FAQ

Question: I'm interested in buying a home, what should I do first?

Answer: Find out how much you can afford! We'll help you figure out exactly what your price range is. This way when you are shopping with a Signature Service Real Estate agent, you know the properties you are looking at, you will most likely qualify for to purchase.

Question: I have a home to sell. Will that be a problem?

Answer: Should be no problem! You have a few options. You can schedule a "pre-market" consultation and someone from our Signature Service Real Estate team will preview your property and tell you if and what needs to be done before you list. It greatly helps you to properly prepare in an effort to secure the highest possible sales price in the shortest period of time.

You might also opt to have us prepare a complimentary report on other properties comparable to yours that have recently sold or are currently on the market. With this information and our industry expertise you can establish what the right asking price for your property would be.

Question: I'm not from the area. Can you help me anyway?

Answer: Of course! If you're moving into the area, we can help you in so many ways. We want to make sure your move is a smooth and pleasant one! We have offices in most markets of Alberta and Saskatchewan and we are happy to use this combined expertise to help you out.

Question: I want to see everything that's on the market and that meets my criteria, not just your company listings. Can you help me?

Answer: We can show you whatever you would like to see. We can even email you properties that meet your criteria as they become available for sale. Just tell us what you're looking for or try out our My Portal!

How much can I afford to pay for a home?

To determine affordability, you will need to know your gross income, as well as the amount of any outstanding debt and the monthly payments required to service that debt.

To purchase a principal residence, you can use 32% of your gross income for housing cost. Those costs include principal and interest costs of the mortgage, property taxes and heating costs. If you are buying a condo, half of the monthly condo fee is also included in the housing costs calculation.

The second step requires calculating 40% of your gross income and deducting the monthly payments of any outstanding debt. Monthly payments would include personal, vehicle and student loans as well as minimum required payments on lines of credit and credit card balances. The lesser of the two calculations is the amount lenders will allow when determining what amount can be used for housing costs.

Be sure to consider your own lifestyle and spending when making your decision on how of your income to allot for housing costs. Your comfort level with the financial component of home ownership is a key factor to enjoying your new home.

Should I make Bi-Weekly or Weekly or Monthly payments?

Most Mortgages allow for payments to be made monthly, bi-weekly or weekly. The more frequent payment schedules can offer financial and scheduling advantages. You may save money as you can expect to pay off your mortgage in less time. This also allows you to schedule your mortgage payments around your employment earnings schedule.

What is a Home Inspection? Should I have it done?

A home inspection is a visual examination of a house by a qualified professional to determine the overall condition and value of the home. When conducting a proper inspection, an authorized home inspector should check all the major components of the house such as the roof, ceilings, walls, and floors along with other systems such as the electrical connections, heating, plumbing and drainage and weather proofing. The inspector usually gives the results of the inspection in writing to the home owner within 24 hours of the inspection.

It is always advisable to get a home inspection done before making a purchase decision. A thorough inspection is likely to clear a majority of the doubts that you might have when purchasing a home. The inspection gives an idea about the quality of the construction and indicates whether any major repair work will be required. This allows you to calculate all the add-on costs before making the final decision. An inspection will definitely give you a more secure feeling about your purchase decision by removing most of your doubts.

What is a Down Payment?

Few of us are able to purchase a home outright and will look to a financial institution for a mortgage. However, even with a mortgage, you will require a down payment.

The down payment is the portion of the purchase you furnish and represents your equity position in the property. The amount you can supply for a down payment should be determined well before you begin the home search process.

The larger the down payment the less you will pay in interest costs over the life of the mortgage. A higher down payment, if available, can add up to significant savings over the life of the mortgage.

What is the minimum down payment that you need to make when purchasing a home on a mortgage?

In most cases, you will need to pay a minimum of 5% of the house value as a down payment. In addition to the down payment, you must also be able to show that you have the capacity to cover other closing costs such as the legal fees and disbursements, appraisal fees and a survey certificate.

As a rule, at least 5% of the down payment must be from your own cash resources or a gift from a family member. This cannot be a borrowed amount. Several programs are available in the market that allow some alternate sources of down payment. The CMHC is one organization offering such programs. Certain lenders also accept gift money from a family member or friend as a down payment. However, such a sum needs a signed letter from the donor stating that it is a gift and not a loan.

For any down payment that is less than 20% of the total value, a loan insurance from either the CMHC, Genworth or AIG is required.