Basement Renovation Price Quote Contract: Fill & Download for Free

How to check out a contractorLocating a potential contractor is just the first step. You need to fully ‘check out’ prospective contractors thoroughly before deciding who to hire.Even when you get a positive referral from a friend or neighbor, you should still check the references and reputation of any contractor before hiring them.Interview the ContractorIt is important that you are comfortable with your contractor, that you trust them in your home, and that you have confidence they will complete the project as promised. If you don’t feel that way, you probably shouldn’t hire them.The best way to determine your comfort level is with a thorough interview. In addition to whether they are able to do the job, you need to obtain the following information:Their qualifications: How long they have been in business, how the company operates (e.g. using their own staff or subcontractors), and their experience with similar jobs.Their references: Obtain contact information for at least three of the contractor's past customers with projects of similar complexity.Their suggestions: Ask what they think of your project, what ideas they can offer to improve it or get more value for the money.Their estimate: Ask for an initial "ballpark" estimate of costs for your project and when it could be started and finished.We’ve provided an easy-to-use Contractor Interview Worksheet for you to print out to help you conduct these interviews. It includes many useful questions for you to ask contractors.What questions to askQ: What is the history of your company?Experience makes a difference. Find out how and when the contractor got into the business, and how long the company has been around. Ask about the contractor’s background and relevant education and training—you want to make sure the renovator has both the technical and the business skills required to run a solid company and provide quality services. Also, ask about the size of the company; some have their own staff to do the construction work while others rely on subcontractors.Q: What services do you offer?Every contractor will provide a specific range of services. Some will include design services, while others will work with independent designers. You need to have a clear understanding of what services the contractor can provide for your project.Q: Have you done renovations like ours before?Some contractors specialize in specific types of projects, such as roof repairs or kitchen renovations. Others offer more general renovation services and can handle a wide range of projects. It is important to know that a contractor has experience with projects similar to yours—ask how many in the past year or two.Q: Can we talk to some of your past clients?Request a list of past customers you can contact for references. Professional contractors are proud of the work they do and will be happy to provide this information. If the answer is no, stop the interview right there—never hire anyone who is not willing to give you references.Q: Can we visit one of your current projects?Visiting a worksite can tell you a lot about how the contractor operates. If the contractor has a current project, ask to visit it and take note of details such as how well the site is organized and whether it is clean and tidy.Q: Do you carry Workers' Compensation and business liability insurance?Hiring someone who is not properly insured could put you at considerable legal and financial risk. Professional contractors will provide you with proof of business liability insurance and Workers' Compensation coverage.​Q: Will we get a written contract?If the answer is NO, stop the interview right here. Always, always get it in writing. The contract sets out the agreement between you and the renovator in detail, from the description of the work to the actual materials to be used to the price you will pay to the responsibilities of both you and the renovator. If it’s not in writing, you have no proof that you and the renovator have in fact agreed to the same thing.Q: What warranty do you offer on your work?A professional contractor provides you with a written warranty that spells out what is covered and for how long. And they deliver prompt follow-up service if there are problems or defects in their work. When checking references, ask past customers about the contractor's warranty service performance.Q: How would you deal with our project?Ask the renovator to explain how they would approach your project. Will design and working drawing be required before they are able to give you a firm price? Will they assist you in choosing products? Will they look after any needed permits? How long would the work take? When can they start? What will the schedule be like? How much will the work disrupt your household? Will they clean up? How will you pay and when?At the same time, expect the renovator to try to find out as much as possible about you and the proposed project. Are they listening carefully? Taking notes? Asking the right questions? Offering ideas and suggestions? At the end of the discussion, do you feel confident that they understand what you want and can help you accomplish it?We’ve provided an easy-to-use Contractor Interview Worksheet to help you conduct these interviews. It covers the key questions you need to ask contractors.Checking contractor referencesMany people assume that if a contractor is willing to provide customer references, they must do good work. You should not assume this and, in any case, you can learn a lot about your contractor from past clients — even the satisfied ones.Every professional contractor has strengths and weaknesses, and their past customers are in the best position to tell you what these are.So once you have customer references from a prospective contractor, use these. You need to know if the past projects were completed on time, on budget, and to the customers’ satisfaction. If there were any problems or delays, you need to know how the contractor handled and resolved these. Only past customers can tell you.If a contractor is unable or unwilling to provide customer references, you should not consider hiring them.It can feel a bit intimidating to phone a homeowner you don’t know to ask about their renovation project. To help you in this process, use the Customer Reference Worksheet download. This will assist you in asking important questions in a consistent way.​Getting and reviewing price quotes​Price is a critical aspect of your renovation project. What will it cost to do the job you want? Alternatively, how far can you go on a set budget?Determining the cost of a small project is usually fairly simple. Just make sure all the contractors bidding the job are providing the same services and materials.For more complex projects, it often takes a few conversations with contractors to define the project to the point where they can begin determining costs.For large project projects, it is often necessary to develop the complete design, specifications, and plans first as an initial and separate job. Depending on the level of work involved, expect to pay a fee to have this done. Many renovators offer design and plan development services. If you have purchased such design services, you can use the completed material to ask contractors for a formal price quote. Having contractors price the job based on identical design and specification information will make evaluating their quotes much easier.The level of detail required in plans will vary depending on the scope, size, and complexity of the project. This can range from simple sketches or diagrams to full construction drawings for projects that involve altering the structure of your home.Specifications are detailed descriptions of the specific materials and products you want to be used in your project. For instance, if you have decided on the brand and model of bathroom fixtures, these specifications should be included.Alternatively, you may choose to work with a designer or architect and have them get price quotes from contractors."Guesstimates"Experienced renovators can sometimes offer an educated opinion or price range on the spot, based on similar jobs they have done in the past - for instance, a per-square-foot estimate for additions or basement recreation rooms, or a rough cost estimate for upgrading your bathroom. This can be helpful upfront to make sure that there is a realistic fit between what you would like to do and the budget you have in mind. However, be aware that the cost of a project can vary greatly, depending on many factors, including the current condition of your home and the types of products you decide to use. A guesstimate is not a price quote.Price quotes and bidsPrice quotes and bids are the same – if written down they represent a renovator's offer to perform your renovation for a specified price, based on the description of the work included in their bid.This document should specify the materials and products to be used (including brand names and model numbers), labor requirements for their crew, and any necessary sub-trades, with accompanying costs for each item. Expect the price quote to include payment details such as payment timing and amounts, and what progress milestones each payment is associated with.Up-front payments or deposits are usually required if you decide to accept a price quote and sign a contract, but deposits should not generally exceed 10% of the total cost of the work. The exception would be instances where the contractor had to purchase custom materials or products you have requested that are not returnable and must be pre-paid by him. Expect providing an additional deposit in this situation.A written price quote is legally binding and becomes part of the contract between you and the renovator, should you accept it.How many bids should you get? There are no hard and fast rules. On large projects, it is not uncommon for homeowners to interview several renovators, check their references and previous projects, and then choose one company to work with throughout the whole process, including developing plans and budgets as well as doing the actual work. In other cases, homeowners will go through a formal bidding process with a number of firms before deciding which contractor to hire.Deciding who to hireOnce you have interviewed renovators, checked their references, and received written price quotes from those you are interested in hiring, it's time to decide who will be doing your job.Renovators should be allowed adequate time to prepare a bid for your project, and as mentioned previously, you must ensure that each renovator is working with the same plans and specifications. For all but the simplest projects, you should expect the renovator to present their bid in person, so that they can discuss each aspect with you and answer any question you may have.Once you have met with the renovators who are bidding on your job, you should review each set of bid documents carefully before deciding who to hire.Compare every aspect of their bids – the description of the work, specifications (materials and products), price and allowances, deposit and payment milestones, project schedule, and any additional recommendations or ideas for your project.If during your discussions with prospective contractors, any have suggested to you they can provide you with a better price if you pay them cash and skip the paperwork, you should eliminate them from further consideration – they have essentially told you they cheat on their taxes and lie to the government. You shouldn’t expect they will treat you any better.Review the information you collected during and after your initial round of renovator interviews – your initial impressions of each renovator, and what their previous customers had to say about them.Decide the importance of each aspect of your evaluation. While overall price is important, it is only one factor. Many homeowners who have successfully completed major home renovations speak about the importance of peace of mind – working with a renovator they trusted and felt confident in.If you have a particularly strong sense of confidence in one of the renovators, they are probably your best choice, even if their price is not the lowest. In the end, you should choose the renovator based on your sense of the overall value they can provide to you.​In the end, it comes down to trust and confidence – trust that you have chosen the right contractor for the job, and confidence that you will get what you want.Finalizing Your ContractThe scope and complexity of the contract will vary according to the size of your project, but most contracts will contain the standard information outlined below. If you have any concerns or questions about the contract, discuss them with your professional renovator before you sign. You may also want to ask your lawyer to review it first.Here are some of the points that should be covered in your contract:The parties to the contract (i.e., you and the renovation contractor), including street addresses, telephone, and fax numbers, email addresses, and the renovator's business or GST number.Addendums. The main contract must also identify all attachments that are part of the contract, such as Drawings/blueprints/plans specifications: description of work and a precise list of materials and products (e.g. types, brands, grades, thickness, color, model)Other documents signed by both parties in the course of the contract (e.g. change order forms)Description of work to be done by the renovator, as well as work not to be done under the contract, or to be done by you or others outside the terms of the contract.Start and completion dates often include a statement indicating that the renovator cannot be responsible for delays due to circumstances beyond the renovator's control, changes to the work, and so on.Terms of payment set out the total amount of the contract and a payment schedule: deposit upon signing the contract; how and when the remainder will be paid (at regular intervals or specific milestones), and the treatment of taxes.Holdbacks are a provincial legislative requirement that protects you against subcontractors who may place a lien on your property in the event the renovation contractor doesn't pay them. On each payment you make to your renovator, you must hold back a certain percentage for a specified length of time.Changes in work, once the renovation is in progress (also called extras and deletions), must be written up as "change orders," signed by both parties and attached to the contract. Any change to the contract price and schedule should be clearly noted on the order.Allowances refer to a lump sum in the contract price, allocated for items to be selected directly by the homeowners, such as flooring, fixtures, or cabinets.Contingencies refer to an amount set aside to deal with the unexpected or items that the renovator cannot gauge accurately until work is in progress. If not needed, you won't be invoiced for it.Standards of work describe the renovator's commitment to performing the work in accordance with the contract documents and in a diligent and workmanlike manner with minimum inconvenience to your household, to protect your property as well as neighboring properties, and to comply with regulatory requirements. Includes responsibility for daily clean-up.The renovator's liability insurance and workers' compensation coverage must be paid up to date and proof of coverage provided and attached to the contract.Municipal and/or utility permits, inspections, and approvals are usually arranged by professional renovators as part of their service (note that homeowners are ultimately responsible for complying with these regulations). The contract should specify who is going to obtain them.The renovator's warranty describes what is covered and for how long. It should include a statement of the contractor's intent to hand over manufacturers' product warranties to you upon completion of work.Subcontractors scheduled to work on your home may be listed.Use of facilities and utilities should be outlined-water, electricity, washroom, and storage for materials.Signage. A statement that you will permit the contractor to display a promotional sign on your property during the project.Dispute resolution in the event of a conflict – may include the name of a third party arbitrator, or state that both parties agree to binding arbitration. ​​How Things Work During a ProjectOnce your project gets underway, you and your renovator need to work closely together to make sure that everything goes as smoothly as possible.Many of the responsibilities of both the renovator and the homeowner will have already been spelled out in the contract. Before the work actually starts, it’s a good idea to sit down with your renovator and review this in detail. Good communication is often the key to a good renovation experience.Before the Work BeginsDiscuss the renovator's requirements for the work. including access to electricity and water on a regular basis, delivery and storage of building materials, and disposal of wastes.Determine the ‘rules of the house’ for the work crew. Clarify access to bathroom facilities and eating areas, as well as kitchen privileges, if any, and also which parts of the house are off-limits. Set out your smoking policy and if you permit music in the work area.Verify that municipal permits and approvals have been obtained as needed. The contract may stipulate that your renovator will do this; however, the ultimate responsibility rests with you, the homeowner.Renovator ResponsibilitiesYour professional renovator will make every effort to avoid disruptions and minimize the impact on your household. For instance, additions will typically be built and partially finished before the connecting wall is removed. Temporary hookups for water and electricity will allow you to continue your daily cooking and cleaning routines.To keep you informed, your renovator will name a contact person for your project, usually the site supervisor or the renovator personally, who will stay in touch with you throughout the project. You will get regular updates on the progress of the work and be told when to expect tradespeople and when you will be needed for decisions. This person will also be available on short notice to respond to any questions or concerns that you have.The renovator is responsible for meeting deadlines. The contract should clearly outline the project schedule and deadlines to which your renovator will work. If the work gets off-track for unforeseen reasons, the renovator will discuss the situation with you immediately and find ways to correct it.Daily clean-up is part of the service. Professional renovators leave a clean worksite at the end of each day. Be sure to discuss your expectations.Homeowner ResponsibilitiesClear work areas of furniture, drapes, and art. Protect your valuables by placing them in an area where no work is going on, or out of the home, and cover anything that might be harmed by dust.Make early product selections. The contract may stipulate that you select and/or provide specific items such as flooring, lighting equipment, tiles, and kitchen cabinets. Have these items available to your renovator when needed to ensure the smooth progress of the work.Keep changes to a minimum. Most renovators are willing to accommodate changes to the original plan as you go along. However, changes may result in a cost increase or a time delay so make sure to discuss the implications with your renovator. Change orders are amendments to the contract and must be signed by both parties.Be available to your renovator. Invariably, you will be asked to make a number of smaller decisions as the work progresses. Make sure that your renovator can reach you on short notice.Discuss any concerns as they arise.Provide payment as agreed upon in the payment schedule set up in the contract. Be sure to hold back the appropriate amounts required by the Contractors' Lien Act in your province; contact your provincial government or your lawyer for information. Accept the unpredictable. Foul weather, unavailable products, unforeseen complications . . . these can be part of the renovation experience and will be dealt with by your renovator in a professional manner.Making changes once the work starts​Even with the best-planned renovation, some things may need to be changed once the work is underway. This is perfectly normal, and there are well-proven methods for dealing with changes.Change OrdersThe larger and more complex a renovation project, the more likely it is that you may want to make changes to the initial contracted plan as the work progresses. For instance, once you see new flooring in place, you may decide to have it installed in other rooms as well. Or you may see a fixture or finishing that you prefer to the ones initially selected and listed in your contract.These sorts of changes are perfectly normal and are managed through documents called "Change Orders."A Change Orders is a mini-contract that defines the altered or additional work, including the payment terms. Change orders need to be signed by both you and your contractor and should include payment arrangements specific to the work covered by the change order. Once signed, Change Orders become part of your contract with the contractor. Always make sure that, if you ask the contractor to make a change, this is properly documented and signed-off by both parties.ContingenciesThere are renovation situations where some aspects of a project cannot be accurately determined until work is underway. To manage such situations, renovation contracts will often set aside a budget "contingency" – an amount of money held in reserve in the event that it is needed.For example, the contractor may be uncertain about the condition of the roof sheathing underneath your shingles, but can’t determine this until the existing shingles have been removed. To cover this, an estimate for the costs involved in some or all roof sheathing must be replaced would note in your contract, but this would be subject to your later approval, only if the extra work is needed. If the sheathing was fine, the contingency would not be approved and the money not spent.A contingency budget should always be linked to a specific aspect of the project and subject to your approval before becoming active.Hidden deficienciesDuring a renovation project, your contractor may find problems that could not have been reasonably anticipated beforehand. For instance, dangerous electrical wiring from a previous renovation rotted wood due to old leaks, or lead flashing under the old roof shingles.Where there is potential for such hidden problems, your contract will most probably include a clause which states that the agreed price does not cover hidden deficiencies. Should such a problem be found, the contractor will normally alert you to the problem, ask for your direction on how to deal with it, and then determine the cost of the additional work needed. You will need to approve this additional expenditure before the work can begin. Once you have approved the change, it becomes part of your contract.Warranty coverage and follow-up serviceYour renovator's commitment to you doesn't end when the work is completed. As specified in your contract, you will have a warranty on all work done for a specified period, usually one year. Review your warranty coverage as outlined in your contract and take note of time limits to coverage. Then make sure that any deficiencies are reported to the contractor prior to the warranty expiring. Do this in writing, by letter, or email.There are two types of warranty follow-up to be aware of:Most often, problems are of a minor nature – nail-pop or small cracks in drywall around door frames of load-bearing beams. Repairs will be scheduled at a time convenient to you.If anything of a more serious nature should occur, such as a leaking pipe or electrical problem, call your renovator right away as these conditions may need immediate attention to protect your family and your home.Some of the materials and products used in your renovation will also come with a manufacturer's warranty. For instance, windows are normally warranted against failure for 5 or 10 years.Flooring, cabinetry, plumbing fixtures, heating equipment, roofing, siding, and appliances should also be covered by a manufacturer's warranty.Your renovator should provide you with the manufacturer's documents that outline these warranties and explain the procedures you need to follow in case of problems.

It depends, typically 30 days… but it depends on the volume of showings you’re getting.I had a property where we got two people at the first open house, zero showing requests through the week, and no one at the second open house. My exact quote to the sellers was “I can’t sell something to no one”. We were priced at $550k, we dropped the price in less than two weeks to $525k, it was under contract in less than 35 days total.I know of another property (not my listing), where the house had an upstairs area with one very narrow stairway leading up. Other than the narrow stairway the place was totally renovated and beautiful at a reasonable price. So, they were getting foot traffic up the wazoo, but no offers, because everyone was turned off by the stairway essentially rendering the upstairs not quite useless. Hundreds of days on market. In my opinion, it wasn’t price on this at all, it was setting expectations. All they had to do was say “narrow stairway leading up” and take a picture of it for mls. And the foot traffic would be very telling on price. Overselling, or not setting proper expectations, will shoot you in the foot.Third example, I have land for sale, 1.5 acres, a house on the same street (6000 sq ft not including the 3000 sq ft finished basement) is a short sale for $1.4m. So a customer could either build a new house for about $1.8 million or buy the beautiful foreclosure. So the value of the land now is about -$400k based on those numbers???? a price drop after 30 days is just negotiating against yourself.So yes, rule of thumb maybe 30–60 days, but it really really really depends on the situation.

You have made a big decision this year: You want to buy a house (or a condo, or a townhouse).Going into open houses and finding that place is an exciting realization that you will soon call home. But this can also be a stressful process. To achieve a mortgage, it is a long process to actually buy that house with bidding war.So we have created this guide. Our editorial team has either gone through the process of buying a home, passing through it or hoping for a day, and we have researched for you.This is a comprehensive guide that touches all the key aspects of buying property: from house inspection, to tax credits, to actually go home hunting And when it's ready for homeboys for the first time, a lot of this information will apply to almost everyone.Now, without further ado, there is a need to jump over all those information that you know before joining any major financial trip.MortgageWhat is a mortgage?A mortgage is a loan which is used to buy property in Canada. In this, the lender requires regular payment, including the original payment (paying the loan amount) and interest. Your mortgage can also be bundled in your property tax or home insurance payment.Often, mortgages are big loans of hundreds or thousands of dollars. Your property - whether home or something - is used to repay the loan. Meaning, if you stop making your payments and default, then the lender can confiscate your home as collateral to cover lost money from the loan.Payment in large amounts leads to interest costs compared to the principal, but over time, your overpayment goes towards the principal.What is mortgage?How long a mortgage term applies to certain mortgages about your mortgage. For example, a word will determine how long you will be closed at a fixed rate or variable rate.Conditions in Canada are usually five years, although they can range from six months to 10 years. Deciding how long you want, depends on many factors. For example, you want a fixed rate temporarily because you are raising interest rates, but believe that they will start moving down in a few years. In that case, the short duration of two years will be understandable for you.The length of the different period will come with different interest rates.What is refinement?Amortization calculates the amount of time required to pay the principal and interest of your mortgage. Now a refinement reduces your monthly payment, but the more you pay interest at the end.In Canada, the 25-year mortgage is the longest refinement for insured, while uncontrolled mortgages can be up to 30 years in length. Amortization is different from one word that it is the time required to pay your mortgage, while one word determines certain parameters like fixed or variable at certain times.Fixed vs variables: What is the difference?This is one of the biggest decisions you make when applying for your mortgage. A fixed rate will maintain your rate during the entire tenure of your mortgage - for example, if you get a fixed rate of 3.25% for five years, then the rate will be the same for every five years. If you are concerned with the impact of high interest rates on your monthly payments, then this could be a good option.Meanwhile, a convertible rate tracks the bank's key lending rate and is influenced by decisions made by the Bank of Canada. If the Bank of Canada increases your lending rate, your mortgage rate will increase, and either increase your monthly payment or interest towards the portion you pay. (It is important that you ask your broker or lender what will happen in such a scenario.)Variable-rate mortgages are great in the falling rate environment, because whenever the Bank of Canada lowers its rate, your mortgage rate decreases. Also, with the introduction of variable-rate mortgages, interest rate is lower than fixed rates.If you are comfortable with a rate that can change, then selecting a variable-rate mortgage can save a lot of money during the lifetime of your mortgage - as long as the interest rates do not grow very quickly.Open versus closed mortgageOpen mortgages allow you to pay your mortgage at anytime without any penalty. On the other hand, closed mortgages allow only one specific amount to be paid in one year - although some do not allow at all.Most borrops choose the mortgage option because they come with low interest rates. If you want you to be able to pay your mortgage before the end of your refining, then consider an open mortgage.What is a quick payment?Accelerated payments include changing how often and how much you pay on your mortgage. It may be possible to quickly change your frequency of payment from monthly to bi-weekly. Paying for every two weeks means that you pay a little more every month, because in most months it is slightly more than four weeks.Some lenders allow you to increase your payments by a certain percentage per month, usually at a cap of 20%. All this goes to your principal, which means that you pay less interest. Accelerated payments are a great way to reduce the total interest cost during the lifetime of your mortgage - often on the tune of tens of thousands or thousands of dollars.What is the prepayment charge?Want to pay your mortgage fast? not so fast. Most lenders only allow you to pay a certain amount each year. Whenever you allow your mortgage in a given year, there is a prepayment fee if you pay more than that.Some lenders allow you to make a one-time payment annually - often up to 20% of your mortgage. This is a great option if you feel that you have extra cash in the coming years, whether it is a bonus or a legacy. It is important to ask your lender or broker if you have this option before applying, because every mortgage does not allow it.How big should your mortgage be?It is important to have a budget before buying a house. Experts recommend that you should dedicate one third of your monthly income to the cost of housing, so make sure that you sit and not only calculate the total costs of your mortgage, but rather property taxes, home insurance and No maintenance fee When choosing to mortgage someone, banks follow the Canadian Mortgage and Housing Corp's Gross Loan Service Ratio (GDS), which says that your monthly housing cost should not exceed 39% of your gross monthly income. By calculating it ahead of time, you will know what your payments will be. You should not be more than 50% of your monthly income at home because it can prevent you from saving properly and for the creation of an emergency fund.Should I Get Pre-Mortgage Approval?Yes. Being pre-approved for a mortgage means that a lender has already seen your credit history and income and you are comfortable with mortgage for a certain amount. This will allow you to know what you can afford, and prevents you from bidding on a property, to learn only a lender who does not mortgage you for the required amount.Pre-approval can also be a big advantage in competing housing markets such as Toronto. This allows you to bid without having a financial condition because you know that your lender is ready to give you the mortgage.Bank, broker and credit unionHomeboys in Canada have many options when they talk about getting their mortgage. Banks are traditionally the most popular option because many of us already have some form of banking with them. However, their advertised rates are often higher than other options and negotiation is needed to get the best rates.Brokers keep less advertised rates than banks, and often work to compare mortgage rates and get the best rates. Most brokers pay a lender from a small percentage of the loan amount.Finally, credit union also provide loans. One benefit of credit unions is that B-20 tension tests do not apply to them - which means that you can borrow more (more about this in our section titled "Tension test" below).In the end, the number of private mortgage lenders in Canada has increased. These non-traditional lenders - often a small group of individuals or individuals - lend to those who have been turned down by traditional lenders. Given the added risk (and the industry is not well regulated), they charge a lot of interest rates. Rates of 15% or more are not uncommon. The number of private mortgage lenders has increased in cities with hot accommodation markets like Toronto and Vancouver. We advise against using a personal lender to get your mortgage.Finding the Best Mortgage RateThe easiest way to find the best rate is to use a rate comparison website. This allows you to see who is willing to offer you the lowest mortgage rate - from the comfort of your home. You can use the Find Canada's Lowest Rates quotation below to compare the mortgage quickly and easily.Stress CheckingOn January 1, 2018, it is necessary for the beginning of the Office of the Office of the Office of the Superintendent of Police (OSFI) that those who keep mortgages from Canadian banks go through stress tests to ensure that they pay their interest if interest rates increase. Able toThis new stress test, known as B-20, means that the borrowers will have to prove that if they increase at the rate of two percent or rate of five years of Bank of Canada average, then Whatever is more, they can buy their mortgage.Tension test has caused the loss of buying power. While under the old rules, a borrower can get a mortgage at seven times his annual income, under the new rules, this number has reduced in about five times the annual income.Additional costRising interest ratesFor the first time, those who buy a house have a lot against them now. The said mortgage stress test, which was introduced by OSFI in the beginning of 2018. There are five interest rate hikes implemented by Bank of Canada (BoC) in the last one-and-a-half years, which have made variable-rate mortgages more expensive. And it is also a fact that Condo prices are acclaimed as long-term economical options - increasing.All of them said, still hoping: Real estate boards in Toronto and Vancouver are pressurizing the federal government to put pressure on or even to overcome stress checking, which is the first time a lot of financial pressure on buyers Can reduce. And many economists have increasing doubts that BoC will continue to increase interest rates at the anticipated rate at once. In fact, some are predicting only one increase this year. Other people are also speculating that BoC may lower the interest rate at some point in the night.Land transfer taxOnce the sale of your new house ceases and the property is officially yours, then you have to pay the province to transfer it to the land. (Every province takes a land transfer tax for Alberta and Saskatchewan.)Depending on how much you will pay, it depends on how much property you have purchased, as well as a mortgage or loan to buy it. Occasionally, the first time buyers are eligible for a discount.Toronto city pays a land transfer tax on top of the provincial one. To date, this is the only city that does this. So, suppose you buy a $ 850,000 home in Toronto. According to the Land Transfer Tax Calculator of the Toronto Real Estate Board, you will pay $ 13,475 in provincial land transfer tax and $ 13,475 in the Toronto land transfer tax, for $ 26,950 at the top of the purchase price. Your $ 850,000 house grew to just $ 876,950Property tax in CanadaOnce you are the owner of a property, you have to pay property tax. If your property is located within the municipality, then you have to pay a municipal property tax. If you live outside a municipality, you will have to pay a provincial land tax, which is calculated to calculate the current tax rate and multiply it by the market value of your property.Property tax is calculated on the basis of a few factors: the general municipal tax rate (if applicable), the education tax rate (determined by each province), and the value of your property. At the beginning of the year, you will receive a bill in the mail, which tells you how much you owe the estate tax.You can pay municipal property tax in installments, or some lenders will allow you to roll your annual property tax payment into your monthly mortgage payments, although you make several payments in one year. They then pay the municipality on your behalf.Property tax and utility adjustmentSome costs do not always cut and dry. Let's say you are not going to your new home until the middle of the month. There may be some adjustments that need to be done if the previous owners paid their property tax bills and / or utilities bills.The previous owner (s) would have used things like water, heat and hydro, for which they have not yet been billed. This can happen when you handle the utility account, you can pick up the tab. Once you take possession of the property, touch the base with the appropriate utility companies so that they can know that the cost for the beginning of the month is required to recover the previous owner (s).You should ask your real estate attorney to keep any adjustment tabs. Ensure that the closing time has arrived, these cost adjustments are reflected and are responsible for this.Assessment feeWhen buying a home for the first time, you need to hire an appraiser. What does an appraiser actually do? It assesses the value of your property.Evaluation on the house you want to buy is an integral part of being approved for a mortgage. Lenders usually rely on one of their own evaluators (in the same way, life insurance companies send you to your favorite doctors), but you still have to pay a bill for the service, which costs anywhere from $ 300 to $ 500 Can also happen.Title insuranceThe "title" is just a fancy word for the legal ownership of an asset.Although not mandatory, for one-time charges, title insurance protects you from loss related to title ownership - things like forgery, theft and fraud. Title insurance consists of two types: an owner's policy that protects the owner, and a lender's policy, which protects the lender.You can buy title insurance from your real estate attorney or from a title insurance company. It can cost you anywhere from $ 250 to $ 350.FurnitureAfter all the legal stuff is out, the fun of decorating can start. But whether you are buying new items or stopping sales of a weekend yard, your new home will cost you money. There is no way around it.In the third quarter of 2015, Canadians dropped $ 4.49 billion in household goods outlets.He said, the size of your new home can bring a big change in the cost of furnishing. For example, if you are going to a condom, you can actually figure out how much stuff it can fit inside, automatically decreases, so it can help you save some money. If you need to fill a house, then you are going to see high costs in this department.Even more costOnce you are approved for a mortgage, you may be eligible for life insurance from the bank. It can be up to $ 500,000, which your loved one can keep towards paying your mortgage if you die before making a payment. Like any form of life insurance, this benefit is completely optional. If you decide to do this, then the monthly life insurance premium will be available with your monthly mortgage payment.Anything else that you need to consider is that the purchase of a home may be subject to the sales tax. Generally it is for newly built houses - not on resale properties. Said that in every province there is no property sale tax. If you are one of the ominous people, and are going to pay taxes, you may be eligible for a tax deduction.Newly built houses come with a warranty, so it is important to check that the cost associated with that warranty will change into the sale price or it will come at the closing time. New home builder may also require nomination or solicitor fees.Then, when the moving day ends all around, if you decide to use the movers, then you will need to consider the costs of their labor (this may include moving insurance, which can be used in some types of compensation Ensures that if your items are damaged during this move), the fees will pay for things like internet, landline and installation of utilities.advanced paymentWhat is Down Payment?Unless you are very rich, you probably will not be able to buy a home with a single payment. Homeboys usually expect to split their payments into two categories: (1) a mortgage; And (2) money that you pay to the seller (a down payment).Down payment caters for many purposes. First of all, they make literal payments: the sum of the money you impose, which will be deducted from the total amount you give to the sellers. Suppose you give $ 100,000 down payment for sellers at a cost of $ 500,000. The amount given to you vendors is still $ 400,000, which you might finance with the loan (your mortgage).Down payment also serves as a bargaining tool - especially when it comes to your mortgage. The larger your down payment, the more power to negotiate with your mortgage lender will be to secure a low interest rate, because you will be considered less risky to lend.Traditional knowledge says that your down payment should be the money that you really have - the money you have borrowed. (In Canada, anyway, it is illegal to pay the house completely through your mortgage.) Technically, you can take a loan to finance your down payment, but this is a risky step, no. To mention that expensive: In addition to the payment, interest on your mortgage, you also have to pay interest for your down payment loan. When people talk about "saving" for the home, they usually talk about collecting enough money for down payment.What is the minimum amount of down payment in Canada?You can not just enter any old amount! In Canada, you must legally put down a fixed percentage of your home's total purchase price. Percentages vary depending on the value of your home. Here are the rules according to the federal government:·A house whose value is $ 500,000 or less - 5% of the purchase price·A home whose price is $ 500,000 to $ 999,999 - 5% of the first $ 500,000 of the purchase price, and 10% for the part above the purchase price above $ 500,000·A home that costs $ 1 million or more - 20% of the purchase priceHow much should you pay attention to your down payment?The more you can manage, the better. For starters, paying more with cash means that paying less with your mortgage, which means less pay in the total interest.Additionally, when your down payment is 20% or more of your home's total value, then you are exempt from buying mortgage insurance and paying monthly premiums. The next section states that this law,which is commonly known as the 20% rule, works in Canada.What is 20% rules?When your down payment is less than 20% of your home's total value, more than 80% of your home will be financed by a mortgage - and it does not look very good in proportion to the Canadian government.Enter, then, "20% Rules": Any person with a payment of less than 20% is legally required to buy insurance for their mortgage from the Canadian Mortgage and Housing Corporation. This means that at the top of the mortgage payment and interest, you will pay the insurance premium for the duration of your refining period - before you get other homeopathy costs like home insurance (which is not the same as mortgage insurance), Utilities and property taxes.How big should your down payment be?Seeing how much you can save on interest with a small mortgage, and 20% rule, how big your payment is, is better.It is said that saving 20% ​​or more for down payment is not easy - and practically impossible in expensive cities like Toronto and Vancouver. If the goal seems impossible, then we will not embarrass you here.The best way to action is to assess your budget, and to find an amount that will help you meet your financing goals, without having to put too much pressure on your finances. How long are you willing to wait to buy a home? Can you take it for a while, so that you can survive? Or would you rather buy now, seeing prices in your local real estate market?What is Homebase Plan (HBP)?For anyone who plans to buy a home and has a Registered Retirement Savings Scheme (RRSP), the Home Buyer's Plan (HBP) is an important option: HBP essentially lets you withdraw money from your RRSP. Toward the purchase of your home - but without any penaltiesBefore we join the details of HBP, talk about how RRSP works. The federal government introduced RRSP in the 1950s to help Canadians make their retirement fund. Because your RRSP fund is used for the future, therefore the government does not want you to withdraw money from the account for the loss of money, so he imposed a tax penalty: whenever you withdraw money from your account, then the money is taxable income Is counted as, and you are doing accordingly. Suppose you make $ 45,000 per year and withdraw $ 10,000 from your RRSP. It's time to register your taxes, your income is technically $ 55,000 - which means that you have to pay more taxes.HBP is a way around it. Under this scheme, you are allowed to buy a house up to $ 35,000 in a calendar year (it was recently updated to $ 25,000 in 2019), but none of this money has any taxable income Will be considered. $ 35,000 is the total amount that you are able to withdraw, and you have to clear all your withdrawals in the same calendar year. This means that if you removed $ 20,000 in 2019, then you had only the remaining year to remove the remaining $ 15,000.The only caviar? The money you extracted will be treated as debt (from your retirement fund), and you have to change it within 15 years. When considering whether HBP is right for you, it is important to think seriously whether you will be able to keep it with the repayment schedule.Tax creditsLet's start with the rules of the country: Federal Home Accessibility Tax Credit (HATC) for Senior Citizens and Persons with Disabilities. This non-refundable tax credit is available to homeowners who are 65+ age group before the end of the tax year, or who have disability. HATC allows you to claim up to $ 10,000 on renewal expenses, which improves access and security in your home, such as grabbing bars, hand riddles, wheel-in showers, or wide doors.There are few handfuls available for homeowners in selected provinces.In B.C., there are B.C. Home Renewal Credits for Persons with Disabilities and Individuals. This refundable tax credit allows you to claim up to $ 1,000 per year on permanent projects with the objective of improving access. With HACC, only senior and disabled people are eligible, and you can claim the expenses made only on or after April 1, 2012.Ontario and New Brunswick both provide equal, refundable credit to senior residents - but not for people with disabilities.In the meantime, Quebec has tax credits for eco-friendly home renovation, which is known as Renovart. This refundable tax credit is out of $ 10,000, and is available to homeowners who have hired a contractor to make their homes more environmentally friendly. The largest caveat? Tax credits are only available till March 31, 2019.Renewal and youWhat to do and what notWhether you are planning to renovate yourself or renter a contractor, the biggest "to do" is to follow the research. Do you know which materials will work best for your home? Have you read the reviews of contractors who are planning to rent you? Will your current home insurance plan cover you in the event that something went wrong? Can your renewal negatively affect the value of your home? How will they affect your budget?Our biggest "no" is not already researching. Renewals are usually time-consuming, expensive and hard-working. You want to stay with those changes which you have regrets - or who wreak havoc on your life and finance.DIY Deals vs ContractorThe most obvious benefit to renewing yourself is definitely the money you save: When you hired a contractor, you will pay the labor in addition to the material, and the costs can be quickly added to tens or hundreds Thousands, depending on the project. Knowing that you have finished an upgrade project yourself, there is a sweet, sweet satisfaction to know - not to mention the bragging rights.It is being said that there are projects for which you may need expertise. Hiring a contractor will also save you time and effort, and if you appoint a person whom you trust, then you can also be assured that the renewals were well executed. Were. The biggest negative, as mentioned, is the cost. But you can find that not everything is worth the cost yourself.Whether you do your renovations or appoint a contractor, however, you will need to think about insurance. Before starting any renewal at your home, be sure to contact your home insurance provider so that you can know what changes you are making. They can suggest that you buy additional coverage in case of anything wrong.If you hired a contractor, make sure the contractor has a commercial general liability policy. It ensures that if they accidentally harm your home, their insurer can reimburse you.Impact on resale valueIt is generally agreed that renovations will increase the value of your home. But, because renovations have to cost money themselves, it is not always easy to tell whether you will actually see a return on your investment.Depending on factors like local accommodation and flavor, there are different housing trends in different housing markets, so it is important that you get a good understanding of buyers in your area, before you can buy any for the purpose of resale Take on renewal.In general, experts recommend concentrating on cosmetics if there is no inherent safety or health hazard in your home (which should always be connected already). When a home looks new, it will usually sell for more. Cosmetic variations are usually the easiest to do.Home insuranceWhat Does Home Insurance Do?Home insurance protects your home from the dangers, as insurance companies are also called 'insured perls' in insurance-spec. Contains:Fire (not due to fireplace, though).Your personal liability Someone should injure yourself on your property / costs incurred by someone injuring yourself on your property; This is personal responsibility.Wind damageLoss due to hailSome form of water damage (this is to be accidental; your insurance may cover the loss of water due to accidental discharge of water due to breakdown of water or spray of your pipes or fire).falling objects.Theft.Vandalism and other forms of malicious damageOne more thing home insurer can help you is mortgage. Unless you agree to buy home insurance, many lenders (especially the bank) do not give you mortgage.What does not it doThere are many risks which do not cover insurance. Contains:Some forms of water damage For example, insurers do not yet include overland floods as an insurable risk.Flooding from the burst pipe. Insurers want to see that you take every precaution to stop the flood. If you live in cold climates and know that you will stay away from home for some time, then remember to turn off your water.Earthquake damageIn a standard policy, there is no loss of damage which arises from a serious violation.Loss due to melting ice in large quantities. Considering that spring melting is an annual event in Canada, standard insurance policies typically exclude the damage done by them.Home insurers provide additional coverage in ways of endorsement. These are coverage which you can add to your base policy, which will protect you against the risk excluded normally in a standard home insurance policy. Most of the measures to prevent flood and earthquake are offered, but some insurers offer their own unique add-ons.Another important thing to know: Home insurance does not cover your home for its market value. It only covers the cost to change the structure using comparable materials.How do I get Home Insurance?If you already have auto insurance, you can contact your insurer and ask if they provide home insurance coverage. By bundling your home and auto insurance with a provider, you will get a discount on both of your own.Otherwise, going online is the fastest way to get coverage. With Find Canada's Lowest Rates, you can start a quote and compare rates with more than ten home insurers.Various types of coverNow you have a better understanding of which insurance will be insured and what will be covered, you are ready to find out how much insurance you need.Here is a group of all standard policy types.Comprehensive insurance protects your home as well as your personal effects from the whole gamut of insurable threats. This is the most expensive type of home insurance policy.A comprehensive insurance policy covers only your home with named threats. This means that you have to choose which threats you want against coverage. If your home is harmed by a contract that is not included in your contract, then your insurance company does nothing about it.Standard Home Insurance is the difference between comprehensive and comprehensive insurance. Your home - which means physical structure - is safe from all hazardous hazards. On the other hand, your content is not. The coverage for goods inside is limited to the designated hazards in the contract.No-frills insurance is for those homes with serious structural issues and do not meet underwriting standards (meaning, there is a greater chance that there is a big leak in your basement because piping is very old). This is the cheapest type of home insurance. This is also true for those who are planning a major renovation.What if I rent my property?If you are considering renting a suit in your home - or even the whole place - it is strongly recommended that you get home insurance and insure your tenants to hire a renter Ask for.As the owner, your home insurance policy will cover the physical structure (and any material you have, for example, equipment, depending on the policy given by you).However, your insurance policy can not reach your tenants. They will need their own insurance to protect their belongings and personal liability.What if I am buying a condo?More Canadians live in Condo than ever before. If you are buying one, you still need Home Insurance - or at least Home Insurance. Condo insurance protects your unit from insurable risks. Condo Building Management has its own separate insurance for the protection of common areas.How much does the home insurance cost?The cost of home insurance is different. Insurers see a host of factors. For example, the age, position and size of your property. They are also factors in neighborhood crime rates, which means that if you live in an area where break-ins are common, then you can pay more premiums than those of policyholders who live in the area where this The type of incident is less common. Your proximity to water or even a fire station will also affect your premiums.The best way to find out how much you may have to pay for bidding is.HomicideWhere do I start?Take a page from the type of organization A book and start with a list. Before you can start watching online or individually for real lists, what are you looking for, are you really looking for in the house?Ask yourself: When I live where is it really important for me?It can help break things into two categories: your desires and your needs. As an example, in the "Wish" category, you can include things like "proximity to nature" or "furnished basement". While in the "need" group you can keep things like "near daycare" if you have small children.Should I Appoint a Real Estate Agent?The expertise of a professional in your favor is incredibly valuable. Real estate agents can make homebuying experience less challenging; They can list you that only the real estate circle has access; They can answer the questions you have; And they can give you informed feedback.You do not often pay the real estate agent - they deduct the final sale price.But you can not just like hunting at home. If this is the case, you can consult yourself to list online content and websites, or you can do both: rent a real estate agent and do some research on your own, in their care Find the place to attract your interest.Choosing the Right NeighborhoodIf you are walking somewhere unfamiliar - or even if you are just going to a different part of the city or city you live in, then it can be overwhelming. There is little requirement for land research to move.To see if a certain neighborhood is a good match, first go back to your wish list and see what the new neighborhood ticks. Then, tour that area and see how you feel around it. Maybe you can grab a lunch in the area at a local restaurant, or chat with some current residents and ask if they enjoy staying there.Some questions you would like to ask yourself are:How safe is it?Can I get the type of your house?How long will it take me to work?How close is the house for public transit?What is the neighborhood in schools and schools of Daycare?What about access to nature?What are the grocery stores and retail outlets?Is this pedestrian friendly neighborhood?Bidding warAww yeah, dread bidding war - activity No first time the homebuyer wants to find himself inside.Bidding war occurs when a realtor, who sells the property, asks for a certain date and time to offer the offer, so that many people can offer offers on the same property. This is a stress-inducing process in which bidders are kept in the dark about the prices and conditions of other offers, which can motivate bidders to offer a lot of money over the plan to spend, just In the hope of excluding the next personGood news for the Ontarians: the province is completely removing the bidding wars, because it is changing the Real Estate and Business Brokers Act, 2002, that means the Realtors are allowed to share with the bidders. Returns from other buyers.Unless this happens, you can run into a bidding war, especially if you live in Toronto, where they are very common. If you do this, then be careful that some buyers can say "what is offering bullying" - agree before the deadline - persuade the seller to persuade without seeing that whether other proposals Come on. The best thing you can do is you can. Do not get stuck in the stress of the situation and blow up your budget. Stick to your max, nothing more.Should I inspect the house before bidding?Home inspection is not legally required, but it is an intelligent investment. Inspection of a person's home is your first defense against potential issues that can cost you a lot of money down the line. Before you move away, it is to check under the hood.Inspectors look at all the major elements of a house, which include electricity, plumbing and roof, point to any problem areas, give you a rough idea of ​​what it will cost to repair, will provide. Inspections can be anywhere from $ 300 to $ 600 depending on the size and type of accommodation.Since they completely inspect various types of accommodation, condos and houses in different types. Because a condo is just one unit within a large building, a condo inspection will not include plumbing, electrical and roof checking. Installed, this may include an examination of all the equipment, to see if anybody has been recalled by the manufacturer, and where the buyers have to show / how to stop the water in case of emergency.What happens after your proposal is acceptedIf you have accepted your proposal, you can breathe in relief - especially if you have just escaped from a bad bidding war. Okay. The time of relief is over. Here's a brief description of what should happen next:If you have not been pre-approved for mortgage loan, you have to apply for oneInspect and inspect your homeTake your money somewhere where it can be reachedStart shopping for home insuranceDo a home walk through a last walkSign the dotted line and consider yourself a new homeownerIf you find anything off during this final process, make sure that you have flagged it with the seller, your real estate agent or lawyer long before. The costs you have agreed upon should also be the same at the time of conclusion, when you did the offer. And if they are not, then you should be explained this.Cost of closingThings like home inspection fees and land transfer taxes, which we have already touched, are a major part of your closing costs. So there are legal fees.Once you have an offer at a home, it is a good idea to find yourself a real estate lawyer who can help you review the proposal, make sense of any legal jargon and on the closing day May be sure that everything looks fine. The lawyer, of course, spends money in which they themselves spend (for example, mortgage and property registration fees in some provinces), so you can expect to shell out an average of between $ 1,000 and $ 2,500.