

lolaoduwole@yahoo.ca

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Lola Oduwole

Phone: 6048096317

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RE/MAX All Points Realty

101, 1020 Austin Avenue  Coquitlam,  BC  V3K 3P1 

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