Why hire a real estate agent?
Because real estate is complex and considerable amounts of money are involved. Thanks to professional status of agents, they can guide you throughout this important transaction and prevent you from making costly mistakes. Here are a few good reasons why: Professional training, which is offered by various institutions, including the Collège de l'immobilier du Québec. Training which includes courses in real estate law, real estate appraisal, the Real Estate Brokerage Act, real estate mathematics and drafting of contracts. A skilled negotiator, an agent has many personal skills and serves as a single point of access! He relies on a wide network of resource persons, from building inspectors to mortgage brokers. Your agent has access to the most important and powerful tool, MLS®, which puts 9,000 agents to work for you! By using the services provided by a real estate agent or broker who is a member of the Greater Montréal Real Estate Board, you are surrounded by professionalism and peace of mind!

By hiring a real estate agent or broker, you will...
Be able to evaluate homes of interest to you, based on your needs. Receive the necessary expertise to put together a transaction that will be profitable over the years. Have pertinent information on the price of houses that were sold during the last few months in the area of your choice. Obtain relevant tips according to your needs. Be able to target properties that best correspond to your criteria and your budget. Be in good hands when you sign the deed of sale. Have access to the MLS database through your agent, which contains the best up to date and complete information on properties for sale. If you dig a little, you will see that agents and brokers are an endless source of advice!

By hiring a real estate agent or broker, you will...
Get the latest market outlook to better evaluate your chances of selling quickly. Avoid many financial, legal and technical hassles. Be able to demystify what buyers are looking for in your area and in properties similar to yours. Benefit from appropriate advertising strategies. Avoid the hassles of managing visits, follow-ups and analysis. Be able to count on someone to collect all legal paperwork and accompany you at the notary’s office. Benefit from the Multiple Listing Service® (S.I.A.®/MLS®): a precious tool only available to members of the Greater Montréal Real Estate Board. Note: this service contains a lot more information than the SIA.ca Website. Without the shadow of a doubt, the real estate agent or broker is definitely an added value to sell efficiently!

Selling a Home
Good years for the housing market Since 2002 the housing market has enjoyed strong growth. This can be explained by five major reasons: Low interest rates translate into easier access to property; Consumers show better confidence in the economy, which remains strong; Thanks to 180,000 new jobs since 2000 in Montréal, the unemployment rate is at its lowest in thirty years; People in Québec saw a 23% increase of their disposable income between 2000 and 2006; The population growth and the “Generation Shuffle”: On one hand, baby boomers are retiring and selling their family residences in order to buy property that better suits their needs. On the other hand, the 25 to 35 year old generation is actively looking for property. As a result, there is an increasing number of transactions. Selling first: at what price? If you choose to sell before buying, make sure you have a good idea of the amount of money you'll have to buy a new property. Your real estate agent will be able to help you determine this amount by doing a comparative market analysis and by determining a fair sale price. On the big day... To avoid being homeless, make sure you write down the buyers’ move in date in order to determine the best possible time to take possession of your new home. If you can’t get these dates to coincide, you can plan for temporary housing. Renovating and decorating pay off Several buyers want to settle down without the hassle of major renovations. That is why it’s important to make your house attractive. Create more space by removing anything that is cumbersome, free up the windows to let the light in, give a fresh coat of paint to outdated walls and carefully select your decor. Consult your real estate agent to get a profile of buyers in your area. The MLS® system is a powerful tool When signing an exclusive brokerage contract with an agent or broker who is a member of the Greater Montréal Real Estate Board, make sure you check the “Yes” box in the “Multiple Listing Service®” section. Your home will be seen by over 9,000 agents or brokers. With so many helpful professionals searching, you can't lose!

Tips and tricks
The Multiple Listing Service® S.I.A.®/MLS® is reserved only for agents and brokers who are members of the GMREB. It offers maximum exposure to properties for sale through members and a wide choice to buyers looking for the rare find. In short, it is an essential tool when it comes to real estate! Even small, an investment in your property could bring you healthy profits when you sell your property. Remember that many buyers are ready to pay more in order to avoid renovation headaches. In 2007, 55,776 properties were sold via the GMREB's MLS® system. Even if the average price of properties is increasing, it’s always the right time to buy when you make a well-planned purchase! Buying a property not only improves your quality of life but also helps you build a positive financial asset. Paying a mortgage is a bit like making long-term savings. Agents who follow an additional training of 255 hours and successfully pass the Association des courtiers et agents immobiliers du Québec (ACAIQ) exam get a certificate of practice enabling them to work as real estate brokers. Agents and brokers who are members of the GMREB are subject to several controls, by-laws and policies, which enhance their professionalism and, in turn, their service to you.

What are the benefits of buying first?
You will know ahead of time your new address, the exact cost of your new property and the possession date. It will then be easier for you to make the calculations when you receive an offer to purchase.

Is it risky to make an offer to purchase before selling my house?
You can make an offer to purchase conditional on the sale of your property. However, should the seller receive another offer to purchase in the meantime, he or she may ask you to withdraw the condition. You will then have two choices: buy this house before you sell your property, or withdraw. To set your mind at rest, consider temporary financing, which will allow you to sign a purchase contract even if your house is not sold.

What are the benefits to sell first?
Since you know the exact amount you will receive from the sale, you have a precise idea of the amount available to purchase a new home. You will also know the move-in date of the new owners. In fact, you will have all the information you need to make a solid offer to purchase based on actual facts.

How to choose a house that suits my needs?
The house of your dreams may not be the house that best suits your needs. Before choosing, think about these three important elements: Your needs: How many bedrooms do you need? Would a garage really be useful? Is a third bathroom essential or unnecessary? Your tastes: If you aren’t a do-it-yourselfer, forget about houses that need renovations. If you have a busy schedule, a large yard might not be ideal either. Environment: Do you wish to drive or take the metro to go to work? Is there a school or a daycare centre nearby? Are you located far or near the services? Your real estate agent can help you make an enlightened decision. Take the time to explain your needs to him!

How to get a fair price for my property?
A real estate agent can help you by conducting a market analysis of your area. You will then know what the value of the housing market is in your neighbourhood and be able to establish, with your agent, a price that will satisfy you and the future buyer. A real estate agent also is a skilled negotiator who knows all about offers to purchase and counter-proposals. Call upon his expertise!

What are the benefits of becoming a homeowner?
Being a homeowner means… Living in a house that suits your needs and lifestyle. Whether you want to have a playroom for your children or a bedroom for your guests, you are free to use the space you own as you wish. Taking advantage of all the benefits of a long-term investment. No more rents that go into someone else’s pockets! Your monthly mortgage payments will be used to build sizeable capital that you will recover once your house is fully paid. Making fixed payments which, depending on the type of mortgage you choose, protect you against possible interest rate increases. This is quite different from the unforeseeable rent fluctuations tenants must deal with… Benefiting from more privacy and a new freedom. Since you are the one to run the show, decisions regarding renovation, decoration and maintenance are yours. Moreover, nobody will enter your home or force you to leave for an inspection or maintenance purposes.

What are the pitfalls I must avoid when buying a property?
Beware of love at first sight! A property can please you by its charm and its decoration, but does it really suit your needs? When visiting a house, focus on the number of rooms, the room sizes, their layout, and ensure it corresponds to your lifestyle. Avoid getting hung up on details. Dirty carpets, worn paint and old wallpaper can be replaced. Remember that when you will own the house, you will be free to redesign your space. However, do evaluate the costs of renovations to avoid bad surprises. Make sure the price is compatible with your budget. It is important that your monthly payments don’t impair your quality of life or your capacity to maintain, furnish and decorate your house to your liking. Ask your real estate agent to conduct a market analysis in the area of your interest. The price of a house does not necessarily depend on its size. A small, well-divided house can be sold at the same price as a larger house requiring significant redesigning. But it can sometimes be a better investment since you don’t have to invest in major renovations. What does my real estate agent’s compensation consist of? The compensation paid to the listing agent is withdrawn from the total amount of each sale. This sum does not go directly into his pockets since he must assume expenses for advertising, photos, office costs, transportation and insurance. As a self-employed worker, the agent must also pay his income taxes and save some more for retirement. In most cases, he must also share the compensation with the selling agent involved in the transaction.

What does my agent or broker do to deserve compensation?
Whether you buy or sell a house, your agent or broker accomplishes many tasks for you in order to conclude the transaction in a professional manner and in compliance with the Real Estate Brokerage Act. He visits your house or accompanies you during visits; He prepares a complete market analysis; He compiles all legal paperwork and photocopies; He prepares strategies to sell your house (open house, advertising and other marketing tools); He assists you throughout the negotiations; He thoroughly reviews with you the offer to purchase, the annexes and he draws up the counter- proposal; He follows up, draws up and obtains the required documents to ensure the various conditions are met; He provides all the legal documents to the notary and accompanies you for the signature of the deed of sale. To learn more on these topics or to get answers to other questions, do not hesitate to contact an agent member of the Greater Montréal Real Estate Board.

Before you put your home on the market, take heed of these 10 valuable tips from the producers of www.mlsmontreal.ca
1. Interview several agents before making your final choice. 2. Know your rights and obligations. Have your realtor explain the contract in detail or have a lawyer look at it with you. 3. Always base your price on market value rather than needs or emotions. 4. If the agent suggests your home needs some TLC, do the required fix-ups. 5. Make sure the agent is taking out advertisements to promote your property. 6. First impressions are important. Use attractive photos to advertise the listing. 7. Your house must have curb appeal. Make sure the outside is as attractive as the inside. 8. Keep your house clean and de-clutter before every open house and visit. 9. If the house isn't selling, think about lowering the price. A house that sits too long on the market raises suspicion for buyers. 10. Take the first offer seriously. It's often the best.

How much can I afford to pay for a home?
To determine 'affordability' you will first need to know your taxable income along with the amount of any debt outstanding and the monthly payments. Assuming it is your principal residence you are purchasing, calculate 32% of your income for use toward a mortgage payment, property taxes and heating costs. If applicable, half of the estimated monthly condominium maintenance fees will also be included in this calculation. Second, calculate 40% of your taxable income and deduct all of your monthly debt payments, including car loans, credit cards, lines of credit payments. The lesser of the first or second calculation will be used to help determine how much of your income may be used towards housing related payments, including your mortgage payment. These calculations are based on lenders' usual guidelines. In addition to considering what the ratios say you can afford, make sure you calculate how much you think you can afford. If the payment amount you are comfortable with is less than 32% of your income you may want to settle for the lower amount rather than stretch yourself financially. Make sure you don't leave yourself house poor. Structure your payments so that you can still afford simple luxuries.

What is a home inspection and should I have one done?
A home inspection is a visual examination of the property to determine the overall condition of the home. In the process, the inspector should be checking all major components (roofs, ceilings, walls, floors, foundations, crawl spaces, attics, retaining walls, etc.) and systems (electrical, heating, plumbing, drainage, exterior weather proofing, etc.). The resultsof the inspection should be provided to the purchaser in written form, in detail, generally within 24 hours of the inspection. A pre-purchase home inspection can add peace of mind and make a difficult decision much easier. It may indicate that the home needs major structural repairs which can be factored into your buying decision. A home inspection helps remove a number of unknowns and increases the likelihood of a successful purchase.

What is mortgage loan insurance?
Mortgage loan insurance is insurance provided by Canada Mortgage and Housing Corporation (CMHC), a crown corporation, and GE Capital Mortgage Insurance Company, an approved private corporation. This insurance is required by law to insure lenders against default on mortgages with a loan to value ratio greater than 75%. The insurance premiums, ranging from .50% to 3.75%, are paid by the borrower and can be added directly onto the mortgage amount. This is not the same as mortgage life insurance.

Can I get a mortgage to purchase a home?
Subject to qualification, yes. In fact, even purchasers with 5% down may qualify to buy a home and make improvements to it. For high-ratio financing, both Canada Mortgage and Housing Corporation and GE Capital, insured mortgages are available to cover the purchase price of a home as well as an amount to pay for immediate major renovations or improvements that the purchaser may wish to make to the property. This option eliminates the need to finance the renovations or improvements separately. Some conditions apply. Where the improvements are cosmetic, the mortgage loan insurance premium is unchanged from the standard schedule. Where the improvements are deemed to be structural, the mortgage loan insurance premium is increased by .50% over the standard schedule. For information on mortgage loan insurance premiums see high-ratio home mortgage financing.

Can I use gift funds as a down payment?
Most lenders will accept down payment funds that are a gift from family as an acceptable down payment. A gift letter signed by the donor is usually required to confirm that the funds are a true gift and not a loan. where the mortgage requires mortgage loan insurance, Canada mortgage and housing corporation requires the gift money to be in the purchaser's possession before the application is sent in to them for approval. where mortgage loan insurance is provided by GE Capital this is not a requirement. See 'what is mortgage loan insurance?' for further information.

What is a down payment?
Very few home buyers have the cash available to buy a home outright. Most of us will turn to a financial institution for a mortgage the first step in a potentially long-standing relationship. But even with a mortgage, you will need to raise the money for a down payment. The down payment is that portion of the purchase price you furnish yourself. The amount of the down payment (which represents your financial stake, or the equity in your new home) should be determined well before you start house hunting. The larger the down payment, the less your home costs in the long run. With a smaller mortgage, interest costs will be lower and over time this will add up to significant savings.

How can you pay off your mortgage sooner?
There are ways to reduce the number of years to pay down your mortgage. You'll enjoy significant savings by: Selecting a non-monthly or accelerated payment schedule Increasing your payment frequency schedule Making principal prepayments Making Double-Up Payments Selecting a shorter amortization at renewal

How can you use your RRSP to help you buy your first home?
Today, about 50% of first-time home buyers use their RRSP savings to help finance a down payment. With the federal government's Home Buyers' Plan, you can use up to $20,000 in RRSP savings ($40,000 for a couple) to help pay for your down payment on your first home. You then have 15 years to repay your RRSP. To qualify, the RRSP funds you're using must be on deposit for at least 90 days. You'll also need a signed agreement to buy a qualifying home. Even if you have already saved for your down payment, it may make good financial sense to access your savings through the Home Buyers' Plan. For example, if you had already saved $20,000 for a down payment - and assuming you still had enough "contribution room" in your RRSP for a contribution of that amount you could move your savings into a registered investment at least 90 days before your closing date. Then, simply withdraw the money through the Home Buyers' Plan. The advantage? Your $20,000 RRSP contribution will count as a tax deduction this year. Use any tax refund you receive to repay the RRSP or other expenses related to buying your home. While using your RRSP for a down payment may help you buy a home sooner, it can also mean missing out on some tax-sheltered growth. So be sure to ask your financial planner whether this strategy makes sense for you, given your personal financial situation.

What are the costs associated with buying a home?
First and foremost, you have to make sure you have enough money for a down payment - the portion of the purchase price that you furnish yourself. To qualify for a conventional mortgage you will need a down payment of 25% or more. However, you can qualify for a low down payment insured mortgage with a down payment as low as 5%. Secondly, you will require money for closing costs (up to 2.5% of the basic purchase price). If you want to have the home inspected by a professional building inspector - which we highly recommend - you will need to pay an inspection fee. The inspection may bring to light areas where repairs or maintenance are required and will assure you that the house is structurally sound. Usually the inspector will provide you with a written report. If they don't, then ask for one. You will be responsible for paying the fees and disbursements for the lawyer or notary acting for you in the purchase of your home. We suggest you shop around before making your decision on who you are going to use, because fees for these services may vary significantly. There are closing and adjustment costs, interest adjustment costs between buyer and seller and (depending on where you live) land transfer tax - a one-time tax based on a percentage of the purchase price of the property and/or mortgage amount. Finally, you will be required to have property insurance in place by the closing date. And you will be responsible for the cost of moving. Remember, there will be all kinds of things you'll have to purchase early on - appliances, garden tools, cleaning materials etc. So factor these expenses into your initial costs.

What are the monthly costs of owning a home?
Needless to say, you'll have financial responsibilities as a home owner. Some of them, like taxes, may not be billed monthly, so do the calculations to break them down into monthly costs. Below you will find a list of these expenses.

Should you go with a short or long-term mortgage?
A longer-term mortgage is worth considering if you have a busy life and don't have time to watch mortgage rates. Our 4, 5 and 7-year mortgages let you take advantage of today's rates, while enjoying long-term security knowing the rate you sign up for is a sure thing. If you want to keep your mortgage flexible right now, you can explore a shorter-term mortgage that usually allows you to take advantage of lower rates and save.

What is a variable rate mortgage?
A mortgage in which payments are fixed for a period of one to two years although interest rates may fluctuate from month to month depending on market conditions. If interest rates go down, more of the payment goes towards reducing the principal; if rates go up, a larger portion of the monthly payment goes towards covering the interest. RBC open variable rate mortgages allow prepayment of any amount (with certain minimums) on any payment date.

How much do I need for a down payment?
ccording to the guidelines of the Canadian Mortgage and Housing Corporation (CMHC), one must have a minimum down payment of at least 5% of the total cost of the prospective property. With a down payment between 5 - 24.99%, one's mortgage is deemed "high-ratio". A high ratio mortgage is subject to a CMHC premium in accordance with the following schedule: With a down payment of 25% or greater, the mortgage is deemed "conventional". A conventional mortgage is not subject to any CMHC fees. Thus, a larger down payment represents a two-fold advantage to the prospective homebuyer. First, the prospective homebuyer will avoid CMHC premiums with 25% down payment. Secondly, a larger down payment will relate into smaller monthly payments, or a shorter amortization; both of which lead to interest savings over the life of the mortgage. Yes, you can buy a home with a down payment of less than 10%: Single-family dwelling: 5% Two-unit dwelling: 7.5% Minimum equity of 5% from your own resources is required. Gift down payments from an immediate relative are acceptable. Maximum house price ceilings apply for 5% down payment. Limits of $125,000, $175,000 or $300,000 apply to locations throughout Canada. Please contact us for the maximum price

Open Mortgages
Allow one to pre-pay some, or all of, their outstanding mortgage obligation at any time, without penalty. - Generally, open mortgages have a six-month, and a one-year term option with higher interest rates than closed mortgages of the same term length.

How can I save money on my mortgage?
The simplest way to accomplish this is to decrease your principal; thus, decreasing your interest obligation. There are a number of very feasible approaches to performing this task: Increase Payment Frequency - Instead of paying monthly, consider paying bi-weekly. This simple step is very feasible for most working Canadians who are paid bi-weekly. It can cut your mortgage amortization by up to five years, and can save you tens of thousands of dollars. Prepay - Use every advantage that the term of your mortgage offers you to prepay your mortgage. One way to do this would be to use your RRSP tax refund to make a yearly pre-payment. Increase Payments - Round up your bi-weekly payment. For example, if you have a bi-weekly payment of $531.59, round your payment to an even $550.00. This will have a profound effect on the interest paid, and the amortization of the mortgage.

What are the benefits of a Mortgage Agent?
If you plan to sell your home without the aid of a real estate agent, then you must seriously consider working with a mortgage agent. Even though you are not buying a home or getting a loan, it is the mortgage agent that actually puts the entire transaction together for a smooth closing after you and the buyer decide on the terms of the contract.

What is title insurance?
Protecting purchasers against loss is accomplished by the issuance of a title insurance policy, which states that if the status of the title to a parcel of real property is other than as represented, and if the insured suffers a loss as a result of title defect, the insurer will reimburse the insured for that loss and any related legal expenses, up to the face amount of the policy. Title insurance differs significantly from other forms of insurance. While the functions of most other forms of insurance is to guard against future events (such as death or accidents or in the case of property, fire or flood), the primary purpose of title insurance is to eliminate risks and prevent losses caused by events that have happened in the past. To achieve this goal, title insurers perform an extensive search of the public records to determine whether there are any adverse claims to the subject of real estate. Those claims are either eliminated prior to the issuance of a title policy or their existence is excepted from coverage.

What is a home inspection?
A home inspection is an examination of the structure and systems: heating and air conditioning, plumbing and electrical, roof, attic, insulation, walls, floors, ceilings, windows, doors, foundation, and basement. If the inspector finds problems, it doesn't mean you can't sell your house, but you can be certain a buyer inspection will find them too. Finding problems before you list your property can avoid accusations of misrepresentation, low offers, and even lawsuits. A home inspection can also help sellers comply with new, tougher disclosure laws enforced in many states. You may or may not want to make the repairs and you can always adjust the selling price or contract terms if the problems are major. This information will also help you determine what type of financing will or will not be available for your home.You can find home inspectors in the Yellow Pages under "Home Inspection Service," or any real estate agent or mortgage agent can recommend several in your area.

How much does the CMHC insurance cost?
Table of Insurance Premiums Loan amount..........................CMHC Fee (Relative to Home Equity) ---------------------------------------------------- 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%........ 3.25%

What is a Variable Interest Rate Mortgage (Open)?
Selecting a 2, 3 or 5 year, open Variable Interest Rate Mortgage may provide you with access to interest rates as low or lower than a banks Prime Rate - plus gain the flexibility to be able to increase your payments to any amount. You can also pay off all or part of your mortgage without penalty (an administration fee applies in year one and two only). That means lump sum payments of any amount can be made at any time. You can transfer your mortgage to any bank at any time with no penalty ($200-$300.00 discharge penalty applies). Your monthly payments will remain the same, but the portion of the payment that's applied to reducing the principal can vary. When interest rates are on their way down, a variable-rate mortgage could end up saving you thousands of dollars. But if rates go up, more of each monthly payment will go toward paying the interest. When interest rates fall, more of your set monthly payment goes toward paying off your mortgage principal and less towards interest. That means your mortgage gets paid off faster. Should interest rates rise, more is applied toward interest.

Can I use my RRSP for Down Payment?
Today, about 50% of first-time home buyers use their RRSP savings to help finance a down payment. With the federal government's Home Buyers' Plan, you can use up to $20,000 in RSP savings ($40,000 for a couple) to help finance a down payment on a first home. You then have 15 years to repay your RRSP. To qualify, the RRSP funds you're using must be on deposit for at least 90 days. You'll also need a signed agreement to buy or build a qualifying home - new or resale. Even if you have already saved for your down payment, it may make good financial sense to access your savings through the Home Buyers' Plan. For example, if you had already saved $20,000 for a down payment - and assuming you still had enough "contribution room" in your RRSP for a contribution of that amount you could move your savings into a registered investment at least 90 days before your closing date. Then, simply withdraw the money through the Home Buyers' Plan. The advantage? Your $20,000 RRSP contribution will count as a tax deduction this year. Use any tax refund you receive to repay the RRSP or other expenses related to buying your home. While using your RRSP for a down payment may help you buy a home sooner, it can also mean missing out on some tax-sheltered growth. So be sure to ask your financial planner whether this strategy makes sense for you, given your personal financial situation