How to Buy a New Home
Guides

Home Buyer’s Guide
For First Timers

The Ultimate Buyers Guide for First-Timers

Signing
the deal

Once you’ve chosen the home you want, it’s time to sign the deal, known as an Agreement of Purchase and Sale. This is the first step in the process of building the home of your dreams!

Most builder contracts are fairly standard, but it’s important to know exactly what is in your agreement because it is a binding contract. The purchase agreement puts in writing everything that is included, from incentives to included features

What you will need

Each builder has different requirements, but most will need:

  • Photo ID of everyone who will be present at the time of sale and added to title.
  • A refundable deposit to secure your lot or condo unit. The deposit can also be used towards your down payment. Amounts vary by builder.
  • Most builders will require mortgage approval.
  • Your lot and floorplan choice or condo unit choice.
  • Any changes you want to make to certain structural components that will become part of the house plans to be filed with the city.
  • Your lawyer’s contact information.
  • Proof of Canadian residency/citizenship.

Your Sales Representative should go through your Agreement of Purchase and Sale with you carefully so you understand everything you are signing.

What to expect

  • After you’ve reserved your lot/unit and put down your deposit, it could take a week or so for your sales agreement to be ready. Your Sales Representative should go through the agreement with you, pointing out key elements such as the expected closing date, consequences of delays in choosing design finishes and costs for additional investments not included in the base price of your home.
  • Minto also offers a five-day conditional period for legal review and financing before the contract. Ask our Sales Representatives for details.
  • The process for a condo is different, though. The Condominium Act requires a cooling-off period of 10 days to go over legal information that is provided upon signing (known as the disclosure statement), and a buyer can back out within that time period.
  • Depending on the type of home you have purchased, the layout of your finished home could be a reverse mirror image of the floorplans shown in the marketing materials or Agreement of Purchase and Sale. This is something to keep in mind when purchasing appliances such as fridges and dryers, as you have to select which way the door swings.
  • Once you’ve signed your agreement, your builder will require a deposit and postdated cheques for further deposit installments. Amounts will vary.
  • Tarion protects deposits on freehold homes up to 10% of the purchase price (to a maximum of $100,000), and condo deposits are covered up to $20,000, with condo deposits over that amount protected by provisions of the Condominium Act.
  • Most builders will also give you an information package that explains next steps, often referred to as a homeowner’s manual or guide. There’s valuable information in there so be sure to read it.
  • Your builder will likely require a mortgage approval letter from your lender saying you are approved for a mortgage.
  • Keep copies of everything for tax purposes.
Tarion Protection

In addition to deposit protection, Tarion provides new home warranty protection to home buyers in Ontario by administering Ontario’s new home warranty act. With very few exceptions, builders are required to be registered with Tarion and the corporation maintains information on builders including the number of homes they’ve built and their customer service record. Tarion also offers general advice to buyers through its website.

What comes next

Once your agreement is firm, detailed and specific plans will be drawn up for your home and permits requested so that construction can begin.

Ask when you will be contacted to make selections for interior and exterior finishes (if applicable). Each builder has a different policy for finalizing selections, which can be done at one or more appointments.

Continue your budgeting and savings plan. If you have not yet established a budget that’s based on what your expenses will be when you move in, do this now. It will help you adjust to what your commitments will be and, as a bonus, will help you add to your savings while you’re waiting for that budget to actually kick in.

New homes in Ottawa are taking an average of 12 to 18 months to build these days, giving you time to plan and adjust. Condo apartment buildings typically take longer as most builders will wait until a majority of the units are sold before beginning construction.

Register now for special offers, incentives and latest news