As the real estate market in Ontario continues to thrive, prospective buyers and sellers rely on the expertise and guidance of real estate agents to navigate the complexities of property transactions. Whether it’s a first-time homebuyer seeking guidance or a seasoned investor looking for strategic advice, clients often come armed with a myriad of questions. From the practical aspects of property pricing and negotiations to legal and financial considerations, real estate agents field a wide range of inquiries. In this article, we will explore the top 5 questions that clients ask me, shedding light on the topics that frequently arise in real estate conversations and situations.
Table of Contents
What are closing costs? Who is responsible to pay for them?
Closing costs are a variety of different fees which normally are Land Transfer Tax (applies to Ontario only), Title Insurance, & Lawyer Fees. They may also include Home Inspection, Appraisal, Mortgage Default Insurance, Interest & Property Tax adjustments in certain cases. The Buyer is responsible for paying the closing costs.
Is this a good time to list my home?
It all depends on the Homeowners personal circumstances/needs, mortgage terms, market conditions, interest rates, and recent sales & comparables. All these reasons factor into a sellers decision on whether it’s the right time to sell or not.
What is Bridge Financing? What are the advantages and disadvantages?
Bridge financing is often used when a client has sold their existing home and purchased a new one. Both sale & purchase must be firm. Banks/Lenders would provide interim financing to the client in order for them to close first on the purchase before the closing of the existing sold home. Interest is charged daily and additional costs are involved with the bridge loan, however, it helps the clients get the keys to the new home first and be able to move between homes with ease.
What can I expect my listed home to be on the market for?
The list price may depend on a number of reasons which primarily are the neighbourhood, current market conditions, age of the home, recent sales/comparables, renovations, and lot size.
What does a mortgage stress test entail?
The mortgage stress test determines if buyers can afford their mortgage payments if interest rates increase. The stress test occurs anytime a client is applying for a new mortgage, refinancing or switching Banks/Lenders. Banks/Lenders use the benchmark rate of 5.25% and the anticipated interest rate plus 2% (whichever is HIGHER) to determine the rate they need to qualify for the mortgage pre-approval.
Conclusion
There we have it. The top 5 questions that clients ask me. Of course there are many other questions that I receive throughout the process. I am always there to provide the best answers that I can. If you have any questions about listing or buying, or even the state of the housing market in Ontario I’m here to help. Contact me here and lets talk.