TAKE YOUR FIRST STEP HOME
BUYING YOUR
FIRST HOME
YOUR DREAM STARTS HERE
Buying a first home is an exciting and rewarding experience. Your own home is not just
the culmination of a lifelong goal, but also a fulfillment of your most cherished dreams
and aspirations. Saving up for the initial down payment (which varies from 5% to 25%
of the home price) is usually the biggest challenge faced by many first-time home
buyers. This is where the
MyHome
®Program
makes it easy and affordable for aspiring
homeowners to buy their first home.
Specifically designed for first-time home buyers, the
MyHome
®Program
offers an
interest-free, forgivable (subject to conditions) provincial down payment loan that eligible
recipients could use toward their down payment. At present, the
MyHome
®Program
is being
offered at Canary District, the visionary new condominium development which will be a
temporary home away from home for the athletes of the 2015 Pan/Parapan Am Games.
Hailed as “the city’s fi rst 21st century community”
by Toronto Star, Canary District will evolve into
a model of environmentally friendly urban living;
a vibrant family community adjacent to the
beautiful new 18-acre Corktown Common Park
and Front Street Promenade, with great views of
downtown Toronto, interconnected courtyards
and a wide range of retail and dining choices.
The Canary District and Canary Park
Condominiums will off er a superb selection of
studio, 1 and 2 bedroom suites some with dens,
featuring spacious open concept layouts and
quality fi nishes. A fi ne complement of leisure,
social and fi tness amenities, including garden
courtyards, gyms and party rooms, which will
extend the lifestyle choices for residents.
THE NEXT
GENERATION
OF URBAN LIVING
Canary District is the perfect fi rst-home
ownership opportunity in Toronto. Just minutes
from the downtown core, Canary District will
be part of a burgeoning neighbourhood with
parks, schools, shopping and transit right at your
doorstep. Canary District is a signature project
of Dundee Realty Corporation and Kilmer Van
Nostrand, two reputable companies with a stellar
track record in the building and management of a
multitude of residential and commercial projects
across Canada. Dundee Kilmer Developments has
brought together an outstanding team to design
and build a leading-edge, sustainable, modern
and vibrant new neighbourhood.
WHAT IS THE MYHOME
®
PROGRAM?
The MyHome Program is a unique home ownership assistance program that allows purchasers to apply for
provincial funding which must be used towards making the down payment on an eligible condominium unit in the
Canary District. The provincial funding is in the form of an interest-free forgivable loan and is equal to 10% of the
purchase price of the unit. For the loan to be forgiven, the eligible purchaser must live in the unit, must not sell or
lease the unit and must not default under the loan or any other permitted mortgage (including HST) for 20 years
from the date of possession of the unit.
SO EASY, YOU’LL FEEL RIGHT AT HOME!
Under the
MyHome
®Program
, Canary District Condominiums is off ering a limited number of units that will
qualify as eligible units. These units are all under $492,608 (including HST), as required by the province and
are available in a variety of sizes and fl oorplans to suit individual needs and budgets.
MyHome
®brings home ownership within your reach. This easy, aff ordable program
helps you build equity and sets you on the road to fi nancial independence.
• You are currently renting and don’t own or have any
interest in a property in Canada
• The unit you are purchasing will be your fi rst and
principal residence
• You are a permanent resident or citizen of Canada
• You are 18 years of age or older
• You are eligible for fi nancing
• Your total household income is under $87,800 per
annum (including all individuals over 18 who will be
residing with you)
IF YOU MEET THESE
6
CRITERIA,
We have calculated what your qualifying household income would be for a typical One Bedroom + Den Suite.
As shown below, qualifi ed buyers can see what total monthly carrying costs are with the help of the
MyHome
®Program
. As you can clearly see, the
MyHome
®Program
is an easy, aff ordable way to start building equity and
become a proud homeowner in the GTA.
*Government of Ontario’s 10% loan based on eligibility. See a Sales Representative for details. Terms and conditions apply.
Limited time off er. Limited number of units available. Illustrations are artist’s concept. Exclusive Listing: Baker Real Estate
Incorporated, Brokerage. Brokers Protected. Prices and specifi cations are subject to change without notice. E. & O.E.
**The above example and fi gures shown are purely for illustrative purposes only and should not be taken as a commitment or
guarantee or actual costs, which may vary with each individual situation. Please see a Sales Representative for details. Figures
calculated using TD variable 5 year closed rate at 2.79% and amortization of 25 years. Property taxes estimated at 1% of the
purchase price.
Purchase Price:
$ 362,900
Discount ($20K):
$ 342,900
Get a 10% FREE Loan
*
:
$ 34,290
Apply for a
90%
Mortgage:
$ 308,610
Mortgage Insurance:
$ 7,407
TOTAL MORTGAGE: $ 316,017
Qualifying Household Income: $70,624
Monthly Payments
Principal & Interest:
$ 1,462
Mo. Taxes:
$ 286
Mo. Maintenance Fees:
$ 312
TOTAL MONTHLY
CARRYING COST: $ 2,060
Canary District’s
MyHome
®Program
is by far the best way to get you into homeownership in the GTA. Here’s a
breakdown of the costs of buying a $362,900 condominium at Canary District with the
MyHome
®Program
.
For fi rst-time homebuyers, this includes a FREE 10% loan* and a $20,000 price reduction when qualifi ed
buyers purchase under the
MyHome
®Program
.
LIVING
DINING/KITCHEN
11’0” x 18’0”
BATHROOM
BATHROOM
BEDROOM
9’0” x 13’5”
DEN
7’4” x 9’9”
W
D
FLOOR M
FLOOR 2-10
FLOOR 11
BALCONY
THE MYHOME
®
PROGRAM:
AN EXAMPLE OF WHAT YOUR 10% FREE
LOAN CAN DO FOR QUALIFIED BUYERS.
SAMPLE SCENARIO
CONDOMINIUM
BUYING
MADE SIMPLE
Terms to Know When Buying Your First Home
Agreement of Purchase and Sale:
The Agreement of Purchase and Sale is the document that is used to state the Buyer’s desire to purchase the property, and negotiate the terms of the sale.Builder/Developer:
A person or company that builds homes.Closing costs:
Costs in addition to the purchase price of the home, such as legal fees, transfer fees and disbursements, that are payable on closing day. They can range from 1.5% to 4% of a home’s selling price.Closing day/Final Closing:
Date on which the sale of the property becomes final and the new owner takes possession & legal title of the home.Commitment Letter (or Mortgage Approval):
Written confirmation from the purchaser’s mortgage lender that approves the advancement of a specified amount of mortgage funds under specified conditions.Condominium:
A unit, usually in a highrise or lowrise, or a townhouse that can be owned. You own the unit you live in and share ownership rights for the common space of the building. Common space includes areas such as corridors, the grounds around the building, and facilities such as a swimming pool and recreation rooms. Condominium owners together control the common areas through an owners’ association. The association makes decisions about using and maintaining the common space.Credit bureau/Credit Reporting Agency:
A company that collects information from various sources and provides credit information on a person’s borrowing and bill paying habits to help lenders & other creditors assess whether or not to lend money to the person.Credit history or Credit Report:
The main report a lender uses to determine your creditworthiness. It includes information about your ability to handle your debt obligations and your current outstanding obligations.Deposit:
Money placed in trust by the purchaser when an Offer to Purchase is made. The sum is held by the lawyer until the sale is closed and then it is released to the vendor.Down payment:
The portion of the home price that is not financed by the mortgage loan. The buyer must pay the down payment from his/her own funds or other eligible sources before securing a mortgage.Gross Debt Service Ratio (GDSR):
The percentage of the borrower’s gross monthly income that will be used for monthly payments of principal, interest, taxes and heating costs (P.I.T.H.) and half of any condominium maintenance fees.Gross monthly income:
Monthly income before taxes and deductions.Home Warranty:
(New Home Warranty Program) A guarantee that if something covered under the warranty needs to be repaired it will be. If the builder doesn’t repair a valid deficiency, the repair will be made by the Tarion organization that provided the Warranty Program.Household budget:
A plan that allocates income for household expenses.
Interest:
The cost of borrowing money. Interest is usually paid to the lender in regular payments along with repayment of the principal (loan amount).Lawyer:
A legal advisor who assists people by representing them on legal matters.Lender:
A mortgage lender is an institution (bank, trust company, credit union, etc.) that lends money secured by a mortgage against the property being purchased.Mortgage:
A mortgage is a security for a loan on the property you own. It is repaid in regular mortgage payments, which are usually blended payments. This means that the payment includes the principal (amount borrowed) plus the interest (the charge for borrowing money). The payment may also include a portion of the property taxes.Mortgage approval:
Written notification from the mortgage lender to the borrower that approves the advancement of a specified amount of mortgage funds under specified conditions.Mortgage broker:
The job of the mortgage broker is to find you a lender with the terms and rates that will best suit you.Occupancy Date:
The date that the Vendor anticipates the condominium home will be completed and ready to move in (but not necessarily the date title to the home is transferred.Pre-Delivery Inspection (PDI):
Before you take possession of your new home or condominium, your builder is required to conduct a pre-delivery inspection, or PDI of the home. During the PDI, you will identify any items that are damaged, missing, incomplete or not operating properly.Principal:
The amount that you borrow for a loan. Each monthly mortgage payment consists of a portion of the principal that must be repaid plus the interest that the lender is charging you on the outstanding loan balance. During the early years of your mortgage, the interest portion is usually larger than the principal portion.P.I.T.H.:
Principal, interest, taxes and heating — fundamental carrying costs of a home used to calculate the Gross Debt Service Ratio (GDSR).Property Insurance:
Insurance that you buy for the building(s) on the land you own. This insurance should be high enough to pay for the building to be re-built if it is destroyed by fire or other hazards listed in the policy.Property taxes:
Taxes charged by the municipality where the home is located based on the value of the home. In some cases the lender will collect a monthly amount to cover your property taxes, which is then paid by the lender to the municipality on your behalf.Real estate:
Property consisting of houses and land.Vendor:
The seller of a property.(Sources: cmhc-schl.gc.ca, tarion.com. OREA.com)
Guide for Home Buyers
Submit a MyHome® First Time Homebuyer application form.
Application forms are available through Dundee Kilmer at the Canary Park Sales Centre.
All applications must be accompanied by the required documentation, including:
photo identification; income verification; proof of rental tenancy; and a signed declaration
Dundee Kilmer pre-qualifies the Purchaser and enters into an Agreement of Purchase and
Sale for a unit in the development in accordance with the program requirements. Purchaser signs
the MyHome® First Time Homebuyer Agreement for the down payment assistance which
will be held by Dundee Kilmer in escrow pending MMAH/CMHC approval
Dundee Kilmer forwards completed application and supporting documentation
to MMAH to confirm eligibility
Letter to be sent by MMAH confirming approval for down payment assistance
and Canada Mortgage and Housing Corporation (CMHC) approval
Purchaser to secure 1st Mortgage Pre-Approval Financing
Upon expiry of the 10 day rescission period and confirmation by Dundee Kilmer that the Purchaser
has obtained satisfactory financing in Dundee Kilmer’s sole discretion within 60 days of executing
the Agreement, Dundee Kilmer will forward a copy of the Agreement of Purchase
and Sale, supporting documentation and signed loan agreement to MMAH
MMAH will forward the down payment assistance funds to be held in trust
by Dundee Kilmer’s solicitor until day of closing
Purchaser’s solicitor to register second mortgage on title at closing.
Copy of second mortgage will be sent to Purchaser’s solicitor for delivery to Purchaser
What is an occupancy date?
The occupancy date as set out in your agreement of purchase and sale is the date which you obtain keys to your new home, and you are legally able to reside there. On the occupancy date, your solicitor will be given the associated costs (an occupancy statement of adjustments) as outlined under the adjustments section of your agreement of purchase and sale. Payment in accordance with the occupancy statement of adjustments will be required to be paid by you to release the keys for your suite. The occupancy period typically lasts a few months. During this time, the developer is obtaining registration for the condominium. This means that the developer is still the legal owner of your property, and as such you are obligated to pay a monthly occupancy fee to the developer until the registration is finalized. The occupancy fee covers any taxes, maintenance fees and interest that the developer is currently paying to operate the building until final closing.
When will it officially be my home?
Once your condominium building has been registered, a corporation is created. At this time the builder will provide notice and proceed with your final closing, thus making the property your very own. At the time of final closing, there will be associated costs and a final closing statement of adjustments will be sent to your solicitor. Any charges as laid out in your agreement of purchase and sale will be listed as they pertain to your purchase transaction. In order for your unit to close, it will be necessary for you to have your financing in place from a major financial institution, plus have the remaining funds available for payment. The closing costs often vary depending on the terms of your agreement and the price of your new home.
What do the condo docs mean to me?
When you own a condominium, you are required to obey certain “laws” as set out in your condominium documents and regulated by the provincial Condominium Act, 1998. There could be restrictions on the size of a pet, or the volume at which you play music, or to what you may or may not store on your balcony. Because there are so many owners living in the same structure, it is important that you obey these guidelines and respect your neighbours. The disclosure is a document, which discloses the intent of the builder for the project, as well as the regulations for the building and units. The budget is the first year budget for the condo corporation as set out by the selected property management company.
The monthly maintenance fee is based on each owner’s proportionate share of the first year budget costs. A portion of the maintenance fee will go towards the condo corporation’s reserve fund for major maintenance and repairs. The declaration in the condo docs is the documents that describe the structure of the condominium. Complimentary to this, is the shared facilities agreement for any shared areas & services when there is more than one building or component involved.
The condo docs also contain rules, the agreement with the property management company, a insurance trust agreement, by-laws, and a draft plan of the building. While each component seems almost meaningless on its own, the entire package of condo docs, establishes the basis for an orderly way of life in the context of shared ownership. Your monthly maintenance fees covers the costs of operation of the building & any services required for that operation which allows you to live harmoniously amongst your neighbours.
What is in an agreement of purchase
and sale (APS)?
The first page of your Agreement of Purchase and Sale (APS) sets out the unit which you have purchased and the details of your deposit structure. It is important to double check that your name is spelled correctly on the agreement of purchase and sale, and that all of your personal information is accurate. The body of the APS outlines your contractual obligations with the builder and vice versa. If you have questions regarding your agreement, it would be best to consult with your solicitor. Schedule A is a sketch of the floor plan of your unit and its location on its floor.
Schedule B lists the features and finishes you can expect to receive with your unit. Schedule C outlines the terms of the occupancy license during the occupancy period.
The Tarion statement & addendum lists any critical dates.
Schedule D is a signed acknowledgement for receiving a copy of the Condo Docs and a fully signed APS.
How much can you afford?
(Source: http://www.cmhc-schl.gc.ca)
Home ownership is an important emotional and financial decision to make. It is necessary to calculate what your current monthly expenses are along with knowing how much debt you are carrying. In addition to purchasing your home, additional expenses related to owning your own home will include:
•Heating •Property Taxes •Maintenance Fees
The term PITH is used to reference
expenses such as Mortgage Payments
(Principal and Interest), Taxes, and
Heating.
The first rule of affordability is PITH should not be more than 32% of your gross monthly income. The second rule of affordability is that your entire monthly debt load should not exceed 40%. This includes your housing costs (PITH) plus all other debt payments (such as car loans or leases, credit card payments, lines of credit payments, etc.).
The maximum home price one can afford comes down to a number of factors. The most important factor is your household monthly gross income along with your down payment. The hardest part about home ownership, for many, is saving for the necessary down payment.
What are your next steps?
(Source: http://www.cmhc-schl.gc.ca)
It is important to get a copy of your credit history. A credit report allows lenders to see how well you have paid your debts in the past.
You will want to obtain a copy prior to applying for a mortgage, to ensure that there are no surprises and that all of the information is complete and accurate. The two main credit-reporting agencies to contact are Equifax Canada Inc. and TransUnion of Canada.
What should you do if you have
no credit history?
(Source: http://www.cmhc-schl.gc.ca)
If you do not have credit history, you may want to start building some. To do this, you can start by obtaining a low limit credit card from your local bank. Make small purchases on the card, and pay the bill immediately.
What should you do if you have a poor
credit history?
(Source: http://www.cmhc-schl.gc.ca)
If you have poor credit, lenders may not be able to approve you for financing. It is important to re-establish your credit, by making your debt payments regularly and on time. Most disapproving credit information will drop off of your credit record after seven years. Speak with your desired lender, and review your options.
Why would a mortgage
pre-approval help?
(Source: http://www.cmhc-schl.gc.ca)
Asking your lender for a mortgage pre-approval will help you to determine what you can afford. The pre-approval is only good for a set amount of time, but it often helps one keep a desired price-range in mind.
Items to bring with you, when you meet your lender for a pre-approval application: •Government Issued Identification •Employment details, including salary •All sources of income
•Information of your accounts, debts, and payments
•Source and amount for a down payment •Proof of funds to cover closing costs
(which average 1.5% - 4% of the purchase price)
•Proof of any financial assets
What does it mean to purchase in a
condominium?
Condominium ownership means that you own the unit you live in and ownership is shared with other unit owners for common spaces.
Common spaces may include but are not limited to areas such as corridors, amenities, and the grounds of the building. The maintenance of the common space is monitored by the condo association, comprised of owners in the condominium.
Why is having a lawyer a must from start
to finish in this process?
Having a lawyer is necessary from beginning to end. A lawyer will ensure that your legal interests are covered. They will review all contracts before you commit to them, including your agreement of purchase and sale and condo documents. At the time of occupancy and final closing, using the same solicitor will be helpful, as they are familiar with your documents, and will be able to easily assist you through the process.
What type of warranties will you receive
with your condo?
Your condominium will come with Tarion Warranty coverage. For details on your new home warranty, please visit: www.tarion.com
Once I have decided on my unit choice,
how do I make my purchase?
Once you have chosen your home, it is time to arrange for your deposit. With the MyHome®
program, the first step to ownership is filling out an application for a provincial forgivable down payment loan of a maximum of 10% of the purchase price (net of HST). You must also sign an agreement of purchase and sale. With the agreement of purchase and sale, it is important for you to bring your cheque book with you, and two pieces of government issued photo identification which includes your present Ontario address.
After signing your agreement of purchase and sale, you will receive an original copy with your condominium documents. There is a 10 day statutory period, which you are given to review your documents and have any questions answered. At this time it would be in your best interest to obtain a solicitor so that they may answer and address any of your concerns in a professional manner. On the expiry of this 10 day period, subject to any conditions in the agreement, the agreement becomes firm and binding for the purchaser and vendor.
What is a PDI?
A PDI, better known as pre-delivery inspection, is exactly what it sounds like. You will
essentially inspect your unit prior to the builder delivering it to you. It is an inspection that takes place a few days before your occupancy date. You will walk through your unit and review the quality of your electrical connections, walls, floor, and finishes, to ensure that they are satisfactory. Areas of concern will be noted, and rectified by the developer. Usually issues are small in nature, and do not hinder you from occupying your unit.
A representative from the builder will be in contact with you in the weeks following, and will update you on the progress of clearing any concerns that were raised during your PDI.
GENERAL
Your Monthly Income
Salary or wages
Commission, bonuses, tips
Interest and investment income
Child support or alimony
Other income
Total Gross Monthly Family Income
Your Monthly Expenses
Cable
Car: gas
Car: insurance + licensing
Car: Loan or lease payments
Car: Parking
Car: repairs and maintenance
Charitable donations
Child care
Debt repayment e.g. credit cards
Entertainment and recreation
Groceries
Medical
Newspapers, magazines and books
Personal (clothing, personal care)
Public transportation
Savings (e.g. company stock option plan or RRSP monthly contributions)
Telephone
Total Monthly Expenses
Amount Available for all Housing Costs
1
–
2
=
1
2
Monthly Cashflow Worksheet
LET YOUR DREAM TAKE FLIGHT
At Canary District, it’s our commitment
to help you make your dream home a reality.
The
MyHome
®
Program
offers you an easy,
affordable means to achieve your goal.
Together, let us show you the way home.
* This monthly cash flow worksheet is only intended as a budgetary example. MyHome® Program participants are urged to create their own custom budget reflective of their specific income and expenses.
