Have you found your dream home and are ready to present an offer to purchase? Tread carefully. The offer to purchase is one of the most important documents you'll ever sign, because it is a legal agreement between you and the vendor. Once accepted, it is legally binding and you have to respect the clauses.
Your real estate agent can guide you and prepare your offer to purchase with you. We suggest that you have your notary or lawyer review it before signing, especially if there are special clauses.
Get Financing BEFORE Making An Offer
You will receive generally in less that 72 hours or three business days a confirmation of the maximum amount that you can borrow from the Bank toward the purchase of a property. We will confirm the maximum amount that you can borrow from us to put towards the purchase of your future home. The mortgage conditions will be guaranteed for a period of 90 days1 (120 days in the case of a new construction that is part of a housing development project).
If lending rates go up, your rate will be guaranteed for this pre-determined period.
A pre-approved loan confirms your solvency to the agent and vendor while affording you greater leverage to negotiate.
To apply for your pre-approved mortgage, simply complete our online form or consult an advisor at one of our branches.
Do I Have to Make a Deposit?
The vendor may demand a deposit when you present an offer to purchase. It is up to you to accept or refuse, or even to contest the amount. However, making a deposit shows that you are serious and could work in your favour during negotiations.
If the sale goes through, the amount can be applied to the down payment. If the offer to purchase does not go through, you get your deposit back.
A Deposit on a New Home
Building a new home can span several months, which is why contractors require a deposit to protect them against transactions that fall through and to cover some of their fees. Some contractors may even request partial payments throughout the construction period.
Tip: Get The Home Inspected by a Specialist!
For peace of mind, present an offer to purchase on the condition that the home passes inspection. If you are happy with the certified building inspector's conclusions, move forward. If the home has major defects, withdraw your offer or negotiate a price that will allow you to cover the necessary work.
Your offer is accepted? Congratulations!
1. For a residential building with one to four dwellings only.