Closing day, the pinnacle moment for Canadian first-time homebuyers, often harbors unexpected challenges. As a Canadian REALTORĀ® with years of experience, I’ve witnessed common hurdles that can arise during this crucial juncture. Understanding these obstacles and their solutions is pivotal for a seamless transition into your new home. Like every problem, awareness, knowledge, and corresponding action will greatly reduce its impact.
Financial Hiccups: Statistics indicate that approximately 22% of Canadian homebuyers face last-minute financing glitches. To circumvent this, securing mortgage pre-approval well in advance is imperative. Utilize reliable resources from the Canada Mortgage and Housing Corporation (CMHC) or the Financial Consumer Agency of Canada (FCAC) to ensure your financial readiness.
Underestimating Closing Costs: Many first-time buyers underestimate the closing expenses. According to government sources like the CMHC, around 62% of Canadian first-time homebuyers fall into this trap. Be prepared by diligently reviewing potential costs beyond the down payment, including legal fees and land transfer taxes.
Property Inspection Surprises: Nearly 35% of buyers discover unforeseen issues during property inspections and even post inspection according to industry data. Rely on professional inspectors and resources from organizations like the Canadian Real Estate Association (CREA) to conduct a thorough inspection, unveiling any hidden concerns. Usually, minor repairs or faults are repaired by sellers before closing or there is a holdback until repair is completed. If major faults are found, they could be a deal breaker depending on their gravity.
Communication Lapses: Effective communication breakdowns with sellers or agents occur in approximately 18% of cases. Engage your REALTORĀ® to facilitate clear communication among all parties involved, minimizing misunderstandings. Document expectations and to dos. Most times a simple email conforming actions to be taken is enough. Other times the services of a lawyer may be required.
Utility Shutoff Surprises: So, you have finally closed, moved in, and suddenly lost power and water at night. You thought it was a fault since it’s a new building but after several calls soon realized you forgot to call the power company or municipality to transfer electricity accounts and water. This error may be due to administrative errors, outstanding bills, or delays in the transfer process. You are not alone. To mitigate this problem, strive to follow through every to-do instruction you receive from your REALTORĀ® and proactively close them out before closing-day.
Arming yourself with knowledge, leveraging reliable resources, and partnering with trusted Real Estate Professionals are instrumental in circumventing these challenges. Empower yourself with foresight and expertise to navigate closing day hurdles, ensuring a joyous entry into your new Canadian abode.
So, fellow Canucks, fear not! Navigating closing day surprises is part of the Canadian home-buying adventure. Armed with info and a trusty REALTORĀ® by your side, youāll be hanging that “Home Sweet Home” sign in no time.
Are you looking for property in the Greater Moncton Area of New Brunswick Canada?
*Please note that the statistics and resources mentioned are based on data available May 2022, and current figures may vary.
*The information provided here is for educational purposes only. Consult professionals before making any financial or real estate decisions.
*Image Credit Unsplash
