Frequently Asked Questions (FAQ)
Market Conditions & Pricing
Understanding Real Estate Markets
Market conditions vary by region and change over time. Understanding current trends helps you make informed decisions.
How do I know if it's a buyer's or seller's market?
Check the sales-to-new-listings ratio. Below 40% typically indicates a buyer’s market with more negotiating power. Above 60% suggests a seller’s market with competitive conditions. Your agent can provide current data for your specific area.
What factors affect home prices in my area?
Local prices respond to interest rates, inventory levels, employment trends, new construction, and regional economic conditions. Prices vary significantly between urban centers, suburbs, and rural areas within the same region.
How do I research current market values?
Review recent comparable sales in your target area, consult local market reports, and work with an agent who tracks neighborhood trends. Online estimates provide starting points but may not reflect current conditions or property-specific factors.
What are typical mortgage rates?
Rates fluctuate based on central bank policy, economic conditions, and your financial profile. Fixed rates provide payment certainty while variable rates may offer lower initial costs. Compare rates from multiple lenders and consider both rate and terms.
Home Buying Process & Costs
Understanding Purchase Expenses
Real estate transactions involve multiple costs beyond the purchase price.
How much down payment do I need?
Minimum requirements vary by property price and location. In Canada, typical minimums are 5% for properties under $500,000, graduated percentages for mid-range properties, and 20% for properties over certain thresholds. Higher down payments reduce mortgage insurance costs and monthly payments.
What are total closing costs?
Expect 1.5-4% of purchase price in closing costs. This typically includes legal fees, title insurance, property inspection, appraisal fees, and applicable transfer taxes. Some jurisdictions have higher transfer taxes than others. First-time buyer rebates may be available depending on location.
What is the mortgage stress test?
Lenders verify you can afford payments at rates higher than your actual mortgage rate. This protects buyers from potential rate increases and ensures sustainable debt levels. Your debt service ratios must stay within lender requirements.
How long does the buying process take?
From mortgage pre-approval to closing typically takes 6-12 weeks. Pre-approval takes 1-3 days, house hunting duration varies by market conditions and buyer criteria, and closing periods usually range 30-90 days depending on the transaction complexity and local practices.
First-Time Home Buyer Programs
Available Benefits & Incentives
Various programs help first-time buyers enter the market.
What programs help first-time buyers?
Available programs vary by jurisdiction. Common options include down payment assistance, tax credits for first purchases, and registered savings plans. Some areas offer enhanced mortgage terms for first-time buyers. Consult with a mortgage professional about programs in your area.
How do registered savings plans work for home purchases?
In Canada, the Home Buyers’ Plan allows withdrawal from registered retirement savings for down payments. Current limits are $60,000 per person with repayment over 15 years. The First Home Savings Account allows tax-deductible contributions with tax-free withdrawals for home purchases. Annual and lifetime contribution limits apply.
Can first-time buyers get longer amortization periods?
Some markets offer extended amortization periods for first-time buyers, reducing monthly payments. Longer amortizations decrease monthly costs but increase total interest paid. Evaluate whether lower payments or faster equity building better suits your financial goals.
What documentation do first-time buyers need?
Typical requirements include employment verification, income statements, credit reports, down payment source documentation, and identification. Pre-approval helps identify exactly what you need before making offers.
Luxury Real Estate ($2M+)
Premium Market Insights
Higher-value transactions involve unique factors and requirements.
How is luxury market activity?
Luxury markets often show different patterns than general residential markets. They’re less sensitive to mortgage rate changes due to higher cash buyer percentages. Inventory tends to be lower and sale timelines longer. International buyers often participate in premium segments.
What makes certain neighborhoods premium?
Premium areas typically offer established prestige, architectural significance, privacy, large lots, proximity to high-end amenities, and strong school districts. Historical appreciation and limited supply maintain values.
How is financing different for high-value properties?
Properties above certain thresholds require higher down payments and stricter income verification. Many buyers use portfolio lending, asset-based financing, or cash purchases. Qualification requirements exceed standard mortgage guidelines.
What additional services do luxury buyers need?
High-value transactions often require specialized property inspectors, enhanced privacy considerations, coordination with wealth advisors and tax professionals, and longer due diligence periods. Estate planning and holding structures may be relevant.
Ready to buy, sell, or rent?
Contact Homenor for property information and consultation. Our team has completed over 2000 transactions across residential and commercial real estate in 20+ years of operation. We provide market analysis, pricing guidance, and transaction support.