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Frequently Asked Questions
Please choose from the following topics:
- Mortgages & Down Payments
- RRSP Home Buyer's Plan
- Oil Tanks
- Grow Houses
- Home Inspections
- Closing Costs
- Buying & Selling
Mortgages & Down Payments
What is a conventional mortgage?
It is when you have 25% or more of the price as a down payment.
What if I don't have 25% down
payment?
If you have less than 25% of the purchase price to put down, your lender
will require mortgage insurance which protects them against any payment default.
By providing mortgage loan insurance to lenders, Canadian Mortgage and
Housing Corporation (CMHC) or G.E. Capital limits the lenders risk enabling the
lender to finance up to 95% of the purchase price of a home.
RRSP Home Buyer's Plan
Can I use my RRSPs to purchase a
home?
Yes you can. The money you withdraw must be repaid over a 15 year period
to retain its tax deferred status.
What if I pay less than my
scheduled amount?
The amount you don't repay must be reported as income on your tax return
for that year.
How much can I use?
The RRSP Home Buyer's Plan allows qualified buyers to withdraw a maximum
of $20, 000.
Can my spouse also withdraw a
maximum of $20,000?
Yes, if (s)he qualifies.
Oil Tanks
Can I get insurance if the home
I am buying has an oil tank?
According to the Insurance Bureau of Canada, a home with an exterior tank
older than 15 years or an interior tank older than 25 years will not be insured.
What do I do if I have an
underground oil tank?
Owners must register their oil tank, at no charge, with the Technical
Standards and Safety Authority. Depending on the age of the tank you will be
required to remove it or upgrade it by a certain date.
For more information contact:
Technical Standards and Safety Authority
Toll-Free (outside Toronto): 1-877-682-8772
Toronto: (416) 325-2000
Grow Houses
What is a Grow House?
A Grow House is an illegal indoor hydroponic marijuana grow operation.
What are possible signs to look
for?
- mold in corners where the walls and ceilings meet
- painted concrete floors, in the basement, with circular marks where pots
once stood
- evidence of tampering with electric meter
- patterns of screw holes on the walls
- alteration of fire places
- many staple marks around windows
- unusual vents in roof
Home Inspections
What is a home inspection?
A home inspection is a professional, objective, visual examination of
the physical structure and systems of a home. These include: roofing,
foundation & structure, exterior, electrical, plumbing, interior, insulation &
ventilation.
Why a home inspection?
Home ownership is probably the largest single investment you will ever
make. You should know what to expect - both indoors and out - in terms of
repairs, maintenance and associated costs. An inspection also highlights the
positive aspects of a home helping to dispel home buyer anxieties.
How long does a home inspection
take?
Approximately 4 hours.
Closing Costs
What closing costs can I expect
when I buy a home?
- legal fees and disbursements
- land transfer tax
- hook-ups (cable, telephone, hydro, gas, etc)
- property tax adjustment (if applicable)
- tax and insurance premium (i.e. CMHC Fee)
- applications fees
- survey or title insurance
Buying & Selling
Should I buy or sell first?
Good points exist for either approach but because each situation is
unique, there are no "right" or "wrong" answers.
The pros for selling first are:
- peace of mind ... knowing you won't be pressed to sell your current home.
- knowing the "net dollars" from your sale
- you can focus on your new home purchase
- it strengthens negotiating position
The cons for selling first are:
- unable to find a new home prior to closing on the sale of your current home
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