How to Buy

Type of real estate ownership in Canada?

In Canada, there are several types of real estate ownership, including:

1. Freehold Ownership: This is the most common type of real estate ownership in Canada. It gives the owner full ownership rights of the property, including the land and any buildings on it.

2. Strata Ownership: In Strata ownership, the owner owns a unit within a building or complex, and also has shared ownership of common areas such as hallways, elevators, and outdoor spaces. The owner also pays monthly maintenance fees to cover the costs of maintaining the common areas.

3. Leasehold Ownership: This type of ownership gives the owner the right to use and occupy the property for a specific period of time, usually long-term (e.g. 99 years). The owner does not own the land, but rather a lease on the land.

4. Co-operative Ownership: In co-operative ownership, the owner owns a share in a corporation that owns the building or complex. The owner also has the right to occupy a unit within the building or complex and pays monthly fees to cover the costs of maintaining the property.

It's important to note that each province in Canada has its own laws and regulations related to real estate ownership, so it's always best to consult with a local real estate lawyer or agent for specific information related to your area.

MLS® system Canada

The MLS® (Multiple Listing Services) system in Canada is a database of real estate listings that is shared among real estate brokers and agents who are members of their respective local real estate boards. This system allows for greater cooperation and collaboration among real estate professionals and helps to ensure that buyers and sellers have access to the most up-to-date and accurate information about properties for sale.

The MLS® system is operated by the Canadian Real Estate Association (CREA), which is a national organization that represents over 130,000 real estate brokers, agents, and salespeople across Canada. The CREA oversees the MLS system and provides guidelines and standards for its use.

In Canada, there are over 90 local real estate boards that operate their own MLS® systems, with each board serving a specific geographic area. The MLS® system in Canada is accessible to the public through real estate websites such as, which is operated by the CREA and provides a searchable database of MLS® listings from across the country.

Listing On MLS®

Here are the general steps you would take to list your property on MLS®:

1.Find a licensed real estate agent who has access to the MLS® database in your area.

2.Meet with your agent to discuss your property and your goals for selling or renting it.

3.Provide your agent with all of the necessary information about your property, including photos, a detailed description, and any relevant documents.

4.Work with your agent to set a listing price for your property based on current market conditions and comparable properties in your area.

5.Your agent will enter your listing into the MLS database, making it available to other agents and potential buyers or renters.

6.Your agent will work with you to market your property and schedule showings for interested parties.

7.Once you receive an offer on your property, your agent will help you negotiate the terms of the sale or rental agreement.

8.Once the offer is accepted, your agent will help you navigate the closing process and complete any necessary paperwork.

Keep in mind that the specifics of listing on MLS can vary depending on your location and the particular MLS database that your agent uses. However, working with a licensed real estate agent is generally the best way to ensure that your property is listed accurately and effectively.

How to start your relationship with A REALTOR®?

Starting a relationship with a REALTOR® can be an important step towards achieving your real estate goals, whether you are buying or selling a property. Here are some steps you can take to start your relationship with a realtor:

Do your research: Start by researching realtors in your area. Look for someone who has experience in the type of real estate transaction you are looking for, whether it is buying or selling a property. You can search for realtors online or ask friends and family for recommendations.

Schedule a meeting: Once you have identified a few potential realtors, reach out to them and schedule a meeting. This can be in person or over the phone. Use this meeting as an opportunity to ask questions and get to know the realtor.

Discuss your goals: Be clear about what you are looking for in a real estate transaction. If you are buying a property, let the realtor know what you are looking for in terms of location, size, and budget. If you are selling a property, discuss your timeline and any specific goals you have for the sale.

Ask about their experience: It's important to work with a realtor who has experience in your specific type of transaction. Ask about the realtor's experience, how many transactions they have completed, and any certifications or training they have.

Get references: Ask the realtor for references from past clients. Reach out to these clients and ask about their experience working with the realtor.

Review the contract: If you decide to work with a particular realtor, make sure to review the contract carefully before signing. Make sure you understand the terms of the contract, including the commission rate and any other fees.

Remember, a good relationship with a realtor is built on communication and trust. Be honest about your goals and expectations, and make sure you feel comfortable working with the realtor before making a commitment

What is a mortgage?

A mortgage is a type of loan that is used to purchase real estate, such as a house or a commercial property. The borrower (the person or entity buying the property) agrees to repay the loan, with interest, over a set period of time, typically 15 to 30 years. The property being purchased is used as collateral, which means that the lender (usually a bank or other financial institution) has the right to take possession of the property if the borrower defaults on the loan. Mortgages are one of the most common ways that people finance the purchase of a home, and they typically require a down payment and proof of income and creditworthiness.

Buying real estate for the first time can be an exciting but also intimidating experience. Here are some tips to help you navigate the process:

1.Determine your budget: Before you start looking for properties, it's important to know how much you can afford. Consider your income, expenses, and savings to determine a realistic budget.

2.Get pre-approved for a mortgage: Getting pre-approved for a mortgage can give you a better idea of how much you can afford and make you a more attractive buyer to sellers.

3.Find a real estate agent: A real estate agent can help you find properties that meet your criteria and guide you through the buying process.

4.Research neighborhoods: Take the time to research neighborhoods that interest you. Look at factors like school district, crime rate, and proximity to amenities.

5.Look at multiple properties: Don't settle on the first property you see. Look at multiple properties to get a sense of what's available and what you can get for your budget.

6.Have a home inspection: Once you find a property you're interested in, have a home inspection done to identify any potential issues or needed repairs.

7.Negotiate the price: Work with your real estate agent to negotiate the price of the property. Consider factors like the condition of the property, how long it's been on the market, and comparable sales in the area.

8.Close the deal: Once you and the seller have agreed on a price, you'll need to finalize the transaction through a process known as closing. This involves signing a variety of legal documents and paying closing costs.

Remember that buying real estate is a significant financial commitment, so take the time to do your research and make informed decisions throughout the process.

First type home buyer tax

In Canada, there are several tax credits and benefits available for first-time home buyers. Here are some of the most notable ones:

1.Home Buyer's Plan (HBP): The HBP allows first-time home buyers to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) to use towards the purchase of a home. The withdrawal must be repaid within 15 years.

2.First-Time Home Buyer Tax Credit: This is a non-refundable tax credit that can be claimed by first-time home buyers on their personal income tax return. The credit is worth $5,000 and can be used to offset some of the costs associated with buying a home, such as legal fees and land transfer taxes.

3.GST/HST New Housing Rebate: This rebate is available for new home buyers who paid GST or HST on the purchase of a new home. The rebate amount varies depending on the purchase price of the home, but can be as much as $30,000.

4.Land Transfer Tax Rebate: This rebate is available for first-time home buyers in certain provinces, including Ontario and British Columbia. The rebate can be used to offset the cost of the land transfer tax that is payable on the purchase of a home.

It is important to note that eligibility for these tax credits and benefits varies based on specific criteria, such as the purchase price of the home, residency status, and whether the home is a new build or a resale property. Therefore, it is recommended that first-time home buyers consult with a tax professional or financial advisor to determine their eligibility and to make the most of these tax incentives.

Closing costs for real estate in Canada

Closing costs for real estate in Canada can vary depending on a number of factors, including the province or territory where the property is located, the purchase price of the property, and the specific details of the transaction.

Some of the common closing costs associated with a real estate purchase in Canada include:

Land Transfer Tax: This tax is paid by the buyer and is calculated based on the purchase price of the property. The amount of land transfer tax varies depending on the province or territory where the property is located.

Legal Fees: The buyer will typically need to hire a lawyer to complete the legal aspects of the transaction. Legal fees can vary depending on the complexity of the transaction and the lawyer's hourly rate.

Title Insurance: This insurance protects the buyer against any issues with the property's title, such as liens or encumbrances. The cost of title insurance varies depending on the purchase price of the property.

Home Inspection: A home inspection is recommended for most real estate transactions to identify any issues with the property. The cost of a home inspection can vary depending on the size and complexity of the property.

Appraisal: An appraisal may be required by the lender to determine the value of the property. The cost of an appraisal varies depending on the property's location and size.

Mortgage Fees: If the buyer is obtaining a mortgage to purchase the property, there may be additional fees associated with the mortgage, such as an application fee, appraisal fee, or mortgage insurance premium.

Overall, closing costs in Canada typically range from 1.5% to 4% of the purchase price of the property, depending on the specifics of the transaction.

Closing costs for real estate in British Columbia (BC)

Closing costs for real estate in British Columbia (BC) can vary depending on several factors, such as the purchase price of the property and the location of the property. Here are some of the common closing costs you can expect when buying a property in BC:

1.Property transfer tax (PTT): This tax is paid to the BC government when a property changes ownership. The PTT is calculated based on the purchase price of the property, with a rate of 1% on the first $200,000, 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000, and 3% on the portion of the fair market value greater than $2,000,000.

2.Legal fees and disbursements: You will need a lawyer or notary public to help you with the legal aspects of buying a property. Legal fees can vary, but you can expect to pay anywhere from $1,000 to $3,000, depending on the complexity of the transaction.

3.Title insurance: Title insurance is an insurance policy that protects you against defects in the title of the property. The cost of title insurance can vary but typically ranges from $250 to $500.

4.Home inspection fee: It is always recommended to get a home inspection before purchasing a property. The cost of a home inspection can range from $400 to $800, depending on the size and complexity of the property.

5.Appraisal fee: Your lender may require an appraisal to be done on the property to determine its value. The cost of an appraisal can range from $300 to $500.

6.Mortgage insurance: If your down payment is less than 20% of the purchase price, you may be required to pay for mortgage insurance. The cost of mortgage insurance can vary but is typically around 2.8% to 4% of the mortgage amount.

7.Adjustments: On closing day, there may be adjustments made to account for property taxes, strata fees, and other expenses that have been prepaid by the seller.

Who closes the real estate transaction in canada?

In Canada, the real estate transaction is typically closed by a lawyer or a notary public, depending on the province in which the property is located. The lawyer or notary public is responsible for ensuring that all legal requirements and obligations are met, including the transfer of title, payment of fees and taxes, and any necessary documentation or contracts. They will also typically hold the funds in trust until the transaction is completed. It is recommended to hire a lawyer or notary public with experience in real estate transactions to ensure that everything is done correctly and to protect your interests.

Who closes the real estate transaction in BC?

In British Columbia (BC), Canada, real estate transactions are typically closed by a lawyer or a notary public.

Both lawyers and notaries are authorized to practice the process of transferring ownership of a property from one person to another.

In BC, both lawyers and notaries have the authority to:

  • Prepare and register legal documents
  • Conduct title searches
  • Review contracts
  • Provide legal advice
  • Receive and hold funds in trust
  • Pay outstanding bills and fees
  • Disburse funds to the seller and other parties involved in the transaction
  • Register the transfer of ownership with the Land Title and Survey Authority of British Columbia (LTSA)

When choosing between a lawyer and a notary to close a real estate transaction, it is important to consider their fees, experience, and reputation. It is also advisable to seek recommendations from friends and family, and your real estate agent.

What do REALTORS do in a real estate transaction?

Real estate agents, also known as realtors, play a crucial role in a real estate transaction. Here are some of the key things that realtors do:

1.Help buyers and sellers navigate the real estate process: Realtors help buyers and sellers understand the various steps involved in a real estate transaction, such as making an offer, negotiating the terms of the sale, and closing the deal.

2.Conduct a comparative market analysis: Realtors use their knowledge of the local real estate market to help sellers price their home appropriately. They conduct a comparative market analysis (CMA) to determine the fair market value of the property.

3.Market the property: Realtors create marketing materials for the property, such as photos and videos, and list it on various real estate websites to attract potential buyers.

4.Show the property: Realtors coordinate showings of the property with potential buyers and provide information about the property's features and amenities.

5.Negotiate the deal: Realtors negotiate the terms of the sale on behalf of their clients, including the purchase price, closing date, and other contingencies.

6.Coordinate the closing: Realtors work with attorneys, lenders, and other professionals to ensure a smooth closing process.

7.Provide support and guidance throughout the transaction: Realtors are available to answer their clients' questions and provide guidance throughout the transaction, from start to finish.

Ongoing cost of own real estate in BC?

The ongoing cost of owning real estate in British Columbia (BC) can vary depending on several factors such as the location, size, age, condition, and type of property you own. Here are some of the ongoing costs that you may incur as a property owner in BC:

1.Property Taxes: Property taxes are charged annually by the local government based on the assessed value of your property. The rate of property tax varies between municipalities and is set by the local government.

2.Home Insurance: You will need to purchase home insurance to protect your property against damage or loss due to events such as fire, theft, or natural disasters. The cost of home insurance varies depending on the coverage amount, deductible, and other factors.

3.Maintenance and Repairs: As a property owner, you will be responsible for the ongoing maintenance and repairs of your property, including routine maintenance such as landscaping, snow removal, and cleaning, as well as repairs to the roof, plumbing, electrical, and other systems.

4.Utilities: You will also need to pay for utilities such as electricity, gas, water, and sewer services, which can vary depending on the size of your property and your usage.

5.Strata Fees (if applicable): If you own a condominium or strata-titled property, you may be required to pay monthly strata fees to cover the maintenance and repair of common areas and amenities such as elevators, pools, and gyms.

Overall, the ongoing cost of owning real estate in BC can be significant, and it is essential to budget for these costs to avoid any financial surprises. It is advisable to consult with a financial advisor or a real estate expert to get a better idea of the ongoing cost of owning real estate in BC.