| |
VIEW
OUR LISTINGS
BUYING - What is involved?
Do I need an agent to represent my interests? Can I hire a
Realtor to help and what exactly can I expect? Well, there is more information below, answering other questions,
but for now the answers are: Usually it is better to have your interests represented; and - yes, you can hire a Realtor to represent those interests.
At Century 21 we also put our service in writing so you know exactly what to expect from us. The document is our
Buyer Service Pledge This document describes our service level and puts it in writing. Hiring one of our agents as a Buyers Agent can be
very advantageous to you as a buyer. We welcome the opportunity to discuss such an arrangement . . .  no obligation.
Here is another web-site you can go to for general information on How Realtors help
BUYING
versus Renting: what you should know . . .
How much financing
can you qualify for? At Century 21 Ace Agencies Ltd., we will assist you to calculate this or you can find out at this site.
Try comparing the amount of mortgage payment you qualify for to the rent you now pay: click here.
On paper, does buying make sense? What about all the other costs like down
payment, property taxes, closing costs, etc.? Read on - you will find information on this page and other links that will help.
Century 21 Ace Agencies Ltd. in Abbotsford, B.C. has assisted folks with buying Abbotsford real estate for over 35 years. The following are simple guidelines to calculations used when considering financing real estate.
A simple calculation to remember to arrive at an approximate qualifying payment amount is to calculate 30% of your
gross income, (28% for a more conservative calculation) - this amount can be used against mortgage principle, interest and property taxes on a monthly payment basis. The second
'benchmark' lenders use is the figure representing 40% of your gross income (before taxes) or 38% for a more conservative calculation - towards all debts. Check out this calculator, (or back up to other site),
to recalculate your figures.
At Century 21 Ace Agencies Ltd. our consultants will help with calculating how much
money will be needed in order to close your purchase. For example, over and above the
purchase price, buyers face legal fees (plus GST and PST) and disbursements
(plus GST), which are out-of-pocket expenses a lawyer/notary incurs obtaining
and preparing documents needed to register ownership in the appropriate
Land Titles Office. Another closing cost is the land title registration
cost. This includes the Property Purchase Tax (PPT assessed at
1% on the first $200,000 of value and 2% on the balance), in the Province
of British Columbia, Canada. Other provinces will have similar fees -
be sure to ask. There are exemptions with the PPT - be sure to ask us.
You may also be asked to reimburse the seller for pre-paid expenses
such as property taxes (usually paid in the middle of the year for which
they are assessed). These are called transaction adjustments.
At Century 21 Ace Agencies Ltd. we will advise about other
costs buyers run into. For example, the cost of arranging a mortgage. There can
be application and appraisal fees, (depending on the lending institution), as well as a site survey cost (site
surveys are often required by lending institutions). As your agent we
can help you 'shop' for the best, most comprehensive package available
with lenders. Also, site surveys, (in many cases), can be replaced
by Title Insurance - this option may save you money depending on the situation. The
net result of this - we may be able to lead you to savings of at least
hundreds and maybe even thousands of dollars.
Another financing
cost is Mortgage Insurance. The amount of insurance premium (not an
option if financed amount is over 75% of the value) is based on risk and
is calculated on a percentage of the amount borrowed. This is not Life
Insurance - basically it's 'default insurance'. One insurer
is Central Mortgage and Housing (CMHC),
a Federal Government Crown Corporation, another is G.E.Capital Mortgage Insurance, a private insurer. Because they will insure against
default, a first time buyer can finance up to 95% of the value of the
property they wish to own. The premium, though substantial, can also be
financed by adding it to the Principle Sum of the First Mortgage.
We hope this answers
some of your questions. To arrange your personal, confidential consultation, (almost anywhere in
the world), or if you would like more information,
contact us here . . . or try www.realtor.ca for information generic to the Real Estate Industry
or check out CENTURY 21 Canada's site at: www.century21.ca
or
by phone at: (604) 853-3374
fax: (604) 853-2133
|
