Making an Offer to Purchase

Once you've found the house of your dreams, we will draft your offer to purchase. It's a good idea to have your lawyer review your offer to ensure your interests are protected. This important document should include the price you're offering, a closing date, and the specific "conditions" you want included, such as being able to first arrange suitable financing, or having the home inspected before the offer is finalized.

Your offer should also list the items you want to buy along with the home (e.g. appliances, light fixtures, window coverings, etc.).

Your offer will be presented to the seller ("vendor") by your agent, along with your deposit cheque. The amount of your deposit is flexible, and it will be held in trust and applied to your down payment when the deal "closes". Don't be surprised if the seller doesn't accept your original offer.

Everything is negotiable, so expect some bargaining.

Once both parties are satisfied and your offer is finally accepted, it becomes a binding contract between you and the seller. If you are buying from a builder, the offer will include a breakdown of items included in the purchase price such as taxes, deposit schedule, etc.

What Goes Into an Offer?

• Proposed purchase price.
• A list of all items included in the purchase price (if you're negotiating with the vendor to include items that weren't originally specified as included in the listing -things like fixtures, appliances, furniture).
• Closing date and date of occupancy.
• Financing information: the amount of your deposit, interest rate payable on the deposit, amount of down payment and mortgage.
• Details of the vendor's mortgage if you are assuming it.
• Conditions to the sale (some buyers specify mortgage approval and house inspection as conditions)
• Any obligations to be fulfilled by the vendor, including time frames for completion (such as repairs or cleaning out belongings).
• Time period for which the offer is valid.
• Vendor's obligation to provide an up-to-date survey.
• Any real estate commissions payable.

Applying for a Mortgage

Once your offer to purchase is accepted, it's time to make your formal application for a mortgage. This is when the pre-work that you completed will come in handy. Here's what you'll need to make available to the lender:

• Your financial information, including assets and liabilities, monthly expenses and employment earnings*
• Evidence of your down payment and income*
• Site and floor plans and specifications if the house is being built
• The accepted offer and MLS listing if available
• Your pre-arranged mortgage certificate

*Unless previously provided when you pre-arranged your mortgage.

Arranging your mortgage is a critical stage in the home-buying process. Your mortgage representative will help you identify what's important to you in your mortgage and to show you how different mortgage options and features can meet your specific requirements. These experts can help you select a mortgage that fits your needs and lifestyle -not only for today, but for the life of your mortgage.