Whether it's your first or your tenth, buying a home is one of the most significant decisions you can make. Knowing the ins and outs of the process ahead of time can help you target your search and prevent you—and your bank account—from getting caught by surprise. Here are some common questions from home buyers:

How much can I afford?
Unless you plan to pay the entire price for a home with no mortgage, talk to your financial institution to find out what is a realistic price range for you. You might also want to consult with mortgage brokers to find the right type of mortgage for you.*

Should I use a realtor?
A professional realtor can assist you in many ways, from finding properties that aren't marketed to the public to effectively handling price negotiations.

Do I need to use a lawyer?
It's in your best interest to use a lawyer or notary public to handle the sale.

When is a good time to buy?
There are many factors that determine real estate prices, such as your desired location, the type of home you want, and the number of homes available in the area. No one can predict what the market will do, but your realtor can give you information about trends in neighbourhoods that interest you.

Should I buy a new or resale property?
The answer depends largely on what you can afford and what is available in the area. Older properties likely do not have a home warranty, but newer properties, especially those that have not yet been built, carry their own risks. Your realtor can help you weigh the pros and cons of each option.

I found a property I want to buy. What is the next step?
You need to prepare a written offer to purchase. It must contain certain pieces of information, such as the date and time when it expires. Your realtor will assist you with the details.

What are subject clauses?
Your written offer can contain conditions that must be met before the sale will be processed. These are called subject clauses. For example, you might include a subject clause that your present home must be sold before the current sale can move forward.

How can I ensure that the property I buy does not have any significant defects?
You can include a subject clause in your offer that states that your purchase is conditional on the findings of a home inspection. A home inspector may not detect problems with electrical or gas systems; you may want to bring in a specialist if there are any concerns with these systems.

Do I have to make a deposit when I make an offer?
A deposit is good faith money.  Typically you will not pay  a deposit until all of the conditions in your offer are met.  Once you have removed all of your subjects from your offer and are comfortable with moving forward on the purchase of your new home, you will be required to pay a deposit in the range of 5% - 10% of the purchase price.  This deposit is put into your brokerages trust account and goes to form part of your closing costs and down payment.  

Is a seller obligated to accept my offer?
No. A seller may accept it or reject it. Sellers also have the option of making a counter-offer, which involves making some changes to what your offer proposed. It's up to you if you want to accept a counter-offer, reject it, or make your own counter-offer.

If a seller makes a counter-offer, can the seller decide to scrap it and use my original offer?
No. A counter-offer nullifies your original offer.

What if I want to cancel my offer?
Buyers can revoke an offer, but legal problems can arise. Consult a professional.

The seller will accept my offer if I agree to assume the existing mortgage on the property. Is this a good idea?
The answer depends on what terms define the existing mortgage (such as the interest rate and the length of the repayment period) and what would be the best option mortgage for you. It's in your best interest to get an opinion from a professional before agreeing to take on a seller's mortgage, even if it appears that it fits your criteria for the kind of mortgage you want.