Making an offer.
Teams involved: Realtor, Vancity, You
Making an offer is the first step to turning a home you like into a home you get to live in. The “best offer” is determined by several factors - like negotiations between your realtor and the seller’s, whether you’re going conditional or subject free with your terms, market conditions, a bidding war situation, or any other terms.
- Work with your realtor to put together your offer
- Pro-tip: Meet with us to get a mortgage pre-approval so you can confidently know how much you can afford to offer and what kind of lead time you need for subject removal
- Have your deposit ready to pay to the seller when you make your offer or when your offer is accepted
- Book an appointment with a mortgage advisor ahead of time or once your offer is accepted
- E-mail offer documents to your mortgage advisor as soon as your offer is accepted
What’s included in an offer?
Some of the terms that may be in an offer include:
- Offer price
- Your deposit that goes to your realtor
- List of subjects or conditions you’d want to include in the offer like home inspection, strata documents, or financing approvals
- Your preferred closing and move-in dates
- A deadline to review the offer
Can I negotiate an offer?
Negotiations may play an important role in making an offer stronger. You can negotiate on the price or the subjects or choose not to negotiate at all. This is the time for your realtor to shine.
What should I know about subjects and getting a mortgage?
“Subject to financing,” or words along those lines, are commonly found in offers as one of the subjects to buying a home. A condition like this means this offer will only proceed if the buyer is able to get financing. Once you are approved for a mortgage, this subject would be removed.
What your realtor does next.
Once your offer is accepted, pending your subjects, next steps for your realtor include:
- Helping you arrange time for the home inspection & appraisal
- Gathering and reviewing strata documents if you’re buying a condo or townhouse
- Talk you through details and timelines for subject removal
- Ultimately coordinating with the lawyer or notary to finalize and close the sale
Getting a mortgage.
Teams involved: Vancity, You
Starting your application or pre-approval.
A mortgage advisor will work closely with you to get the funding you need for completion day. The sooner you meet with one, the better.
At Vancity, we’ll:
- Assess your eligibility and how much you can borrow
- Discuss how you can tap into your RRSP or FHSA accounts
- Help you manage your down payment in the meanwhile to get the most out of your money
- Discuss the type of mortgage that suits you best
- Find a rate that’s right for you
About pre-approvals: If you meet us before you’re putting in offers, you can apply for a pre-approval. Pre-approvals are valid for 90 days and can be reapplied for. They allow you to lock in an interest rate. While they don’t take into account property-specific factors that will have some effect on what you end up borrowing, it can help you be more prepared when the right place comes along.
What your mortgage advisor does next.
Typically, once you’ve applied for your mortgage and your offer is accepted, they will:
- Submit your application for review and approval
- Arrange an appraisal on the property you’re purchasing
- Reconnect with you when your mortgage is approved
When your mortgage is approved.
Your mortgage advisor will let you know once your mortgage is approved. They will work with you to:
- Ensure your mortgage is funded in time for the closing of the sale
- Set up a time to sign mortgage documents (and account documents if you’re new to Vancity)
- Explore other products and services that can benefit you
- Discuss insurance options to protect you from future risks
- Hire a lawyer or notary from our list of over 500 approved professionals
- Schedule a home inspection with a home inspector or prepare to do it yourself, if added as a subject in the offer
Appraisal & home inspection.
What’s the difference?
An appraisal is ordered by the lender for mortgage approval purposes, after the purchase agreement is signed by both the buyer and seller. In contrast, a home inspection is conducted at the buyer's discretion typically for their peace of mind and future security.
Appraisal.
Teams involved: Vancity, Appraiser, Realtor
As part of the mortgage approval process, your mortgage advisor will order an appraisal to determine if your purchase price matches the market value of your home and the loan amount you’ve requested to borrow.
- Discuss appraisal costs when you apply for a mortgage. You may need to pay the appraisal company upfront or include it as part of your closing costs
- Wait to hear from your mortgage specialist once the appraisal is complete and your mortgage is approved
What happens during an appraisal?
Your lender will hire a licensed and certified real estate appraisal company, typically a third-party with no vested interest in the transaction, to conduct the appraisal.
- The appraiser will visit the property to evaluate its fair market value
- The findings will be compiled into an appraisal report and sent to the lender for review
- If the lender finds the appraisal satisfactory and there are no other conditions delaying the process, you will be notified of your loan approval
What’s assessed during an appraisal?
Factors a home appraiser consider include:
- The size and condition of the property
- Zoning classifications and construction type
- Comparative analysis of recent property sales in the neighbourhood
The results of this inspection and the evaluation of the property's value are included in the appraisal report, along with reasoning and photographs of relevant findings.
Home inspection.
Teams involved: Realtor, Home Inspector, You
Think of the home inspection as your final opportunity to uncover any potential issues with the house you're about to buy.
If the home inspection was included as a condition in the purchase agreement, its findings may give you leverage to renegotiate the price or withdraw from the deal if significant issues are found. However, if you make an unconditional offer, the inspection results will not affect your purchase agreement.
- It’s usually recommended you add home inspection as a subject when you make an offer to get a clear understanding of the property’s condition
- Based on the inspection report, you may request for repairs, credits or adjustments to your purchase price
- Pro-tip: Attend the home inspection if you can. This way, you’ll get the chance to do an in-depth walkthrough of your new home, and gain more information about the condition than the report alone provides
What happens during a home inspection?
A home inspector will visit the property to conduct a thorough examination for any potential issues within and around the house like:
- Heating systems and air conditioning
- Interior plumbing and electrical systems
- Roofs, attics, floors, basements
- Foundations, walls, doors, windows, and all other structural components
A home inspection report could also alert you to the possible presence of mold, lead and asbestos, especially in older homes.
Similar to the appraisal process, the home inspector will compile the findings of the inspection into an inspection report. Unlike an appraisal, where the report is sent to the lender for the purpose of a loan approval, the inspector will share their assessments directly with you.
Who pays for the home inspection?
The cost of home inspection is usually covered by whoever ordered it. In most cases, it is the buyer who wants to get a home inspection done and therefore pays for it.
Is an appraisal still necessary after a home inspection?
An appraisal is mandated, and facilitated by the lender for the purpose of loan approvals regardless of home inspection being a condition or not.
The seller has a home inspection report. Do I still need one?
A satisfactory home inspection report is a reassurance for potential buyers. However, getting a home inspection through a licensed home inspector of your choice, and someone with no ties to the seller or their realtor, is always a good idea.
Lawyer / notary.
Teams involved: Lawyer / Notary, You
The role of a lawyer.
Once your offer is accepted and you’ve made it known to your lender, the next step is hiring a lawyer or notary.
Just as Vancity is your go-to for all things finance, your lawyer will ensure the closing process complies with regulations. They will arrange and review legal documents and contracts, and act as the intermediary for funds when closing the sale.
- Contact a lawyer or notary from a list of approved professionals
- Provide necessary documents and details to the lawyer to facilitate paperwork and keep them updated of any changes during the process
After mortgage approval and before closing.
To protect your interests, your lawyer may:
- Prepare, review or amend contracts and purchase documents like the Contract of Purchase and Sale to ensure they protect your interests
- Perform a title search to verify that the house you’re buying does not have any claims, liens or any other liabilities that could become a future hassle for you. Getting title insurance is a great safety net in case issues surface during the title search or after the deal is closed
- Create a statement of adjustments that calculates your closing costs and remaining balance
On completion day.
From arranging the closing documents to overseeing disbursement of funds, your lawyer will be with you at every step of the closing stage.
Insurance.
Teams involved: Vancity, Squamish Insurance, You
Many of us spend a fortune buying a home. Insurance ensures it stays protected in good times and bad. It’s safety, preparedness and peace of mind for you and your family.
Protect your home, belongings, and a few other things too.
- Available for single family homes, townhouses, condominiums
- Help recovering from damages caused in the event of sudden accidents — man-made or natural
- Offered through Squamish Insurance
Learn more
Protection from losses arising from issues related to past ownership or title.
- Some examples of issues include unpaid debts and ownership disputes that didn’t show up in the title search
- Required for Vancity mortgages
Learn more
Protect your home during tough times.
- Pays down your mortgage in the event of unemployment, disability, critical illness or death
- Includes life insurance coverage, plus optional additional protection
Learn more
Added to your monthly mortgage when you put less than 20% down.
- Higher the down payment, lesser the insurance premium
- Required when you put less than 20% down for purchases less than $1 million
Explore insured mortgages
Closing.
Teams involved: Everyone
And then there's the closing — the home stretch of the home buying process and the beginning of your home ownership journey.
- Receive statement of adjustments from your lawyer/notary
- Confirm your mortgage is funded and prepare bank draft or wire transfer to lawyer/notary
- Meet with lawyer/notary to sign documents, and pay closing costs and remaining balance
- Book movers and elevators well in advance, especially if you live in a busy city
- Check out our first-time homeowner checklist
- Celebrate and get packing
On and leading up to closing day.
Pro tip: Stay in close communication with your lawyer, lender and realtor to stay updated and ensure a smooth closing day.
Here’s a breakdown of some of the key milestones that take it to the finish.
Your lender (Vancity):
- Finalizes and funds your mortgage
Your lawyer/notary:
- Provides a statement of adjustments that includes closing costs and your final balance
- Sets up a meeting with you just before completion day where you’ll sign documents and hand them a bank draft for your closing costs or transfer the amount electronically
- Registers the mortgage documents and the new ownership in your name with the Land Title Office to legally reflect the transfer of ownership and mortgage secured against the property
Your realtor:
- Hands you over the home keys once the home is officially yours
Your builder (if you’re buying a new construction):
- Will ask you to do a final walkthrough of the home to ensure everything is in expected condition and the issues that surfaced during the home inspection, if any, are resolved
Statement of Adjustments & closing costs.
A statement of adjustments provided by your lawyer or notary is a detailed break down of money that’s been paid and what’s still due, with the final outstanding amount at the end of the statement.
Typical closing costs you should be aware of, and other common items on the adjustment include:
- Purchase price
- Mortgage amount
- Property transfer tax
- Legal fees
- Sales tax (GST/PST)
- Appraisal fees
- Inspection fees
And one last thing.
Give yourself a pat on the back. You did it. You are now a home owner!
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