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HOMEBUYING
STEP BY STEP
A Consumer Guide and Workbook

CMHC -- HOME TO CANADIANS

Canada Mortgage and Housing Corporation (CMHC) has
been Canada's national housing agency for more than 65 years.

Together with other housing stakeholders, we help ensure
that the Canadian housing system remains one of the best
in the world. We are committed to helping Canadians access
a wide choice of quality, environmentally sustainable and
affordable housing solutions that will continue to create
vibrant and healthy communities and cities across the country.

For more information, visit our website at www.cmhc.ca or
follow us on Twitter,YouTube and Flickr.

You can also reach us by phone at 1-800-668-2642 or by fax
at 1-800-245-9274.

Outside Canada call 613-748-2003 or fax to 613-748-2016.

Canada Mortgage and Housing Corporation supports the
Government of Canada policy on access to information
for people with disabilities. If you wish to obtain this
publication in alternative formats, call 1-800-668-2642.

                                      Homebuying Step by Step
                                      A Consumer Guide and Workbook




CMHC offers a range of housing-related information.
For details, visit our website at www.cmhc.ca or call 1-800-668-2642


Cette publication est aussi disponible en français sous le titre :
L'achat d'une maison étape par étape :
Guide à l'intention des consommateurs (61143)

This book is provided for general information purposes only. Any reliance or
action taken based on the information provided is the sole responsibility of the
user. Readers are advised to consult appropriate professional resources to determine
what is suitable in their particular case. CMHC assumes no responsibility for any
consequences arising from use of the information provided in this guide.




Canadian Cataloguing in Publication Data


Main entry under title:

Homebuying Step by Step: A Consumer Guide and Workbook


Rev. ed.

Issued also in French under the title:
L'achat d'une maison étape par étape: guide à l'intention des consommateurs

Cat. no. NH15-114/2004E

ISBN 0-662-38780-5


1.        House buying ­ Canada ­ Handbooks, manuals, etc.

2.        House buying ­ Canada ­ Costs ­ Handbooks, manuals, etc.

3.        Homeownership ­ Canada ­ Handbooks, manuals, etc.

I.        Canada Mortgage and Housing Corporation.


HD1379.H65 2004              332.7'22'0971     C2004-980341-7


© 1998 Canada Mortgage and Housing Corporation.

All rights reserved. No portion of this book may be reproduced, stored in a retrieval
system or transmitted in any form or by any means, mechanical, electronic,
photocopying, recording or otherwise without the prior written permission of
Canada Mortgage and Housing Corporation. Without limiting the generality of
the foregoing, no portion of this book may be translated from English into any
other language without the prior written permission of Canada Mortgage and
Housing Corporation.


Printed in Canada

Produced by CMHC

Revised: 2002, 2003, 2004, 2007, 2008, 2010, 2011, 2012, 2013

Reprinted: 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013

TABLE OF CONTENTS

Introduction

Step 1:
Is homeownership right for you?             5

Step 2:
Are you financially ready?                   7

Step 3:
Which home is right for you?                21

Step 4:
The buying process                          37

Step 5:
Now that you're a homeowner                 47

Words to know
when buying a home . . . . . . . . . . . . .52

Introduction
So, you've finally decided to fulfill a lifelong dream and buy your own home... how exciting! You will finally have a place to call
your own, and the power to make decisions about home improvement and renovations. A home may also be an important way
for you to grow financially.

Buying a home can be a challenge. You'll have to deal with many different people along the way.
And, you're sure to have lots of questions, such as:


   n   What should I ask my realtor?

   n   What kind of questions should I prepare for my lender?

   n   What is the difference between an appraisal and an inspection report?

   n   Can I add renovation costs to my mortgage?

   n   Where can I find information that I can trust?

CMHC's Homebuying Step by Step guide will make things easier for you by giving you the information and tools you need to
make an informed and responsible homebuying decision. This hands-on workbook provides examples and worksheets to guide
you through the entire homebuying process.

The information in this guide is clear and straightforward. It will help you know who to ask, what to ask, and what to do every
step of the way. When preparing to buy a home you may read or hear words that are unfamiliar. At the end of this guide you
will find definitions for many of the words you encounter during the process.

This guide will help make your homebuying experience exciting and rewarding ­ which it should be!




                                                            @ Home with CMHC
                                                            Our e-newsletter is your ultimate source
                                                            for dependable home care advice.
                                                            Check out some of the past issues and sign up
                                                            today at www.cmhc.ca/enewsletters.

STEP 1
    Is homeownership
         right for you?

   Homebuying STEP BY STEP




                                           Buying a home is one of the biggest emotional and financial decisions you'll ever
                                           make. Prepare by learning about the process of homebuying and the responsibilities
                                           of homeownership. The differences between renting and buying a home are vast, and
                                           there's a long list of pros and cons for both options. And, remember ­ there is no one
                                           best decision for everyone. Before moving forward, though, here are some questions
                                           to consider:

                                              n   Do you have the necessary financial management skills?
                                              n   How financially stable are you?
                                              n   Are you ready to take on the responsibility of all the costs involved in
                                                  homeownership, including mortgage payments, repairs, and maintenance?
                                              n   Are you able to devote the time required for home maintenance?

                                           There are pros and cons for both renting and buying. Everyone must make his or
                                           her own best decision. Buying a home is not for everyone. Take a moment to think
                                           through the advantages and disadvantages of both owning and renting. Use this
                                           worksheet to guide you.

                                                       Advantages of Renting                      Disadvantages of Renting




                                                       Advantages of Owning                       Disadvantages of Owning




                                           Read over your completed worksheet and then think carefully. Are the advantages of
                                           owning your home really bigger than the advantages of renting? Are the disadvantages
                                           of owning your own home really smaller than the disadvantages of renting?

                                           If homeownership is for you, you must be both financially and emotionally ready.
                                           Buying a home isn't only about money. You should listen to your heart... and take an
                                           honest look at your lifestyle.




6  Canada Mortgage and Housing Corporation

STEP2
    Are you financially ready?

   Homebuying STEP BY STEP




                                                 How can you know if you are financially ready to become a homeowner?
     Online Calculators
     Easy to use mortgage tools help you         This step guides you through some simple calculations to figure out your current
     better understand your financial situation. financial situation, and the maximum home price that you should consider.

     Determine how much house you can
     afford, and the maximum price that          How Much areYou Spending Now?
     you should consider.                        The first thing you need to figure out is how much you are spending now.
     CMHC offers on-line interactive tools       To figure this out you'll need to calculate:
     to calculate household budgets and
     monthly debt payments.                          n   Your monthly household expenses
                                                         Your monthly debt payment
     For these and other quick and easy              n

     calculations, visit www.cmhc.ca
     and follow these links:                     CalculateYour Household Expenses
                                                 What is your present household budget? How much are you now spending
     n  Buying a Home
                                                 each month on household expenses?
     n  Homebuying Step by Step ­ Step 2:
         Are you Financially Ready?              The Current Household Budget worksheet on the next page helps you take a
                                                 realistic look at your current monthly expenses. Fill in all the figures that apply
                                                 to you, and add them up.


                                                 CalculateYour Monthly Debt Payments
                                                 Do you know how much debt you are carrying? You need this information to
                                                 figure out whether you are financially ready for homeownership. If you decide
                                                 to buy a home, mortgage lenders will ask for this information.

                                                 Use the form below to determine your current monthly debt payments.
                                                 Fill in all the figures that apply to you.

                                                  MONTHLY DEBT PAYMENTS                                AVERAGE MONTHLY AMOUNT

                                                  Loans for property you own                           $

                                                  Car loans or leases                                  $

                                                  Personal loans or lines of credit                    $

                                                  Credit cards                                         $

                                                  Student loans                                        $

                                                  Other loans                                          $

                                                  Total Monthly Debt Payments
                                                                                                       $
                                                  (Add up all of the above costs)


                                                 CalculateYourTotal Monthly Expenses
                                                 Your total monthly expenses are your household expenses plus your debt payments.
                                                 To calculate your monthly expenses, add the total from the Current Household Budget
                                                 form to the total from Monthly Debt Payments form, using the form below.

                                                  Total Monthly Expenses           Debt Payments                        TOTAL
                                                                                   (Total from Monthly
                                                                                   Debt Payments form)




8  Canada Mortgage and Housing Corporation

                                                                                                                              STEP 2




  CURRENT HOUSEHOLD BUDGET

  Details                                                                          Average monthly payment

  Current Housing Expenses

      Rent                                                                         $

      Electricity (if paid separately)                                             $

      Heating costs (if paid separately)                                           $

      Water (if paid separately)                                                   $

      Maintenance/Repair                                                           $

      Parking fees (if paid separately)                                            $

  Current Non-Housing Expenses

      Cable TV/Satellite/Video rental                                              $

      Car fuel                                                                     $

      Car insurance and license                                                    $

      Car repairs and service                                                      $

      Charitable donations                                                         $

      Child care                                                                   $

      Child support/Alimony                                                        $

      Clothes                                                                      $

      Contents insurance                                                           $

      Dental expenses                                                              $

      Entertainment, recreation, movies                                            $

      Furnishings                                                                  $

      Groceries                                                                    $

      Internet                                                                     $

      Life insurance                                                               $

      Lunches/Eating out                                                           $

      Medical expenses, prescriptions, eyewear                                     $

      Newspapers, magazines, books                                                 $

      Personal items                                                               $

      Public transportation                                                        $

      Savings (bank account, RRSPs)                                                $

      Telephone/Cell phone                                                         $

      Other expenses                                                               $

  Total Monthly Expenses                                                           $

  Note: You may have other costs not shown on this worksheet.


Additional Current Household Budget worksheets are available at the end of this Guide.




                                                                                                     Canada Mortgage and Housing Corporation 9

    Homebuying STEP BY STEP




                                          How Much CanYou Afford?
                                           Before you begin shopping for a home, it's important to know how much you can
                                           afford to spend on homeownership. You will want to plan ahead for the various
                                           expenses related to homeownership. In addition to purchasing the home, other
                                           significant expenses will include heating, property taxes, home maintenance and
                                           renovation as required. Two simple rules can help you figure out how much you
                                           can realistically pay for a home. You must understand these rules to understand
                                           if you will be able to get a mortgage.


                                          Affordability Rule 1
                                           The first rule is that your monthly housing costs shouldn't be more than 32% of
                                           your average gross monthly income. Housing costs include your monthly mortgage
                                           payments (principal and interest), property taxes and heating expenses. This is known
                                           as "P.I.T.H" for short ­ Principal, Interest, Taxes and Heating.

                                           If you are thinking of buying a condominium or leasehold tenure, you should
                                           know that:

                                               n   For a condominium, PITH also includes half of the monthly
                                                   condominium fees.

                                               n   For leasehold tenure, PITH also includes the entire annual site lease.

                                           Lenders add up your housing costs and figure out what percentage they are of your
                                           average gross monthly income. This figure is called your Gross Debt Service (GDS)
                                           ratio. To be considered for a mortgage, your GDS must be 32% or less of your gross
                                           household monthly income.

                                           Use the table below to calculate your GDS ratio or use CMHC's online calculators at
                                           www.cmhc.ca.

                                            GDS RATIO

                                            Your average gross monthly salary (before deductions)*  $

                                            Your spouse's average gross monthly salary
                                                                                                    $
                                            (before deductions)

                                            Other monthly income (from investments or
                                                                                                    $
                                            other non-employment sources)

                                            (A) Total average monthly income (add up all amounts)   $

                                            (B) Multiply amount (A) X 0.32 = GDS                    $

                                            * Gross salary is income before taxes.


                                          Affordability Rule 2
                                           The second rule is that your entire monthly debt load should not be more than
                                           40% of your average gross monthly income. Your entire monthly debt load includes
                                           your housing costs (P.I.T.H.) plus all your other debt payments (car loans or leases,
                                           credit card payments, lines of credit payments etc.). You have calculated these on the
                                           Monthly Debt Payments form. This figure is called your Total Debt Service (TDS)
                                           ratio.




10 Canada Mortgage and Housing Corporation

                                                                                                              STEP 2




Use the table below to calculate your TDS ratio and to determine the monthly
housing costs you can afford after making other monthly debt payments.

 TDS RATIO

 (A)Total average monthly income (A) from your
                                                             $
     GDS calculation

 (B) Multiply (A) X 0.40 =TDS                                $

 Add up your monthly payments for loans, credit cards and other debts

     Monthly auto payment                                    $

     Monthly line of credit or personal loan payment         $

     Monthly credit card payment                             $

     Monthly student loan payment                            $

     Any other monthly payments                              $

 (C) Add up the total monthly payments listed above          $

 (D) Subtract (C) from (B) to find the
                                                             $
     monthly housing costs you can afford


Your Maximum Home Price
The maximum home price that you can realistically afford depends on a number
of factors. The most important factors are your household's average gross monthly
income, your down payment and the mortgage interest rate. For many people,
the hardest part of buying a home ­ especially their first one ­ is saving the
necessary down payment.

NOTE: For CMHC-insured mortgage loans, the maximum purchase price or
as-improved property value must be below $1,000,000, when the loan-to-value
ratio is greater than 80%.


Mortgage Loan Insurance
Mortgage loan insurance helps protect lenders against mortgage default, and enables
consumers to purchase homes with a minimum down payment of 5% ­ with interest
rates comparable to those with a 20% down payment.


  Online Calculators
  Easy to use mortgage tools help you better
  understand your financial situation.

  Determine how much house you can
  afford, and the maximum price that
  you should consider.

  CMHC offers on-line interactive tools
  to calculate household budgets and
  monthly debt payments.

  For these and other quick and easy
  calculations, visit www.cmhc.ca
  and follow these links:

  n   Buying a Home

  n   Homebuying Step by Step ­ Step 2:Are you Financially Ready?




                                                                                     Canada Mortgage and Housing Corporation 11

    Homebuying STEP BY STEP




                                                The CMHC mortgage loan insurance premium is calculated as a percentage of the
                                                loan and is based on a number of factors such as the intended purpose of the property
                                                (owner occupied or rental), the type of loan (i.e. purchase/construction or refinance
                                                loan), the ability of a self-employed borrower to supply income verification, and the
                                                size of your down payment. The higher the percentage of the total house price/value
                                                that you borrow, the higher percentage you will pay in insurance premiums. The cost
                                                for mortgage loan insurance premiums is usually offset by the savings you get from
                                                lower interest rates.

                                                                                                                PREMIUM % OF LOAN
                                                 FINANCING REQUIRED
                                                                                                                AMOUNT

                                                  Up to and including 65%                                                           0.50

                                                  Up to and including 75%                                                           0.65

                                                  Up to and including 80%                                                           1.00

                                                  Up to and including 85%                                                           1.75

                                                  Up to and including 90%                                                           2.00

                                                                                      Up to and including 95%

                                                  Traditional Down Payment                                                          2.75

                                                  Non-traditional Down Payment                                                      2.90

                                                                                Extended Amortization Surcharges

                                                  Add 0.20% for every 5 years of amortization beyond the 25 year mortgage amortization period.
                                                  Note:The amortization cannot exceed 25 years for mortgage loan-to-value ratios > 80%.

                                                  * Premiums in Ontario, Quebec and Manitoba are subject to provincial sales tax.The provincial sales tax
                                                    cannot be added to the loan amount.



                                                This table gives you an idea of the maximum home price you can afford.



     HOUSEHOLD                 5% DOWN          MAXIMUM             10% DOWN              MAXIMUM                25% DOWN                 MAXIMUM
         INCOME                PAYMENT         HOME PRICE            PAYMENT            HOME PRICE                PAYMENT                HOME PRICE

           $25,000                 $3,000         $60,000                $6,300              $63,000                   $18,900                  $75,600

           $30,000                 $3,900         $78,000                $8,200              $82,000                   $24,700                  $98,800

           $35,000                 $4,800         $96,000               $10,100             $101,000                   $30,300               $121,200

           $40,000                 $5,700        $114,000               $12,000             $120,000                   $36,000               $144,000

           $45,000                 $6,600        $132,000               $13,900             $139,000                   $41,700               $166,800

           $50,000                 $7,500        $150,000               $15,800             $158,000                   $47,400               $189,600

           $60,000                 $9,300        $186,000               $19,600             $196,000                   $58,800               $235,200

           $70,000               $11,050         $221,000               $23,400             $234,000                   $70,100               $280,400

           $80,000               $12,500         $250,000               $27,200             $272,000                   $81,500               $326,000

           $90,000               $14,400         $288,000               $31,000             $310,000                   $92,800               $371,200

          $100,000               $16,275         $325,500               $34,800             $348,000                 $104,300                $417,200

      Figures are rounded to the nearest $100.




12 Canada Mortgage and Housing Corporation

                                                                                                                 STEP 2




DoYour Calculations ShowYou Are Ready?
After doing the calculations, do you feel fairly confident about beginning the
homebuying process? You're ready to proceed with homeownership.


DoYour Calculations Show Adjustments Are Needed?
You may need to step back and make some adjustments. Did your calculations show
that you might have trouble meeting monthly debt payment? If that's the case, you
may find it difficult to get approved for a mortgage. Here are some things you can do
to improve your situation:

    n  Pay off some loans first.

    n  Save for a larger down payment.

    n  Take another look at your current household budget to see where you can spend
       less. The money you save can go towards a larger down payment.

    n  Lower your home price ­ remember that your first home is not necessarily your
       dream home.

Here are some more helpful strategies:

    n  Meet with a credit counsellor. He or she can help you figure out
       how to minimize your debts.

    n  Buy your home through a rent-to-own program. These are sometimes
       provided by the builder or a non-profit sponsor.

    n  Find out about programs through which you can help build your own home.

    n  Ask the housing department of your municipality if any special programs exist.



What areYour Next Steps?

Get a Copy of Your Credit Report
Before approving a mortgage, lenders will want to see how well you have paid
your debts and bills in the past. To do this, they consider your credit history
(credit report) from a credit bureau. This tells them about your financial past
and how you have used credit.

Before looking for a mortgage lender, get a copy of your own credit history.
There are two main credit-reporting agencies: Equifax Canada Inc. and TransUnion
of Canada. You can contact either one of them to get a copy of your credit report.
There is often a fee for this service.

Once you receive your credit report, examine it to make sure the information
is complete and accurate.


IfYou Have No Credit History
If you have no credit history, it is important to start building one by, for example,
applying for a standard credit card with good interest rates and terms, making small
purchases and paying them as soon as the bill comes in.




                                                                                        Canada Mortgage and Housing Corporation 13

    Homebuying STEP BY STEP




                                           IfYou Have Poor Credit History
                                           If you have poor credit, lenders might not be able to give you a mortgage loan. You will
                                           need to re-establish a good credit history by making debt payments regularly and on
                                           time. Most unfavourable credit information (including bankruptcy) drops off your
                                           credit file after seven years.

                                           Consider getting some credit counselling if you have a history of poor credit or talk to
                                           your lender to discuss options.


                                          Get a Mortgage Pre-Approval
                                           It's a very good idea to get a pre-approved mortgage before you start shopping. Many
                                           realtors will ask if you've been approved. A lender will look at your finances and figure
                                           the amount of mortgage you can afford. Then the lender will give you a written
                                           confirmation, or certificate, for a fixed interest rate. This confirmation will be good
                                           for a specific period of time. A pre-approved mortgage is not a guarantee of being
                                           approved for the mortgage loan.

                                           Even if you haven't found the home you want to buy, having a pre-approved
                                           mortgage amount will help keep a good price range in mind.

                                           Bring these with you the first time you meet with a lender:

                                                n  Your personal information, including identification such as your driver's license

                                                n  Details on your job, including confirmation of salary in the form of a letter
                                                   from your employer

                                                n  All your sources of income

                                                n  Information and details on all bank accounts, loans and other debts

                                                n  Proof of financial assets

                                                n  Source and amount of down payment and deposit

                                                n  Proof of source of funds for the closing costs (these are usually between
                                                   1.5% and 4% of the purchase price)

                                          MakeYour MortgageWork forYou
                                           Your lender or broker will offer you several choices to help find you the mortgage
                                           that best matches your needs. Here are some of the most common:


                                           Amortization Period
                                           Amortization refers to the length of time you choose to pay off your mortgage.
                                           Mortgages typically come in 25 year amortization periods but can be as short as
                                           15 years. Usually, the longer the amortization, the smaller the monthly payments.
                                           However, the longer the amortization, the higher the interest costs. Total interest
                                           costs can be reduced by making additional (lump sum) payments when possible.


                                           Payment Schedule
                                           You have the option of repaying your mortgage every month, twice a month
                                           every two weeks or every week. You can also choose to accelerate your payments.
                                           For example, for a $250,000 mortgage (5% interest rate and 25 year amortization)
                                           choosing an accelerated bi-weekly payment over a bi-weekly regular payment ($727
                                           vs. $670) allows you to pay down your mortgage more quickly. You could pay off the
                                           mortgage in just over 21 years and reduce your interest costs by almost $30,000.

                                           This usually means one extra monthly payment per year.




14 Canada Mortgage and Housing Corporation

                                                                                                                            STEP 2




Interest RateType
You will have to choose between "fixed", "variable" or "protected (or capped)                 Blended Payment: A mortgage payment
variable". A fixed rate will not change for the term of the mortgage. This type carries       that includes principal and interest. It

a slightly higher rate but provides the peace of mind associated with knowing that            is paid regularly during the term of the
                                                                                              mortgage.The payment total remains
interest costs will remain the same.
                                                                                              the same, although the principal portion
With a variable rate, the interest rate you pay will fluctuate with the rate of the           increases over time and the interest
market. Usually, this will not modify the overall amount of your mortgage payment,            portion decreases.
but rather change the portion of your monthly payment that goes towards interest              Lump Sum Prepayment: An extra
costs or paying your mortgage (principal repayment).                                          payment, made in lump sum, to reduce

If interest rates go down, you end up repaying your mortgage faster. If they go up,           the principal balance of your mortgage,
                                                                                              with or without penalty. A closed
more of the payment will go towards the interest and less towards repaying the
                                                                                              mortgage typically restricts the amount
mortgage. This option means you may have to be prepared to accept some risk and               and frequency of the prepayments you
uncertainty.                                                                                  can make.With an open mortgage,
A protected (or capped) variable rate is a mortgage with a variable interest rate that        however, you can make a lump sum

has a maximum rate determined in advance. Even if the market rate goes above the              prepayment at any time without penalty.
                                                                                              Making prepayments can help you pay
determined maximum rate, you will only have to pay up to that maximum.
                                                                                              off your mortgage sooner and ultimately
                                                                                              save on interest costs over the life of
MortgageTerm                                                                                  your mortgage.
The term of a mortgage is the length of time for which options are chosen and agreed
upon, such as the interest rate. It can be as little as six months or as long as five years
or more. When the term is up, you have the ability to renegotiate your mortgage at
the interest rate of that time and choose the same or different options.


"Open" or "Closed" Mortgage
An open mortgage allows you to pay off your mortgage in part or in full at any time
without any penalties. You may also choose, at any time, to renegotiate the mortgage.
This option provides more flexibility but comes with a higher interest rate. An open
mortgage can be a good choice if you plan to sell your home in the near future or to
make large additional payments.

A closed mortgage usually carries a lower interest rate but doesn't offer the flexibility
of an open mortgage. However, most lenders allow homeowners to make additional
payments of a determined maximum amount without penalty. Typically, most people
will select a closed mortgage.


Figure Out the Up-front Costs
There are many up-front costs when you buy a home. Early planning will help make
sure things go smoothly.


Down Payment
A down payment is the part of the home price that does not come from the mortgage
loan. The down payment comes from your own money. You can buy your home
with a minimum down payment of 5%, if you have mortgage loan insurance from
CMHC. You need a down payment of at least 20% for a conventional mortgage.




                                                                                             Canada Mortgage and Housing Corporation      15

    Homebuying STEP BY STEP




                                           Deposit
                                           The deposit is paid when you make an Offer to Purchase to show that you are a
                                           serious buyer. The deposit will form part of your down payment with the remainder
                                           owing at time of closing. If for some reason you back out of the deal without having
                                           covered yourself with purchase conditions, such as financing, home inspection, etc.,
                                           your deposit may not be refundable and you may be sued for damages. The size of the
                                           deposit varies. Your realtor or lawyer/notary can help you decide on the amount.


                                           Appraisal Fee
                                           Your mortgage lender may ask you to pay for a recognized appraisal in order to
                                           complete a mortgage loan. An appraisal is an estimate of the value of the home.
                                           The cost is usually between $250 and $350 and must be paid when you contract
                                           for those services.

                                           Having an independent appraisal done on a property before you make an offer is a
                                           good idea. It will tell you what the property is worth and help ensure that you are not
                                           paying too much.

                                           The appraisal should include:

                                               n  Assessment of the property's physical and functional characteristics

                                               n  Analysis of recent comparable sales

                                               n  Assessment of current market conditions affecting the property

                                           Ask your realtor or other member of your team to help you find an appraiser.


                                           Mortgage Loan Insurance Premium
                                           If you make less than a 20% down payment, you have a high-ratio mortgage. With
                                           a high-ratio mortgage your lender will need mortgage loan insurance. Mortgage loan
                                           insurance lets you buy a home with a minimum down payment of 5%.

                                           Most Canadian lending institutions require mortgage loan insurance because it
                                           protects the lender. If the borrower defaults (fails to pay) on the mortgage, the lender
                                           is paid back by the insurer. You pay a premium for mortgage loan insurance. Your
                                           lender will add the mortgage loan insurance premium to your monthly payments, or
                                           ask you to pay it in full upon closing.


                                           Mortgage Broker's Fee
                                           You may have decided to use a mortgage broker. The job of the mortgage broker is to
                                           find you a lender with the terms and rates that will best suit you.


                                           Home Inspection Fee
                                           CMHC recommends that you make a home inspection a condition of your Offer to
                                           Purchase. A home inspection is done by a qualified home inspector to provide you
                                           with information on the condition of the home. Costs range depending on the age,
                                           size and complexity of the house and the condition that it is in. For example, it may
                                           be more costly to inspect a large, older, home, or one in relatively poor condition or
                                           that has many pre-existing problems or concerns.


                                           Survey or Certificate of Location Cost
                                           The mortgage lender may ask for an up-to-date survey or certificate of location. If
                                           the seller has a survey, but it is more than five years old, it will probably need to be




16 Canada Mortgage and Housing Corporation

                                                                                                                              STEP 2




updated. You should ask the seller to provide an updated survey, especially if there has
been a new addition, deck or fence built close to the property line. If the seller does        Ted and Shayla
not have one, or does not agree to get one, you may have to pay for it yourself.               Ted and Shayla have found a newly built
                                                                                               home.The asking price is $200,000
Remember, you must have permission from the property owner before hiring a                     including the GST.
surveyor to go onto the property. Ask your realtor to help co-ordinate this with the
                                                                                               After adding together wedding gifts, a
owner. A survey or certificate of location can cost $1,000 to $2,000.                          small inheritance and other savingsTed
                                                                                               and Shayla found that they have $28,900.
Title Insurance                                                                                Ted and Shayla went to a lender and got
Your lender, lawyer, or notary may suggest that you get title insurance. This will cover       a mortgage pre-approval of $196,000.
loss caused by defects of title to the property.                                               They decided on a down payment of
                                                                                               $20,000. Because the down payment is
                                                                                               less than 20% of the price, they need to
Land Registration Fees                                                                         get mortgage loan insurance.
Land Registration fees are sometimes called Land Transfer Tax, Deed Registration               At the bank, they are advised that the
Fee, Tariff or Property Purchases Tax. In some provinces and territories, you may              premium for their mortgage loan insurance
have to pay this provincial or municipal charge when you close the sale. The cost is a         is 2% of the total loan amount ­ they
percentage of the property's purchase price. Check on the internet or with your lawyer         would have to pay $3,600 for their
(or notary) or other team member to find out about the current rates. These fees can           mortgage loan insurance.They were happy
                                                                                               to learn that the mortgage loan premium
cost a few thousand dollars.                                                                   could be added to their monthly mortgage.

                                                                                               Ted and Shayla's Up-front Expenses
WaterTests                                                                                     When Ted and Shayla made an offer on
If the home has a well, you will want to have the quality of the water tested to ensure        the bungalow, they provided a $1,000
that the water supply is adequate and the water is drinkable. You can negotiate these          deposit. Since their down payment would
costs with the vendor and list them in your Offer to Purchase.                                 be $20,000, they need to pay a further
                                                                                               $19,000 at time of closing.
                                                                                               An appraisal was not requested by the
SepticTank                                                                                     Lender.They hired a professional Home
If the house has a septic tank, it should be professionally checked to make sure it is         Inspector for $500 to visually inspect the
in good working order. You can negotiate the cost with the vendor and list it in your          home to identify potential problems.
Offer to Purchase.                                                                             They were required to obtain a land
                                                                                               survey which cost them $1,000.

Estoppel Certificate Fee (does not apply in Quebec)                                            Because their province requires land
This applies if you are buying a condominium, or strata unit, and could cost up                registration, they had to pay $3,000.

to $100. Also called a Status Certificate it outlines a condominium corporation's              Ted and Shayla's realtor advised that she
financial and legal state.                                                                     had heard about water problems in the
                                                                                               area so they decided to get a water test
                                                                                               done for $175.
Prepaid PropertyTaxes and/or Utility Bills                                                     In order to get a mortgage they had to
Property taxes are charged by the municipality where the home is located. They are             pay $50 for their first month of property
based on the value of the home. The seller may have already paid property tax or               insurance.
other expenses that apply to the time after the house passes into your hands. You need         Property taxes will be added to their
to pay back the seller for taxes and other costs (including items like filling the oil tank).  mortgage payments. But Ted and Shayla
                                                                                               had to pay the taxes that were left for
                                                                                               the first year which was $1,250.
Property Insurance                                                                             Their lawyer's fees were $950.
The mortgage lender requires you to have property insurance because your home is
                                                                                               They didn't need to buy appliances, or
security for the mortgage. Property insurance covers the cost of replacing your home           snow removal and gardening equipment.
and its contents in case of loss. Property insurance must be in place on closing day.
                                                                                               Their moving costs were $250.
                                                                                               For their cable, internet and telephone
Legal Fees                                                                                     "package" they paid a small hook-up
Legal fees and related costs must be paid on closing day. The minimum cost is $500             fee of $75.
(plus GST/HST). In addition, your lawyer or notary will charge you direct costs to
check on the legal status of the property.                                                     Down payment                $20,000
                                                                                               Closing Costs                $7,250
                                                                                               Total Up-Front Expenses $27,250



                                                                                              Canada Mortgage and Housing Corporation      17

    Homebuying STEP BY STEP




                                          Other Costs
                                           Depending on your situation, you may have some other initial expenses to consider:

                                             n  Moving expenses
                                             Whether you'll be hiring a moving company or renting a truck and asking friends
                                             for help, there are likely to be moving expenses.

                                             n  Renovations or repairs
                                             Can renovation or repair be delayed, or are some necessary to do immediately?

                                             n  Condominium fees
                                             Do you have to make the initial payment for these monthly fees?

                                             n  Service connection fees
                                             Telephone, gas, electricity, cable TV, satellite TV, Internet, and so on, may charge
                                             service connection fees. Some utilities may ask you to pay a deposit.

                                             n  Appliances
                                             Does your new home come with appliances? Do you already have your own?

                                             n  Gardening equipment
                                             Will you need to buy gardening equipment the first summer in your new home?

                                             n  Snow-clearing equipment
                                             Will you need to buy snow-clearing equipment the first winter in your new home?

                                             n  Window treatments
                                             Do blinds or curtains come with the house?

                                             n  Decorating materials
                                             Do you want to re-paint or apply wallpaper? Do the floors need to be refinished
                                             or re-carpeted? Do you have all the tools you need for decorating?

                                             n  Hand tools
                                             Do you have the basic hand tools you'll need for your new home?

                                             n  Dehumidifier
                                             Will you need a dehumidifier to control moisture levels?

                                             Use the Home Purchase Cost Estimate form on the next page to help figure out
                                             your estimated up-front costs.




18 Canada Mortgage and Housing Corporation

                                                                                                                           STEP 2




  HOME PURCHASE COST ESTIMATE

  Description of cost                                                                     Average monthly payment

  Cost of Home

      Purchase price                                                                      $

      GST/HST (if applicable)                                                             $

      Total Cost of Home (add the purchase price and GST if applicable)                   $

  Up-front Costs

      Appraisal fee (if applicable)                                                       $

      Deposit (to be paid when you sign the Offer to Purchase)                            $

      Down payment                                                                        $

      Estoppel certificate fee (for condominium/strata unit)                              $

      Home inspection fee                                                                 $

      Land registration fee                                                               $

      Legal fees and disbursements                                                        $

      Mortgage broker's fee (if applicable)                                               $

      Mortgage loan insurance premium (can be included in your mortgage)                  $

      Prepaid property taxes and/or utility bills adjustment                              $

      Property insurance                                                                  $

      Survey or certificate of location cost                                              $

      Title insurance                                                                     $

      Other                                                                               $

      Total Upfront Costs                                                                 $

  Other Costs

      Appliances                                                                          $

      Gardening equipment                                                                 $

      Snow-clearing equipment                                                             $

      Window treatments                                                                   $

      Decorating materials                                                                $

      Hand tools                                                                          $

      Dehumidifier                                                                        $

      Moving expenses                                                                     $

      Renovations or repairs                                                              $

      Service hookup fees                                                                 $

      Condominium fees                                                                    $

      Total Other Costs                                                                   $

  Total Costs (add upTotal Cost of Home,                                                  $
  Total Up-front Costs andTotal Other Costs)

Additional Home Purchase Cost Estimate worksheets are available at the back of this Guide.




                                                                                                  Canada Mortgage and Housing Corporation 19

    Homebuying STEP BY STEP




    NOTES

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20 Canada Mortgage and Housing Corporation

STEP3
    Which home is
       right for you?

    Homebuying STEP BY STEP




                                           Once you have a good idea about your finances, you'll need to think clearly
                                           about the home you'd like to buy.


                                          Your Needs ­ Now and in the Future
                                           Try to buy a home that meets most of your needs for the next 5 to 10 years,
                                           or find a home that can grow and change with your needs.

                                           Here are some things to consider:

                                           Size
                                           How many bedrooms do you need?
                                           How many bathrooms do you need?
                                           Do you need space for a home office?
                                           What kind of parking facilities do you need? For how many cars?


                                           Special features
                                           Do you want air conditioning? If so, what type?
                                           Do you want storage or hobby space?
                                           Is a fireplace or a swimming pool high on your list?
                                           Do you have family members with special needs?
                                           Do you want special features to save energy, enhance indoor air quality,
                                           and reduce environmental impact?


                                           Lifestyles and stages
                                           No matter what type of housing you choose, you must have a clear idea of
                                           your needs today as well as your possible future needs. These are some examples
                                           of questions home buyers might ask:

                                           Do I need a home office?
                                           Do I plan to have children?
                                           Do I have teenagers who will be moving away soon?
                                           Am I close to retirement?
                                           Will I need a home that can accommodate different stages of life?
                                           Do I have an older relative who might come to live with me?

                                           The CMHC worksheet Home Features Checklist on the next page can help you think
                                           about what you need today, and what you may need in the future.


                                          Is FlexHousingTM for you?
                                           FlexHousingTM is a housing concept that incorporates, at the design and construction
                                           stage, the ability to make future changes easily and with minimum expense to meet
                                           the evolving needs of its occupants.

                                           FlexHousingTM allows homeowners to live in their home for a longer time ­ perhaps
                                           an entire lifetime. By adding or removing walls you can make the home suit
                                           your lifestyle.




22 Canada Mortgage and Housing Corporation

                                                                                                                               STEP 3




  HOME FEATURES CHECKLIST

       Resale                       New                                   Bedrooms                          1        2     3    4

      Type of Home                                                          Bathrooms                         1        2     3
       Detached                     Semi-detached
       Townhouse                    Duplex                                Master bedroom en suite           Yes           No

       Highrise                     Low-rise
                                                                            Ground floor bathroom             Yes           No

      Type of ownership
                                                                            Eat-in kitchen                    Yes           No
       Freehold                     Condominium

                                                                            Separate dining room              Yes           No
      Age of home

                                                                            Separate family room              Yes           No
      Lot size          Small       Medium           Large

                                                                            Fireplace                         Yes           No
      Quiet street                   Yes              No

                                                                            Woodstove                         Yes           No
      Type of exterior finish
       Brick                        Wood                                  Spare room for den or
       Aluminum siding              Vinyl siding                          home office                       Yes           No
       Combination brick and siding
                                                                            Basement for storage
      Windows                                                               or workshop                       Yes           No
      Glazing           Single      Double           Triple
                        Low-E                                              Apartment for rental income       Yes           No

      Construction      Wood        Vinyl            Aluminum
                                                                            Deck or patio                     Yes           No
                        Other

                                                                            Private driveway                  Yes           No
      Insulation values             Walls_________________
      Basement______________        Ceiling________________                 Garage                            Attached      Detached

      Foundation construction        Concrete                              Carport                           Yes           No
       Concrete block               Preserved wood
                                                                            Security features                 Yes           No
      Sewer             Municipal   Septic system
                                                                            Barrier-free                      Yes           No
      Water             Municipal   Well

      Water heating     Gas         Electric         Oil                 Close to (approximate km)

      Electrical system                                                     Work                             Spouse's work
                        100 amp     200 amp
                                                                            Public transportation            Schools
                        Other___________________
                                                                            Shopping                         Parks/playgrounds
                        Fuses       Circuit breakers

                                                                            Recreation facilities            Restaurants
      Energy Rating                  Yes              No
      Rating ______________                                                 Places of worship                Doctor/dentist

      Type of heating fuel                                                  Police station                   Fire station
       Oil             Gas         Electric         Wood
                                                                            Hospital
      Heat recovery ventilator       Yes              No
                                                                            Veterinarian
      Air conditioning               Central          Window


Additional Home Features Checklists are available at the back of this Guide.



                                                                                                     Canada Mortgage and Housing Corporation 23

    Homebuying STEP BY STEP




                                                    In an adaptable home, space can be arranged and re-arranged without expensive
      The Right Choice for                          retrofits and renovations. Designing an adaptable home involves anticipating possible
      Keith and Joy                                 new uses for rooms, potential traffic flow, and future requirements at the design stage.

      Keith and Joy hoped to have two children,
      and room to invite one of their parents      What Location ShouldYou Choose?
      to live with them, if needed. After learning  Location is a critical factor. A home with everything you need but in the wrong
      about FlexHousingTM, they decided to buy       location is probably not the right home for you. Here are some things to consider:
      a three-bedroom FlexHouse that could
      change with their needs.                         n   Do you want to live in a city, a town or in the countryside?

      After three years, Keith and Joy had             n   How easy will it be to get to where you work?
      a little boy, named Jake. He took the                How much will the commuting cost?
      second bedroom, and their many
                                                       n   Where will your children go to school? How will they get there?
      overnight guests used the third one.
                                                       n   Do you need a safe walking area or recreational facility, such as a park, nearby?
      When Jake was three, Joy had the guest
      bedroom divided into a home office for           n   How close would you like to be to family and friends?
      herself, and a smaller guest bedroom.
      Each room had its own window, closet,        What is a Sustainable Neighbourhood?
      wiring, and lighting.                         A sustainable neighbourhood meets your needs while protecting the environment.
      Two years later, baby Ella was born           Homes in a sustainable neighbourhood are located near shops, schools, recreation,
      and the small bedroom became hers.            work and other daily destinations. This helps reduce driving costs and lets residents
      To create a guest bedroom, the attic was      enjoy the health benefits of walking and cycling. Land and services, like roads, are
      renovated to include a bathroom and           used efficiently. Sustainable neighbourhoods also feature a choice of homes that are
      closet. Because this was a FlexHouse,         affordable.
      the space already had wiring and
      plumbing.The roof design allowed              In your search for a sustainable neighbourhood, here are some things to consider:
      for useable attic space.

      Sadly, a few years later, Keith's mother      Easy transportation
      passed away and they invited his father,         n   Are stores, schools, recreation facilities, restaurants, and health services within
      Robert, to come live with them.Their                 walking or cycling distance? Will your children need to take a bus to school?
      FlexHouse had pre-designed and pre-                  Can they walk to the park? Can you do most of your shopping without a car?
      built features so that they could create
                                                       n   Are there nearby bus stops and cycling lanes? How long is the bus ride to work,
      an external addition.This gave Robert
      the independence of his own space.                   or school? Can you safely bike?

      When Jake had become a teenager,              House size and features
      and Robert had passed away, Jake
                                                       n   Are the homes compact with shared walls to reduce heating costs?
      asked if he could move to the attic
      bedroom. Ella moved into Jake's larger           n   Are homes reasonably sized with lots requiring less upkeep?
      bedroom. Her smaller bedroom became
                                                       n   Are there different dwelling types (such as single-detached, semi-detached,
      a reading room.                                      townhouse and apartments) in the neighbourhood?

                                                       n   Are the lots modestly sized? Roadways narrow? Driveways/parking areas small?
                                                           Do natural drain ways lead to streams or park lands? Is there native vegetation
                                                           and streams with woodland edges?




24 Canada Mortgage and Housing Corporation

                                                                                                                          STEP 3




"Look and feel"
    n  Do the buildings have a friendly face to the street? Are the community centres,
       shops and meeting places welcoming?

    n  Are there trees lining the street? Do you find the homes interesting to look at?
       Do the building sizes feel comfortable to you? Are the roads easy to walk
       along or cross?

Safety
    n  Do the homes have "eyes on the street"? In other words, are there people around
       who might watch out for you? Is there somewhere to go in an emergency?

    n  Is there adequate street lighting?

    n  Are there safe places for children to play?

    n  Are the streets safe for cyclists and pedestrians?

    n  Is traffic slow moving and light?


DoYouWant a New Home or a
Previously-Owned Home?                                                                    Single-family Detached Home:
A new home is one that has just been built ­ no one else has lived in it yet. You might   Free-standing home for one family, not
buy a new home from a contractor who has built it, or you might hire a contractor         attached to a house on either side.
to build it for you. A previously-owned home (often called a resale) has already been     Single-family Semi-detached Home:
lived in. Here are some characteristics of each type of home:                             Home for one family, attached to
                                                                                          another building on one side.
New Home                                                                                  StackedTownhouse: Two two-story homes
                                                                                          are stacked one on top of the other.The
Up-to-date                                                                                buildings are usually attached in groups
    n  A new home has up-to-date design that might reflect the latest trends,             of four or more. Each unit has direct
       materials and features.                                                            access from the outside.

                                                                                          Strata (or Condominium): A unit, usually
Choices                                                                                   in a highrise or lowrise, or a townhouse
    n  You may be able to choose certain features such as style of siding, flooring,      that can be owned. You own the unit you
       cabinets, plumbing and electrical fixtures.                                        live in and share ownership rights for the
                                                                                          common space of the building. Common
    n  You may have to pay extra if you want to add certain features, such as
                                                                                          space includes areas such as corridors,
       a fireplace, trees and sod, or a paved driveway. Make sure you know
                                                                                          the grounds around the building, and
       exactly what's included in the price of your home.                                 facilities such as a swimming pool and
                                                                                          recreation rooms. Strata owners together
Costs                                                                                     control the common areas through an
    n  Taxes such as the Goods and Services Tax (GST) (or, in certain provinces,          owners' association.The association
       the Harmonized Sales Tax (HST)) apply to a new home. However, you                  makes decisions about using and
       may qualify for a rebate of part of the GST or HST on homes that cost less         maintaining the common space.
       than $450,000. For more information about the GST New Housing Rebate
       program, visit the Canada Revenue Agency website at www.cra-arc.gc.ca.

    n  A new home will have lower maintenance costs because everything is new, and
       many items are covered by a warranty. You should set aside money every year
       for future maintenance costs.




                                                                                         Canada Mortgage and Housing Corporation      25

    Homebuying STEP BY STEP




                                           Warranties
                                               n  A New Home Warranty may be provided by the builders of the home or the
                                                  province. Be sure to check all the conditions of the warranty. It can be very
                                                  important if a major system such as plumbing, or heating, breaks down.

                                               n  New Home Warranties may be provided by provincial governments. There are
                                                  also private new home warranty programs. In some provinces a warranty may
                                                  be provided by the builder of the home. Check with your realtor or lawyer/
                                                  notary to find out what the new home warranty program in your province
                                                  covers ­ and the number of years it is in effect.

                                               n  Check the internet for Home Warranty Programs in your province.

                                           Neighbourhood amenities
                                               n  Schools, shopping malls and other services may not be completed for years.

                                          BuildingYour Own Home
                                           Some people prefer the challenge and flexibility of building their own home.
                                           On one hand, you make all the decisions about size, design, location, quality of
                                           material, level of energy-efficiency and so on. On the other hand, expect to invest
                                           lots of time and energy.


                                          Resale Home
                                               n  When the home already exists, you can see what you are buying. Since the
                                                  neighbourhood is established, you can see how easy it is to access services
                                                  such as schools, shopping malls, libraries, etc.

                                               n  Landscaping is usually done and fencing installed. Previously owned homes
                                                  may have extras like fireplaces or finished basements or swimming pools.

                                               n  You don't have to pay the GST/HST unless the house has been renovated
                                                  substantially, and then the taxes are applied as if it were a new house.

                                               n  You may need to decorate, renovate or do major repairs such as replacing
                                                  the roof, windows and doors.


                                          WhatType of Home ShouldYou Buy?
                                           What types of homes will you be visiting with the idea of buying? Do you see yourself
                                           living in a detached single-family home? Or, perhaps a townhouse? Maybe, a duplex?


                                          Single-family Detached
                                           A single-family detached home is one dwelling unit. It stands alone, and sits on its
                                           own lot. This often gives the family a greater degree of privacy.


                                          Single-family Semi-detached
                                           A semi-detached home is a single-family home that is joined on one side to another
                                           home. It can offer many of the advantages of a single-family detached home. It is
                                           often less expensive to buy and maintain.


                                          Duplex
                                           A duplex is a building containing two single-family homes, located one above the
                                           other. Sometimes, the owner lives in one unit and rents the other.




26 Canada Mortgage and Housing Corporation

                                                                                                                  STEP 3




Row House (Townhouse)
Row houses (also called townhouses) are several similar single-family homes, side-by-
side, joined by common walls. They can be freehold or condominiums. They offer
less privacy than a single-family detached home, although each has a separate outdoor
space. These homes can cost less to buy and maintain, athough some are large,
luxury units.


StackedTownhouse
Stacked townhouses are usually two-storey homes. Two two-storey homes are stacked
one on top of the other. The buildings are usually attached in groups of four or more.
Each unit has direct access from the outside.


Link or Carriage Home
A link, or carriage home, is joined by a garage or carport. The garage or carport gives
access to the front and back yards. Builders sometimes join basement walls so that
link houses appear to be single-family homes on small lots. These houses can be less
expensive than single-family detached homes.


Manufactured Home
A manufactured home is a factory-built, single-family home. It is transported
to a chosen location and placed onto a foundation.


Modular Home
A modular home is also a factory-built, single-family home. The home is typically
shipped to a location in two or more sections (or modules).


Mobile Home
Mobile homes, like manufactured or modular homes, are built in factories and then
taken to the place where they will be occupied. While these homes are usually placed
in one location and left there permanently, they do retain the ability to be moved.


Apartment
A self-contained unit in part of a building consisting of a room or set of rooms
including kitchen and bathroom facilities.




                                                                                         Canada Mortgage and Housing Corporation 27

    Homebuying STEP BY STEP




                                                  Forms of Ownership
                                                  People who do not rent their home, own it. There are two forms of ownership.


                                                  Freehold
                                                  Freehold means that one person (or two, such as joint ownership by spouses) owns
                                                  the land and house outright. There is no space co-owned or co-managed with owners
                                                  of other units.

                                                  Freehold owners can do what they want with their property ­ up to a point. They
                                                  must obey municipal bylaws, subdivision agreements, building codes and federal and
                                                  provincial laws, such as those protecting the environment.

                                                  Detached and semi-detached homes, duplexes and townhouses are usually owned
                                                  freehold.


                                                  Condominium
                                                  Condominium ownership means you own the unit you live in and share ownership
                                                  rights for the common space of the building. Common space includes areas such as
                                                  corridors, the grounds around the building, and facilities such as a swimming pool
                                                  and recreation rooms. Condominium owners together control the common areas
                                                  through an owners' association. The association makes decisions about using and
                                                  maintaining the common space.


                                                  What Professionals ShouldYou Call On?
                                                  Even if this isn't your first homebuying experience, you'll want to get help from a
                                                  team of professionals. Experienced and knowledgeable professionals can provide you
      Land Surveyor: A professional who can       with reliable information and answers to your questions. These are the people who
      survey a property in order to provide a     can help you:
      certificate of location.
                                                     n   Realtor
      Appraiser: Certified professional who
      carries out an appraisal.                      n   Lender or mortgage broker
                                                         Lawyer or notary
      Lender: A mortgage lender is an institution    n

      (bank, trust company, credit union, etc.)      n   Insurance broker
      that lends money for a mortgage.
                                                     n   Home inspector
      Mortgage Broker: The job of the mortgage
                                                     n   Appraiser
      broker is to find you a lender with the
      terms and rates that will best suit you.       n   Land surveyor

                                                     n   Builder or contractor

                                                  You will be doing a lot of interviewing to establish your team. Use this handy
                                                  CMHC worksheet on the next page to help you keep track of the people
                                                  you interview and the ones you finally choose.




28 Canada Mortgage and Housing Corporation

                                                                                                                     STEP 3




  YOURTEAM OF PROFESSIONALS

  Role

  Name

  Company name

  Address                                                                      Telephone

  Strengths

  Weaknesses

  Referral                                                                     Fees


  Role

  Name

  Company name

  Address                                                                      Telephone

  Strengths

  Weaknesses

  Referral                                                                     Fees


  Role

  Name

  Company name

  Address                                                                      Telephone

  Strengths

  Weaknesses

  Referral                                                                     Fees


  Role

  Name

  Company name

  Address                                                                      Telephone

  Strengths

  Weaknesses

  Referral                                                                     Fees

Additional YourTeam of Professionals worksheets are available at the end of this Guide.




                                                                                            Canada Mortgage and Housing Corporation 29

    Homebuying STEP BY STEP




                                                      The Realtor
                                                      Your realtor's job is to:

                                                           n   Help you find the ideal home

                                                           n   Write an Offer of Purchase

                                                           n   Negotiate to help you get the best possible deal

                                                           n   Give you important information about the community

                                                           n   Help you arrange a home inspection

                                                      Finding a Realtor
                                                      When looking for a realtor, don't be afraid to ask questions ­ especially about
                                                      possible service charges. Normally, the seller pays a commission to the realtor
                                                      but some realtors charge buyers a fee for their services. Use the CMHC worksheet
                                                      Checklist for Evaluating Realtors, below, to help you.

                                                      If you would like to know more about a realtor's ethical obligations, go to the
                                                      Canadian Real Estate Association's website at www.crea.ca, or call your local
                                                      real estate association.


    CHECKLIST FOR EVALUATING REALTORS

     Name of Realtor:

     Contact:

    Question                                                                                                     Answer

     Which real estate company do you work for?

     How long have you been a realtor?

     Do you have a salesperson's license or a broker's license?

     Do you hold any professional designations?

     Do you work with other realtors or use assistants?

     What is the amount of commission that you charge?

     What areas of the city/town do you work in or are most familiar with?

     Do you understand what I am looking for in a home?

     Do you have experience working with first-time buyers?
     (only relevant if you are a first-time buyer)

     How many other buyers or sellers are you currently representing?

     Is there anything I haven't asked about you or your company that you think
     I should know?

     Can I have three references from other buyers you have worked with recently?




30 Canada Mortgage and Housing Corporation

                                                                                                                           STEP 3




The Lender or Mortgage Broker
                                                                                          Offer to Purchase: A written contract
Many different institutions lend money for mortgages ­ banks, trust companies,            setting out the terms under which the
credit unions, caisses populaires (in Quebec), pension funds, insurance companies,        buyer agrees to buy the home. If the Offer
and finance companies. Different institutions offer different terms and options ­         to Purchase is accepted by the seller, it
shop around!                                                                              forms a legally binding contract that binds
                                                                                          the people who signed to certain terms
Mortgage brokers don't work for any specific lending institution. Their role is           and conditions.
to find the lender with the terms and rates that are best for the buyer.
                                                                                          Certificate of Location (or Land Survey): A
                                                                                          document that shows property boundaries
Finding a Lender or Mortgage Broker                                                       and measurements, specifies the location
    n  Ask around. Your realtor, another professional, family members, or friends may     of buildings on the property and states
       give you helpful suggestions.                                                      easements or encroachments.

    n  Look in the Yellow PagesTM under "Banks," "Credit Unions" or                        Estoppel Certificate: Also called a
       "Trust Companies" for a lender and under "Mortgage Brokers" for a broker.          certificate of status, it outlines a
                                                                                          condominium corporation's financial and
    n  Contact the Canadian Association of Accredited Mortgage Professionals at
       1-888-442-4625, or visit the Association's website at http://www.caamp.org.        legal state. Fees may vary and may be
                                                                                          capped by law (does not apply in Quebec).

The Lawyer/Notary                                                                         Lien: A claim against a property for money
                                                                                          owing.A lien may be filed by a supplier or
Having a lawyer/notary involved in the process will help ensure that things go
                                                                                          a subcontractor who has provided labour
as smoothly as possible. You need a lawyer (or a notary in Quebec) to perform             or materials but has not been paid.
these tasks:
                                                                                          Assumption Agreement: A legal document
    n  Protect your legal interests by making sure the property you want to buy does      signed by a homebuyer that requires the
       not have any building or statutory liens, charges, or work or clean-up orders.     buyer to assume responsibility for the
                                                                                          obligations of a mortgage by the builder or
    n  Review all contracts before you sign them, especially the Offer (or Agreement)
       to Purchase.                                                                       the previous owner.


Finding a Lawyer
Law associations can refer you to lawyers who specialize in real estate law. In Quebec,
contact the Chambre des notaires du Québec for the names of notaries specializing in
real estate law.

Remember that a lawyer/notary should:

    n  Be a licensed full-time lawyer/notary

    n  Live/work in the area

    n  Understand real estate laws, regulations and restrictions

    n  Have realistic and acceptable fees

    n  Be able and willing to explain things in language you can easily understand

    n  Be experienced with condominiums, if that's what you are buying




                                                                                        Canada Mortgage and Housing Corporation         31

    Homebuying STEP BY STEP




                                                       Lawyer/notary fees depend on the complexity of the transaction and the
                                                       lawyer's expertise.

                                                       Shop around for rates when choosing your lawyer/notary. Use the worksheet
                                                       Checklist for Selecting a Lawyer/Notary to guide you:

    CHECKLIST FOR SELECTING A LAWYER/NOTARY

     Name of Lawyer/Notary:

     Contact:

    Question                                                                                                    Answer

     Are you a full-time lawyer licensed to practice in this province/territory?

     Do you specialize in real estate law?

     How much do you charge?

     What services will you provide?

     Do you help clients when they are negotiating the price of a house?

     Can you give me the names and telephone numbers of three of your recent clients
     who have purchased homes?

     Do you have experience working with first-time buyers? (only relevant if you are
     a first-time home buyer)

     Is there anything I haven't asked about you or your firm that you think
     I should know?



                                                       The Insurance Broker
                                                       An insurance broker can help you with your property insurance and mortgage
                                                       life insurance.

                                                       Lenders insist on property insurance because your property is their security for
                                                       your loan. Property insurance covers the replacement cost of your home, so the
                                                       size of your premium depends on the value of the property.

                                                       Your lender may also suggest that you buy mortgage life insurance. Mortgage life
                                                       insurance gives coverage for your family if you die before your mortgage is paid
                                                       off. Your lender may offer this type of insurance. In this case, the lender adds the
                                                       premium to your regular mortgage payments. However, you may want to compare
                                                       rates offered by an insurance broker and by your lender.

                                                       Don't confuse property insurance, or mortgage life insurance, with mortgage
                                                       loan insurance.




32 Canada Mortgage and Housing Corporation

                                                                                                                STEP 3




The Home Inspector
Whether you are buying a resale home, or a new home, consider having it inspected
by a knowledgeable and professional home inspector.

The home inspector's role is to inform you about the property's condition observed
at the time of the inspection. The home inspector will tell you if something is not
working properly, needs to be changed, or is unsafe. He or she will also tell you if
repairs are needed, and maybe even identify where there were problems in the past.

A home inspection is a visual inspection. It should include a visual assessment
of at least the following:

     n  Foundation

     n  Doors and windows

     n  Roof and exterior walls (except winter)

     n  Attics

     n  Plumbing and electrical systems (where visible)

     n  Heating and air conditioning systems

     n  Ceilings, walls and floors

     n  Insulation (where visible)

     n  Ventilation

     n  The lot, including drainage away from buildings, slopes and natural vegetation

     n  Overall opinion of structural integrity of the buildings

     n  Common areas (in the case of a condominium/strata or co-operative)

Finding a Home Inspector
It's important to hire a knowledgeable, experienced and competent home inspector.
In most areas of Canada, there are no licensing or certification requirements for
home inspectors. Anyone can say that they are a home inspector without having
taken any courses, passed tests or even inspected houses. So look for a home inspector
who belongs to a provincial or industry association, holds an accreditation that
demonstrates training and experience, provides inspection reports, carries insurance,
provides references and has strong experience with the type of home to be inspected.

While CMHC does not recommend any individual home inspector or association,
CMHC supports a common national occupational standard for home inspectors
such as the home inspection industry's voluntary and independent national
certification program.

Home inspector fees range, depending on the size and condition of the home.




                                                                                       Canada Mortgage and Housing Corporation 33

    Homebuying STEP BY STEP




                                          The Appraiser
                                           Before you make an offer, an independent appraisal can tell you what the property is
                                           worth. This will help ensure that you are not paying too much. In order to complete
                                           a mortgage loan, your lender may ask for a recognized appraisal.

                                           The appraisal should include:

                                               n  Unbiased assessment of the property's physical and functional characteristics

                                               n  Analysis of recent comparable sales

                                               n  Assessment of current market conditions affecting the property

                                           Finding an Appraiser
                                           Ask your realtor to help you find an appraiser.


                                          The Land Surveyor
                                           If the seller does not have a Survey or Certificate of Location, you will probably
                                           need to get one for your mortgage application. If the Survey in the seller's possession
                                           is older than five years, it needs to be updated.

                                           Remember that you must have permission from the property owner before hiring
                                           a surveyor to go onto the property. Ask your realtor to help co-ordinate this with
                                           the owner.


                                           Finding a Land Surveyor
                                           Search the web or Yellow PagesTM or ask your realtor to help you find a land surveyor.




34 Canada Mortgage and Housing Corporation

                                                                                                                          STEP 3




The Builder/Contractor
If you are buying a newly constructed home, you will have to hire a builder or             Ravi and Amita's Experience
contractor. If you are buying a resale house that needs renovations, you may also          Ravi and Amita saved a substantial
require a builder or contractor.                                                           amount for a down payment and the
                                                                                           up-front costs on their first home. After
Here are some things to keep in mind when choosing a builder or contractor:
                                                                                           looking a little on their own, Ravi thought

    n  Ask for references. Talk to other customers about the builder's performance.        they should try to find a real estate
                                                                                           agent. He was concerned that the agent
    n  Check with the New Home Warranty program in the area (if applicable).
                                                                                           might charge for her services.They
    n  Visit other housing developments that the company has built.                        interviewed a few agents and settled
                                                                                           on Janine. She had sold many houses
    n  Ask builders or contractors if they are members of a local homebuilders'
       association. Ask them for their provincial license number.                          in their part of town and didn't charge
                                                                                           the buyer.
If you are having a custom home built, remember that:
                                                                                           After visiting a few lenders and mortgage
    n  You may want to hire an architect to design the house and supervise                 brokers, they decided on Robert who
       construction.                                                                       offered the best terms and options and
                                                                                           gave them a pre-approved mortgage
    n  Builders of custom homes usually work on either a fixed-price or a cost-plus
                                                                                           certificate.They would meet with Robert
       basis. Authorize any changes to your contract by writing your name or initials
                                                                                           again during the conditional offer period
       beside the change.                                                                  to get a final mortgage approval.
Make sure your contract with the builder or contractor is very specific about              Ravi hired his family lawyer.Youssef
construction details. You can even require that the brand names or model number            understood property law and would
of finishes be specified. If you agree to a change in the contract, write your initials    ensure that no building or statutory liens
next to the change.                                                                        or charges existed.Youssef would review
                                                                                           all contracts before Ravi and Amita
                                                                                           signed them.Their insurance broker,
                                                                                           Jean-Paul, set up their new account.

                                                                                           After looking at a few houses and
                                                                                           housing developments, they decided to
                                                                                           buy an existing home. Now they could
                                                                                           cross off builder or contractor from the
                                                                                           list of professionals they would need.

                                                                                           They found a three-year-old house with
                                                                                           some time left on the home warranty.
                                                                                           The present owners agreed to give them
                                                                                           the land survey that they had done
                                                                                           when they built the house.

                                                                                           They'll need to find a professional home
                                                                                           inspector and an appraiser.They won't
                                                                                           need a land surveyor or a contractor.




                                                                                          Canada Mortgage and Housing Corporation       35

    Homebuying STEP BY STEP




    NOTES

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36 Canada Mortgage and Housing Corporation

STEP4
    The buying process

   Homebuying STEP BY STEP




                                          StartingYour Search
                                           Here are some ways to begin looking for your new home:

                                             n   Word-of-mouth
                                             Tell everyone you know that you are looking for a new home. Surprising things
                                             sometimes happen. For example, you might hear about a home that is just
                                             becoming available on the market.

                                             n   Newspapers and real estate magazines
                                             Check the new homes section in daily newspapers. Look for the free real estate
                                             magazines available at newsstands, convenience stores and other outlets. These
                                             publications are free and give pictures and short descriptions of homes for sale.

                                             n   The Internet
                                             Check out real estate websites, such as realtor.ca. These websites give information
                                             and pictures of a wide range of properties. Most sites let you search by location,
                                             price, number of bedrooms, and other features.

                                             n   "For Sale" signs
                                             Drive, bike or walk around a neighbourhood that interests you and look for
                                             "For Sale" signs. This is a good way to find homes that are being sold by the
                                             owner and are not listed with an agent.

                                             n   Visit new development sites
                                             If you are looking for a newly built home, you can see available models
                                             and get information from builders.

                                             n   Work with a realtor
                                             For most buyers, a realtor is key to finding the right home.

                                          UsefulTips forYour Search
                                             n   Keep records
                                             Whether you have a realtor or are looking by yourself, visit lots of homes before
                                             choosing one. Some things to compare are the home's energy rating, utility costs,
                                             property taxes and major repairs. These will affect your monthly housing expenses.
                                             You can ask to see copies of utility and other bills. Use the CMHC Home Hunting
                                             Worksheet at the end of this section to make sure you get all the information you
                                             need to compare homes.

                                             n   Check out the property's current financing
                                             If the existing mortgage on the home is favourable, it may be possible to take it
                                             over from the vendor. It may even be possible to get a vendor take back mortgage,
                                             to help close the deal.

                                             n   Think twice
                                             Even if a home seems perfect, go back and take a closer, more critical look at it.
                                             Visit it on different days and different times of the day. Chat with the neighbours.
                                             Look deeper ­ don't be distracted by attractive surface details.

                                             n   Energy Rating
                                             Some houses and new homes in Canada have an Energy Rating that describes the
                                             energy efficiency of the home. An energy-rated home usually has a sticker with the
                                             rating on the electrical panel. The energy rating is on a 0 to 100 scale. The higher
                                             the rating, the more energy-efficient the home, and the less
                                             it costs to operate.

                                             n   CMHC statistics and analysis
                                             CMHC has the latest statistical information and analysis of housing trends.
                                             Our Market Analysis Centre tracks information for local, provincial and
                                             national markets.


38 Canada Mortgage and Housing Corporation

                                                                                                                               STEP 4




Use the CMHC Home Hunting Worksheet to make sure you get all the information
you need to compare homes.

  HOME HUNTING WORKSHEET                                                          CHATTELWHICH REMAINSWITH HOUSE

                                                                                  Make a comprehensive list
  Attach real estate listing information sheet or fill in below.                  (floor coverings, windowdrapes, appliances, etc.)

  Address


  Real estate representative                                 Telephone

  Type of home                                               Square footage

  Number of bedrooms              Lot size                                                         NEIGHBOURHOOD
  Additional structures on property                                               Distance to work                Distance to spouse's work

  Occupancy date                  Asking price $                                  Public transportation            Yes  No
                                                                                  Adequate proximity to:
  Air conditioning     Central          Window              Smoke detectors
                                                                                  Schools                          Yes  No
                       Heat recovery ventilator (HRV)                            Shopping                         Yes  No
  ANNUAL COSTS                                                                    Playgrounds                      Yes  No
                                                                                  Medical                          Yes  No
  Property taxes                                                         $
                                                                                  Hospital                         Yes  No
  Garbage collection                                                     $        Fire station                     Yes  No
  Other                                                                  $        Police                           Yes  No
                                                                                  Place of worship                 Yes  No
  Utilities

  Heating type  Oil            Natural gas  Electric       Wood      $                  OTHER CONSIDERATIONS

  Electricity    60 amp        100 amp       200 amp  Other          $        Existing environmental problems
                                                                                  (noisy traffic, railway, flooding, etc.)
  Water          Municipal  Well                                       $

  Other                                                                  $        Future neighbourhood development plans

  Other                                                                  $
                                                                                  Energy Rated                     Yes  No
  TOTAL ANNUAL COSTS                                                     $
                                                                                  Rating ______________


Additional Home Hunting worksheets are available at the back of this Guide.




                                                                                           Canada Mortgage and Housing Corporation           39

    Homebuying STEP BY STEP




       EXTERIOR                                        Den  Study  Family room                              Bathrooms

                                                       Approximate size                                        #1      Bath/shower       Sink   Toilet
       Finish      Brick      Siding  Wood
                                                       Walls         Fair        Good       Excellent       #2      Bath/shower       Sink   Toilet
       Condition Fair         Good    Excellent
                                                       Flooring      Fair        Good       Excellent       #3      Bath/shower       Sink   Toilet
       Roofing     Fair       Good    Excellent
                                                       Lighting fixtures          Yes        No              Special features
       Other
                                                       Windows  Fair             Good       Excellent
       Windows Wood Vinyl clad
                                                       Special features                                        Basement
                   Aluminum
                                                       Kitchen                                                 Approximate size
       Condition Fair         Good    Excellent
                                                       Approximate size                                        Walls        Fair     Good      Excellent
       Number of entrances
                                                       Walls         Fair        Good       Excellent       Flooring     Fair     Good      Excellent
       2         3          4       5
                                                       Flooring      Fair        Good       Excellent       Lighting fixtures      Yes       No
       Driveway Paved         Gravel  Other
                                                       Lighting fixtures          Yes        No              Windows  Fair         Good      Excellent
       Garage      No         Yes
                                                       Windows  Fair             Good       Excellent       Separate entrance      Yes       No
                   Heated Not-heated
                                                       Cupboards and storage                                   Special features
       Landscaping Fair      Good     Excellent
                                                                     Fair        Good       Excellent
       Fencing     Wood Chain link Other
                                                       Special features                                        Utility room
       Patio or deck           Yes      No
                                                       Appliances included                                     Approximate size
       Special features (e.g. pool, barbecue)
                                                       Master bedroom                                          Walls        Fair     Good      Excellent

                                                       Approximate size                                        Flooring     Fair     Good      Excellent
       INTERIOR
                                                       Walls         Fair        Good       Excellent       Lighting fixtures      Yes       No
       Entrance area
                                                       Flooring      Fair        Good       Excellent       Windows  Fair         Good      Excellent
       Approximate size
                                                       Lighting fixtures          Yes        No              Special features
       Walls        Fair        Good     Excellent
                                                       Windows  Fair             Good       Excellent
       Flooring     Fair        Good     Excellent
                                                       Special features (e.g.en suite bathroom,walk-in closet) Furnace     Age ____
       Lighting fixtures         Yes      No
                                                                                                               Condition  Fair       Good      Excellent
       Special features
                                                       Bedroom #2                                              Hot water tank        Age ____
       Living room
                                                       Approximate size                                        Condition  Fair       Good     Excellent
       Approximate size
                                                       Walls         Fair        Good       Excellent       Additional for condominiums
       Walls        Fair        Good     Excellent
                                                       Flooring      Fair        Good       Excellent       Parking      Underground  Above ground
       Flooring     Fair        Good     Excellent
                                                       Lighting fixtures          Yes        No               Balcony; size        Storage
       Lighting fixtures         Yes      No
                                                       Windows  Fair             Good       Excellent        Recreation room      Exercise room
       Windows  Fair            Good     Excellent
                                                       Special features                                        Pool         No       Yes
       Special features (e.g. fireplace)
                                                       Bedroom #3                                                           Indoor  Outdoor
       Dining room
                                                       Approximate size                                        Lobby        Fair     Good      Excellent
       Approximate size
                                                       Walls         Fair        Good       Excellent       Security and special features
       Walls        Fair        Good     Excellent
                                                       Flooring      Fair        Good       Excellent
       Flooring     Fair        Good     Excellent
                                                       Lighting fixtures          Yes        No              General comments
       Lighting fixtures         Yes      No
                                                       Windows  Fair             Good       Excellent
       Windows  Fair            Good     Excellent
                                                       Special features
       Special features




     Additional Home Hunting worksheets are available at the back of this Guide.


40 Canada Mortgage and Housing Corporation

                                                                                                                             STEP 4




Making an Offer to Purchase
After you have found the home you want to buy, you need to give the vendor an
Offer to Purchase (sometimes called an Agreement of Purchase and Sale). It is very
helpful to work with a realtor (and/or a lawyer/notary) to prepare your offer. The
Offer to Purchase is a legal document and should be carefully prepared.

These items are typically included:

    n  Names
    Your legal name, the name of the vendor and the legal civic address of the property.

    n  Price
    The price you are offering to pay.

    n  Things included
    Any items in or around the home that you think are included in the sale should
    be specifically stated in your offer. Some examples might be window coverings and
    appliances.

    n  Amount of your deposit

    n  The closing day
    The closing day is the date you take possession of the home. It is usually
    30 to 60 days after the date of agreement. But, it can be 90 days, or even longer.

    n  Request for a current land survey of the property

    n  Date the offer expires
    After this date the offer becomes null and void ­ that means it's no longer valid.

    n  Other conditions
    Other conditions may include a satisfactory home inspection report, a property
    appraisal, and lender approval of mortgage financing. This means that the contract
    will become final only when the conditions are met.

What Happens AfterYou Make an Offer to Purchase?
Imagine that your realtor has helped you prepare an Offer to Purchase. This offer
includes all the details of the sale. To be extra cautious (since you know an Offer to
Purchase is legally binding) ask your lawyer to look at it before showing it to the
vendor. The realtor presents the offer to the vendor. What can you expect to happen
next? There are three possible responses:

                 Response 1                                    Response 2                                 Response 3

 The vendor accepts your offer. The deal The vendor makes a counter-offer. The            The vendor makes a counter-offer, asking
 is concluded and you move on to the           counter-offer might ask for a higher       for a higher price or different terms. If a
 next steps in the buying process.             price, or different terms. You can sign    counter-offer is returned to you at a higher
                                               the offer back to the vendor, offering     price, ensure that you know exactly how
                                               a higher price than your original offer,   much you can afford before you start
                                               but lower than the vendor's counter-       negotiating. You don't want to get caught
                                               offer. If the vender accepts this counter- up in the heat of the moment with costs
                                               offer, the deal is concluded.              you can't afford. You reject the counter-
                                                                                          offer because the price is still too high, or
                                                                                          you can't agree to the conditions. The sale
                                                                                          doesn't go through, and your deposit is
                                                                                          returned.




                                                                                              Canada Mortgage and Housing Corporation     41

    Homebuying STEP BY STEP




                                                   Getting a Mortgage
      Rita:                                        Once your Offer to Purchase has been accepted, go to see your lender. Your lender
      A Homeowner's Experience                     will verify (and update, if necessary) your financial information and put together
      Rita made an Offer to Purchase on an         what's needed to complete the mortgage application. Your lender may ask you to get a
      older property. Her real estate agent,       property appraisal, a land survey, or both. You may also be asked to get title insurance.
      Nissa, suggested that a home inspection      Your lender will tell you about the various types of mortgages, terms, interest rates,
      should be done and that approval of          amortization periods and, payment schedules available.
      mortgage financing be a condition of
      the offer.The inspection showed repairs      Depending on your down payment, you may have a conventional mortgage
      that would have cost more than Rita          or a high-ratio mortgage.
      could afford.

      Happily, within a couple of weeks, Nissa     Types of Mortgages
      found another listing at $115,000. Rita
      hoped the vendors would negotiate            Conventional Mortgage
      the price.                                   A conventional mortgage is a mortgage loan that is equal to, or less than, 80% of the
                                                   lending value of the property. The lending value is the property's purchase price or
      With Nissa's help, Rita filled out another
      Offer to Purchase for $100,000.The           market value ­ whichever is less. For a conventional mortgage, the down payment is
      vendors refused the offer.                   at least 20% of the purchase price or market value.

      Rita was a little discouraged. But, Nissa
      pointed out another neighbourhood that       High-ratio Mortgage
      had similar features and that tended to      If your down payment is less than 20% of the home price, you will typically
      be a little less expensive.                  need a high-ratio mortgage. A high-ratio mortgage usually requires mortgage loan
                                                   insurance. CMHC is a major provider of mortgage loan insurance. Your lender may
      On the second visit, Rita found "it". Even
      her son got excited and quickly found        add the mortgage loan insurance premium to your mortgage or ask you to pay it in
      "his" bedroom.Although the backyard          full upon closing.
      was smaller than the first home on which
      Rita made an Offer, it was adequate.The      MortgageTerm
      asking price was $99,900 ­ well below        Your lender will tell you about the term options for the mortgage. The term is the
      Rita's pre-approved mortgage amount.
                                                   length of time that the mortgage contract conditions, including interest rate, will be
      Because the square footage and lot
      were smaller, she offered $90,000.           fixed. The term can be from six months up to ten years. A longer term (for example,
                                                   five years) lets you plan ahead. It also protects you from interest rate increases. Think
      This time, the inspection was very positive. carefully about the term that you want, and don't be afraid to ask your lender to figure
      Rita couldn't have been happier ­ she        out the differences between a one, two, five-year (or longer) term mortgage.
      was finally going to be a homeowner!




42 Canada Mortgage and Housing Corporation

                                                                                                                 STEP 4




Mortgage Interest Rates
Mortgage interest rates are fixed, variable or adjustable.


Fixed Mortgage Interest Rate
A fixed mortgage interest rate is a locked-in rate that will not increase
for the term of the mortgage.


Variable Mortgage Interest Rate
A variable rate fluctuates based on market conditions. The mortgage payment
remains unchanged.


Adjustable Mortgage Interest Rate
With an adjustable rate, both the interest rate and the mortgage payment vary,
based on market conditions.


Open or Closed Mortgage

Closed Mortgage
A closed mortgage cannot be paid off, in whole or in part, before the end of its
term. With a closed mortgage you must make only your monthly payments ­ you
cannot pay more than the agreed payment. A closed mortgage is a good choice if
you'd like to have a fixed monthly payment. With it you can carefully plan your
monthly expenses. But, a closed mortgage is not flexible. There are often penalties,
or restrictive conditions, if you want to pay an additional amount. A closed mortgage
may be a poor choice if you decide to move before the end of the term, or if you want
to benefit from a decrease in interest rates.


Open Mortgage
An open mortgage is flexible. That means that you can usually pay off part of it, or
the entire amount, at any time without penalty. An open mortgage can be a good
choice if you plan to sell your home in the near future. It can also be a good choice
if you want to pay off a large sum of your mortgage loan. Most lenders let you
convert an open mortgage to a closed mortgage at any time, although you may have
to pay a small fee.




                                                                                        Canada Mortgage and Housing Corporation 43

    Homebuying STEP BY STEP




                                          Amortization
                                           Amortization is the length of time the entire mortgage debt will be repaid. Many
                                           mortgages are amortized over 25 years, but longer periods are available. The longer
                                           the amortization, the lower your scheduled mortgage payments, but the more interest
                                           you pay in the long run. If each mortgage term is five years, and the mortgage is
                                           amortized over 20 years, you will have to renegotiate the mortgage four times
                                           (every five years).


                                          Payment Schedule
                                           A mortgage loan is repaid in regular payments ­ monthly, biweekly or weekly. More
                                           frequent payment schedules (for example weekly) can save some interest costs by
                                           reducing the outstanding principal balance more quickly. The more payments you
                                           make in a year, the lower the overall interest you have to pay on your mortgage.


                                          Closing Day
                                           Closing day is the day when you finally take legal possession and get to call the house
                                           your home. The final signing usually happens at the lawyer or notary's office.

                                           These are the things that happen on closing day:

                                              n   Your lender will give the mortgage money to your lawyer/notary.

                                              n   You must give the down payment (minus the deposit) to your lawyer/notary.
                                                  You must also give the remaining closing costs.

                                              n   Your lawyer/notary
                                                  n Pays the vendor
                                                  n Registers the home in your name
                                                  n Gives you the deed and the keys to your new home


                                          Moving

                                          Hiring a Mover
                                           When planning your move, friends or relatives may be able to recommend
                                           a professional moving company. Don't forget to ask the mover for references.
                                           Ask the mover for an estimate and outline of fees (do they charge a flat rate
                                           or hourly fee?). Once you've chosen a mover, ask them to come to your home
                                           to see what will be moved and provide an estimate.




44 Canada Mortgage and Housing Corporation

                                                                                                                STEP 4




You'll want to ensure that your belongings are insured during the move. Your home
or property insurance may cover goods in transit. Call your broker or insurance
company to be sure. Ask if you are fully covered. Many moving companies offer
additional insurance coverage. Be aware that professional movers are not responsible
for items such as jewellery, money, or important papers. Move these yourself to keep
them safe.

If you decide to do your own packing, keep in mind that you will need the proper
materials, and that packing can take a lot of time.


Moving Day
On moving day, go through the house with the van supervisor and give him or her
any special instructions. The supervisor will note the condition of your goods on
an inventory list. Go through the house with the supervisor to make sure the list is
complete and accurate. When the van arrives at your new home, mark off the items
on the mover's list as they are unloaded. If you paid for the movers to unpack boxes
and remove packing materials, remember that they will not put dishes or linens into
cupboards.

Moving day is almost always tiring. But, planning ahead will make the transition as
smooth as possible.


Moving Costs
The amount you spend depends on your decisions about many things. Here are some
to think about:

    n  Do you want to hire professional movers?

    n  If so, will it be a large company or a smaller local moving company?

    n  Will you need to buy insurance to protect your items in transit?

    n  If you plan to move yourself, will you rent a vehicle?

    n  Will your current auto or home insurance policy cover your items
       during the move?

    n  Will you have to pay utility companies a fee to connect their services
       in your new home? Are there other utility charges (such as a deposit)?




                                                                                       Canada Mortgage and Housing Corporation 45

    Homebuying STEP BY STEP




                                          Post-Closing Costs

                                          Changing the Locks
                                           When you move into your new home you'll want to change the exterior door locks
                                           for security. After all, you want only the people you choose to have the key to your
                                           new home. You can change the locks yourself or call a locksmith to do the job.


                                          Cleaning
                                           Both your old home and your new home should be given a thorough cleaning at
                                           moving time. Whether you're buying cleaning supplies and doing it yourself, or hiring
                                           someone to clean for you, the costs can really add up. Plan for this expense.


                                          Decorating
                                           You might want to re-paint, replace some light fixtures, refinish the floor, re-carpet,
                                           or do any number of other decorating tasks. Plan your budget and consider
                                           postponing some projects for a period of time.


                                          Appliances
                                           If your offer to purchase didn't include appliances, and if you don't have your own,
                                           you will have to buy them when you move into your new home. Some appliances
                                           might have installation charges.


                                          Tools and Equipment
                                           When you own your own home, you can no longer call the landlord to do repairs.
                                           You'll need to own some basic hand tools and possibly some gardening and snow
                                           clearing equipment.




46 Canada Mortgage and Housing Corporation

STEP5
    Now that you're
       a homeowner

    Homebuying STEP BY STEP




                                                Your Financial Responsibility
      Credit Bureau: A company that collects
      information from various sources and      MakeYour Mortgage Payments onTime
      provides credit information on a person's
      borrowing and bill paying habits to help  You can make your mortgage payments monthly, biweekly or weekly. But, whichever
      lenders assess whether or not to lend     timetable you've chosen, it's important to always make payments on time. Making
      money to the person.                      late payments is called delinquency. Delinquency may result in late charges and
                                                negatively affect your credit rating. Failing to make payments can even lead to very
      Default on Payment: Failure to make
                                                serious consequences, like foreclosure.
      a mortgage payment.

      Gross Monthly Income: Monthly income      A good way to prevent late payments is to have the amount automatically deducted
      before taxes and deductions.              from your account every month. It's also recommended that you keep at least three
                                                months' worth of mortgage payments in savings for emergency situations. If you are
      Household Budget: A plan that allocates   having trouble making payments, discuss the situation with your lender.
      income for household expenses.

      Operating Costs: The expenses that        Plan for the Costs of Operating a Home
      a homeowner has each month to
      operate a home.These include property     Besides your mortgage, property taxes and insurance, operating a home has many
      taxes, property insurance, utilities,     other ongoing costs. Maintenance and repair costs are at the top of the list. There may
      telephone and communications charges,     be other costs as well, for example a security alarm monitoring system, snow removal,
      maintenance and repairs.                  or gardening. If you have a condominium or strata, some of these expenses may be
                                                included as part of your monthly maintenance fee.
      Reserve Fund: This amount is set aside
      by the homeowner on a regular basis so
      that funds are available for emergency    Save for Emergencies
      or major repairs. Setting aside 5% of     Even when you can do repairs yourself, there are costs. When you have to pay
      your monthly take-home pay will give      for repairs, the costs are higher. As your home ages, it will need major repairs or
      you a well-funded reserve.                replacement ­ this happens to every building. For example, when you bought your
                                                home, you might already have known that the roof would need to be replaced in
                                                a few years because of its age. These are expected repairs and can be planned for.
                                                However, many repairs are unexpected, and can sometimes be costly.

                                                Set aside an emergency fund to deal with unexpected problems ranging from major
                                                repairs to illness and job loss. A good guideline is to save 5% of your take-home pay,
                                                and to keep the money in a special account.


                                                LiveWithinYour Budget
                                                Prepare a monthly budget and stick to it. Take a few minutes every month to check
                                                your spending and see if you are meeting your financial goals. If you spend more than
                                                you earn, you must find new ways to save. If you are having trouble sticking to your
                                                budget, ask a professional money manager for help.

                                                If you haven't already reviewed your budget, now is the perfect time. Use the helpful
                                                CMHC worksheet Household Budget as a Homeowner.




48 Canada Mortgage and Housing Corporation

                                                                                                                                      STEP 5




  HOUSEHOLD BUDGET AS A HOMEOWNER

  Details                                                                                        Average monthly payment

  Housing Expenses

      Mortgage (principal and interest)                                                          $

      Electricity                                                                                $

      Heating costs                                                                              $

      Water                                                                                      $

      Maintenance/Repair                                                                         $

      Parking fees (if paid separately)                                                          $

      Property insurance                                                                         $

      Property taxes                                                                             $

  Non-Housing Expenses

      Cable TV/Satellite/Video rental                                                            $

      Car fuel                                                                                   $

      Car insurance and license                                                                  $

      Car repairs and service                                                                    $

      Charitable donations                                                                       $

      Child care                                                                                 $

      Child support/Alimony                                                                      $

      Clothes                                                                                    $

      Dental expenses                                                                            $

      Entertainment, recreation, movies                                                          $

      Furnishings                                                                                $

      Groceries                                                                                  $

      Life insurance                                                                             $

      Lunches/Eating out                                                                         $

      Medical expenses, prescriptions, eyewear                                                   $

      Newspapers, magazines, books                                                               $

      Personal items                                                                             $

      Property and contents insurance                                                            $

      Public transportation                                                                      $

      Savings (bank account, RRSPs)                                                              $

      Telephone/Cell phone                                                                       $

      Internet                                                                                   $

      Other expenses                                                                             $

  Total Monthly Expenses                                                                         $

  Note:You may have other costs not shown on this worksheet. Make sure you add these other items when you fill out this form.

Additional Household Budget as a Homeowner worksheets are available at the end of this Guide.




                                                                                                             Canada Mortgage and Housing Corporation 49

    Homebuying STEP BY STEP




                                          Is your Home Safe?

                                          Fire Evacuation Plan
                                           Do you have a fire evacuation plan? A plan means that you make sure everyone in
                                           your home knows how to get out from each room, in case of a fire. If your home has
                                           a second floor, you need a special escape plan to get to the ground. Check to see that
                                           windows have not been painted shut. Although doors and windows should always be
                                           securely locked, you have to be able to open them in an emergency.


                                          Fire Extinguishers
                                           Fire extinguishers must always be easy to reach. If you have a two storey home, there
                                           should be a fire extinguisher on each floor. Remember to check your fire extinguishers
                                           at least once a year. To help you remember, make a habit of doing it when you set
                                           your clocks to Daylight Saving Time. Replace a fire extinguisher that is 10 years or
                                           older.


                                          Smoke Alarms
                                           In some areas, it is a legal requirement to have smoke alarms in your home. Whether
                                           or not it is a legal requirement, having smoke alarms is an excellent precaution. Check
                                           smoke alarm batteries at least once a year.


                                          Carbon Monoxide Detectors
                                           Carbon monoxide is an invisible, odourless, poisonous gas. Carbon monoxide
                                           detectors are important to have. They will let you know if there are high levels of
                                           carbon monoxide in your home. This can save you from illness, or even death. Check
                                           them at least once a year. Make a habit of checking your fire extinguishers, smoke and
                                           carbon monoxide detectors all at the same time.


                                          Fire Hazards
                                           Paper, paint, chemicals and other clutter can be a fire hazard. Make sure these are
                                           stored in a safe place. When you no longer need the hazardous materials, you must
                                           dispose of them at a community toxic waste center. Never put hazardous materials
                                           into the garbage.


                                          Valuables
                                           Collect your papers and store them in a safe place ­ for example, a fireproof box,
                                           or a safety deposit box.


                                          Emergency Numbers
                                           Keep a list of emergency phone numbers (including 911, poison prevention line,
                                           doctors, relatives, neighbours and friends) close to the phone. Make sure your
                                           children are aware of the list.




50 Canada Mortgage and Housing Corporation

                                                                                                                       STEP 5




Home Improvements
Besides doing regular maintenance and repairing your home, you might also want to
consider renovating or making improvements. These changes will not only make the
home more pleasant for you to live in, they may also increase its value.


How Much is Just Right?
When planning renovations, be careful not to go overboard unless you plan to stay in
your home for many years. If you are planning to sell your house, make sure that your
changes won't make your home worth a lot more than the other homes around you.
The value of your home is closely related to the other homes in your area.

Over time, some renovations can practically pay for themselves, especially if they
result in savings on utility bills, a higher selling price or years of greater comfort
and enjoyment in your home.


SomeThings to Keep in Mind
Here are some things to keep in mind when planning a change or renovation:

   n    Ask yourself, "How appealing will this change be to someone buying my home
        in the future?" You can make very personalized changes with paint. Paint is        CMHC Resources
        inexpensive and can easily be changed. But, flooring, cabinets and countertops
        have a longer life ­ make choices that will also appeal to others.                 Visit www.cmhc.ca to download
                                                                                           free publications such as:
   n    Think about getting your home energy-rated. This will tell you how energy
        efficient your home is and what improvements are possible. Visit Natural           n    Low-Maintenance Lawns
        Resources Canada at www.oee.nrcan.gc.ca to find information on current             n    Water-SavingTips
        energy programs.                                                                        ForYour Lawn And Garden

   n    Updating the bathrooms and kitchen in an older home can increase its               n    Healthy Housing PracticalTips
        resale value.
                                                                                           n    Household Guide to Water
   n    Landscaping is important. The right planting can improve the appearance                 Efficiency
        and value of your home.                                                            CMHC has a monthly e-newsletter
                                                                                           filled with practical tips and
   n    Updating your exterior paint, installing new roofing, resurfacing your walk-
        ways and driveway, and adding attractive mailboxes can help make your home         helpful advice relating to a

        more appealing.                                                                    variety of homeownership
                                                                                           interests. Sign-up today at
                                                                                           www.cmhc.ca/enewsletters.




                                                                                          Canada Mortgage and Housing Corporation 51

    Homebuying STEP BY STEP




    Words to Know When Buying a Home


    Adjustable mortgage interest rate: With an adjustable            CMHC: Canada Mortgage and Housing Corporation.
    rate, both the interest rate and the mortgage payment vary,      A Crown corporation that administers the National
    based on market conditions.                                      Housing Act for the federal government and encourages
                                                                     the improvement of housing and living conditions for all
    Amortization: Length of time over which the debt will            Canadians. CMHC also develops and sells mortgage loan
    be repaid.                                                       insurance products.
    Appraisal: Process for estimating the market value of            CMHC insurance premiums: When a home buyer takes
    a property.                                                      out a mortgage loan with less than a 20% down payment,
    Appraiser: Certified professional who carries out an appraisal.  an insurance premium is paid to a CMHC mortgage insurer,
                                                                     and a mortgage loan insurance policy is issued to the lender.
    Appreciation: The increase in value of something because         The CMHC Mortgage Loan Insurance premium is calculated
    it is worth more now than when you bought it.                    as a percentage of the loan and is based on a number of
    Approved lender: A lending institution designated as an          factors such as the purpose of the property (owner occupied
    approved lender by CMHC under the National Housing Act.          or rental), the type of loan (i.e. purchase/construction or
    Only Approved Lenders may qualify for CMHC Mortgage              refinance loan), the ability of a self-employed borrower
    Loan Insurance.                                                  to supply income verification, and the size of your down
                                                                     payment (i.e. the higher the percentage of the total house
    Assumption agreement: A legal document signed by a               price/value that you borrow, the higher percentage you will
    homebuyer that requires them to assume responsibility for        pay in insurance premiums).
    the obligations of a mortgage by the builder or the previous
    owner.                                                           Commitment letter (or Mortgage Approval): Written
                                                                     notification from the mortgage lender to the borrower that
    Blended payment: A mortgage payment that includes                approves the advancement of a specified amount of mortgage
    principal and interest. It is paid regularly during the term of  funds and other terms under specified conditions.
    the mortgage. The payment total remains the same, although
    the principal portion increases over time and the interest       Compound interest: Interest calculated on both the principal
    portion decreases.                                               and the accrued interest.

    Builder: A person or company that builds homes.                  Conditional offer: An Offer to Purchase that is subject
                                                                     to specified conditions, for example, the arrangement of a
    Carriage home: A carriage, or link home, is joined by a          mortgage. There is usually a stipulated time limit within
    garage or carport.                                               which the specified conditions must be met.
    Certificate of status: Also called an Estoppel Certificate, it   Condominium (or strata): You own the unit you live in
    outlines a condominium corporation's financial and legal state.  (eg: highrise or lowrise, or a townhouse) and share ownership
    Fees may vary and may be capped by law (does not apply           rights for the common areas of the building along with the
    in Quebec).                                                      development's other owners.
    Closed mortgage: In some cases, a closed mortgage cannot         Contractor: A person responsible for overall construction
    be paid off, in whole or in part, before the end of its term.    of a home, including buying, scheduling, workmanship,
    In other cases, the lender may allow for partial prepayment      and management of subcontractors and suppliers.
    in the form of an increased mortgage payment or a lump
    sum prepayment. However, any prepayment made above               Conventional mortgage: A mortgage loan up to a maximum
    stipulated allowances may incur penalty charges.                 of 80% of the lending value of the property. Typically, the
                                                                     lending value is the lesser of the purchase price and market
    Closing costs: Costs in addition to the purchase price of the    value of the property. Mortgage insurance is usually not
    home, such as legal fees, transfer fees and disbursements, that  required for this type of mortgage.
    are payable on closing day. They range from 1.5% to 4% of a
    home's selling price.                                            Counteroffer: If, for example, your original offer to the
                                                                     vendor is not accepted, the vendor may counteroffer. This
    Closing day: Date on which the sale of the property becomes      means that the vendor has amended something from your
    final and the new owner takes title to the home.                 original offer, such as the price or closing date. As this new
                                                                     offer varies the terms of the original offer, this rejects the
                                                                     original offer. If a counteroffer is presented, the individual
                                                                     has a specified amount of time to accept or reject.




52 Canada Mortgage and Housing Corporation

                                                                                                                GLOSSARY




Credit bureau: A company that collects information from         Foreclosure: A legal process where the lender takes possession
various sources and provides credit information on a person's   of your property and sells it to cover the unpaid debt
borrowing and bill paying habits to help lenders assess
whether or not to lend money to the person.                     Freehold: A freehold title is an interest in land that gives the
                                                                holder full and exclusive ownership of the land and building
Credit history or Credit Report: The main report a              for an indefinite period. A leasehold title is an interest in land
lender uses to determine your creditworthiness. It includes     that gives the holder the right to use and occupy the land and
information about your ability to handle your debt obligations  building for a defined period.
and your current outstanding obligations.
                                                                Gross Debt Service Ratio (GDS): The percentage of gross
Curb appeal: How attractive the home looks from the street.     income that will be used for payments of principal, interest,
A home with good curb appeal will have attractive landscaping   taxes and heat (P.I.T.H.) and 50% of any condominium
and a well-maintained exterior.                                 maintenance fees or 100% of the annual site lease for
                                                                leasehold tenure.
Deed: A legal document that transfers ownership in the real
property to the purchaser. This is often called a "Transfer".   Gross monthly income: Monthly income before taxes
This document is registered as evidence of ownership.           and deductions.
Default on payment: Failure to make a mortgage payment          High-ratio mortgage: A mortgage loan higher than 80% of
in accordance with the mortgage document.                       the lending value of the property. This type of mortgage must
                                                                be insured - by CMHC or a private company, for the benefit
Delinquency: Failing to make a mortgage payment on time.        of the approved lender, against payment default.
Deposit: Money placed in trust by the purchaser when an         Home inspector: A person who visually inspects a home
Offer to Purchase is made. The sum is held by the real estate   to tell you if something is not working properly, or is unsafe.
representative or lawyer/notary until the sale is closed and    He or she will also tell you if repairs are needed, and maybe
then it is paid to the vendor.                                  even where there were problems in the past.
Depreciation: The decrease in value of something because        Household budget: A plan that allocates income for
it is now worth less than when you bought it.                   household expenses.
Down payment: The portion of the home price that is not         Insurance: Insurance provides coverage to ensure a loan is
financed by the mortgage loan. The buyer must pay the down      paid. See also Mortgage Loan Insurance and Mortgage Life
payment from his/her own funds or other eligible sources        Insurance for more details.
before securing a mortgage.
                                                                Insurance premium: Payment for insurance.
Duplex: A duplex is a building containing two single-family
homes, located one above the other.                             Interest: The cost of borrowing money. Interest is usually paid
                                                                to the lender in regular payments along with repayment of the
Easement: An interest in land owned by another person           principal (loan amount).
that benefits the person who has the easement, for a specific
limited purpose (i.e. right of way permitting passage over a    Interest rate: The price paid for the use of money borrowed
particular strip of land) such as with public utilities.        from a lender.
Equity: The difference between the price for which a home       Land registration: A system to record interests in land,
could be sold and the total debts registered against it. Equity including the ownership and disposition of land.
usually increases as the mortgage is reduced through regular
payments. Market values and improvements to the property        Land surveyor: A professional who can survey a property
may also affect equity.                                         in order to provide a certificate of location.

Estoppel certificate: Also called a certificate of status,      Lawyer: A legal advisor who is licensed to practice law and
it is a certificate that outlines a condominium corporation's   who assists people by representing them on legal matters.
financial and legal state. Fees may vary and may be capped      Lien: A claim against a property for money owing. A lien may
by law (does not apply in Quebec).                              be filed by a supplier or a subcontractor who has provided
Fixed mortgage interest rate: A locked-in rate that will not    labour or materials but has not been paid.
increase for the term of the mortgage.                          Life insurance: See Mortgage life insurance.
FlexHousingTM: A housing concept that incorporates,              Link home: A link, or carriage home, is joined by a garage
at the design and construction stage, the ability to make       or carport.
future changes easily and with minimum expense, to meet
the evolving needs of its occupants.                            Lump sum prepayment: An extra payment, made in lump
                                                                sum, to reduce the principal balance of your mortgage,
                                                                with or without penalty.




                                                                                         Canada Mortgage and Housing Corporation    53

    Homebuying STEP BY STEP




    Manufactured home: A factory-built, single-family home.         New Home Warranty Program: Coverage in the event
    It is transported to a chosen location, and placed onto a       that an item under the warranty needs to be repaired within
    foundation.                                                     a specific warranty period. The repair will be made by the
                                                                    organization that provided the warranty.
    Maturity date: The last day of the term of the mortgage.
    On this day, the mortgage loan must either be paid in full      Notary: In Quebec a notary handles the legal matters
    or the agreement renewed.                                       related to homebuying. In most other provinces, a notary
                                                                    only administers oaths, certifies documents and attests to
    Mobile home: These are built in factories, and then taken       authenticity of signatures and could not, in his/her capacity
    to the place where they will be occupied. While these homes     as notary, advice on legal matters.
    are usually placed in one location and left there permanently,
    they do retain the ability to be moved.                         Offer to purchase: A written contract setting out the terms
                                                                    under which the buyer agrees to buy the home. If the Offer
    Modular home: A factory-built, single-family home.              to Purchase is accepted by the seller, it forms a legally binding
    The home is typically shipped to a location in two, or more,    contract that binds the people who signed to certain terms
    sections (or modules).                                          and conditions.
    Mortgage: A mortgage is a security interest given in the        Open mortgage: A flexible mortgage that allows you to pay
    property you are purchasing which secures repayment of          part before the end of its term.
    the loan related to the property. That security interest is
    discharged on payment of the principal and interest owing       Open-house: A period of time during which a house or
    on the loan in accordance with the mortgage document.           apartment for sale or rent is held open for public viewing.
    In Quebec, "mortgages" are called "hypothecs".
                                                                    Operating Costs: The expenses that a homeowner has
    Mortgage approval: Written notification from the                each month to operate a home. These include property taxes,
    mortgage lender to the borrower that approves the               property insurance, utilities, telephone and communications
    advancement of a specified amount of mortgage funds             charges, maintenance and repairs.
    under specified conditions.
                                                                    Payment schedule: The monthly, biweekly, or weekly
    Mortgage broker: The job of the mortgage broker is to find      mortgage payments
    you a lender with the terms and rates that will best suit you.
                                                                    Premium: See CMHC Insurance Premiums.
    Mortgage life insurance: Mortgage life insurance gives
    coverage for your family, if you die before your mortgage       Principal: The amount that you borrow for a loan
    is paid off.                                                    (not including interest).

    Mortgage lender: A mortgage lender is an institution            P.I.T.H.: Principal, interest, taxes and heating ­ costs used
    (bank, trust company, credit union, etc.) that lends money      in both the Gross Debt Service ratio (GDS) and Total Debt
    for a mortgage.                                                 Service ratio (TDS) calculations.

    Mortgage loan insurance: Mortgage loan insurance is             Property insurance: Insurance that you buy for the
    required for residential mortgage loans with a loan-to-value    building(s) on the land you own. This insurance should be
    ratio of more than 80%, and is available from CMHC or a         high enough to pay for the building to be re-built if it is
    private company. Because mortgage loan insurance protects       destroyed by fire or other hazards listed in the policy.
    the lender against losses in the event that a borrower fails    Property taxes: Taxes charged by the municipality where
    to pay his or her mortgage, it enables more Canadians to        the home is located, usually based on the value of the home.
    purchase their homes earlier, at competitive interest rates     In some cases the lender will collect an amount as part of the
    and benefit from the growth in home equity sooner.              mortgage payment to cover your property taxes, which is then
    Mortgage payment: A regular payment to the lender that          paid by the lender to the municipality on your behalf.
    includes both the interest and the principal.                   Real estate: Property consisting of buildings and land.
    Mortgage term: Length of time that the mortgage contract        Realtor or real estate agent: A person who acts as an
    conditions, including interest rate, is fixed.                  intermediary between the seller and the buyer of a property.
    MLS ­ Multiple Listing Service: A multiple listing service      Reserve fund: A fund required to be set up by the
    that contains descriptions of most of the homes that are for    condominium corporation for major repair and replacement
    sale. This computer-based service is used to keep up with       of common elements and assets of a corporation. This amount
    properties that are listed for sale.                            is set aside by the homeowner on a regular basis so that funds
    Net worth: Your financial worth, calculated by subtracting      are available for emergency or major repairs.
    your total liabilities from your total assets.                  Row house: Also called a townhouse, a row house is one unit
                                                                    of several similar single-family homes, side-by-side, joined by
                                                                    common walls.




54 Canada Mortgage and Housing Corporation

                                                                                          GLOSSARY




Security: Property that is pledged to guarantee the fulfillment
of an obligation and that can be claimed by a creditor if a loan
is not repaid.
Single-family detached home: Free-standing home for one
family, not attached to a house on either side.
Single-family semi-detached home: Home for one family,
attached to another building on one side.
Stacked townhouse: Two two-story homes are stacked one on
top of the other. The buildings are usually attached in groups
of four or more. Each unit has direct access from the outside.
Strata (or condominium): You own the unit you live
in (e.g.: a highrise or lowrise, or a townhouse) and share
ownership rights for the common areas of the building
along with the development's other owners.
Survey or Certificate of location: A document that shows
property boundaries and measurements, specifies the location
of buildings, fences, and other improvements on the property
and states easements or encroachments, at a specific point
in time.
Sustainable neighbourhood: Neighbourhood that meets
residents needs while protecting the environment.
Term: Mortgage term is the length of time that the mortgage
contract conditions, including interest rate, are fixed.
Title: A freehold title is an interest in land that gives the
holder full and exclusive ownership of the land and building
for an indefinite period. A leasehold title is an interest in land
that gives the holder the right to use and occupy the land and
building for a defined period.
Title Insurance: Insurance against loss or damage arising
from a matter affecting the title to real property (e.g.: by a
defect in the title or by the existence of a lien, encumbrance
or servitude).
Total Debt Service Ratio (TDS): The percentage of gross
income that will be used for payments of principal, interest,
taxes and heat (P.I.T.H.) and other debt obligations, such as
car payments or payments of other loans.
Townhouse: Also called a row house, a townhouse is one unit
of several similar single-family homes, side-by-side, joined by
common walls.
Variable mortgage interest rate: Fluctuates based on market
conditions but the mortgage payment remains unchanged.
Vendor: The seller of a property.
Vendor take-back mortgage (Sometimes called take-back
mortgage): The vendor, not a financial institution, finances
the mortgage. The title of the property is transferred to the
buyer who makes mortgage payments directly to the seller.




                                                                      Canada Mortgage and Housing Corporation 55

    Homebuying STEP BY STEP




      CURRENT HOUSEHOLD BUDGET

      Details                                                        Average monthly payment

      Current Housing Expenses

        Rent                                                         $

        Electricity (if paid separately)                             $

        Heating costs (if paid separately)                           $

        Water (if paid separately)                                   $

        Maintenance/Repair                                           $

        Parking fees (if paid separately)                            $

      Current Non-Housing Expenses

        Cable TV/Satellite/Video rental                              $

        Car fuel                                                     $

        Car insurance and license                                    $

        Car repairs and service                                      $

        Charitable donations                                         $

        Child care                                                   $

        Child support/Alimony                                        $

        Clothes                                                      $

        Contents insurance                                           $

        Dental expenses                                              $

        Entertainment, recreation, movies                            $

        Furnishings                                                  $

        Groceries                                                    $

        Internet                                                     $

        Life insurance                                               $

        Lunches/Eating out                                           $

        Medical expenses, prescriptions, eyewear                     $

        Newspapers, magazines, books                                 $

        Personal items                                               $

        Public transportation                                        $

        Savings (bank account, RRSPs)                                $

        Telephone/Cell phone                                         $

        Other expenses                                               $

      Total Monthly Expenses                                         $

      Note: You may have other costs not shown on this worksheet.




56 Canada Mortgage and Housing Corporation

                                                                                                                             WORKSHEETS




HOUSEHOLD BUDGET AS A HOMEOWNER

Details                                                                                        Average monthly payment

Housing Expenses

 Mortgage (principal and interest)                                                             $

 Electricity                                                                                   $

 Heating costs                                                                                 $

 Water                                                                                         $

 Maintenance/Repair                                                                            $

 Parking fees (if paid separately)                                                             $

 Property insurance                                                                            $

 Property taxes                                                                                $

Non-Housing Expenses

 Cable TV/Satellite/Video rental                                                               $

 Car fuel                                                                                      $

 Car insurance and license                                                                     $

 Car repairs and service                                                                       $

 Charitable donations                                                                          $

 Child care                                                                                    $

 Child support/Alimony                                                                         $

 Clothes                                                                                       $

 Dental expenses                                                                               $

 Entertainment, recreation, movies                                                             $

 Furnishings                                                                                   $

 Groceries                                                                                     $

 Life insurance                                                                                $

 Lunches/Eating out                                                                            $

 Medical expenses, prescriptions, eyewear                                                      $

 Newspapers, magazines, books                                                                  $

 Personal items                                                                                $

 Property and contents insurance                                                               $

 Public transportation                                                                         $

 Savings (bank account, RRSPs)                                                                 $

 Telephone/Cell phone                                                                          $

 Internet                                                                                      $

 Other expenses                                                                                $

Total Monthly Expenses                                                                         $

Note:You may have other costs not shown on this worksheet. Make sure you add these other items when you fill out this form.




                                                                                                           Canada Mortgage and Housing Corporation 57

    Homebuying STEP BY STEP




     HOME PURCHASE COST ESTIMATE

     Description of cost                                                      Average monthly payment

     Cost of Home

        Purchase price                                                        $

        GST/HST (if applicable)                                               $

        Total Cost of Home (add the purchase price and GST if applicable)     $

     Up-front Costs

        Appraisal fee (if applicable)                                         $

        Deposit (to be paid when you sign the Offer to Purchase)              $

        Down payment                                                          $

        Estoppel certificate fee (for condominium/strata unit)                $

        Home inspection fee                                                   $

        Land registration fee                                                 $

        Legal fees and disbursements                                          $

        Mortgage broker's fee (if applicable)                                 $

        Mortgage loan insurance premium (can be included in your mortgage)    $

        Prepaid property taxes and/or utility bills adjustment                $

        Property insurance                                                    $

        Survey or certificate of location cost                                $

        Title insurance                                                       $

        Other                                                                 $

        Total Upfront Costs                                                   $

     Other Costs

        Appliances                                                            $

        Gardening equipment                                                   $

        Snow-clearing equipment                                               $

        Window treatments                                                     $

        Decorating materials                                                  $

        Hand tools                                                            $

        Dehumidifier                                                          $

        Moving expenses                                                       $

        Renovations or repairs                                                $

        Service hookup fees                                                   $

        Condominium fees                                                      $

        Total Other Costs                                                     $

     Total Costs (add upTotal Cost of Home,                                   $
     Total Up-front Costs andTotal Other Costs)




58 Canada Mortgage and Housing Corporation

                                                                                                        WORKSHEETS




HOME FEATURES CHECKLIST

  Resale                       New                          Bedrooms                          1        2     3    4

 Type of Home                                                 Bathrooms                         1        2     3
  Detached                     Semi-detached
  Townhouse                    Duplex                       Master bedroom en suite           Yes           No

  Highrise                     Low-rise
                                                              Ground floor bathroom             Yes           No

 Type of ownership
                                                              Eat-in kitchen                    Yes           No
  Freehold                     Condominium

                                                              Separate dining room              Yes           No
 Age of home

                                                              Separate family room              Yes           No
 Lot size          Small       Medium          Large

                                                              Fireplace                         Yes           No
 Quiet street                   Yes             No

                                                              Woodstove                         Yes           No
 Type of exterior finish
  Brick                        Wood                         Spare room for den or
  Aluminum siding              Vinyl siding                 home office                       Yes           No
  Combination brick and siding
                                                              Basement for storage
 Windows                                                      or workshop                       Yes           No
 Glazing           Single      Double           Triple
                   Low-E                                     Apartment for rental income       Yes           No

 Construction      Wood        Vinyl            Aluminum
                                                              Deck or patio                     Yes           No
                   Other

                                                              Private driveway                  Yes           No
 Insulation values             Walls_________________
 Basement______________        Ceiling________________        Garage                            Attached      Detached

 Foundation construction        Concrete                     Carport                           Yes           No
  Concrete block               Preserved wood
                                                              Security features                 Yes           No
 Sewer             Municipal   Septic system
                                                              Barrier-free                      Yes           No
 Water             Municipal   Well

 Water heating     Gas         Electric         Oil        Close to (approximate km)

 Electrical system                                            Work                             Spouse's work
                   100 amp     200 amp
                                                              Public transportation            Schools
                   Other___________________
                                                              Shopping                         Parks/playgrounds
                   Fuses       Circuit breakers

                                                              Recreation facilities            Restaurants
 Energy Rating                  Yes             No
 Rating ______________                                        Places of worship                Doctor/dentist

 Type of heating fuel                                         Police station                   Fire station
  Oil             Gas         Electric         Wood
                                                              Hospital
 Heat recovery ventilator       Yes             No
                                                              Veterinarian
 Air conditioning               Central         Window




                                                                                       Canada Mortgage and Housing Corporation 59

    Homebuying STEP BY STEP




      HOME PURCHASE COST ESTIMATE

      Description of cost                                                     Average monthly payment

      Cost of Home

        Purchase price                                                        $

        GST/HST (if applicable)                                               $

        Total Cost of Home (add the purchase price and GST if applicable)     $

      Up-front Costs

        Appraisal fee (if applicable)                                         $

        Deposit (to be paid when you sign the Offer to Purchase)              $

        Down payment                                                          $

        Estoppel certificate fee (for condominium/strata unit)                $

        Home inspection fee                                                   $

        Land registration fee                                                 $

        Legal fees and disbursements                                          $

        Mortgage broker's fee (if applicable)                                 $

        Mortgage loan insurance premium (can be included in your mortgage)    $

        Prepaid property taxes and/or utility bills adjustment                $

        Property insurance                                                    $

        Survey or certificate of location cost                                $

        Title insurance                                                       $

        Other                                                                 $

        Total Upfront Costs                                                   $

      Other Costs

        Appliances                                                            $

        Gardening equipment                                                   $

        Snow-clearing equipment                                               $

        Window treatments                                                     $

        Decorating materials                                                  $

        Hand tools                                                            $

        Dehumidifier                                                          $

        Moving expenses                                                       $

        Renovations or repairs                                                $

        Service hookup fees                                                   $

        Condominium fees                                                      $

        Total Other Costs                                                     $

      Total Costs (add upTotal Cost of Home,                                  $
      Total Up-front Costs andTotal Other Costs)




60 Canada Mortgage and Housing Corporation

                                                                                                        WORKSHEETS




HOME FEATURES CHECKLIST

  Resale                       New                          Bedrooms                          1        2     3    4

 Type of Home                                                 Bathrooms                         1        2     3
  Detached                     Semi-detached
  Townhouse                    Duplex                       Master bedroom en suite           Yes           No

  Highrise                     Low-rise
                                                              Ground floor bathroom             Yes           No

 Type of ownership
                                                              Eat-in kitchen                    Yes           No
  Freehold                     Condominium

                                                              Separate dining room              Yes           No
 Age of home

                                                              Separate family room              Yes           No
 Lot size          Small       Medium          Large

                                                              Fireplace                         Yes           No
 Quiet street                   Yes             No

                                                              Woodstove                         Yes           No
 Type of exterior finish
  Brick                        Wood                         Spare room for den or
  Aluminum siding              Vinyl siding                 home office                       Yes           No
  Combination brick and siding
                                                              Basement for storage
 Windows                                                      or workshop                       Yes           No
 Glazing           Single      Double           Triple
                   Low-E                                     Apartment for rental income       Yes           No

 Construction      Wood        Vinyl            Aluminum
                                                              Deck or patio                     Yes           No
                   Other

                                                              Private driveway                  Yes           No
 Insulation values             Walls_________________
 Basement______________        Ceiling________________        Garage                            Attached      Detached

 Foundation construction        Concrete                     Carport                           Yes           No
  Concrete block               Preserved wood
                                                              Security features                 Yes           No
 Sewer             Municipal   Septic system
                                                              Barrier-free                      Yes           No
 Water             Municipal   Well

 Water heating     Gas         Electric         Oil        Close to (approximate km)

 Electrical system                                            Work                             Spouse's work
                   100 amp     200 amp
                                                              Public transportation            Schools
                   Other___________________
                                                              Shopping                         Parks/playgrounds
                   Fuses       Circuit breakers

                                                              Recreation facilities            Restaurants
 Energy Rating                  Yes             No
 Rating ______________                                        Places of worship                Doctor/dentist

 Type of heating fuel                                         Police station                   Fire station
  Oil             Gas         Electric         Wood
                                                              Hospital
 Heat recovery ventilator       Yes             No
                                                              Veterinarian
 Air conditioning               Central         Window




                                                                                       Canada Mortgage and Housing Corporation 61

    Homebuying STEP BY STEP




      YOURTEAM OF PROFESSIONALS

      Role

      Name

      Company name

      Address                                 Telephone

      Strengths

      Weaknesses

      Referral                                Fees


      Role

      Name

      Company name

      Address                                 Telephone

      Strengths

      Weaknesses

      Referral                                Fees


      Role

      Name

      Company name

      Address                                 Telephone

      Strengths

      Weaknesses

      Referral                                Fees


      Role

      Name

      Company name

      Address                                 Telephone

      Strengths

      Weaknesses

      Referral                                Fees




62 Canada Mortgage and Housing Corporation

                                                         WORKSHEETS




YOURTEAM OF PROFESSIONALS

Role

Name

Company name

Address                      Telephone

Strengths

Weaknesses

Referral                     Fees


Role

Name

Company name

Address                      Telephone

Strengths

Weaknesses

Referral                     Fees


Role

Name

Company name

Address                      Telephone

Strengths

Weaknesses

Referral                     Fees


Role

Name

Company name

Address                      Telephone

Strengths

Weaknesses

Referral                     Fees




                                          Canada Mortgage and Housing Corporation 63

    Homebuying STEP BY STEP




      HOME HUNTING WORKSHEET                                                          CHATTELWHICH REMAINSWITH HOUSE

                                                                                      Make a comprehensive list
      Attach real estate listing information sheet or fill in below.                  (floor coverings, windowdrapes, appliances, etc.)

      Address


      Real estate representative                                 Telephone

      Type of home                                               Square footage

      Number of bedrooms              Lot size                                                         NEIGHBOURHOOD
      Additional structures on property                                               Distance to work                Distance to spouse's work

      Occupancy date                  Asking price $                                  Public transportation            Yes  No
                                                                                      Adequate proximity to:
      Air conditioning     Central          Window              Smoke detectors
                                                                                      Schools                          Yes  No
                           Heat recovery ventilator (HRV)                            Shopping                         Yes  No
                                                                                      Playgrounds                      Yes  No
      ANNUAL COSTS
                                                                                      Medical                          Yes  No
      Property taxes                                                         $        Hospital                         Yes  No

      Garbage collection                                                     $        Fire station                     Yes  No
                                                                                      Police                           Yes  No
      Other                                                                  $
                                                                                      Place of worship                 Yes  No
      Utilities
                                                                                                OTHER CONSIDERATIONS
      Heating type  Oil            Natural gas  Electric       Wood      $

      Electricity    60 amp        100 amp       200 amp  Other          $        Existing environmental problems
                                                                                      (noisy traffic, railway, flooding, etc.)
      Water          Municipal  Well                                       $

      Other                                                                  $        Future neighbourhood development plans

      Other                                                                  $
                                                                                      Energy Rated                     Yes  No
      TOTAL ANNUAL COSTS                                                     $        Rating ______________




64 Canada Mortgage and Housing Corporation

                                                                                                                           WORKSHEETS




EXTERIOR                                        Den  Study  Family room                              Bathrooms

                                                Approximate size                                        #1      Bath/shower       Sink   Toilet
Finish      Brick      Siding  Wood
                                                Walls         Fair        Good       Excellent       #2      Bath/shower       Sink   Toilet
Condition Fair         Good    Excellent
                                                Flooring      Fair        Good       Excellent       #3      Bath/shower       Sink   Toilet
Roofing     Fair       Good    Excellent
                                                Lighting fixtures          Yes        No              Special features
Other
                                                Windows  Fair             Good       Excellent
Windows Wood Vinyl clad
                                                Special features                                        Basement
            Aluminum
                                                Kitchen                                                 Approximate size
Condition Fair         Good    Excellent
                                                Approximate size                                        Walls        Fair     Good      Excellent
Number of entrances
                                                Walls         Fair        Good       Excellent       Flooring     Fair     Good      Excellent
2         3          4       5
                                                Flooring      Fair        Good       Excellent       Lighting fixtures      Yes       No
Driveway Paved         Gravel  Other
                                                Lighting fixtures          Yes        No              Windows  Fair         Good      Excellent
Garage      No         Yes
                                                Windows  Fair             Good       Excellent       Separate entrance      Yes       No
            Heated Not-heated
                                                Cupboards and storage                                   Special features
Landscaping Fair      Good     Excellent
                                                              Fair        Good       Excellent
Fencing     Wood Chain link Other
                                                Special features                                        Utility room
Patio or deck           Yes      No
                                                Appliances included                                     Approximate size
Special features (e.g. pool, barbecue)
                                                Master bedroom                                          Walls        Fair     Good      Excellent

                                                Approximate size                                        Flooring     Fair     Good      Excellent
INTERIOR
                                                Walls         Fair        Good       Excellent       Lighting fixtures      Yes       No
Entrance area
                                                Flooring      Fair        Good       Excellent       Windows  Fair         Good      Excellent
Approximate size
                                                Lighting fixtures          Yes        No              Special features
Walls        Fair        Good     Excellent
                                                Windows  Fair             Good       Excellent
Flooring     Fair        Good     Excellent
                                                Special features (e.g.en suite bathroom,walk-in closet) Furnace     Age ____
Lighting fixtures         Yes      No
                                                                                                        Condition  Fair       Good      Excellent
Special features
                                                Bedroom #2                                              Hot water tank        Age ____
Living room
                                                Approximate size                                        Condition  Fair       Good     Excellent
Approximate size
                                                Walls         Fair        Good       Excellent       Additional for condominiums
Walls        Fair        Good     Excellent
                                                Flooring      Fair        Good       Excellent       Parking      Underground  Above ground
Flooring     Fair        Good     Excellent
                                                Lighting fixtures          Yes        No               Balcony; size        Storage
Lighting fixtures         Yes      No
                                                Windows  Fair             Good       Excellent        Recreation room      Exercise room
Windows  Fair            Good     Excellent
                                                Special features                                        Pool         No       Yes
Special features (e.g. fireplace)
                                                Bedroom #3                                                           Indoor  Outdoor
Dining room
                                                Approximate size                                        Lobby        Fair     Good      Excellent
Approximate size
                                                Walls         Fair        Good       Excellent       Security and special features
Walls        Fair        Good     Excellent
                                                Flooring      Fair        Good       Excellent
Flooring     Fair        Good     Excellent
                                                Lighting fixtures          Yes        No              General comments
Lighting fixtures         Yes      No
                                                Windows  Fair             Good       Excellent
Windows  Fair            Good     Excellent
                                                Special features
Special features




                                                                                                        Canada Mortgage and Housing Corporation       65

    Homebuying STEP BY STEP




      HOME HUNTING WORKSHEET                                                          CHATTELWHICH REMAINSWITH HOUSE

                                                                                      Make a comprehensive list
      Attach real estate listing information sheet or fill in below.                  (floor coverings, windowdrapes, appliances, etc.)

      Address


      Real estate representative                                 Telephone

      Type of home                                               Square footage

      Number of bedrooms              Lot size                                                         NEIGHBOURHOOD
      Additional structures on property                                               Distance to work                Distance to spouse's work

      Occupancy date                  Asking price $                                  Public transportation            Yes  No
                                                                                      Adequate proximity to:
      Air conditioning     Central          Window              Smoke detectors
                                                                                      Schools                          Yes  No
                           Heat recovery ventilator (HRV)                            Shopping                         Yes  No
                                                                                      Playgrounds                      Yes  No
      ANNUAL COSTS
                                                                                      Medical                          Yes  No
      Property taxes                                                         $        Hospital                         Yes  No

      Garbage collection                                                     $        Fire station                     Yes  No
                                                                                      Police                           Yes  No
      Other                                                                  $
                                                                                      Place of worship                 Yes  No
      Utilities
                                                                                                OTHER CONSIDERATIONS
      Heating type  Oil            Natural gas  Electric       Wood      $

      Electricity    60 amp        100 amp       200 amp  Other          $        Existing environmental problems
                                                                                      (noisy traffic, railway, flooding, etc.)
      Water          Municipal  Well                                       $

      Other                                                                  $        Future neighbourhood development plans

      Other                                                                  $
                                                                                      Energy Rated                     Yes  No
      TOTAL ANNUAL COSTS                                                     $        Rating ______________




66 Canada Mortgage and Housing Corporation

                                                                                                                           WORKSHEETS




EXTERIOR                                        Den  Study  Family room                              Bathrooms

                                                Approximate size                                        #1      Bath/shower       Sink   Toilet
Finish      Brick      Siding  Wood
                                                Walls         Fair        Good       Excellent       #2      Bath/shower       Sink   Toilet
Condition Fair         Good    Excellent
                                                Flooring      Fair        Good       Excellent       #3      Bath/shower       Sink   Toilet
Roofing     Fair       Good    Excellent
                                                Lighting fixtures          Yes        No              Special features
Other
                                                Windows  Fair             Good       Excellent
Windows Wood Vinyl clad
                                                Special features                                        Basement
            Aluminum
                                                Kitchen                                                 Approximate size
Condition Fair         Good    Excellent
                                                Approximate size                                        Walls        Fair     Good      Excellent
Number of entrances
                                                Walls         Fair        Good       Excellent       Flooring     Fair     Good      Excellent
2         3          4       5
                                                Flooring      Fair        Good       Excellent       Lighting fixtures      Yes       No
Driveway Paved         Gravel  Other
                                                Lighting fixtures          Yes        No              Windows  Fair         Good      Excellent
Garage      No         Yes
                                                Windows  Fair             Good       Excellent       Separate entrance      Yes       No
            Heated Not-heated
                                                Cupboards and storage                                   Special features
Landscaping Fair      Good     Excellent
                                                              Fair        Good       Excellent
Fencing     Wood Chain link Other
                                                Special features                                        Utility room
Patio or deck           Yes      No
                                                Appliances included                                     Approximate size
Special features (e.g. pool, barbecue)
                                                Master bedroom                                          Walls        Fair     Good      Excellent

                                                Approximate size                                        Flooring     Fair     Good      Excellent
INTERIOR
                                                Walls         Fair        Good       Excellent       Lighting fixtures      Yes       No
Entrance area
                                                Flooring      Fair        Good       Excellent       Windows  Fair         Good      Excellent
Approximate size
                                                Lighting fixtures          Yes        No              Special features
Walls        Fair        Good     Excellent
                                                Windows  Fair             Good       Excellent
Flooring     Fair        Good     Excellent
                                                Special features (e.g.en suite bathroom,walk-in closet) Furnace     Age ____
Lighting fixtures         Yes      No
                                                                                                        Condition  Fair       Good      Excellent
Special features
                                                Bedroom #2                                              Hot water tank        Age ____
Living room
                                                Approximate size                                        Condition  Fair       Good     Excellent
Approximate size
                                                Walls         Fair        Good       Excellent       Additional for condominiums
Walls        Fair        Good     Excellent
                                                Flooring      Fair        Good       Excellent       Parking      Underground  Above ground
Flooring     Fair        Good     Excellent
                                                Lighting fixtures          Yes        No               Balcony; size        Storage
Lighting fixtures         Yes      No
                                                Windows  Fair             Good       Excellent        Recreation room      Exercise room
Windows  Fair            Good     Excellent
                                                Special features                                        Pool         No       Yes
Special features (e.g. fireplace)
                                                Bedroom #3                                                           Indoor  Outdoor
Dining room
                                                Approximate size                                        Lobby        Fair     Good      Excellent
Approximate size
                                                Walls         Fair        Good       Excellent       Security and special features
Walls        Fair        Good     Excellent
                                                Flooring      Fair        Good       Excellent
Flooring     Fair        Good     Excellent
                                                Lighting fixtures          Yes        No              General comments
Lighting fixtures         Yes      No
                                                Windows  Fair             Good       Excellent
Windows  Fair            Good     Excellent
                                                Special features
Special features




                                                                                                        Canada Mortgage and Housing Corporation       67

    Homebuying STEP BY STEP




    MOVINGTOYOUR NEW HOME - CHANGE OFADDRESS NOTIFICATION

                                               Telephone                                         Telephone

      Relatives and friends                                 Old Age Security:

      n                                                     Driver's license:

      n                                                     Car ownership:

      n

      n                                                     Credit cards

      n                                                     n

      n                                                     n

      n                                                     n

      n                                                     Clubs, associations and charities

      n                                                     n

      n                                                     n

      Landlord (if necessary):                              n

      Insurance broker(s):                                  Subscriptions:

      Schools:                                              Newspapers

      Post office:                                          n

      Phone company:                                        Magazines

      Electricity/Hydro:                                    n

      Natural gas:                                          n

      Heating fuel company:
      (ask if you receive a deposit refund)

      Cable television:

      Doctor:

      Dentist:

      Lawyer/Notary:                                        Other

      Veterinarian:                                         n

      Bank:                                                 n

      Employer:                                             n

      Income tax:                                           n

      Family allowance:                                     n

      CPP/QPP:                                              n




68 Canada Mortgage and Housing Corporation

                     CMHC CAN HELP YOU PROTECT
                     YOUR BIGGEST INVESTMENT



                                 Healthy Housing PracticalTips
HEALTHY          TM
HOUSING r Home
Practical Tips                            Approximately 25 per cent of Canadians suffer from some form of allergy
              for You



                                          or chemical sensitivity. For them and for all Canadians, clean indoor air and
                                          a healthy indoor environment is essential. Check out ways to make your
                                          home a healthier place to live.


   61906




                                 Household Guide toWater Efficiency
  HOUSEHOLD             GUIDECY           A publication for residential consumers. Find options for water-efficient
  TO          WATER   EFFICIEN

                                          fixtures and appliances, and how to test for and repair leaks. Make the most
                                          efficient use of your water when doing daily chores and planning residential
                                          landscapes with water efficiency in mind.




                                 Landscape Guide for Canadian Homes
                            FOR
                      GUIDE
LANDSCAPE HOMES                           Want a radical makeover or want to spruce up an old garden? Find your
CANADIAN
                                          home landscaping needs while respecting the natural environment. Illustrated
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                                          process, materials, types of plants, soils and so much more. Learn about
                                          low-maintenance gardens and lawns, water conservation, natural pest
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                                     Order your copies today.
                               Visit cmhc.ca or call 1-800-668-2642

         protect your most important
         investment inside and out...


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                                   and check out some of the past issues.




                  Housing for Newcomers

                  Helping new Canadians make informed housing-related decisions and
                  find safe, affordable homes for their families is our goal. CMHC offers a
                  multi-language online resource for housing-related information divided
                  into three areas: Renting an Apartment, Buying a Home and Looking
                  AfterYour Home.
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11-12-13




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