Making An Offer

Proposed purchase price. This is the price you are offering to pay for the home.

Schedule A. This document is a list of all the items that the seller agrees to include with the sale of the home. For a new home, this may include things like kitchen appliances and whether your yard will be sodded. For resale, it may include things like window coverings, carpets and closet organizers.

Deposit. A deposit is typically 2-5% of the purchase price and is made with the offer or within 24-hours of the seller accepting your offer. The deposit is held in trust by the seller’s real estate agent or builder.

Down Payment. This is how much money you’ll be paying up front to obtain a mortgage. Are you reaching the 20% down payment requirement? If not, you will not have a high ratio mortgage and will have to pay an insurance premium to move forward.

Finances. What is your annual household income? What are your current monthly expenses?
Are you able to put money into savings? How much debt do you have? How much can you afford to pay monthly when you consider all of these factors?

Closing date. The closing day is the date you take possession of your home. If you are buying resale it could be as soon as 30 days after you sign your Agreement of Purchase & Sale (APS), however, if you are buying a new home in a new development during pre-construction, your closing date could be 12-18 months after signing your APS.

Offer time period. This is the time period in which the offer is valid. After this date/time, the offer becomes null and void.

Conditions of the offer. These are conditions that have to be met before the offer becomes final. This may include things such as an approval of mortgage financing and a satisfactory home inspection report.

Agreement of Purchase & Sale (APS). This is a legally binding contract that outlines the terms under which a buyer decides to buy a house, and a seller agrees to sell. When signed by both parties, it binds those people to the terms and conditions within the document.

FINTRAC. FINTRAC stands for the Financial Transactions and Reports Analysis Centre. It’s been put in place by the Government of Canada to ensure the purchase of your home, from deposits to financing is accounted for. Many builders require new home purchasers to provide a copy of legal ID and sign a FINTRAC form at the time of purchase to ensure all things financial are handled in a professional and safe manner.