Governement Programs

Your lawyer should advise you as to whether or not you can benefit from any government programs designed to assist home buyers from time to time. Those programs include Land Transfer Tax Rebate programs, Ontario Home Ownership Savings Plans (Ontario), RRSP plans, together with details as to how the CMHC or GE CAPITAL 5% Down Program works.

Fire Insurance

If you are financing your home purchase by means of a mortgage you will have to arrange for fire insurance to cover the property from the day of closing. You should advise your insurance broker of the name, address, phone number and fax number of both your lawyer and of the financial institution providing your mortgage.

The mortgagee must be noted on the policy and a "binder letter" must be received by your solicitor confirming that insurance coverage is in place effective on closing and noting the interest of the mortgagee thereon.

Be sure to explain the importance of this to your insurance broker as the financial institution will not advance funds to close your purchase until they know that there is insurance on the property. Failure of the insurance broker to deliver the binder letter is one of the most common causes of delayed closings (and gray hair for the lawyer!)

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