Justin McClintock

Lisa Arseneau

Your Professional
Grade Realtors

Buyer’s Guide
www.HeadwatersEstates.ca
 Welcome!
We would like to welcome you to working with us and our network of professionals at Headwaters
"Justin
Estates! McClintock
Thank is a Professional
you for entrusting us with your Real Estate goals; our team takes this trust very
seriously. We strive to provide the highestfor
Real Estate Sales Representative possible level of Fiduciary Service to you from the day we
iPro Realty Ltd Brokerage.,meet,Having been day and beyond.
to closing
licensed since the age of 19, he has had
a passion and direction for Real Estate
from the very beginning. He now
We areoperates
proud tohis business
offer you allunder
of ourthe name completely free of charge when purchasing your new
services
Headwaters Estates. 
home! As you may or may not know, here in Ontario the majority of the time it is the Seller who pays
the Buyer’s Realtor their commission. If not, we will negotiate directly with the Seller to ensure our
servicesAsareanalways
avid real
freeestate investor
of charge withasaa Buyer! We will never let you lose a deal because of the
to you
background in construction, he has
amount of commission offered by the Seller. All of the expertise of an experienced team to get you
embarked on a never-ending quest for
through one of the largest transactions you may ever contemplate, free of charge.
Personal Development, Knowledge, and
Experience to help get his clients the
most out of their investments.

By identifying underlying circumstances

that make every transaction unique and
staying current with the ever-
evolving industry.
Although He isthe
it is most often committed to the commission to the Buyers Realtor, we are still 100%
Seller paying
providing a World Class experience
committed to protecting and promoting andyou and your interests. Not only ethically, but legally as
guiding you through every step of the
well. Rest assured knowing that all of your questions and concerns will be taken care of and you
process, Before, During and After the
will
RealbeEstate
informed of every step
Transaction. Withalong the way from where to start, all the way to closing day and
a sincere
beyond.
and downIt istoour job and
earth to ensure
honestthat you understand everything involved so that you are expecting
approach, he has your success what at the next and not surprised by it.
comes
top of mind. 
As exciting as buying a home can be, it can also become overwhelming at times. That is why as
your Realtor, we are here to help outline all of the fine details you will need to have in order before
Why Headwaters Estates? 
you buy your home.
Dufferin County, South Simcoe and
Caledon are knownThereas is the Headwaters.
no need to feel like an expert, as we will be here to help!
These areas are known not
There is a good chance that you have only for the
already been browsing homes that you like before you got
beautifull mix of Natural Rolling
here. However, it is important to establish where you stand so that you have a sound idea of what
Escarpment and Agricultural Lands but
you canforafford
also their before you fall
Significant in love
Impact andwith
rolea house that may be slightly out of your price range. The
first
on step to thisWatersheds,
important endeavor is Groundwater
to evaluate your wants and needs versus your financials capabilities.
Recharge Areas and Aquifers.

At Headwaters Estates we feel it is important for you to know that we operate on a

100% NO PRESSURE NO OBLIGATION policy with everything that we do. We will provide you
with our professional opinion and network of professionals to use at your disposal. However,
Working Together…For You!
at the end of the day the choice of how to proceed will always be yours and you will never be
locked into a long term contract with a Realtor who over promises and under delivers.
JUSTIN

Justin@HeadwatersEstates.ca
Mobile: (519) 217-2034
www.HeadwatersEstates.ca
 Possibly insert a Picture of

Justin@HeadwatersEstates.ca
Mobile: (519) 217-2034
www.HeadwatersEstates.ca
 Why Use Us as Your Realtors®
To Purchase Your Home?
We’re your Consultant/Protector/Data Analyst/Therapist—all rolled into one!
The thing about being REALTOR: We wear a lot of different hats. Sure, we’re salespeople, but we actually do a whole
heck of a lot behind the scenes to earn our commission. Consider us the “Glue” that holds these transactions together.
We know how to maneuver through the process and avoid the potential pitfalls long before you encounter them. If
everything is going smoothly that’s because we are doing our Job

- And, of course, we’re working for you at nearly all hours of the day and night—whether you need more info on a home
or just someone to talk to in order to feel at ease with the offer you just put in. This is the biggest financial (and possibly
emotional) decision of your life, guiding and guarding you through it isn’t a responsibility we take lightly.

Experience!
Keeping our fingers on the pulse of the market we provide valuable insight into what’s going on in the area and how much
you should or shouldn’t list a particular home given your circumstances.

Want to check the MLS for a 4B/2B that comes with all the ELFs and a W/D? Real estate has its own language, full of
acronyms and semi-arcane jargon, as your REALTOR we’re trained to speak that language fluently. Plus, buying or selling
a home usually requires dozens of forms, reports, disclosures, and other technical documents.
We have the expertise to help you prepare a killer deal—while avoiding delays or costly mistakes that can cause serious
problems.

We’re Great Negotiators!

Justin@HeadwatersEstates.ca
Any time youMobile:
buy or (519) 217-2034
sell a home, you’re
www.HeadwatersEstates.ca
going to encounter negotiations—and as today’s housing market heats up, those
negotiations are more likely than ever to get a little heated. You can expect lots of competition, cutthroat tactics, all-cash offers,
and bidding wars. Don’t you want a savvy and professional negotiator on your side to seal the best deal for you? It’s not just
about how much money you end up spending or netting. We will help draw up a purchase agreement that allows enough time
 Why Use Us as Your Realtors® To Purchase Your Home?

Re-assurance
One of the main differences of Buying your home with us is that we are accountable…Not only are we
doing everything to get you the best deal based on your needs for your home, but where our true
value comes from is if something goes wrong…what if the Seller defaults and can’t close the deal?
Or your closing is delayed? While we always aim to have everything go as smoothly as possible, the
reality is there are many things that can come up in the course of buying your home that are out of
your control. We are here to serve and support you at the highest levels possible no matter what
circumstances arise.

We Find What’s Behind the Scenes & Isn’t Advertised!

While you’re busy falling in love with Gorgeous Views and Open Concept Floor Plans. We are looking
behind the scenes to find the countless & not so obvious situations that are affecting the properties
you are interested in. Things like zoning by-laws, property uses and much more. Saving you time from
viewing properties that you’re not going to be able to build that dream garage on or store your small
business equipment or dig that swimming pool because you’re on an active floodplain.
We have the additional resources to keep you protected.

The Internet is awesome. You can find almost anything—anything! And with online real estate listing
sites such as yours truly, you can find up-to-date home listings on your own, any time you want. But
guess what? We have access to even more listings. Sometimes properties are available but not
actively advertised. As your REALTOR we can help you find those hidden gems. We can also make
sure that you are seeing potential properties often before they are even available to the general public.

We’re Connected To And Help Facilitate Everyone Involved!

We make it our mission to know just about everyone who can possibly help in the process of buying or
selling a home. Mortgage Brokers, Real Estate Lawyers, Home Inspectors, Home Stagers &
Designers —the list goes on—and they’re all in your/our network. Use them. It is our personal policy
that we do not take any type of kickbacks or commissions for referring you to the services of our
trusted advisors. Anyone that we recommend to you is purely because we believe they are able to
help you and not because they are offering us something in return.

Much of our work is done behind the scenes facilitating everyone involved. Making sure deadlines,
expectations, inspections, paperwork and communications to name a few are all met and flowing in a
harmonious fashion. We orchestrate the details so you don’t have to!

Justin@HeadwatersEstates.ca
Mobile: (519) 217-2034
www.HeadwatersEstates.ca
 We Adhere to a Strict Code of Ethics!

As Professional REALTOR we are governed by a strict code of ethics. When you hire us to represent you as a
Seller or Buyer Representative, our Fiduciary responsibility is directly to YOU. This means that we have a legal
obligation to put your interests as a seller before anyone else’s (including our own), and that we must provide you with
any important information we have that affects the sale or purchase of your home. These duties, to name a few
include…Maintaining Utmost Loyalty, Avoiding Conflicts of Interest, Disclosing any Potential or Imminent Conflicts, not
to make a Secret Profit and to Not Misuse Confidential Information provided to us from you. There are real
consequences for a REALTOR who does not maintain this standard and you as the consumer have real forms of
recourse. You can find out more at www.Reco.on.ca

The BIG QUESTION - Should You Buy or Sell First?

For those looking to take that next step in

their real estate future, this important
question will inevitably come up: “should I
buy my new home or sell my existing
home first?”
While there is no ‘right’ answer, it’s
important to know the potential pros and
cons of both options. Speaking with us as
your registered Real Estate professionals
before starting the buying or selling
process can help you decide which route
is better suited to your family’s needs.

Justin@HeadwatersEstates.ca
Mobile: (519) 217-2034
www.HeadwatersEstates.ca
 BUY VS SELL

SELL FIRST
BUY FIRST

Buying first can make the house hunting

experience more enjoyable. Without a
closing date looming on your existing
home, you’ll have time to wait until the
right home comes up for sale. It can also
be less stressful knowing that if your
offer is unsuccessful, you can wait for
the next opportunity to come up.
The downside to buying first is if you
are unable to sell your home fast
enough, you will find yourself owning
two homes at once. The result could
mean paying two mortgages at the same
time, not to mention all the other costs
of home ownership. Additionally, you
may have trouble securing a mortgage
for the new home without the money
from your current one.
As a buyer with an existing home to sell,
you can protect yourself by making your
offer conditional on the sale of your
current home. That means if you’re
unable to sell within a specified period
of time, you’re able to back out of the
transaction. However, keep in mind that
this condition will likely make your offer
less attractive to the seller, especially if
you’re buying in an area with a hot
market. And furthermore, if another offer
comes in while your trying to sell your
home and you don’t firm up your
purchase agreement within 24-28hrs,
you may lose the deal to the second
buyer.
The biggest benefit of selling first, aside from
removing the risk of owning two homes at once, is
you’ll know how much money the sale brought in,
which will help determine how much you can afford to
pay for the next place.
As helpful as that is to know, there is pressure with
your closing date looming and potentially no home to
move into. If you’re not careful, you may end up
rushing the buying process and settling for a home
that isn’t ideal for you, or paying more than you
planned because you feel pressured.
On the flip side of the buying first scenario, your offer
to purchase your new home will look more attractive to
the seller as the offer will not be conditional on the
sale of your house.
This is a definite advantage when buying in an area
with a hot market.
While it is inconvenient, It may be well worth the
consideration of renting for a short period of time until
you find a home that is suitable for your needs so you
are not pressured into buying something that you have
to just “Settle” for.

Justin@HeadwatersEstates.ca
Mobile: (519) 217-2034
www.HeadwatersEstates.ca
 Have a contingency plan

Regardless of which route you choose, it’s a smart idea

to have a back-up plan in place in case you are left with
two homes, or no home, for a period of time.
If the sale of your home closes first, you might consider
a short-term rental or moving in with family or friends.
This could be better than settling for a less-than-ideal
home because you are rushed.
If the purchase of your new home closes first, you might
need something called “bridge financing” to cover the
down payment and other closing costs until the sale of
your current home closes. This can potentially get
expensive quickly so ideally this is not a long period of
time you need to “bridge the mortgages”
Before making a decision, talk to us for advice and
solutions to help you through the process. We can walk
you through various scenarios and set realistic
expectations about what may happen so you can come
Justin@HeadwatersEstates.ca
Mobile: (519) 217-2034
www.HeadwatersEstates.ca
 What Do You Want?

Is there a specific neighborhood you have been thinking of? Do you prefer a certain school district?
Style of home? Bungalow vs 2-Storey or even a condo? Swimming pool? Lakefront view?

More Importantly, What Do You Need?

Do you have children? How many bedrooms will you need? Based on your family size, how many
bathrooms are going to be ideal? Is access to transit important? Where will you do your shopping?
Do you need to be close to work? Job Transfer? Rental Income? School for your kids?

What Kind of Payment Are You Looking for?

Are you going to want everything updated and ready to go when you move in or do you have the skills and network
required to take on some renovations in hopes of maybe saving some money on the purchase price?
Have you evaluated your financial strengths and weaknesses? How much money do you make/have vs. how much
do you owe?
While these numbers have been known to fluctuate due to regularly changing mortgage rules. As a general rule,
your mortgage payments cannot exceed 39% of your monthly income while your total debts including things such
as school debt, car payments, credit cards and outstanding loans etc. plus your mortgage cannot exceed 44% of
your gross monthly income.
Keep in mind that while these numbers are allowable for lending purposes, there are many more expenses to
owning a home than just covering your mortgage payment. It is important that you factor in these other expenses
such as utilities and property maintenance into your budget. You want to feel comfortable with the purchase of your
new home and not overburdened with the carrying costs that go above and beyond the mortgage payment.
The reality is that things have a tendency to come up in our lives. When unexpected circumstances arise, you will
want to have access to some extra wiggle room with your income to pick up the slack.
If for whatever reason you are close but don’t quite qualify, there are also “Alternative” Methods of financing if we
cannot get you approved with a Standard “A” or “B” type lender. Some of these options come with much higher
costs of borrowing so be sure to consult with us and your Mortgage Broker to determine the risk of Alternative
Lending.
Justin@HeadwatersEstates.ca
For those of you that are Self-Employed the lending rules are also much more stringent if you are not already aware
Mobile: (519) 217-2034
as www.HeadwatersEstates.ca
it is more Risk in the eyes of the Lender. Again, Please consult with us & your lender to determine the most
appropriate strategy for your situation.
 This is again where, alongside the expertise of a Mortgage Broker we can help
determine what will be best for you. A Mortgage broker will guide you through
getting the financing you need that works for you.

WHAT DOES A MORTGAGE BROKER DO?

WHAT ARE THE ADVANTAGES

Sure, everyone would love to buy a home but it is a good idea to see if you can afford one first. These are
generally the people you want to meet with first. First of all, your Mortgage Broker works for you and only
you. Their job is to get you the best possible financing given your current situation. Even better, their
services are completely free to you.
Why Are Their Services Free? - It is actually the banks that pay the Mortgage Broker their commission
for arranging your mortgage through them. Being that they are sourcing many different banks for you they
are NOT obligated to push you in the direction of one over another.
Another BIG advantage of using a mortgage broker is to protect your hard earned credit rating!

Whenever a bank pulls your “Credit Bureau/Rating” it typically deducts a few points from your overall
score often 10-15 points sometimes. While it is a necessary step when you need a loan for a car or a
home…If you do it too many times in a short period some lenders look at it as “Credit Seeking”.

It not only hurts your score but the banks view this negatively and that you may be constantly seeking
credit and are unable to keep up with your finances.
When a Mortgage broker pulls your Credit Bureau they are able to present the credit rating to
numerous financial institutions at their disposal without the negative implications of having
numerous Credit Checks done.
They also specialize in getting you financing for not only personal Real Estate but Investment,
Commercial, Rural, and the Self Employed as well.
In order to achieve this, Mortgage Brokers have pre-established relationships with multiple lending
institutions, more commonly known as Banks, Credit Unions or Private Lenders
They know the ins and outs that the banks are looking for when you need to get approved to borrow
considerable chunks of their money.
Due to these relationships they have developed, they can often get you a better rate from your own bank
than if you were to go in there on your own! Don't take it personal! Luckily, we have pre-existing
relationships with reputable Mortgage Brokers and we would be happy to refer you to speak with them!

We ensure that all Lenders we recommend to you operate on the same No Pressure, No Obligation
Policy that we do. You can always count on honest service and advice. Please don’t mistake our
enthusiasm for pressure. We truly believe we are able to offer the best service out there and want to
Justin@HeadwatersEstates.ca
Mobile: (519) 217-2034
ensure as many of our friends and family can benefit from our help.
www.HeadwatersEstates.ca
 Down Payment – CMHC Mortgage Insurance & What You Need To Know!
In Ontario, there are rules for the minimum amount of money you must have invested into the home in order to qualify for a
Mortgage. Regardless if you are a first-time buyer or not. The minimum amount is 5% the purchase price up to 500k.
Anything over and above 500k requires a minimum of a 10% down payment on the portion from 500k - 1 Million. For
example, on a sale of a 700k home the down payment would be a total of 45k ($25k, which is 5% on 500k = $25k (+) 10%
on the remaining 200k = 20k). If the home is not your primary residence you will need to have a minimum of 20% of the
purchase price as a down payment. And depending on the Lender may still be subject to a CMHC Policy fee. (Ask us or your
Lender for more info)

Furthermore, if you have any less than 20% down payment you will be required to have your mortgage insured by CMHC
(Canada Mortgage and Housing Corporation.) Your fee for this insurance will vary depending on your loan and down
payment amount. *Your Lender will verify these costs dependent on your loan. And it is added to your monthly mortgage
payment, you do not have to pay It up front out of your pocket and is also factored into your qualifying numbers prior to
making a purchase.

To protect against major shortfalls and defaults in loans across the country the Government mandates that, any home being
purchased with less than a 20% down payment be insured as it is considered to be a high ratio loan and carries more risk.
Versus a “Conventional or Low Ratio Loan” (20% or more down payment.)

The CMHC fees are calculated based on your purchase price and the size of your Down Payment and how long it is
amortized over which the maximum insured mortgage Amortization is now 25 years. You have the option to either pay it all
up front or the cost can be amortized (with interest) and added to the monthly payment of your mortgage which is the most
common way of paying these fees. As many people simply cannot afford the extra expense out of pocket. The “premium on
your CMHC insurance policy is also subject to Provincial Sales Tax of 8%..

The Stress Tests as of 2017 & 2018 – For High Risk Mortgages, 20% or less Down payment. Regardless if the posted rate
is say 3.5%, you must qualify at the Benchmark rate of Canada which as of November 2017 is 4.99%

For Conventional Mortgages. 20% or more Down payment. You must qualify at the Benchmark rate of Canada OR The
posted rate (+) 2%, whichever is higher.

This is a quick example of the differences you may see in the CMHC fees that will be charged when purchasing a home with
less than 20% down, taken directly from http://www.cmhc-schl.gc.ca/. (Please note this is for illustrative purposes only and
for up to date fees we recommend you speak with a professional regarding exact numbers for your situation or contact the
Canada Mortgage and Housing Corporation.

5% Down 10% Down

Purchase Price of $500,000.00 Purchase Price: $500,000.00

Down Payment: 5% = $25,000.00 Down Payment: 10% = $13,950.00
Amortization: 25 Years Amortization: 25 Years
Interest Rate on CMHC Fee = 4% Interest on CMHC Fee = 3.10%
CMHC Fee = $19,000.00 + ($1,520.00 PST CMHC Fee = $13,950.00 + (1,116.00 PST
Justin@HeadwatersEstates.ca
Mobile: (519) 217-2034
www.HeadwatersEstates.ca
 CMHC charges a higher Premium for the insurance on your mortgage the less of a down payment you
have if you need to add the fee to your mortgage. Keep in mind while this seems like a lot of money to
insure your mortgage on top of your purchase price. $19,000.00 on your mortgage of about 3.5%
interest over 25 years makes a difference of about $89.00 per month. If your property appreciates by a
historically conservative rate of even 3% over the next year. You have essentially just regained nearly
80% of your $19,000.00 fee that you had to pay. Purchase Price $500,000.00 (x) 1.03 = $515,000.00
Difference of $15,000.00

STEPS TO THE PROCESS

Finding the Home

The next step is pretty self-explanatory. It is going to be imperative that you keep in constant contact
with us about your likes and dislikes or if you ever have any questions…Never be afraid to ask
something. Based on what we have discussed we will begin the search for your dream home.

Making an Offer / Multiple Offers

Once we have found the home you are looking for we’re going to have to make an offer…We notice that when houses are
priced properly and in good condition they tend to sell quickly no matter what the market is doing. This is why it is so important
that we have done our homework and know how much you can afford so you are in a position to make an attractive offer once
we find your property.

Once we have established what you want to offer the Seller we will either present the offer to the Seller on your behalf
if the situation allows for it. Often times the Seller would prefer their own REALTOR present any offers to them.
We prefer to present our offers in person if possible as it gives us a better opportunity to present our case to the Seller.
At this point the Seller has 3 options on how to deal with the offer, they can;
Accept your offer exactly as is.
Make their own changes to the offer and “Sign it Back” to you to see if you will accept their revisions.
Reject your offer outright and end the current negotiation.

Multiple Offers and Bidding Wars

In a Hot market the possibility of having multiple offers or “Bidding Wars” come in on one property at the same time are a
very common occurrence.
Multiple offers are not what many think a bidding war would be. This is because the common misconception is that there will
be a whole bunch of buyers scrambling and going back and forth driving the price up with each offer and counter offer. This
is simply not the case.
The Reality is…If there are 5 offers on one property the listing agent will notify everyone involved of a couple things.
The first being the number of registered offers that are currently on the property but no details of any of the offers.
The second being that everyone will have one chance to revise their offer before all offers are presented at the
same time.
This is a unique position to be in as a buyer as you now only have one chance and one chance only to make your best
offer.

The Full Transparency Approach- The Full transparency approach is a method that has been suggested to the
Justin@HeadwatersEstates.ca
governmentMobile:
to help curb
(519) unsustainable rapid price growth due to multiple offers in hot markets after the Spring of 2017. This
217-2034
www.HeadwatersEstates.ca
approach when there is multiple offers allows all parties that are competing to agree to this method prior to Presentation of
offers. This allows the Seller Representative to disclose the contents of the “current” “best” offer out of all of them and gives
the other parties a fair chance to revise their offer until one is chosen. This way everyone knows what the best offer was and
 DEPOSIT

When you make an offer and it is accepted, you are required to submit a sum of money as a
sign of “good faith”.
This money will come from your personal funds and is in most cases due by Bank
Draft or Certified Cheque to the Listing Brokerage within 24Hours of the acceptance of
your offer.
This money will be held in what’s known as a “Trust” account within the brokerage and can
only be released by way of completing the transaction, a lawyers’ order or a “Mutual
Release” from your “Agreement of Purchase and Sale”.

This money is then credited towards the amount of your down payment on closing day.
While there is no set rule to the amount the deposit has to be, the amount can definitely help
show how serious you are. Sometimes available funds are needed for other things such as
closing costs which may limit the total amount you have available for a deposit. It is fairly
common for Buyers to offer between 1-5% of the purchase price as a deposit. Sellers at
times realize not everyone has access to large amounts of cash, but like we said the more
you can muster up the more serious the Seller will generally think you are.

CONDITIONS

When you make an offer it is going to contain conditions that are written up to protect you and often
give you a way out of the Agreement if you are not able to meet your conditions. You are essentially
saying “We/I the Buyer/s agree to purchase this home as long as we can meet “X” conditions.

This will typically give us 5-10 Days to keep you protected as we align everything for you and decide
to follow through with the purchase of the property or not. It will include things such as ensuring you
Justin@HeadwatersEstates.ca
areMobile:
able (519)
to get suitable financing and the bank is in fact going to give you the money they said they
217-2034
would. That you are satisfied with the Home inspections and insurance, among others depending on
www.HeadwatersEstates.ca

our situation.
 INSPECTIONS

$300 – $500
Not in all cases but more than likely, we will need to have the home inspected by a home inspector.
We work with award winning inspectors that we would be happy to refer you to for these purposes. The
main purpose of the home inspection is to look for any potential “Red Flags”. Think of your Home
Inspector as your Family Doctor, they are not a specialist, however they are able to spot potential
areas where problems are or could occur.

Things like the roof, plumbing, moisture, hazardous materials such as asbestos or aluminum wiring to
point out a few…and the list goes on. Should there be any cause for concern at that point the Inspector
would refer us to get the opinion of a trained professional or “Specialist” for whatever the issue may be.
At which point we would determine if it is worth pursuing this particular home or not.

Home inspections are a documented room by room analysis of all visible areas of the
home and corresponding mechanical, electrical, plumbing and other key functions of
the home.
Home Inspectors are not able to look behind walls or remove any fixtures or
equipment.
We use home inspectors who literally are able to “see” behind the walls of your home
to detect certain issues such as moisture or water penetration or heat loss. This is
done with the use of a highly sensitive infrared camera.
Unfortunately, this cost to you is a non-refundable cost you will incur if you decide not
to purchase that particular home. You would only do a home inspection on a house
you were seriously considering buying!

Justin@HeadwatersEstates.ca
Mobile: (519) 217-2034
www.HeadwatersEstates.ca
 APPRAISALS

$250 – $400
Some things in the home Buying process are going to be out of our control, this is usually one of them.
If you are getting a mortgage for your property it is common practice for the bank to order an appraisal
on the house before they give you the loan. What this means for you is that the bank will send their
own Appraiser in to determine a value on what they think the home is worth. They do not want to give
you more money than what the home is worth in their eyes. Again this cost is usually non-refundable if
you do end up paying for it and do not purchase the home.

What this means for you is that if you offer to pay 350k for the property but the bank thinks it
is only worth 320k you would then be required to make up the difference (30k in this case) or
withdraw your offer to purchase the property and get your deposit back.
Working with our Mortgage Brokers we will do our very best to try and secure the financing
you need to purchase your home however some things such as the suggested price from
the Appraiser are often out of our control.
Appraisals usually average $250-$400 and the bank will typically try and pass this cost on to
you, however our Mortgage Brokers can sometimes have this fee waived.
The banks will sometimes offer to reimburse you for the cost of the appraisal upon closing of
your purchase.

CLOSING DAY
LAWYERS FEES

If we were to estimate your Lawyer fees on a 350k transaction you should expect somewhere between
$1,500-$1800. The Fees for Lawyer’s can also vary depending on the purchase price of your home as
well.

Assuming all of your conditions were met and the deal you have to purchase your home is “Sold Firm”.
You will now wait until the date set for completion which is better known as closing day!

This is a date that is set for the Lawyers of each side of the deal to formally “close” the deal.
Typically, 30-90 Days from the acceptance of the offer.
Justin@HeadwatersEstates.ca
Mobile: (519) 217-2034
The funds from the banks are exchanged through a large value transfer system which will
www.HeadwatersEstates.ca
“wire” the money to and from the banks.
You will then meet with your Lawyer’s to sign the final closing documents and transfer the
deed of your new home into your name.
 LAND TRANSFER TAX – WHAT IS IT AND WHO PAYS IT?
When you buy land or an interest in land in Ontario, you pay Ontario’s land
transfer tax. Land includes any buildings, buildings to be constructed, and
fixtures (such as light fixtures, built-in-appliances and cabinetry.)

If you buy property in the City of Toronto, you may also pay the City of Toronto’s own
municipal land transfer tax in addition to the Ontario Land Transfer Tax.
First time home buyers are eligible for a credit of up to $4000.00 towards their Land Transfer
Tax – This credit is applied immediately by the lawyer upon the transfer of the property and
will be reflected in the land transfer cost in the closing documents.

LAND TRANSFER TAX RATES

The tax rates calculated on the value of the consideration are:

0.5% up to and including $55,000

1% above $55,000 up to and including $250,000
1.5% above $250,000
2% above $400,000 where the land contains one or two single family residences.
The land transfer tax rate is the same for residents and non-residents of Canada.

CALCULATING THE TAX AMOUNT

Use the table on the next page to calculate land transfer tax.
Residential property: land that contains one or two single family residences
VC: Value of the consideration for the conveyance or disposition
Justin@HeadwatersEstates.ca
Mobile: (519) (How Much You Paid)
217-2034
www.HeadwatersEstates.ca
LTT: Land transfer tax payable
LAND TRANSFER TAX RATE EXAMPLE: SALE PRICE OF $495,000

VALUE ($’S) TAX RATE CALCULATION TAX PAYABLE

0 - $55,000 .005 $55,000 X .005 $275

$55,001 - $250,000 .01 $195,000 X .010 $1,950

$250,001 - $400,000 .015 $150,000 X .015 +$2,250

$400,000+ .015+.005 $ 95,000 X .020 +$1,900

$495,000 $6,375

Above $400,000 surcharge applies to single-family and duplex residences only

For a quick and simple method there are many online land transfer tax calculators available

Closing Costs – (Estimate on 350k Purchase)

So let’s add up some of the out of pocket expenses you are going to see when buying your home.
(Example 350k) (Estimates of costs are on the high side). The Bank will want to see that you also have
enough available money in your account to make your first mortgage payment and cover the closing
costs of your home listed below. As a rule of thumb we recommend having approximately 1.5%-2% of
the purchase price of your home available and accessible at the time of closing. This is more
than you will usually need but we prefer to overestimate then under estimate when it comes to this.

Inspections $500
Appraisal $450
Lawyers’ fees $1,500-$1,800
Land Transfer $3,725

TOTAL ESTIMATED CLOSING COSTS = $6,475

Down Payment = 5% of 350k = $17,500

TOTAL OUT OF POCKET INVESTMENT FOR A $350K PURCHASE WITH 5% DOWN

PAYMENT = APPROXIMATELY – $23,975

Justin@HeadwatersEstates.ca
Mobile: (519) 217-2034
www.HeadwatersEstates.ca
This example is meant for illustrative purposes only. Certain areas have different land transfer
tax calculations and all fees on closings costs may vary depending on the provider.

Home Ownership Costs

Additional Costs of Home Ownership

In Addition to Closing Costs, and down payment, it’s important to factor in the extra costs that go along
with home ownership. While buying a home may cost a little more than you think, the investment
in property can still be worthwhile as long as you buy what you can afford and budget for expected
and unexpected expenses.

Insurance - Your lender will require home insurance, this cost could vary depending on a
variety of factors including the construction materials of your home, location and property type.

Condo Fees - If you buy a home within a homeowners’ association or a condominium association,
you’ll be required to pay a monthly fee. These fees often rise yearly, or your association may need
to charge a special assessment for projects such as repaving the parking lot or repairing a roof.

Moving Costs - You may need to pay a moving company or rent a truck to move your belongings

Utility Bills – You may need to make a deposit to start your utilities account. This can range from
$250-$450 however there are different options available to waive these fees if you qualify.
Depending on where you live now, your costs for electricity, gas and water could be higher when
you move into your own home. You may also need to pay for garbage collection along with your
Internet, cable and phone bill. Make sure to contact your local provider to find out what your options
are and get an estimated average monthly cost for your specific type of home and services
required.
Lawn Care - Whether you handle your yard work yourself or hire a professional, you will have to
pay something to keep your landscaping in check. Lawn equipment can be costly and, if you have a
lot of land, you may need items such as a snow blower or a leaf blower, too.

Maintenance - Interior home maintenance costs both time and money. While you may be able to
change your furnace filters, clean your gutters and keep your appliances running smoothly yourself.
You may also need to hire a contractor occasionally to take care of certain repairs you are not able
to handle yourself

Repairs - While maintenance tasks can be predictable, the costliest part of homeownership
typically comes with unexpected repairs, such as replacing or repairing the roof, fixing loose tiles
in the shower, removing an overgrown or dead tree, or paying for mold mitigation in a damp
Justin@HeadwatersEstates.ca
basement.
Mobile: The list of possibilities is endless, so the best thing homeowners can do is to set aside
(519) 217-2034
www.HeadwatersEstates.ca
savings for an emergency. Some financial experts suggest budgeting for 1% or 2% of your
mortgage balance as a yearly maintenance and repair fund, but the amount you save depends on
the age, condition and size of your home. While this isn’t always the case it’s always a good idea to
have a little extra set aside for repairs.
 OUR COMMITMENT

We know you have a lot of options out there and we greatly appreciate you choosing
our Team. Below is a list of some of the services that we provide during the home
search and home buying process.
Custom automated home search based on your criteria.
We will cross check the MLS system daily to make sure you are seeing every
home that meets your criteria.
Schedule and show you all properties that meet your criteria that you would
like to see.
Provide you with reputable Mortgage Brokers to get you prequalified for a
loan
Draft any offers that you would like to submit, go over all offer paperwork with
you and answer any questions you may have.
Negotiate offers to ensure you are getting the best possible deal and the best
possible terms.
Follow up with the listing realtor for offer status updates and constantly
update you on the status of your offer.
Once your offer is accepted, we will coordinate with the listing brokerage,
deliver the contract and deposit money.
Schedule all inspections based on your schedule and the contract timelines
and provide you with reputable inspectors/contractors.
Make sure all contract timelines are met.
Follow up with the listing brokerage, lenders, & lawyer to make sure closing
is on schedule and keep you updated throughout the process.
Schedule and perform the final walk through(s) with you.
Coordinate with you, lawyer and lender on getting the closing documents
signed.
Contact you immediately upon closing/recordation and deliver you the keys
Justin@HeadwatersEstates.ca
Mobile: (519) 217-2034
to your new home.
www.HeadwatersEstates.ca
 While the Real Estate Transaction can become very complex
these are many of the general concepts that you will
encounter through a typical purchase of a Residential
Property. While we cannot cover every topic in such a
production we hope that you have a better understanding of
the fundamental makings of your home purchase.

We will guide you every step of the way to ensure you are
informed and educated on the home buying process. Our fee
to you is 100% free. In the province of Ontario, the seller pays
the Realtor commissions so our services to you as a Buyer
are 100% Free. All we ask for is your commitment and that
when you do find the home you want to purchase that you
use us as your Realtors. Again we want to thank you and let
you know that your business is greatly appreciated!

Your Goals Are Our Goals…

We Look Forward To Helping You Meet Them!

Sincerely

The Headwaters Estates Real Estate Team

Justin@HeadwatersEstates.ca
Mobile: (519) 217-2034
www.HeadwatersEstates.ca