Buying a Home
The Canadian Housing and Mortgage Corporation has excellent home buying guides for new immigrants, first time buyers and anyone else looking to enter the housing market in Canada. Visit their website at www.cmhc.ca for further information.
If you have previously purchased property in the UK you will find a number of similarities in buying a home in Canada – you search, view properties, make an offer, arrange a mortgage and finalize everything at the lawyers (solicitors) office. However, the way that many of these processes are carried out can differ significantly from Britain. One of the major differences is the speed with which property transactions can be completed and also the commitment that is laid down at the time of your offer being accepted.
For these reasons we would recommend that you consult a property professional such as a Real Estate agent to help guide you through the home buying process. Because the relationship you build with a Realtor is quite different from the traditional use of an Estate Agent in Britain, we have included a page which explains in more detail how to find a good realtor and what they will expect from you as their client.
There are a number of relocation companies that specialize in helping you understand the home buying process too. They will assist you in narrowing down the area you wish to search based on the many general knowledge factors that you take for granted in the UK – for example, quality of local schools, shops and leisure facilities in the area, transportation links, neighborhood crime rates, recent or planned changes to the area etc. Such companies will also help to arrange shipping, purchase of furniture, getting the children into local school, setting up your utilities, phone, internet and so on.
Probably the most comprehensive database of homes for sale is the Multiple Listing Service (known MLS www.mls.ca) where realtors from numerous companies advertise their current listings – it covers the whole of Canada but you can narrow down your search according to area, price and property type. There are also a number of private listing “for sale by owner” websites – because real estate commissions for selling a home are quite high in Canada there is a growing number of people who list their home privately. The seller can save a lot on real estate agents commission and the purchaser may be able to buy for a slightly lower price as a result. However, if negotiating a private sale make sure you seek professional advice –you won’t have a realtor helping you write the purchase contract so you must be confident that you know what you are doing.You may also find that some mortgage companies will not finance a private purchase where no formal property listing is available.
A few home related terms differ from those we are familiar with in the UK so we have summarized some common ones and their meaning here:
- Single family home: A detached house
- Rancher: bungalow
- Townhome: usually a terraced house which is part of a small housing estate or development
- Duplex / Triplex / Fourplex: Multiple units in one building – this could be a semi detached house (2 joined together – duplex) or a small block of 4 flats (fourplex)
- Condo: (short for condominium) but basically a flat
- Apartment: a flat
- Mobile / Modular home / Trailer: Something pre-fabricated – greatly varying in quality, permanence, price and remaining economic (usable) life. Some are located in trailer parks where you pay a pad rent every month and others are on “owned land” where you would purchase the land with the home of whatever nature on it. Be sure to consult a mortgage specialist if buying this type of property as they often require unique financing.
- Suite: part of a home that is either completely separate or reasonably self contained (like a granny flat). Often rented out for extra income or used as family / playroom. They provide a great place for guests to stay when they visit you for weeks on end. There are different categories of suite – “legal” or “in law” with restrictions on their use and ability to rent to non-family members. Speak to a real estate agent when buying a home to fully understand the permitted uses and check with a mortgage broker to find out if the income generated can be used towards qualifying for a mortgage.
- Strata: when there are multiple units together there will be a strata (usually a committee of the owners with a management company) to maintain the common areas, pay insurances and up maintain the various facilities included in the development such as landscaping or a gym. Some strata’s (for example between the owners on either side of a duplex semi detached home) simply mean that the owners share the annual fire insurance for the building and agree to share costs such as roof repair. There may be no formal management agreement they just sort it out between themselves. Others are far more complex and involve paying monthly strata fees to contribute towards the various amenitites that the strata looks after. Speak to your realtor about all of this and make sure you see a copy of the strata councils meeting minutes before purchasing. Be aware of any major works planned and confirm anticipated cost to the owners before buying into a complex or apartment building.
- Siding: this is the stuff on the outside of your home. Often wood or wood effect planks – can be of varying materials such as plastic or hardy board (a concrete material). You will sometimes have shingles (like tiles) again of varying materials. As with painting the outide of a rendered house in the UK, siding requires maintainence to retain it's esthetics and functionality.
- ½ bath: a small cloakroom with just a toilet and basin
- Crown molding & baseboard: coving and skirting boards.
- Furnace: the boiler
- Hydro: electricity in BC is often supplied via hydro-electric power plants. Hence it is referred to as Hydro.
There are many more terms we could mention here but you probably get the picture - you musn't feel silly if you don't understand everything you are being told and don't be afraid to ask more questions!
You will find more detail about the home buying process and the various terms and practices used when reading the guides we have suggested or by contacting your local real estate professionals for assistance.