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Save Time And Money When Buying A Toronto Home


									    Save Time And Money
        When Buying
      A Toronto Home

   Home Buyer
   Class Workbook


                         at RE/MAX                            
Sales Representatives416-691-8118 Hallmark Realty Ltd Brokerage Centre 416-721-9299              George Christopoulos The Mortgage       
                            Workshop Guest Speakers

                                     Sally Cook
                                     Why A Buyer Consultation Is So Important To Have

                                     Carson Dunlop & Associates
                                     Home Inspection

                                     George Christopoulos

                                     What Happens At The Mortgage Consultation
                                     The Mortgage Centre


                                     Thomas Cook
                                     A Complete Overview Of The Home-Buying Process

                                                                                                                      2   416-691-8118    George Christopoulos The Mortgage Centre 416-721-9299
                      What You’re Going To Learn…
5       Our Credentials…
6	     	Real	Estate		&		Mortgage	Definitions
10      The Home-Buying Process Starts
11      Buyer Agency And Why It Protects The Buyer
13      How To Choose The Right Buyer Agent
14      ‘Fire Us Anytime’ Easy Exit Buyer Contract Cancellation Guarantee
15      Sample Buyer Contract
19      What Happens At A Home Inspection?
21      The Buyer Consultation
23      Personal Financial Counseling
24      Home Features Wish List
26      Buyer Cash Flow Comparison Chart
27      Budget Planner
28      WARNING... If You Are Thinking Of Going To ‘Just Look’ At A Home... CALL US FIRST!
29      What Steps Do You Need To Take Right Now?
31      Mortgage Financing 101
32      Sample Mortgage Pre-Approval Letter
33      Sample Mortgage Commitment Letter
34      Using RRSPs To Buy Your First Home: The Federal Government’s Home Buyers’ Plan
35      Understanding Your Mortgage
36      How To ‘Create’ A Down Payment
38      Zero Down Payment
39      New CMHC Policy Changes Make It Easier To Purchase A Home
40      Calculating The Loan-To-Value Ratio
41      Qualifying For A Mortgage:Calculating GDS and TDS Ratios
42      GDS and TDS Calculations
43	    	Mortgage	Qualification	Chart	25 year amortization
44	    	Mortgage	Qualification	Chart	40 year amortization
                                                                                                                     3   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
45     Complete Home-Buying Process
46     Finding You The Perfect Home
47     Sample MLS Listing
48     What Happens When You Find Your ‘Dream Home’?
49     The Ins And Outs Of Title Insurance
52     Pack And Prepare For Celebration Day
53     Buyer’s Cash Required On Closing
54     Land Transfer Tax Calculations
55     Mortgage Terminator ProgramTM
58     We’d LOVE To Help You Find Your New Home...
59     Appendix
59     Sample Agreement of Purchase and Sale Forms - OREA
69     True Buyer Stories
74     Resume For Thomas & Sally Cook
78     Resume For George Christopoulos
79     Here’s How To Get FREE Updates By eMail Of All The Homes That Come On The
       Toronto MLS Each Week
80     Mortgage Rate Hold & Mortgage Consultation Sign-Up Sheet
81     Notes
82     Buyer Consultation Sign-Up Sheet

                                                                                                                     4   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
                                          Our Credentials…
      •	Realtors since 1980

      •	Managed over 350 properties

      •	Renovated 27 houses and built one from scratch

      •	Five years of banking experience (Sally) & owned a
        mortgage	brokerage	firm	(Thomas	&	Sally)

      •	Helped over 1200 singles and families with their real
        estate needs since 2004... 45%+ referral and repeat

      •	In 2002 through 2007 our Team was ranked in the top 5 RE/MAX teams in
        Ontario. In 2006 Thomas and Sally placed #8 in Canada for RE/MAX. Their
        ranking internationally in 2006 for RE/MAX, out of over 112,000 agents
        worldwide, was #37!

         ABR ® = Accredited Buyer                                                       The highest designation that
                                                 SRESs are required to be
       Representative. This designation                                                    RE/MAX gives its sales
                                                members of the (American)
           is awarded to real estate                                                       associates is the lifetime
                                                  National Association of
       practitioners by the Real Estate                                                      achievement award.
          BUYER’S AGENT Council                                                       Sales associates who qualify for
                                                They have received special
        (“REBAC”) of the (American)                                                    this award have been affiliated
                                            training, regular up-dates and are
            National Association of                                                    with RE/MAX for at least seven
                                             prepared to offer the options and
         REALTORS® who meet the                                                       years and have helped over 600
                                             information needed to make life
          specified educational and                                                          families during their
                                                    changing decisions.
         practical experience criteria.                                                        RE/MAX career

                                                                                                                          5   416-691-8118     George Christopoulos The Mortgage Centre 416-721-9299
              Real	Estate		&		Mortgage	Definitions
Market	Value	(street	definition)

The	highest	price	that	a	property	will	sell	for	on	the	open	market,	while	allowing	for	a	reasonable	time	to	find	a	
willing purchaser who has been advised of comparable sale prices in the immediate area.

Conventional Mortgage
A conventional mortgage is a loan that does not exceed 80% of the home purchase price.

High-Ratio Mortgage
A high-ratio mortgage is a conventional mortgage loan that exceeds 80% of the purchase price of the property.
By law, these mortgages must be insured by CMHC (Canada Mortgage and Housing Corporation) or GE
Capital, if placed with a bank or trust company. These two companies charge an insurance fee that is paid by
you, but which protects the bank in case of mortgage default.

81 to 85 %
86 to 90 %
91 to 95 %
100% / zero down payment

There	are	two	financial	ratios	that	are	used	by	the	main	lending	institutions	to	qualify	borrowers	for	a	

The	GDS	(Gross	Debt	Service)	Ratio
This ratio is calculated by adding together the ANNUAL payments for mortgage principal, interest, realty taxes
and heat + 50% of condo maintenance if applicable and then dividing by the GROSS annual income of the
Ratio should not exceed…

The	TDS	(Total	Debt	Service)	Ratio
This ratio is calculated by taking the SAME annual payments for mortgage principal, interest, realty taxes, heat
and 50% of the maintenance cost as above PLUS adding in any annual payments for bank loans, lines of credit,
credit cards & other debts divided by the GROSS annual income of the borrower.

Ratio should not exceed…

                                                                                                                     6   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
Amortization Schedule
The amortization schedule shows monthly installments of principal and interest and how much of the payment
is allocated to each. It also shows the unpaid principal balance. The amortization is the number of years that it
will take to pay off the loan, were the interest rate to remain constant. Mortgage term is the length of time for
which a particular interest rate is in effect.

 Typically in Canada we use
   25, 30, 35 and 40-year

                                                                                                                     7   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
Mortgage Payment Options
There are four typical payment options, two of which will reduce the amount of interest that you pay. The four
options are:
      · monthly
      · bi-weekly (on the 1st and 15th of every month)
      · accelerated bi-weekly (every 14 days)
      · weekly
An accelerated bi-weekly payment option results in 26 payments being made annually instead of 24. This
means that you pay off your mortgage in 20.87 years instead of 25 AND you pay less interest. Weekly payments
also reduce amortization, but not as drastically.

Many lenders allow you to increase your monthly or bi-weekly payment amount by 15% or more annually. All
of this increased payment goes to reduce your principal balance at a much faster rate.

Mortgage Pre-Approval

A person goes into a bank branch for a mortgage pre-approval. Someone at the bank typically asks them two
general	questions:	How	much	is	your	annual	income?	What	debts	do	you	have?	Then	the	bank	employee	gives	
you a rough guideline of the size of mortgage that the institution will give to you. In many cases, the employee
doesn’t go into greater detail with you until you’ve actually bought a home, usually “conditional upon arranging
satisfactory	financing.

”The problem with this approach is that the bank is working with rough and sometimes inaccurate data and
their calculations could be off by several, or many, thousands of dollars re: the size of mortgage that they will
give	you.	As	well,	a	verbal	pre-approval	is	worth	absolutely	nothing.	The	typical	“quick	qualifier”	that	you	might	
get in written form also is of no real value because of all the conditions at the bottom of it.

These pre-approvals are ALWAYS conditional upon you providing ‘satisfactory’ proof of income, ‘satisfactory’
proof of down payment and having a ‘satisfactory’ credit check! Here’s the biggest problem... picture this:
you’re	house	hunting,	you	find	your	‘dream	home,’	you	put	in	an	offer	conditional	upon	arranging	financing	
within 24-48 hours. Then, you simply do not have the time to get all these proofs together and, even if you do,
it becomes a nerve-wracking race against the clock.

                                                                                                                     8   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
FULL Mortgage Pre-Approval
Getting	a	full	mortgage	pre-approval	is	like	having	a	credit	card	with	a	specific	maximum	mortgage	qualifying	
amount,	no	questions	asked.	To	obtain	a	full	mortgage	pre-approval,	buyers	provide	their	lender	up	front	with	
copies of the following documentation:
1) Proof of income. For this, you need to supply...
        a) an up-to-date letter of employment from your current employer plus one of the following three items:
        a) your most recent tax year’s Revenue Canada tax assessment
        b) current pay stubs
        c) your most recent year’s T4 slip
If	you’re	self-employed,	you	may	be	required	to	provide	copies	of	three	years’	worth	of	Revenue	Canada	tax	
assessment statements.

2) Proof of your down payment, which could be a copy of:
       a) a GIC term deposit,
       b) RRSP statements,
       c) it could be a “gift letter” from Aunt Mary,
       d) or a print out of your bank account if that’s where the cash is.

The lender will then do a credit bureau check in advance to check your credit and verify that there are no

If your supplied information and the credit check turn out OK, you’ll receive an Unconditional Pre-Approval
Letter that is your guarantee of the lender’s commitment and only conditional upon either an appraisal of the
home that you intend to buy, or CMHC/GE Capital approval.
Closing Day or Celebration Day

What our clients call ‘Celebration Day’, or Closing Day, is the date that you actually pay your money (and the
bank’s money) to your lawyer and get the keys to your new home.

                                                                                                                     9   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
                    The Home-Buying Process Starts

                                          You making the decision ...
                                           “I’d like to own a home”

                                             Find a Buyer Agent
                                              to represent you

                     Have a One-On-One
                     Buyer Consultation
                    with your Buyer Agent

                                                               Have a One-On-One
                                                              Mortgage Consultation
                                                                with your Lender

                                                Start Shopping!

                                                                                                                     10   416-691-8118     George Christopoulos The Mortgage Centre 416-721-9299
  Buyer Agency And Why It Protects The Buyer
A	“quiet	revolution”	took	place	in	Canadian	real	estate	in	1995	and	it	could	save	home	buyers	thousands	of	
dollars and a lot of worry.

Savvy home buyers are now hiring Buyer’s Agents, Realtors who work exclusively on their behalf during a home
purchase.	Nothing	new?								

Think again. By law, all Realtors used to work on behalf of the seller of a home. All Realtors -- even the one
showing	you	homes,	listening	to	your	housing	dreams	and	your	financial	fears	--	work	in	the	best	interests	of	
the	seller,	unless	you	take	specific	steps	to	have	them	represent	you!

In order to make this agency relationship perfectly clear to all home buyers, as of January 1, 1995 all Realtors
with the Canadian Real Estate Association and the Toronto Real Estate Board must disclose in writing, and
have buyers sign, a declaration that they are not working in their best interest.

As a result of this forthright disclosure process, buyers now have two choices: they can retain a Realtor, as
usual, or they can hire a Buyer’s Agent to work exclusively on their behalf.

Hiring an agent as can be tricky considering the new written disclosures. Toronto’s Real Estate Team - Thomas
& Sally Cook PLUS!! believes that trust and openness are crucial to the home-buying process and buyers now
may be wary about being completely truthful with their Realtors. But how can Realtors work well on your
behalf	if	they	don’t	know	your	full	financial	picture?	If	they	don’t	know	what	you	are	willing	to	give	up	on	your	
wish	list?

In	short,	how	can	a	Realtor	find	your	dream	home	if	they	don’t	know	your	dreams?								

And while for years most Realtors have, at least subconsciously, been working for their buyers after getting to
know and care for them, there are no legal guarantees that they must -- in fact, the opposite is true. Toronto’s
Real Estate Team - Thomas & Sally Cook PLUS!! Team members strongly believe that hiring a Buyer’s
Agent is the smart choice for home buyers.

Following a trend started in the United States after similar disclosure laws were passed, home buyers can sign
an agreement with a Realtor that allows the Realtor to work on their behalf and to negotiate the best price for
them.	Buyers	become	clients	of	the	Realtor	and	the	Realtor	must	disclose	anything	that	he	finds	out	about	the	
vendor’s situation to them.

The best part is that most Buyer’s Agents -- including us -- don’t charge a special fee to their clients. Instead,
they get paid via a commission that comes from the vendor’s listing agent, just the way it has always happened.
That raises an interesting issue. The commission is a percentage of the sale price of the home.

Some buyers may wonder whether their Buyer Agent will work hard to get them the best price for their home;
after all, a lower price means a lower commission.

                                                                                                                   11   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
Here’s our answer to that one! For a typical home sale, the Buyer Agent is paid a commission of 2.5 per cent
of the sale price. For every thousand dollars of home price, this works out to $25. Once Revenue Canada and
RE/MAX (in our case) take their share, that commission is down to about $15 per thousand of sale price.

Therefore,	if	we	save	you	$5,000	on	your	purchase	price	–	a	very	significant	number	for	you	–	we	lose	$75	in	
commission	--	a	very	insignificant	number	for	us.	Your	referrals	of	family	and	friends	is	a	‘reward’	for	us	having	
secured	you	the	best	price	possible	are	much,	much	more	valuable	to	us	–	both	personally	and	financially	-						

How	do	you	hire	a	Buyer’s	Agent?	It’s	easy	--	home	buyers	sign	an	exclusive	Buyer	Agency	Agreement	with	a	
Realtor. Usually, the buyer agrees to work exclusively with the Realtor for about four to six months and the
Realtor agrees to represent the buyer’s interests to the fullest. That’s it!

Why not protect your interests? Hire the team with the most knowledge to work on your behalf
and do it for no extra cost?

If you would like to peruse a copy of a Buyer Agency Agreement, give one of our team members at the RE/MAX
Hallmark Real Estate Viewing Centre a call.

                                                                                                                   12   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
           How To Choose The Right Buyer Agent
When	you’re	interviewing	a	potential	Buyer	Agent,	logically	you’d	think	that	the	questions	to	ask	him	or	her	
would	be	“How	long	have	you	been	in	business?”	and	“How	many	transactions	have	you	done?”

We tend to assume that if real estate agents have been in business a long time, or if they’ve done a lot of deals,
they	will	be	good	agents.	However,	we	find	that’s	not	necessarily	the	case.	There	have	been	agents	who	have	
been in business a long time and who do a large volume of business, but they’re not really looking out for your
best interests.

Instead,	better	questions	to	ask	are	along	the	lines	of		“What	volume	of	your	business	comes	from	referrals?”	
We	find	that	if	agents	do	not	have	a	referral	business,	they’re	probably	not	treating	their	clients	very	well	in	the	
first	place.

Also, ask potential Buyer Agents for the names and phone numbers of people that they have worked with in the
past. Testimonial letters are great – we get a lot of them ourselves -- but a letter could be written by an aunt, a
mother or a cousin! It’s always better to speak to a former client.

You can sign a Buyer Agency contract with a Realtor that lasts for any length of time, from 24 hours to six
months. A contract protects both of your interests while it is in force. Another important thing to ask potential
Buyer Agents is whether they will give you a written guarantee that you can end your contract with them at any
time	–	no	questions	asked.

If the Buyer Agent says “no,” then you should think long and hard about exactly why they would say no.
Competent,	professional	or	service-oriented	Realtors	confidently	can	say	“yes”	because	they	know	that	you	
would have no reason to want to end your contract.

Also, they have so much business from referrals that they know that additional buyers are going to be calling
them up soon asking for their help with their real estate needs. Their livelihoods don’t depend upon just one
housing deal.

Think	about	your	business,	if	you’re	in	a	similar	situation	Aren’t	you	confident	enough	about	your	skills	to	offer	
an	“opt	out”	clause	to	an	unsatisfied	customer?	

Shouldn’t the Buyer Agent who is going to represent you in what likely will be the single largest purchase of
your	life	be	confident	enough	to	offer	that	kind	of	guarantee	too?

For your reference purposes, the next page contains our ‘Fire Us Anytime’ Easy Exit Buyer Contract
Cancellation Guarantee.

                                                                                                                   13   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
      ‘Fire Us Anytime’ Easy Exit Buyer Contract
                Cancellation Guarantee

                                                                                                                   14   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
                                Sample Buyer Contract


                                                                                                                   15   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299

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                                                                                                                   17   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
What is the cost to have a Buyer Agent represent your interests throughout the

                                               $ ZERO !!
What should you do when you see a SIGN on the lawn or an AD in the
newspaper or Resale Homes magazine…

      * A service to be provided by your Buyer Agent

What happens if…
      *	you	go	into	an	Open	House?	(present	your	Home	Buyer	Passport)
      *	you	make	an	appointment	to	see	the	home	with	the	Listing	Agent?

Why	The	Listing	Agent	MUST	(by	Ethics	Rules)	Represent	The	Seller’s	Best	Interests

Here’s why you should NOT use the listing agent to help you purchase a house or condo…

The Realtor Ethics Rules about listings agents state:

      •(you)	can	ONLY	prepare	a	comparable	market	analysis	(CMA)	for	a	buyer	client	upon	request	
      •if	you	do	prepare	a	CMA,	you	can	NOT	use	it	to	provide	advice	to	assist	buyers	in	price	negotiations	
      •to	do	so	might	give	buyers	a	negotiating	edge	and	violate	your	duty	to	put	the	interests	of	the	sellers	first	
      •remember…	if	you	are	a	Listing	Agent	or	Subagent	to	the	seller,	your	PRINCIPAL	fiduciary	duty	is	to	the	
        SELLERS, even if you are working with buyers as customers

These rules clearly show that the listing agent’s FIRST loyalty is to the seller…
NOT the buyer!

                                                                                                                   18   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
          What Happens At A Home Inspection?
During an inspection, the home will be thoroughly evaluated from top to bottom. All major systems such as
plumbing,	heating,	insulation,	electrical	and	structures,	such	as	the	roof,	walls,	ceilings,	floors	windows	and	
doors, will be inspected and examined.

An inspection generally lasts about three hours. It will not tell you the condition of every single component of
the home, but will focus on determining potentially large expenses and safety-related concerns.

Following the examination and evaluation, the prospective buyer will be provided with a written report that
covers possible defects and areas of concern, as well as estimated costs for any repairs. The report may also
note some of the positive features of the home and recommend ways to keep it in good condition.

How To Have The Best Inspection Possible…
When your head is full of thoughts about how you’re going to arrange the furniture in your new home, whether
you’ll	make	the	deadline	for	registering	the	kids	for	their	new	school	and	how	you’ll	find	a	mover	on	short	
notice, the home inspection process sometimes takes a back seat.

But it shouldn’t. A home inspection is perhaps the most important chapter in the home-buying saga. You’ve
seen	the	beautiful	tile	floors,	the	new	carpet	and	the	freshly	painted	walls,	but	do	you	know	what	lurks	in	the	
bowels of the heating system, what lies in the crevices of the roof and if anything -- other than water -- can be
found	in	the	interior	plumbing?

You should -- you’re about to plop down a huge down payment and commit to a
25-year mortgage. A home’s condition is important to you.

South of the border, some 77 percent of all home sales involved a home
inspection, according to a study by the American Society of Home Inspectors
(ASHI) and the National Association of Realtors.

By	following	these	pointers,	you	can	maximize	your	home	inspection	benefits:	

      * Know what it includes: Heating and central air conditioning systems,
        interior plumbing, electrical systems, the roof, attic, visible insulation,
        walls,	ceilings,	floors,	windows,	foundations,	and	basements	are	among	
        the key inspection points. Inspections may also include appliances and
        outdoor plumbing.
      *	Know	what	an	inspection	does	not	include.	Inspections	for	a	typical	home	require	several	hours,	
        but they do not concern every dent and scratch. For details, speak with any inspector who you are
        considering hiring.
      * If you’re selling, get a home inspection before you put your home on the market. This can avoid
        surprises down the road when potential buyers have the home inspected by their own professional. If
        major or potential problems are detected, they can be repaired before you try to sell.
                                                                                                                   19   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
Hire	a	qualified	inspector.	Try	to	get	referrals	from	friends	or	anyone	you	know	who	has	had	a	satisfactory	
experience	with	a	home	inspector.	Also,	look	for	affiliations	with	organizations	like	the	Canadian	Association	
of	Home	Inspectors	or	the	Ontario	Association	of	Home	Inspectors.	Both	groups	require	its	members	to	be	
certified,	meet	professional	qualifications	and	adhere	to	specific	business	ethics.	

(Toronto’s Real Estate Team - Thomas & Sally Cook PLUS!! members always recommend Carson Dunlop
& Associates Limited. As of 2001, their company has inspected about 55,000 to 60,000 homes throughout
Toronto and all of the inspectors are engineers. They also have errors and omissions insurance.)

      *	Be	cautious	about	hiring	someone	who	may	have	a	conflict	of	interest,	or	who	may	not	be	impartial.	For	
        example,	a	retired	roofing	contractor	who	now	does	home	inspections	to	make	a	few	extra	dollars	may	
        find	a	problem	with	--	you	guessed	it	--	the	roof.	This	person	could	take	advantage	of	your	need	to	find	
        someone to make repairs in a hurry, leaving you to wonder if the repairs were needed.
      * Include a proper home inspection condition in your offer to purchase. This is important. If an inspector
        finds	that	the	home	can’t	survive	another	rainy	season	without	$20,000	worth	of	roof	repairs,	you’ll	
        want to have the option of bailing out of the deal, asking the seller to make the repairs, or lopping the
        appropriate amount off the purchase price.

Be there for the full inspection. Spending a few hours with the inspector could prevent headaches and save
time in the future. As the home inspector examines the various systems and components of the home, ask him
or her to explain what problems may be encountered down the road, what signs to look for, what repairs and
replacements are likely to cost, and how to prevent big maintenance bills.

      * Try to learn how things work and how to maintain systems and
        equipment	during	the	inspection	process.	The	inspector	may	also	
        point	out	little	flaws	or	oddities	that	don’t	measure	up	to	being	
        mentioned in the report, but may warrant watching.
      * In the case of new construction, consider three inspections: At
        the	time	the	foundation	is	first	poured,	when	walls	are	up	but	
        not closed, and at the walk-through before closing. Yes, this is
        expensive, but in the context of a long-term investment -- and a
        big investment -- such as a home, the cost is easy to justify.

Once the inspection is complete, the inspector will write a report. If major problems are found, then you have
the	knowledge	to	better	guide	your	negotiations.	And,	if	your	new	home	receives	stellar	findings,	then	you’ll	
have the peace of mind that will be a welcome relief once you’re settled
into your new home -- priceless!
                                                                                                                   20   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
                                The Buyer Consultation
This is what Sally and her team of Buyer Specialists do for their ‘Clients For Life’ and
you can use it as a yardstick.

The all-important Buyer Consultation takes approximately an hour and a half and covers many topics. By
taking this short period of time ‘up front’, we are able to help you focus and listen carefully to discover your
housing wants and needs. Then your time isn’t wasted when you’re ready to go out and look at homes... you’ll
see	only	those	that	fit	your	personal	Wish	List!		

We like to start a Buyer Consultation by taking a few minutes to tell you about why you are guaranteed an
excellent	buying	experience.		After	this	introduction	we	discuss	mortgage	financing.	We	can	calculate	for	you	
the	size	of	mortgage	you	will	get	from	a	bank	or	financial	institution.		We	also	advise	you	about	methods	of	debt	
consolidation, if that’s appropriate for you. As well, we can recommend a savings program and work out your
purchase price based on what you feel comfortable spending every month to be a homeowner.

Because	of	our	mortgage	finance	training	and	great	lender	contacts,	we	can	usually	negotiate	a	better	mortgage	
rate for you than your personal bank or trust company will willingly offer.

From there we go through the steps of buying a home... from the computer searching process right through to
the offer presentation stage. We will explain what standard conditions are used in an offer and when and why
you should have a home inspection carried out.

                                                         When it comes time to present the offer, we will explain
                                                         how the process comes together ... if we’re negotiating
                                                         one-on-one OR in a multiple offer situation ... and how we
                                                         negotiate on your behalf as your personal Buyer Agent.

                                                         You’ll learn when and why you will be signing waivers
                                                         for your conditions and we will relate where the lawyer
                                                         fits	into	the	process	and	takes	over	the	file.		We’ll	also	
                                                         give you an idea of what your closing costs will total and
                                                         explain our Mortgage Terminator program so that you
                                                         can pay off your mortgage in 10 years.

                                                      Finally, we will describe our After Sales Service Program.
                                                      Once the offer has been accepted, we don’t want you to
                                                     feel alone out there! We will keep in touch almost weekly
by phone and letter. You’ll receive information about several special offers that we’ve negotiated for our clients.
We can arrange a myriad of little details on your behalf if you’d like us to.

                                                                                                                   21   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
Thomas & I and our Team truly believe the better educated you are about buying a home, the more you will
enjoy	the	process.	Why?	Because	you	will	be	in	control	of	the	transaction!

The next step is the most important to us and this is when you get to talk we listen. We want to know what your
wishes and dreams about your new home are... no matter how wild they might be. We want to know what your
thoughts are... not only about the bricks and mortar of the home, but about your emotional needs as well.

With	your	Wish	List	information	along	with	the	financial	calculations	we	have	made,	we	can	now	help	you	
assess reality vs. fantasy. Perhaps you can afford more than you think... perhaps the neighbourhood you would
like	is	not	affordable	for	you	and	you	must	‘downscale’	a	bit	to	fit	your	comfort-zone	budget!

Buying a home is always about making a series of compromises and this is where you may have to decide what
features from your Wish List you are willing to give up in order to achieve your dream home.

Even	those	lucky	few	with	a	“sky	is	the	limit”	budget	may	still	have	a	problem	finding	that	absolutely	perfect	

                                                                                                                   22   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
                          Personal Financial Counseling
Applicant’s Name *Required                                         Co-Applicant’s Name

Applicant’s Date of Birth (M/D/Y)                                  Co-Applicant’s Date of Birth
*Required                                                          (M/D/Y)
Applicant’s Home Telephone                                         Co-Applicant’s Home Telephone
*Required                                                          (if different from Applicant’s)

Applicant’s Current Address                                        Co-Applicant’s Current Address (if
*Required                                                          different from Applicant’s)

Name & Address of Applicant’s                                      Name & Address of Co-
Employer *Required                                                 Applicant’s Employer

Applicant’s Work Phone                                             Co-Applicant’s Work Phone

Applicant’s Occupation                                             Co-Applicant’s Occupation

Years There (Applicant)                                            Years There (Co-Applicant)

Applicant’s Income $ *Required                                     Co-Applicant’s Income $

Other Miscellaneous Income $

TOTAL Combined Income $

Assets/Details                               Liabilities/Name of Lender                                 Payment/Mo
Total Down Payment Available $               Auto Loans $                                               $
___________________                          ____________________

Cash in Bank $                               Other Loans / Lines of Credit $                            $
___________________                          ____________________
RRSP’s / GIC’s $                             Existing Mortgages $                                       $
___________________                          ____________________

Stocks $                                     Other Mortgages $                                          $
___________________                          ____________________

Automobiles $                                Credit Card #1 $                                           $
___________________                          Visa / M/C / Amex / Cdn Tire / Bay / Sears / Other

Residence / Other R E                        Credit Card #2 $                                           $
___________________                          Visa / M/C / Amex / Cdn Tire / Bay / Sears / Other

Other Assets                                 Credit Card #3                                             $
___________________                          Visa / M/C / Amex / Cdn Tire / Bay / Sears / Other
___________________                          _______________

TOTAL Assets $                               TOTAL Liabilities $                                        $

Applicant Email: *Required ___________________________________________________________
We hereby authorize the lender to access the Credit Bureau for the Applicant and the Co-Applicant           

Or	you	can	fill	in	this	online	at
                                                                                                                             23      416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
                               Home Features Wish List
Buyer’s Name:

                  Wish List                              Must Have                                Would Like
Single family detached                                                               
Semi-detached                                                                        
House with rental income                                                             
Townhouse                                                                            
Condominium apartment                                                                
Number Of Stories                                                                    
Exterior                                      Brick / Aluminum / Frame                Brick /Aluminum / Frame
Large lot / condo sq. footage?                                                       
Fenced back yard                                                                     
Trees & Landscaping                                                                  
Deck, patio or balcony                                                               
Back yard / window view facing?                                                      
Quiet street                                                                         
Private drive                                                                        
Mutual drive                                                                         
Garage / parking                              1 Car / 2 Car                           1 Car / 2 Car
Number of bedrooms
Number of bathrooms
Master ensuite bathroom                                                              
Renovated / modern bathroom                                                          
Eat-in kitchen                                                                       
Renovated / modern kitchen                                                           
Main floor family room                                                               
Separate dining room                                                                 

                                                                                                                      24   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
                  Wish List                             Must Have                                 Would Like
Fireplace                                   Gas / Wood / N/A                         Gas / Wood / N/A
Finished basement                                                                   
Basement apartment                                                                  
Laundry facilities                                                                  
Locker or storage area                                                              
Heating type                                Forced Air Gas / Hot Water               Forced Air Gas / Hot Water
Central air conditioning                                                            
Upgraded furnace                                                                    
Upgraded plumbing                                                                   
Upgraded wiring (100 amp ++)                                                        
Upgraded / recent roof                                                              
Needs cosmetic work ONLY                                                            
Handyman special                                                                    
Completely move-in condition                                                        
Public transit nearby                                                               
Other needs
Ideal Move-In Date
Approx. Purchase Price Range                 From $                                   To $
Total Down Payment Available                 $

Geographical Boundaries
East                                                         North
West                                                         South

Note: Please carefully review the many wish list categories and check off the ones that might apply to you. A
word of caution... for example, if you choose that you MUST have a private drive, our computerized Preferred
Buyer Home Finder search would entirely eliminate any other choices such as a mutual drive. Remember... for
most of us, the home buying process is a series of compromises. You may need to make personal adjustments
on price, the property features that you would ideally like, the condition of the home, neighbourhoods and
closing	dates.	Your	new	home	may	not	be	your	‘final’	home	so	try	to	keep	this	in	mind.

       Or	you	can	fill	in	this	form	online	at                                       25   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
              Buyer Cash Flow Comparison Chart

LEFT SIDE = Range of purchase prices

RIGHT SIDE = Cost to carry the home, including all expenses... utilities, taxes and
mortgage payments
                                                                                                                   26   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
                                          Budget Planner
Gross Monthly Income - All Sources                                                         Calculate the impact
Gross Monthly Income                                                  $                    your monthly
                                                                                           expenses will have on
Less Income Tax/Other Payroll Deductions           $
                                                                                           the maximum house
Net Monthly Income                                                    $                    price you should be
Monthly Lifestyle Expenses/Payments
                                                                                           Remember, it’s only
Child Care                                         $                                       human nature to
Groceries                                          $                                       downplay how much
Lunches / Eating Out                               $
                                                                                           things cost - but resist
                                                                                           the impulse.
Clothes / Personal / Laundry                       $
Life Insurance                                     $                                       Be realistic
Public Transportation                              $
                                                                                           Because if the
Car: Gas / Oil                                     $                                       final figure is
Car Insurance and License                          $                                       underestimated, you
                                                                                           could find yourself in
Car Loan / Lease                                   $
                                                                                           a financial bind once
Telephone                                          $                                       the house payments
Cable TV / Video rental                            $                                       start up.
Entertainment, Movies, Sports etc.                 $
Vacations                                          $                                      Make sure you
Beer,	Wine,	Liquor,	Cigarettes                     $                                      don’t leave yourself
Newspapers, Magazines, Books                       $                                      house poor.
Furnishings / Consumer Goods                       $                                      It’s important to
Savings (bank account, RRSP’s)                     $                                      structure your
Charitable Donations                               $
                                                                                          monthly expenses
Line of Credit                                     $
                                                                                          so that you can
                                                                                          still afford simple
Credit Cards                                       $
                                                                                          luxuries, like the
Other Loans / Payments                             $
                                                                                          occasional vacation.
Total Monthly Lifestyle Expenses                                      $
NET Left for Housing Costs (P.I.T.I.U.)*                              $                     * principal, interest, taxes,
                                                                                                insurance, utilities
                                                                                                                            27   416-691-8118    George Christopoulos The Mortgage Centre 416-721-9299
    WARNING... If You Are Thinking Of Going To
      ‘Just Look’ At A Home... CALL US FIRST!
Even if you’re thinking, “We don’t know if we are serious, so we shouldn’t bother Thomas & Sally,” but call us
anyway! It will surely save you thousands of dollars!

Recently a young couple we’ve known for years called us up and said... “We saw a home on Sunday and it’s the
one for us. We’d like to put in an offer.” The problem was that another agent had shown them the home and,
by the Toronto Real Estate Board’s rule of “Prior Introduction,” that agent was entitled to the full commission
on the purchase of that home! We would be prevented from negotiating on their behalf and advising them as to
value and offering strategy.

Here’s how it happened. Mitzi (who had sold two homes and purchased one through Thomas and Sally) and
her husband Mark had been talking about making a move to a larger home since early spring. They had seen
several homes with Sally, contemplated putting an offer on a house that ultimately had 13 offers on it, and then
decided to wait until they had saved up a larger down payment.

One Sunday, while casually looking through the paper while they drank their coffee, they saw an ad that looked
appealing	and	thought	they’d	like	to	take	a	quick	‘not-so-serious’	look	at	it.	They	felt	a	bit	guilty	that	they	had	
‘wasted’ our time with the earlier showings (although they certainly shouldn’t have... that’s part of our job) and
decided to call the agent who had inserted the ad. Of course they fell in love with the home and couldn’t wait to
get back to their house and call us. By the way, they didn’t tell the agent they were working with someone (not
that it mattered).

The TREB rule of ‘prior introduction’ states that ‘Whoever shows the house to the client is entitled to claim
the entire selling portion of the commission’. Even though the couple were ‘working’ with another agent, the
rule still applies. The only exception is if the buyers have already signed a Buyer Agency Agreement with us.
Then the other agent, by showing them a property without asking if they had indeed signed a Buyer Agency
agreement, could be construed as ‘tampering’ with a valid agreement.

Now,	some	people	might	say	“What’s	the	difference?	We’ll	just	go	ahead	and	purchase	the	home	through	that	
other agent”, but that might not be to your advantage!

In this case, Mitzi and Mark had signed a Buyer Agency agreement when they were considering purchasing
a home a few months previously and it was still valid. Secondly, and more importantly, they knew that they
would be getting the very best advice and counsel from us... and the best level of expertise in negotiating the
offer. Their exact words were “If we can’t have you negotiating on our behalf, Tom, we don’t want to go ahead
with the offer.

                                                                                                                   28   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
”Needless to say, it all worked out for the best and they were able to buy their dream home. But what’s the best
way	to	handle	this	situation?	Call	us	first,	even	if	you	don’t	think	you	are	really	serious!	We	can,	at	the	very	
least, advise you on what the rules are and how we can set things up so your best interests are protected. If
you	see	an	ad	in	the	paper	or	a	sign	on	a	lawn,	call	our	office	with	the	details	and	let	us	do	the	research	for	you.	
We’ll pull up a copy of the listing and fax, mail or drop it off to you.

Perhaps it will be too early for you to come in for a buyer consultation, but that’s OK. By involving us from the
very beginning, you will be in competent, honest hands and you won’t have any worries or any pressures from
several agents calling you to go look at other properties! Call us any time on our direct line... 416.691.8118.

  What Steps Do You Need To Take Right Now?
      A	•Decide	who	is	going	to	be	your	Buyer	Agent

      B	•Call	and	set	up	a	Buyer	Consultation	with	them

      C	•Subscribe	to	our	HOMEWatch	program	(if	you’re	more	than	90	-	120	days	away	from	buying)	and	
       start to become educated about home prices in the neighbourhoods of your choice

      D	•Decide	who	is	going	to	be	your	Mortgage	Consultant

      E	•Call	and	set	up	a	Mortgage	Consultation

      F	•Start	the	ball	rolling	to	get	a	FULL	Mortgage	Pre-approval	OR	get	assistance	setting	up	a	buying	plan	
        for the longer term (6 months +).

      G	•Assemble	these	documents	and	fax	them	to	your	mortgage	consultant:
              * proof of income
              * proof of down payment

      H	•Then,	your	lender	does	a	credit	check	and	you	receive	your	Full	Mortgage	Pre-Approval	Letter	(uncon

      I	•Set	a	date	for	when	you	would	like	to	move	&	start	looking	at	homes

                                                                                                                   29   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
                                          A Quick Story...
When	we	asked	Susan	and	Chris	what	other	kinds	of	businesses	gave	them	the	same	quality	of	service	as	us,	
they said we were just like Mom in the sense that we were “full of help and good advice... always there when

When we started the offer presentation for the second home that Susan and Chris really liked, we didn’t have
any	competition.	Just	‘us	against	them’	as	it	were.	The	presentation	was	being	held	in	the	listing	agent’s	office	
and Susan & Chris were just down the hall in a separate meeting room. The offer went back and forth several
times, each time with us trying to get the price down and them trying to get us up.

Here’s what Susan and Chris wrote after it was all over...

”Buying our house was almost stress-free. All of our concerns and worries were addressed... what we could
afford, where we wanted to live, what legal ‘stuff’ we needed to do. The best thing is that we bought our home
and have NO regrets.

The day we saw the house we bought, Sally spent the afternoon with us going through the details of the
purchase. Thomas spent two evenings negotiating the offers for us, one late into the night. None of these events
were planned or scheduled! Thomas & Sally dropped any plans they had to accommodate us.

One of the best services Thomas & Sally provided was in our original Buyer Consultation meeting when she
went	through	our	finances	with	us.	Among	other	things,	she	showed	us	what	we	could	afford	and	what	monthly	
payments we could expect to have for different house price ranges.

Our home buying experience was very enjoyable. Sally and Thomas are ‘real’ people... not just ‘plastic’ agents
out to close deals. Sally has a great sense of humour and good vision. She seemed excited about the renovations
we could do to make the house exactly what we wanted... and she passed that excitement on to us!

Once we signed all the waivers, we thought that our relationship with our agents was over. But Thomas & Sally
are still helping us... sending moving tips, recommending contractors, inviting us to their client events and lots more.

They	always	put	us	first,	just	like	Mom!	Seriously,	I	can’t	think	of	another	business	that	has	given	me	the	same	
quality	of	service!

The other people involved in the transaction recommended by Thomas & Sally (Carson Dunlop Home
Inspector, lawyer and George Christopoulos, mortgage specialist) were all excellent. The selling agent... well...
we’re just glad he wasn’t our agent... but Thomas dealt with him well.

We highly recommend Thomas & Sally to anyone buying or selling a home!”

                                                                                                                    30   416-691-8118    George Christopoulos The Mortgage Centre 416-721-9299
                              Mortgage Financing 101
                                                          George Christopoulos
                                                   Mortgage Broker Lic # M08001881
                                                           2243 Queen Street E
                                                          Toronto, ON, M4E 1G1
                                                              c: 416.721.9299
                                                             f: 1.866.616.9802
                                                e: George@MortgageCentreToronto.Com

You Should Use A Mortgage Consultant Because…

      * he or she is a full-time mortgage specialist, unlike whoever happens to be behind the counter
        at	your	bank	or	financial	institution

      *	he	or	she	can	analyze	your	entire	financial	picture

      * a consultant will visit you in your home at a time convenient for your schedule

      * a consultant is familiar with all of the mortgage products available in the marketplace. He or
        she can help you to compare “apples & apples” between companies

      * he or she can make full and good use of all the programs available to help buyers, including the
        federal	government’s	Home	Buyers	Plan	for	first	time	home	buyers

                                                                                                                   31   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
           Sample Mortgage Pre-Approval Letter
December 5, 2007

Steven Smith
123 Easy Street
Toronto, Ontario
M4L 3X4

Reference: Mortgage Pre-Approval Letter

Dear	Steven,	I	am	pleased	to	inform	you	that	your	pre-approval	for	mortgage	financing	has	been	confirmed	as	


Mortgage Approval Amount                                    $250,000
CMHC/GE Mortgage Insurance Premium                          6,875
Total Mortgage With CMHC/GE Premium Added                   $250,875
Mortgage Rate                                               6.0%
Term                                                        5 years
Amortization                                                25 years
Rate                                                        Guaranteed Until April 05, 2008
Bi-weekly payment (accelerated)                             $827.00
Conditions                                                  None

Please	note	-	to	determine	the	maximum	purchase	price	you	qualify	for,	simply	add	your	down	payment	to	the	
Mortgage Approval Amount listed above. Don’t forget to keep aside funds for your closing costs.

With	the	many	options	and	features	we	provide,	you	may	have	questions	regarding	which	ones	suit	you	best.		I	
am more than happy to discuss all our mortgage options with you in greater detail in order that you may choose
the best suited to your individual needs.

Please	do	not	hesitate	to	contact	me	with	any	questions	you	may	have.		I	am	committed	to	providing	you	with	
quality	service.

Your rate will be held for 120 days. If rates should drop in the interim, your rate will be lowered accordingly
but your rate cannot go up within this time frame.

Your “By Referral Only” Mortgage Lender
George Christopoulos

                                                                                                                   32   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
           Sample Mortgage Commitment Letter
December 5, 2007

Steven Smith
123 Easy Street
Toronto, Ontario
M4L 3X4

Reference: Mortgage Commitment for the property located at 239 Ontario Street, Toronto

Dear	Steven,	I	am	pleased	to	inform	you	that	your	application	for	mortgage	financing	has	been	approved	as	

Mortgage Approval Amount                                    $250,000
CMHC/GE Mortgage Insurance Premium                          6,875
Total Mortgage With CMHC/GE Premium Added                   $256,875
Mortgage Rate                                               6.0%
Term                                                        5 years
Amortization                                                25 years
Rate                                                        Guaranteed Until August 08, 2008
Bi-weekly payment (accelerated)                             $827.00
CMHC/GE Capital Approval Number                             12345678
Conditions                                                  None
Standard Commitment Approval Conditions:
       The mortgage property must be owner occupied as the principal residence
       The CMHC/GE Capital mortgage insurance application fee is payable to the branch upon acceptance
       The provincial sales tax on the mortgage insurance premium will be debited to your deposit account
       when the mortgage is advanced.

If the rate you have selected should be lower than stated in this letter, you will receive the lower rate.

With	the	many	options	and	features	we	provide,	you	may	have	questions	regarding	which	ones	suit	you	best.		I	
am more than happy to discuss all our mortgage options with you in greater detail in order that you may choose
the best suited to your individual needs.

Please	do	not	hesitate	to	contact	me	with	any	questions	you	may	have.		I	am	committed	to	providing	you	with	
quality	service.

Your “By Referral Only” Mortgage Lender
George Christopoulos                                                                                               33   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
      Using RRSPs To Buy Your First Home:
 The Federal Government’s Home Buyers’ Plan
You	may	know	that	first-time	buyers	can	use	their	RRSP	money	to	help	them	to	buy	a	home,	but	you	may	not	
know how it works and whether you can take advantage of it. Here’s a primer:

The	official	name:
You use your RRSP money to help buy a home by using a program called the Home Buyers’ Plan (HBP).

Whose program is it?:
Good	question!	The	answer	is	the	federal	government.	The	feds	launched	the	HBP	as	a	way	to	help	first-time	
buyers get into the housing market; the federal and Ontario governments have a long tradition of helping home

How it works:
Basically, you withdraw funds from your RRSP and use that money toward buying a home, usually as a down
payment (the home has to be where you’re going to live, i.e. your principal residence).
You don’t have to add the amount of the RRSP money that you withdraw to your income -- and be liable for the
ensuing taxes -- and your RRSP issuer will not tax the funds, either. You then have 15 years in which to repay
the money to your RRSP.

How much RRSP money can I use?:
You can use up to $20,000 of your RRSP money AND your spouse can use $20,000 too! So, if a couple is
buying	a	home	for	the	first	time,	they	can	use	a	total	of	$40,000	in	RRSP	funds.		As	well,	two	friends	buying	a	
home together could also contribute $40,000.

When do I have to start paying back the RRSP money?:
The RSP deadline for the next year following the withdrawal, eg. withdraw $15,000 May 2004 - the 1st
payment of $1,000 (1/15th) is due May 1 2006. (And you have 15 years to pay it back, as we mentioned.)

Define	“first-time	buyer”:
You	might	qualify	as	a	“first-time	buyer”	under	the	HBP	even	if	you’ve	owned	a	home	before!	If	you	haven’t	
owned	a	home	in	the	past	five	years,	you	qualify.	If	you	used	the	HBP	in	the	past,	but	have	paid	off	the	balance	
owing	as	of	January	1st	in	the	year	that	you	want	to	buy	a	home	again,	you	could	qualify,	too.

For those of thinking of dumping money into an RRSP and then withdrawing it the next day to buy a home,
bear in mind that the RRSP funds have to be deposited at least 90 days before a withdrawal under the HBP.
There are a bunch of criteria that you must meet, too, such as being a Canadian resident.
We	hope	that	this	gives	you	enough	information	to	know	whether	the	HBP	can	help	you	to	buy	your	first	home!	
For more in-depth details, you can always call your preferred mortgage professional
                                                                                                                   34   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
                      Understanding Your Mortgage
As well as choosing a type of mortgage, you also will have to choose various terms and conditions.

A First Mortgage	is	the	portion	of	the	total	debt	registered	against	your	property	that	is	secured	by	first	call	
on	the	property.	In	other	words,	if	you	default,	the	holder	of	the	first	mortgage	has	first	call	on	the	value	of	the	
property in order to recover the loan.

A Second Mortgage is a mortgage that has been registered in second position. The interest rate is usually
higher	to	reflect	this	increased	risk	to	the	lender.

An Open Mortgage	is	one	that	allows	the	borrower	to	repay	the	loan	more	quickly	than	agreed,	either	on	
anniversary dates or regular monthly payment dates, with or without pre-payment charges. An open mortgage
can	be	classified	two	ways:
        Fully Open allows the borrower to prepay all or part of the outstanding balance an any date or payment
        date with no penalty.
        Open with interest penalties or prepayment options allows the borrower to make prepayments to
        the principal balance upon agreed terms. This also allows the borrower to prepay all or part of the
        outstanding balance with a penalty.
        Open mortgages always come with a higher interest rate for this privilege

A Closed Mortgage means that the borrower can only pay the predetermined set payments, and no extra
payments during the term of the mortgage. It also means the mortgage cannot be paid in full until the maturity
date. If there are no prepayment privileges indicated in the mortgage document, the mortgage is closed.

A Fixed-Rate Mortgage	has	a	rate	of	interest	that	is	set	for	a	specific	period	of	time	(the	term	of	the	
mortgage). The monthly payment of principal and interest remains the same throughout the term.

A Variable-Rate Mortgage has a rate of interest that changes from time to time as money market conditions
change, but usually no more often than once an month. This mortgage was developed to provide maximum
flexibility	to	borrowers	in	times	of	volatile	or	fluctuating	interest	rates.	With	a	variable	rate	mortgage,	the	
amount of the monthly payment does not change. The difference lies in the way the monthly payment is
If interest rates go up, more of the monthly payment must be applied towards interest.
But if interest rates go down, more of the monthly payment will be applied towards the principal.
If interest rates rise dramatically, the monthly payment may not cover all of the interest. In this case, the
interest	still	owing	will	be	added	to	the	principal	still	owing.	This	can	result	in	eroding	your	equity	in	the	house.

Pre-Payment Options: This is one of the most important aspects of a mortgage in terms of saving money
during	the	life	of	a	mortgage.	You	should	find	out	what	your	mortgage	has	to	offer	you!!!	How	much	will	it	
allow you to pre-pay each year (usually 10%-15% of the original principal amount). Can it be paid at any time
during	the	year,	or	just	on	the	anniversary	date?		Can	you	increase	your	payments?	Can	you	make	random	
“double	up”	payments?	Can	you	pay	weekly	or	bi-weekly	if	you	so	choose?	You	may	never	have	the	extra	funds	
to use these options, but it is nice to have them should you want to take advantage of them. Each little bit helps
to bring down the principal balance.

Privileges:	Before	locking	into	a	long-term	mortgage	you	should	find	out	where	you	stand	if	in	a	few	years	you	
decide	to	move	and	you	are	in	the	middle	of	your	term.	Can	the	purchaser	assume	your	mortgage?	Can	you	take	
this	mortgage	with	you	to	another	property	(Is	it	portable?)?	Ask	yourself	“What	penalties	would	I	have	to	pay	
if	I	had	to	get	out	of	this	mortgage?”
                                                                                                                   35   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
                 How To ‘Create’ A Down Payment
Every	year,	just	a	few	months	before	it’s	time	to	file	your	tax	return,	we	tell	buyers	that	this	is	the	perfect	
time of year to “create” a down payment by using their RRSP allowable contribution limit and the Federal
Government’s	Home	Buyers’	Plan	for	first	time	home	buyers.

First	a	quick	review...	every	first-time	buyer	has	the	right	to	withdraw	up	to	$20,000	from	his	or	her	RRSP	at	
the time of a home purchase. The little-known secret is that the money does NOT need to be used strictly for
the down payment on your house or condo purchase.

However, it does have to be in your RRSP for at least 90 days before pulling it out to purchase a home, so that’s
why you need to do some advance planning!

It	also	can	be	used	to	pay	down	other	debts,	pay	closing	costs,	fund	renovations,	or	even	finance	a	vacation	to	
the Bahamas (not recommended, but still possible).

So how can you create a down payment out of ‘nothing’?
The	first	step	is	to	dig	out	your	last	Tax	Assessment	form	from	Canada	Customs	and	Revenue	(you	received	this	
when	you	got	your	tax	refund	last	spring)	and	check	it	to	find	out	your	allowable	RRSP	contribution	as	of	right	
now. Many people have several thousand dollars left that they can contribute because they haven’t topped up
their contributions annually; some people have a lot more than that.

Let’s assume for a moment that a couple is planning to purchase a home and each of them can top up their
RRSP by at least $20,000.

The	next	step	is	to	arrange	for	an	RRSP	loan	of	$20,000	each.	Pretty	well	everyone	can	qualify	for	this	loan	
because the banks keep your RRSP investment (a GIC, for instance) in their bank, so it’s safe in their eyes. Take
out this loan for a long term ( three to 10 years), not because you’re going to have this loan for a long time, but
because it will make your payments lower while you do have the loan.

When	March	1st	comes	along,	file	your	tax	return	right	away	and	wait	for	the	fat	refund	cheque	to	come	in	the	

Let’s assume that you’re in a 40 per cent tax bracket. You should then get back approximately $8,000 each
in tax refund based on reducing your taxable income by $20,000. This $8,000 each (total of $16,000) now
becomes your down payment... don’t spend it!

Now here comes the fun part. Go out and purchase a home with a closing date of at least 90 days after you put
your borrowed funds into your RRSP.

                                                                                                                    36   416-691-8118    George Christopoulos The Mortgage Centre 416-721-9299
When you get to about 10 days to 2 weeks prior to the closing date for your home deal, instruct the bank to cash
in your $20,000 worth of RRSPs each. The person at the bank, of course, will say... “You’ve got a loan against
it” and then you will say “Pay the loan off with the $20,000 I’m with drawing.

”Following all of these steps carefully will leave you in the enviable position of having NO RRSP loan, $16K
in your hand to use as your down payment and 15 years to repay the $40,000 that you withdrew from your

What if you’re short of cash for your closing costs?

In	addition,	you	could	combine	this	down	payment	“creation”	plan	with	a	‘cash	back’	plan	from	a	financial	
institution to help cover your closing costs. As an example, if you take out a mortgage with	at	the	posted	five-year	rate,	you	get	FOUR	per	cent	of	the	mortgage	principal	amount	as	
cash back in your hand on the day of closing.

Deferred Closing Through Title Insurance?

We’ll bet some of our own money that no bank will tell you about this “creating” a down payment plan! We can
look	at	your	personal	financial	situation	and	offer	you	creative	advice	tailored	to	your	personal	circumstances.	
Just call us at 416.691.8118.

                                                                                                                   37   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
                                    Zero Down Payment
Do you have a good income and a good credit rating but just cannot seem to save the 5% down needed for your
down	payment?		Then	maybe	the	Zero	Down	Program	is	the	right	one	for	you.

This program has been around for a couple of years, but the most recent version is the most affordable. The
bank will approve you for your mortgage based on a 5% cash back program. This money is available to you for
free on the closing day instead of the day after closing as in the past for other ‘cash back’ mortgages. All you
need to come up with from your own savings is your closing costs.

Is	it	a	good	deal	or	a	bad	deal?		Well	it	depends	on	your	personal	situation.	Remember,	the	reason	you	are	
buying real estate this way is to provide you with your own home (and a roof over your head) sooner rather
than	later,	plus	as	an	opportunity	to	build	up	equity	and	financial	security	for	you	and	your	family.

So if you have a down payment saved, its far better to use it. The mortgage rate you’ll be paying will be lower
and, because your mortgage principal is lower, you will be that much closer to paying off your mortgage.

If	you	don’t	have	a	down	payment	saved,	then	the	Zero	Down	Payment	Program	is	a	great	way	to	buy	your	first	
home and start paying off your mortgage instead of rent every month.

Here’s how it works. Say you want to purchase a home for $300,000. The bank will give you 5% of the
purchase price in cash on closing. This is their ‘cash back’ program. However, there’s no free lunch. The bank
then charges you their posted rate for a minimum of a 5-year term. This rate may well be 1% to 1.35% higher
than their lowest ‘discounted’ mortgage rate that you might be able to negotiate.

As	with	any	high-ratio	mortgage	(financing	more	than	80%	of	the	purchase	price),	there	is	a	fee	paid	for	
the	high-ratio	mortgage	insurance.		The	high-ratio	insurance	fee	for	the	Zero	Down	Payment	Program	is	
approximately	0.15%	higher	than	if	you	had	a	5%	down	payment	(the	95%	financing	fee	is	currently	at	2.75%	of	
the mortgage amount with both CMHC and GE Capital)! This fee is typically added onto your mortgage.

So, after deducting your “5% down” (from the cashback), you’re left with $285,000. Then the high-ratio
insurance fee is added on to this (you almost never pay this fee from your own resources) and your mortgage
then becomes $293,265 (using a fee rate of 2.90%). This number is what you’d pay interest on monthly.

You still have to come up with money to pay for your closing costs. These will approximate $5,000 for a
$300,000 resale home and several thousands of dollars more for brand new construction of the same purchase
price due to utility hook-up, new home warranty, lot levies and other start-up costs.

                                                                                                                   38   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
 New CMHC Policy Changes Make It Easier To
           Purchase A Home
Saving	for	a	down	payment	has	always	been	the	most	difficult	part	of	home	buying.	CMHC	(Canada	Mortgage	
& Housing Corporation) has just announced a policy change that may make home ownership easier for you to

In the past your down payment had to either be saved up and provided from your own resources (such as your
bank account or RRSP’s) or gifted to you by a family member, usually Mom & Dad or Aunt Mary, meaning you
did not borrow any money for the down payment or repay it to anyone.

Now you can borrow the minimum down payment, such as 5% to 10% for example, on a line of credit or a
personal	loan	and	include	that	payment	in	the	mortgage	qualifying	calculations.	As	long	as	the	qualifying	ratios	
are	in	line	(GDS/TDS)	you	may	qualify	for	a	mortgage.	

Of course, the cost of borrowing from a line of credit, as a personal unsecured loan or your credit cards is
much higher than the rate charged on a mortgage so you’d want to go for the minimum of 5% down from these
sources typically.

Since	you	“have”	the	5%	down,	you	can	now	negotiate	your	mortgage	rate	down	significantly	from	the	posted	
rate,	usually	by	1.0%	to	1.50%!		This	is	a	big	benefit.		Say	you	have	a	mortgage	of	$250,000.		Your	payments	at	
5.0% would be $1,450 monthly. At 6.0%, these would rise to $1,600 per month, a difference of $9,645 over a
typical 5-year mortgage term.

Ideally, you would want to use the line of credit funds on the short term and plan to pay that loan off in a year
or two. You can use the savings from your lower mortgage rate to help do this!

Naturally	an	excellent	credit	rating	and	a	secure	job	and	employment	history	are	required	for	this	to	work.

If	you’d	like	to	see	approximately	how	large	a	mortgage	you’d	qualify	for	today,	take	a	look	at	our	Mortgage	
Qualification	Chart	on	our	website.

Good deal or Bad deal?
Well it depends on your personal situation. Remember the reason you are buying real estate is to build up
equity	and	financial	security.		So	if	you	have	a	down	payment,	use	it.		The	rates	will	be	lower	and	you	will	be	
that much closer to paying off your mortgage.

If	you	don’t	have	a	down	payment,	then	this	is	great	way	to	buy	your	first	home	and	start	paying	off	your	
mortgage instead of rent every month.

                                                                                                                   39   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
             Calculating The Loan-To-Value Ratio
When you buy a home and you have less than 25 % of the purchase price as a down payment — and this applies
to	80	to	90	%	of	our	clients	—	you	are	required	to	“insure”	your	mortgage	through	the	federal	housing	agency	
CMHC, or a private company called GE Capital.

Calculating	the	loan-to-value	ratio	is	necessary	to	figure	out	the	fee	that	you’ll	have	to	pay	for	this	insurance.	
Sharpen up your pencil!

 Conventional First Mortgage
 The Loan-to-Value Ratio (LTV) is the ratio of total principal amounts) of the mortgages borrowed divided by
 the current property value:

                  Total Mortgage Amount
 LTV =            ----------------------------
                     Property Value

 Let’s	assume	a	borrower	applies	for	a	$100,000	first	mortgage;	if	the	value	of	the	property	is	$150,000,	the	
 LTV would then be 66.6%.

 Total Mortgage Amount                     $100,000
 ---------------------------               =     -------------          = 66.6% LTV
     Property Value                        $150,000

 Calculate the LTV for a High-Ratio first mortgage
 Mortgage	Required	 	      $190,000
                           -----------  = 86% LTV
 Current Value of Property $220,000

 The high-ratio insurance premium charged on an 86% LTV is 2.0%
 LTV Ratio             Insurance Premium                                                         *	based	on	a	fixed	rate	
 81% — 85%                 1.75% of the mortgage amount                                          * rate may vary based on
 86% — 90%                 2.0% of the mortgage amount                                             product and is subject to
 91% — 95%                 2.75% of the mortgage amount                                            change

                                                                                                                               40   416-691-8118          George Christopoulos The Mortgage Centre 416-721-9299
                     Qualifying For A Mortgage:
                    Calculating GDS and TDS Ratios
Keep	that	pencil	sharp!	These	are	the	ratios	that	banks	and	other	financial	institutions	use	to	qualify	people	for	
mortgages.	Most	major	lenders	use	a	32%	GDS	and	a	40%	TDS	as	guidelines	for	qualifying	borrowers.	

There is a detailed worksheet on the next page to remind you of all those “little” monthly payments to take into
consideration when calculating your GDS and TDS.

 Gross debt service ratio (GDS)
                Total Principal, Interest, Taxes & Heat
 GDS =          ------------------------------------------------
               Total Annual Income of the borrower(s)

 Total debt service ratio (TDS)

                  Total “top line” GDS calculations + all other annual debt payment totals
 TDS     =        -----------------------------------------------------------------------
                        Total Annual Income

Use the worksheet on the next page to work out your GDS and TDS... Don’t cheat on your bills because the
credit bureau knows EVERYTHING about your borrowing history and what you owe to whom! The only thing
you	might	have	flexibility	on	is	how	much	you	pay	monthly	on	your	credit	cards.

Warning... in the six to twelve month period prior to purchasing a home, make sure that you
pay every bill on time!

Your credit bureau will then show an R-1 rating... the best you can get!

Also, DO NOT take on any large vehicle leases in the six months prior to buying OR change jobs
within 90 days of buying!

                                                                                                                      41   416-691-8118      George Christopoulos The Mortgage Centre 416-721-9299
                            GDS and TDS Calculations
Clients’ Names:                                                  Property
Realtor:                                                         Date:

Option                                                                      Mortgage Details
Property Appraised Value =                                                                      Term
DOWN PAYMENT =                                                        1st Mortgage Rate         5      5.9     Factor=0.0621
1st Mortgage Principal Amount                                         2nd Mortgage Rate         1      13 %    Factor=
CMHC Premium Added                                                    3rd Mortgage Rate                        Factor =
2nd Mortgage Principal
TOTAL Mortgages
Loan-To-Value Ratio =

GDS Calculations                                  TDS Calculations
Monthly Mortgage                                   Monthly Pymts      For Applicant      Monthly Pymts        For Co-
1st Mortgage                                       Visa                                  Visa
2nd Mortgage                                       Master Card                           Master Card
TOTAL =                                            AMEX                                  AMEX
                                                   Other Cards                           Other Cards
Property Taxes/mo
                                                   Lines Of Credit                       Lines Of Credit
50% heating/mo                                     Auto loans                            Auto loans
50% condo fees                                     Bank Loans                            Bank Loans

TOTAL GDS Payments =              TOTAL TDS Payments =(Applicant)             TOTAL TDS Payments =(Co-applicant)

Applicant’s Gross Annual Income =                             GDS Calculation =
Co-Applicant’s =
50% rental income =
Other income                                                  TDS Calculation =

GDS Calculation… Add up all monthly payments, multiply x 12 and divide that amount by your GROSS
combined annual income.
TDS Calculation…. Take the total GDS payments and add in the total TDS payments for both applicants,
multiply	by	12	and	divide	this	total	figure	by	your	GROSS	combined	income…	THE	RATIOS	that	you’ve	
calculated	are	your	GDS	&	TDS	figures
                                                                                                                          42   416-691-8118     George Christopoulos The Mortgage Centre 416-721-9299
Mortgage	Qualification	Chart	25 year amortization
  Annual        4.5%           5.0%       5.5%           6.0%            6.50%          7.0%        7.50%
 $40,000        $143,000       $136,000   $128,000       $130,000        $125,000       $120,000    $115,000
 $42,500        $155,000       $147,000   $140,000       $138,000        $133,000       $128,000    $122,000
 $45,000        $167,000       $159,000   $151,300       $146,000        $141,000       $135,000    $129,000
 $47,500        $179,000       $171,000   $163,000       $154,000        $149,000       $143,000    $137,000
 $50,000        $192,000       $182,000   $172,000       $163,000        $156,000       $150,000    $144,000
 $52,500        $204,000       $194,000   $184,000       $169,000        $164,000       $158,000    $151,000
 $55,000        $215,000       $205,000   $195,000       $179,000        $172,000       $165,000    $158,000
 $57,500        $228,000       $217,000   $206,000       $187,000        $180,000       $172,000    $165,000
 $60,000        $240,000       $227,000   $216,000       $195,000        $187,000       $160,000    $174,000
 $65,000        $264,000       $251,000   $239,000       $211,000        $203,000       $195,000    $177,000
 $70,000        $288,000       $273,000   $261,000       $227,000        $219,000       $210,000    $201,000
 $75,000        $312,000       $297,000   $283,000       $244,000        $234,000       $225,000    $215,000
 $80,000        $336,000       $320,000   $304,000       $260,000        $250,000       $240,000    $230,000
 $85,000        $356,000       $339,000   $323,000       $276,000        $265,000       $255,000    $244,000
 $90,000        $380,000       $362,000   $345,000       $292,000        $281,000       $270,000    $258,000
 $95,000        $405,000       $385,000   $367,000       $308,000        $297,000       $285,000    $273,000
 $100,000       $423,000       $403,000   $384,000       $325,000        $312,000       $300,000    $287,000
 $105,000       $447,000       $426,000   $404,000       $341,000        $328,000       $315,000    $301,000
 $110,000       $471,000       $448,000   $427,000       $357,000        $343,000       $329,000    $316,000
 $115,000       $495,000       $471,000   $449,000       $373,000        $359,000       $344,000    $330,000
 $120,000       $519,000       $494,000   $471,000       $390,000        $374,000       $359,000    $344,000
 $125,000       $544,000       $517,000   $493,000       $406,000        $390,000       $374,000    $359,000
 $130,000       $567,000       $540,000   $514,000       $422,000        $406,000       $389,000    $373,000
 $135,000       $592,000       $563,000   $536,000       $438,000        $421,000       $404,000    $387,000
 $140,000       $615,000       $586,000   $558,000       $454,000        $437,000       $419,000    $402,000
 $145,000       $621,000       $597,000   $568,000       $541,000        $478,000       $434,000    $412,000
 $150,000       $647,000       $625,000   $590,000       $558,000        $490,000       $452,000    $420,000
 $155,000       $665,000       $640,000   $615,000       $569,000        $501,000       $469,000    $427,000
 $160,000       $687,000       $661,000   $638,000       $577,000        $520,000       $477,000    $436,000
 $165,000       $701,000       $685,000   $670,000       $592,000        $533,000       $486,000    $444,000
 $170,000       $723,000       $702,000   $696,000       $606,000        $552,000       $493,000    $450,000
 $175,000       $741,000       $719,000   $714,000       $620,000        $560,000       $506,000    $468,00
 $180,000       $763,000       $739,000   $723,000       $637,000        $578,000       $518,000    $464,000
 $185,000       $785,000       $758,000   $742,000       $651,000        $599,000       $527,000    $470,000
 $190,000       $803,000       $770,000   $763,000       $666,000        $615,000       $538,000    $476,000
 $195,000       $830,000       $791,000   $785,000       $680,000        $632,000       $550,000    $480,000
 $200,000       $856,000       $807,000   $797,000       $692,000        $655,000       $567,000    $486,000

Pick your gross annual income and choose the correct interest rate. The amount where the two intersect is
the	size	of	mortgage	that	you	will	generally	qualify	for	(subject	to	extraordinary	debts!)
                                                                                                                    43   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
 Mortgage	Qualification	Chart	40 year amortization
    Annual        4.5%            5.0%         5.5%            6.0%           6.50%           7.0%          7.50%
   $40,000        $180,000        $168,000     $157,000        $147,500       $138,000        $130,000      $123,000
   $42,500        $195,000        $175,000     $170,000        $163,000       $151,000        $142,000      $130,000
   $45,000        $210,000        $195,000     $183,000        $171,000       $161,000        $152,000      $143,000
   $47,500        $222,000        $208,000     $199,000        $180,000       $172,000        $160,000      $151,000
   $50,000        $239,000        $223,000     $209,000        $195,000       $184,000        $173,000      $163,000
   $52,500        $243,000        $234,000     $230,000        $201,000       $192,000        $182,000      $172,000
   $55,000        $265,000        $247,000     $231,000        $216,000       $203,000        $191,000      $181,000
   $57,500        $271,000        $260,000     $241,000        $230,000       $210,000        $202,000      $192,000
   $60,000        $294,000        $274,000     $256,000        $240,000       $226,000        $213,000      $201,000
   $65,000        $321,000        $302,000     $274,000        $260,000       $242,000        $229,000      $215,000
   $70,000        $354,000        $330,000     $308,000        $289,000       $271,000        $256,000      $241,000
   $75,000        $376,000        $340,000     $328,000        $301,000       $292,000        $263,000      $250,000
   $80,000        $402,000        $378,000     $350,000        $328,000       $308,000        $290,000      $274,000
   $85,000        $433,000        $378,000     $370,000        $340,000       $320,000        $305,000      $291,000
   $90,000        $455,000        $425,000     $400,000        $375,000       $356,000        $325,000      $300,000
   $95,000        $470,000        $450,000     $430,000        $390,000       $376,000        $330,000      $310,000
   $100,000       $509,000        $475,000     $445,000        $410,000       $381,000        $345,000      $320,000
   $105,000       $540,000        $500,000     $460,000        $440,000       $402,000        $375,000      $350,000
   $110,000       $569,000        $530,000     $496,000        $465,000       $430,000        $400,000      $381,000
   $115,000       $590,000        $540,000     $520,000        $490,000       $450,000        $420,000      $389,000
   $120,000       $617,000        $575,000     $540,000        $510,000       $483,000        $441,000      $395,000
   $125,000       $630,000        $600,000     $550,000        $530,000       $499,000        $465,000      $405,000
   $130,000       $665,000        $620,000     $575,000        $540,000       $495,000        $450,000      $415,000
   $135,000       $690,000        $650,000     $615,000        $520,000       $510,000        $490,000      $450,000
   $140,000       $719,000        $670,000     $626,000        $580,000       $532,000        $486,000      $491,000
   $145,000       $745,000        $695,000     $660,000        $601,000       $550,000        $490,000      $495,000
   $150,000       $778,000        $725,000     $682,000        $633,000       $595,000        $510,000      $501,000
   $155,000       $802,000        $751,000     $710,000        $651,000       $600,000        $530,000      $505,000
   $160,000       $832,000        $775,000     $720,000        $671,000       $609,000        $567,000      $510,000
   $165,000       $850,000        $800,000     $750,000        $690,000       $630,000        $575,000      $515,000
   $170,000       $886,000        $826,000     $766,000        $706,000       $640,000        $582,000      $521,000
   $175,000       $905,000        $869,000     $845,000        $710,000       $650,000        $590,000      $538,000
   $180,000       $940,000        $877,000     $867,000        $735,000       $670,000        $605,000      $563,000
   $185,000       $972,000        $912,000     $845,000        $793,000       $710,000        $660,000      $620,000
   $190,000       $999,000        $930,000     $870,000        $810,000       $758,000        $700,000      $670,000
   $195,000       $1,025,000      $950,000     $899,000        $845,000       $790,000        $754,000      $710,000
   $200,000       $1,050,000      $985,000     $922,000        $888,000       $835,000        $799,000      $761,000

 Pick your gross annual income and choose the correct interest rate. The amount where the two intersect is
 the	size	of	mortgage	that	you	will	generally	qualify	for	(subject	to	extraordinary	debts!)
                                                                                                                          44   416-691-8118      George Christopoulos The Mortgage Centre 416-721-9299
                   Complete Home-Buying Process

                                           Buyer Agent Chosen

                One-On-One                                                 One-On-One
              Buyer Consultation                                       Mortgage Consultation

                The Search!                                                 Get A Full
          Find the “Perfect” Home                                      Mortgage Pre-Approval

                Do a CMA and                                               Unconditional
              Negotiate the Offer                                       Mortgage Commitment

     Pack, Assemble Down Payment
               and Move

           Celebration Day
   You’re Now a Proud Homeowner!!

                                                                                                                   45   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
                      Finding You The Perfect Home

      •Our	buyer	specialists	perform	TREB	computer	searches	daily

      •We	send	you	printouts	of	any	new	listings
             *by fax, e-mail or hand delivery
             *(Preferred Buyer Program)

      •Drive	by	to	check	out	prospective	home	exteriors	and	neighbourhoods

      •Call	us	with	a	list	of	your	favourites	and	set	an	appointment	to	see	the	interiors

      •You’ve	seen	three	or	four	OR	several	and	now	you	find	one	you	really	like

                                   What happens next?

                                                                                                                   46   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
                                      Sample MLS Listing

                                                                                                                   47   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
  What Happens When You Find Your ‘Dream Home’?
Once	you	find	the	house	or	condo	that	is	the	perfect	fit	for	you,	you	put	in	an	offer	for	it.	

How	do	we	know	what	to	offer?	First,	we	consider	recent	sale	prices	of	similar	houses	or	condominiums.

We	also	speak	to	the	real	estate	agent	who	listed	the	property	and	ask	three	critical	questions	that	allow	us	to	
measure	the	vendors	motivation	and	flexibility	about	the	sale	price.

The Offer Presentation Process
          We negotiate the offer as your Buyer Agent

          Typically, the Buyer Agent, vendor and vendor’s agent meet at the house that’s for sale…

          Generally, there’s a “Starbucks Signback” and some “to and fro-ing”

         If your offer is accepted…
               * Remember, being nervous is normal behaviour
      	 	      *	Certify	your	deposit	cheque	within	48	hours	after	acceptance	of	the	offer
               * Prepare to satisfy any conditions we’ve included in the offer
Now What?
         If you’ve bought a house, usually you would have it inspected
               * if everything is okay, the waiver is signed
      	 	      *	if	you	find	major	deficiencies,	we	go	back	to	the	vendor	and	renegotiate
         We’ll send your offer + a copy of the listing to your Mortgage Consultant…
              * the lender sends us back an unconditional Mortgage Commitment Letter and you sign the
        	     			waiver	to	remove	the	condition	upon	financing

If you’ve bought a condominium…
          you wouldn’t need a home inspection for a high-rise condo

          you	would	need	a	condition	on	financing

          you	would	need	a	condition	on	satisfactory	examination	of	the	Status	Certificate

          if everything is okay, the waiver is signed

          After all the waivers have been signed…

      Congratulations! You’ve bought a home!
                                                                                                                    48   416-691-8118    George Christopoulos The Mortgage Centre 416-721-9299
                The Ins And Outs Of Title Insurance
When	one	of	our	clients	first	heard	about	title	insurance	from	us,	he	wasn’t	exactly	sure	what	it	was.	As	a	first	
time home buyer he knew that, before taking possession of his semi-detached home in Toronto, his lawyer
would have to get all of the right papers and documents signed, ensuring that the home would be rightfully his.

The lawyer would then hand over something called a ‘letter of opinion’ that assured the client that the home
was properly registered and that no one else had a claim or lien against the property.

It	was	our	client’s	first	step	into	the	housing	market,	but	he	was	aware	that	ownership	problems	could	
crop up because it had happened to a friend of his. When our client asked about such problems, his lawyer
recommended buying something called title insurance.

Although title insurance is well-accepted in the United States, the concept is relatively new to Canada. Among
other things, title insurance protects consumers from title defects such as errors or omissions in the public
registry, undisclosed heirs who may crop up and claim a property, errors in existing surveys and fraudulently
discharged mortgages.

(Let’s	pause	to	define	“title”;	Here’s	a	definition	from	the	online	‘Lectric	Law	Library	at

“The sum total of legally recognized rights to the possession and ownership of property, Ownership of

A good title is that which entitles a man by right to a property or estate, and to the lawful possession of the

“I had no idea even what ‘good title’ was, but it is at least nice to know that if there are mistakes in title, then it’s
not something that I have to worry about,” our client said.

Title Insurance Covers You When Mistakes Are Made By The Lawyer...
After closing a house deal, a lawyer normally provides a “letter of opinion” about the property. The letter
essentially tells the new owner that he or she has “good title.”

Prior to stating that the new purchaser has “good title,” a lawyer typically searches for information about
zoning compliance, any outstanding work orders, asks for utility clearances from electricity and gas providers
and looks to see if there are any restrictive covenants that run with the property, or if there are liens against
prior owners. All of these searches cost money, of course... either in fees charged, or for a lawyer’s time to
examine all of these articles!

Title insurance makes some of these searches unnecessary and provides coverage for building bylaw violations
and work orders, major encroachments, legal rights of access and other title-related problems that could
devalue a property, or even make it impossible to sell in the future.

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For	instance,	if	you	buy	a	house	and	the	lawyer	finds	out	that	your	pool	or	garage	extends	onto	your	
neighbour’s property, it will delay you closing your house deal while the lawyers try to straighten everything
out.	If	you	have	given	up	your	apartment	or	existing	home,	you	will	need	to	find	a	place	to	stay	and	store	your	
furniture. But, if you have title insurance, you can close on time AND the cost to tear down, move or actually
buy the land from the neighbour is covered.

Here’s another “what if” scenario. Let’s say that you buy a house and start to renovate, such as starting to add
a sunroom in the back. You must go through the proper channels and hire an architect/engineer and get a
building permit.

Part of the process is that an inspector comes to see your property, to see if you are complying with proper
building codes. If the inspector discovers while he or she is there that some other work has been done to your
house	by	previous	owners	without	a	permit	-	such	as	lowering	the	basement	floor	–	you	will	be	issued	an	“order	
to comply”. If you have Title Insurance you will be covered for the cost of drawings by an engineer, permits and
any remedial work that needs to be done.

Our last “what if” is an example of fraud that an East York couple had to deal with after buying their home.
About three months after they bought their house, they got a letter in the mail from a mortgage lender saying
that the mortgage company was going to take their house and force its sale. It turned out that the previous
owner	had	fraudulently	filled	in	the	mortgage	documents	and	taken	them	to	the	registry	office	and	said	that	the	
mortgage was paid off. Then when the house deal closed, he pocketed the money and left the country. They had
to	pay	$35,000	to	hire	a	lawyer	to	fight	their	case	in	court	and	to	keep	their	house.	Title	insurance	would	cover	
the cost and hassle of this for both the lender and the new owner.

It also covers any mistakes or omission on the lawyer’s part and actually covers the lawyer’s failure to register
documents properly, or to remove encumbrances from title, as well as improper adjustment of any items (like
taxes) on closing.

The nice thing about title insurance is that it works much like your home or auto insurance policy. If you have a
problem...	call	them	and	they’ll	investigate	your	claim	and	will	then	fix	it	or	provide	compensation	for	damage	
or losses to you, the homeowner. The title insurance company will also pay legal or consultant costs if the claim
ends	up	in	court	or	has	to	go	before	City	Hall	to	fight	a	zoning	issue.

And you don’t have to worry about suing your lawyer if he or she misses a problem (and pay another lawyer to
handle your case). The title insurance company takes care of all of that.

Title insurance usually saves clients money by eliminating some out-of-pocket expenses, such as Toronto’s
$100 work order search fee.

Title insurance also allows the buyer to close without having any survey and if you don’t need to buy a new
survey, you’ll be saving about $900 right there. However, you would want to make that determination on a

                                                                                                                   50   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
property-by-property basis. Essentially, the title insurance covers losses that would be suffered because of
defects in title that an up-to-date survey could have revealed.

What	is	a	survey?	In	simple	terms,	it	is	a	drawing	of	your	particular	lot	with	the	dwelling	and	any	other	
structures or buildings being shown with reference to each other. It typically shows dimensions of the lot and
distances between the lot lines and the edges of the main house structure. A survey is prepared by an Ontario
Land Survey or using calculations taken on the ground and compared with the paper title of the property and
surrounding	lands	on	file	at	the	Land	Registry	Office.	

However, if the survey is not legible (although we’ve successfully had clients use surveys as old as 1906), or if it
is not signed and dated by an Ontario land surveyor, then it may not be useful.

When	would	you	want	to	get	a	new	up-to-date	survey?	Usually	if	you’re	planning	to	renovate	or	extend	the	
building, the city buildings department will want to see a survey. Also if you have a fence or retaining wall along
a	lot	line	you	might	have	questions	about	whose	land	they’re	on.	A	new	survey	will	of	course	tell	you	that.

Additionally,	if	you	are	buying	country	property,	a	survey	might	be	beneficial	because	there	might	be	
encroachments of long standing from neighbours, etc. that it would be important to know about up front.

If you want to buy title insurance, expect to pay a one-time fee of approximately $300 for a house and $200 for
a condo.

Several	companies	offer	it,	so	shop	around	--	or	instruct	your	lawyer	to	--	and	get	some	quotes,	as	well	as	any	
further incentives the company might offer.

                                                                                                                   51   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
         Pack And Prepare For Celebration Day
       Thomas and Sally or our Buyer Specialists will deliver moving boxes to you

       Copies of your offer are sent to your lawyer by our Client Care Manager. Usually, for about 95% of
       buyers,	this	is	the	first	time	that	a	lawyer	is	involved	in	the	home-buying	process.	Often	buyers	have	a	
       family lawyer, or they use a lawyer recommended by a close friend. If you don’t have a recommendation
       for a lawyer, just give us a call.

      	A	good	agent	should	be	available	to	answer	any	questions	from	the	time	the	offer	is	firm	until	closing	
       day and beyond!

       Organize the rest of your down payment and closing costs well in advance! Do not wait until the last
       minute to get your down payment and closing cost funds into your bank account.

       Thomas, Sally and our Team members will keep in touch often during the last 10 days… this helps
       make the process stress-free

Signing All The Paperwork…
      	Visit	your	lawyer	1-2	days	before	closing	with	a	certified	cheque	for	the	balance	of	your	down	payment	
       and the closing costs.

      	On	“Celebration	Day,”	your	lawyer	goes	to	the	registry	office	and	meets	with	the	vendor’s	lawyer.	They	
       exchange	paperwork,	cheques	and	keys	and	register	your	name	on	the	title	to	the	home.	

       You collect your keys from your lawyer or Realtor and start moving in!

  CONGRATULATIONS!!! You are now a proud

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                Buyer’s Cash Required On Closing

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                      Land Transfer Tax Calculations

                                                                    ** Go to **

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                   Mortgage Terminator ProgramTM
Thomas & Sally Cook from the RE/MAX Real Estate Viewing Centre have developed a program called the
Mortgage Terminator. This program is designed to help any homeowner pay of this or her mortgage principal
entirely in 10 years or less. Best of all... you can do this without making ANY lump sum payments whatsoever!

Most people don’t realize it but, during the lifetime of a mortgage, every homeowner is paying literally
thousands	of	dollars	of	their	money	in	interest.	In	fact,	interest	payments	in	just	a	five-year	term	on	a	mortgage	
of $300,000 amount to over $100,000 while the principal is reduced only by approximately $23,000. If you
kept a $300,000 mortgage for the full 25 years at the same 6.0% interest rate, you would have paid the bank
back $613,000!!

The Mortgage Terminator ProgramTM teaches you how to pay off your mortgage 15 years sooner than normal
and save $90-100,000 or more in interest charges. The method is simple and easy... any homeowner can do it
if they make it one of their family’s goals!

The Mortgage Terminator ProgramTM	is	a	customized	mortgage	payment	system	that	is	specifically	prepared	
for	your	own	particular	mortgage.	The	program	has	been	designed	to	show	you	the	benefits	that	regular	bi-
weekly “accelerated principal prepayments” will create for you, and to provide a simple yet detailed record-
keeping system that will document your progress and assure you that your mortgage lender is correctly
calculating your principal payment.

The	major	benefits	of	the	Mortgage	Terminator	ProgramTM are...
     1. It reduces your total interest cost, saving you potentially tens (and even into the hundreds) of
       thousands of dollars
     2.		It	builds	equity	in	your	home	faster	(vs.	paying	more	of	your	payment	money	towards	interest)
     3.	You	will	become	debt	free	sooner	-	because	you’re	paying	off	your	mortgage	so	much	more	quickly
     4. Our Mortgage Terminator customized spreadsheet will provide you with a complete accounting -
       record keeping system that will track your progress, verify your mortgage lender is calculating your
       principal reduction accurately and provide you with the necessary documentation to detect and resolve
       lender errors should they occur
     5.	It	eliminates	the	cost	of	financing	your	almost	forgotten	CMHC	mortgage	insurance	premium	sooner
     6. You have complete control over determining how many extra principal payments that you wish to
       make, and when.

Build Equity For Retirement OR To Move Up To That New Home In Three - Five Years !
Consumers	of	the	“new	millennia”	are	taking	a	different	look	at	their	financial	realities.	The	dramatic	changes	
within	the	economy	and	real	estate	markets	have	significantly	changed	our	outlook	for	long-term	financial	
security.	For	many,	the	accumulation	of	debt	and	refinancing	(in	some	cases	combined	with	the	loss	of	home	
value)	have	tampered	with	our	financial	assets,	not	to	mention	our	confidence	and	mental	state.	

This need not be the case. Basic mortgage planning and proper record keeping will pay off.

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Prepaying the mortgage principal is an old idea that, if applied correctly, can take on new value -- literally!
However, most consumers think of potentially making those principal payments in the form of a ‘lump sum’.
But that’s the problem... they just ‘think’ about it! Bank statistics show that 98% of mortgage borrowers DO
NOT take advantage of any lump sum payment privileges in their mortgage!

If	you	have	a	strong	desire	to	take	control	of	your	financial	future,	become	debt	free,	build	your	net	worth	and	
establish	your	financial	independence,	the	Mortgage	Terminator	ProgramTM is a systematic, objective oriented
tool that will enable you to achieve those goals.

                                                                                                                   56   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
                The Mortgage Terminator Program

                                                                                                                   57   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
We’d LOVE To Help You Find Your New Home...
We help buyers purchase all across Toronto (from Whitby, Ajax & Pickering in the east
to Mississauga & Oakville in the west … from the Lake north to Markham, Richmond
Hill & Brampton).

All	Team	members	are	highly	trained	Buyer	Agents	whose	SOLE	goal	is	to	help	you	find	
your dream home AND negotiate the lowest possible price.

We truly ENJOY helping and would consider it a privilege to be your Real Estate
Consultants for life!

Would You Like Even More Free Home-Buying Information?

           Our Website Is Packed With Great Info
                                  eLiving in Toronto                        Buyer eTips
                             A monthly eNewsletter with          Six months of weekly tips loaded
                           market stories, buying tips, the       with ‘insider tips’ that will save
                           latest design trends and more               you time and money

                                    HOMEWatch                        Buyer eBook, 2003 Edition
                                                                  Buying Your Toronto Home For
                           Receive the latest home listings
                                      by email                    The Best Price -12 chapters of
                                                                 valuable home-buying information      PLUS
   Read lots of informative articles, learn more about the Mortgage Terminator
   and	fill	out	a	form	online;	fill	out	our	Personal	Financial	Counseling	form;	read	
   more about title insurance, home inspections, great home-buying tips, Toronto
   neighbourhood information AND cruise our hot, new listings - some of which
   haven’t even hit the MLS market yet!

                                                                                                                        58   416-691-8118       George Christopoulos The Mortgage Centre 416-721-9299
      Sample Agreement of Purchase and Sale Forms - OREA


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            OFFER                                                                                                  60   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299

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                                           True Buyer Stories
Dianne & Glenn’s Story, in their own words:
OK,	the	first	thing	you	should	know	is	that	this	is	not	your	typical	referral	letter	–	Primarily,	because	most	of	
the letters we write (that aren’t work related) are to criticize, as opposed to compliment. We usually won’t
write a letter unless it is to right a wrong, or to express my discontent with customer service – something
which, we’re sure you will agree, happens all too often these days.

This letter is different.

This letter is an honest expression of our experiences trying to buy our new home working with the WRONG
agent, and then working with Thomas and Sally Cook. There are no holds barred. This is the truth, the whole
painful truth about our misadventures and eventual success in the home buyer/seller market.

Let’s face it – You don’t buy a new house (or sell your existing one) every day, and both of us had a fair amount
of cynicism worked up before we started to work with Thomas and Sally. You see, I had spent 10 years of my
life in sales, and Dianne has spent most of her working life in the commercial real estate business (although
her true expertise is as an interior designer) – so we didn’t hold out much hope that there might actually be
someone out there who would work for us, in our best interests, instead of working for the commission they
might earn by selling us a house, or selling our existing home.

In other words, we thought we knew it all when it came to Real Estate Agents, how to buy a new house, and
how to sell our existing one.

The	only	problem	was,	when	it	came	right	down	to	it,	we	learned	the	hard	way	that	we	didn’t	know	how	to	find	
and buy the new house that we wanted. While we have known Thomas and Sally for several years now, they
weren’t	our	first	thought	when	it	came	time	to	look	for	a	bigger	home	for	our	family.		Instead,	we	happened	
along another Real Estate Agent who gave us access (that, it turns out, we weren’t supposed to have) to the
Listings	System	that	all	Real	Estate	Agents	use	when	listing	or	finding	homes.		To	self-motivated	people	like	
Dianne and I, it seemed the perfect solution –we were able to look at all the home listings in Toronto whenever
we	liked,	and	would	certainly	find	the	one	home	that	was	perfect	for	our	needs…

…Or so we thought.

It turns out that simply having access to all the houses listed for sale doesn’t actually help you buy a house. In
fact, it hinders even the most highly motivated homebuyer. We found ourselves searching the database every
evening	after	work,	scouring	the	numbers	of	new	and	existing	listings	to	find	the	ones	that	suited	our	needs.		
Typically, by the time we found them, the houses had already been sold, or had multiple offers on them. This
went on for almost four months! Eventually, we both realized – This was not working out the way we thought
it would!

The most unfortunate experience was, however, still to come. Eventually, we found a home we wanted – It was
PERFECT for us, located in the Beach (where we were looking), and with all the features we wanted. We spoke
                                                                                                                      69   416-691-8118     George Christopoulos The Mortgage Centre 416-721-9299
to the agent we had at the time, and told him we wanted to place an offer. He put all the paperwork together,
and everything looked great.

And then we waited.

You see, the vendors had re-listed the property shortly after we saw the listing, and stated “No Offers Until”
a certain date. We felt our offer was appropriately in line (based on the information our Real Estate Agent
provided us with), and so we registered the offer, and waited until the day to accept offers came.

This is where it all came apart.

Understand that our agent was not a “Buyer Specialist.” We can’t emphasize enough that EVERYONE should
have a Buyer Specialist (and not just a Real Estate Agent) when buying a new home. Here’s why: On the way
to	present	the	offer,	our	Real	Estate	Agent	was	notified	(by	cell	phone)	that	another	offer	had	been	registered,	
and was to be presented in competition with ours. Our Real Estate Agent contacted us with this information,
but could not provide the proper advice on whether we should change our original offer, nor could our Real
Estate Agent provide a proper opinion on how reasonable our original offer was.

In short, we had the wrong person representing us – someone who didn’t know the area, and who certainly
didn’t understand the difference between being a Buyer Specialist and Real Estate Agent.

We lost out almost immediately. Our offer was too low for an offer competition, and was not even signed back
to us – We were left hung out to dry because we didn’t have the right person with the right skills, information,
and advice when the crunch came.

We lost the house of our dreams.

We	were	in	total	despair.		How	could	this	happen	to	us?		We	had	enough	money	to	buy	the	house!		How	is	it	
that	our	offer	was	not	even	considered?		Why	did	we	lose	out?		What	did	we	do	wrong?

Our Real Estate Agent couldn’t tell us.

It was at that moment that we realised we had been going about buying a house entirely the wrong way.

Call	it	the	hardest	lesson	we	have	ever	learned,	but	we	finally	came	to	the	following	conclusions	about	what	we	
really needed in order to buy a new home:

      *	We	needed	someone	who	would	scour	the	listings	and	try	to	find	homes	that	met	our	needs,	without	us	
        having to search the listings ourselves
      * We needed someone who actually understood what our needs were in terms of buying a new home, and
        would work in our best interests
      * We needed someone who was a SPECIALIST in buying new homes, and negotiating the lowest price on
        our behalf
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      * We needed someone who really knew the area we wanted to move to, and understood the real estate
        market in that area
      * We needed someone who would work with us as a partner, instead of as an “absentee representative”
      * We needed someone we could TRUST.

After	all	that,	we	finally	realized	that,	based	on	all	the	positive	referrals	we	had	received,	we	needed	to	work	
with Thomas and Sally Cook.

From that moment on, our lowlights turned into highlights:

After spending more than six months looking for a new home by ourselves (with the other Real Estate Agent),
it	took	Sally	only	two	weeks	to	find	us	the	home	that	we	needed.		This	includes	the	time	it	took	for	all	home	
viewings, the original offer we presented on the home we wanted, and the time it took to waive the conditions
after we bought the home for the price we wanted!

Thomas told us that our existing home would probably fetch between $280M and $290M, but at our urging
listed it at the higher price of $299,800. Our existing home sold in less than 14 days for $287,500 – 96% of
asking, but $7,500 more than what we reasonably expected it to sell for. In short, Thomas was right on the
money	when	he	told	us	what	we	could	expect	to	sell	it	for,	which	allowed	us	to	plan	with	confidence	when	
buying our new home.

In spite of all our misgivings, fear, horror, etc. buying a new house before selling our old one, Thomas and
Sally	managed	to	pull	it	all	off	without	us	breaking	a	sweat.		(Well,	OK	–	I	was	petrified	we	weren’t	going	to	sell	
the house, and have a tendency to panic, but Dianne and Thomas knew we would – and in the end, they were

The ability for prospective home buyers to view our house on the Web and to get a description via Telephone
were	both,	in	our	opinion,	huge	benefits	that	helped	get	our	house	sold	in	such	a	short	time.

In spite of the typical misgivings and nervousness that accompany such a major life event, Thomas and
Sally truly did do everything they could to help us pull this off – We literally put our lives in their hands, by
buying a new home before selling our existing one. We were scared and perhaps a bit mistrusting at times
(understandable	based	on	our	prior	experience),	but	they	came	through	with	flying	colours	when	it	came	right	
down to it, and delivered exactly what they had predicted and promised.

In closing, we were totally blown away by the work Thomas, Sally, and their entire team did during the
purchase of our new home, and the sale of our existing one. We would recommend them to the closest of
friends, and strongly suggest you speak to them before you even consider buying or selling a home – trust us, it
will save you a ton of time and money!

Glenn A.
Dianne B.

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Ruth’s Story - in her own words

I would like to describe my recent experience in buying a home with the help of Sally and Thomas Cook of RE/
MAX in Toronto.

I	was	very	hesitant	about	buying	my	first	home	mainly	because	I	knew	so	little	about	the	whole	process.	I	was	
tired of renting and often dreamed of having a place of my own. As a single mother, I was even more concerned
if it was the right thing to do or even if it was possible to own a home on one salary or whom I could even ask
advice regarding the process. I often picked up the re-sale home booklet at the bus-stop to read on my way to
work and saw that there were home ownership workshops available. They were free of charge so I really had
nothing	to	lose	and	maybe	would	gain	some	valuable	information.	I	finally	called	and	arranged	to	attend	one	of	
these workshops.

I was pleasantly surprised to attend the workshop and hear Sally and Tom explain the whole process in a way
that	even	”I”	could	understand.	They	had	a	sense	of	humor	that	was	unique	and	I	became	excited	as		I	realized	
for	the	first	time	that	my	dream	might	actually	be	possible!		Your	mortgage	consultant,	George	Christopoulos		
was	there	and	explained	the	whole	mortgage	thing.	I	couldn’t	believe	how	quickly	the	time	passed	at	the	
workshop. It was actually fun!! I could hardly sleep that night thinking of all the possibilities.

Several days later, I set up an appointment with George to get a fully approved mortgage. He arranged the
session	to	fit	my	busy	schedule	and	at	a	convenient	location	near	my	work.	He	was	helpful	in	answering	all	of	
my	questions	and	informed	me	of	much	information	that	I	didn’t	even	know	to	ask.	George	explained	all	the	
various options and helped me plan my “Variable” mortgage with a payment plan that was comfortable for me.

The	following	week,	I	met	with	Sally	in	her	home	office	and	discussed	my	“wish-list”.	She	helped	me	fine	tune	
it within my price range, and we looked at the choices she had prepared earlier from the latest listings on the
internet. Instead of having to drive all over the city looking at properties that would not have been suitable,
she helped me narrow it down to three choices. The following day, she arrived promptly at the pre-arranged
location and time and patiently helped me view my choices. She did not even seem frustrated when I did not
like the places or when I decided to put things on hold for a while. I realized I would have to increase my price
range or change my wish list. I decided to increase my price range in order to get something I would be happy
to own. After all - it was not going to be a rental this time. Sally listened patiently while I rambled on and she
offered some valuable suggestions to help narrow down my search for another time.

The following day I attended some open house viewing in the area I liked and found a house I really liked.
I called Sally and she returned my call shortly. Then the fun really started!! Sally arranged for me to meet
with Thomas outside the house I wanted that very evening and Tom once again explained the entire process
of submitting an offer. I waited in his van with my heart racing while he went to submit the offer to the and
the seller’s agent. In about 30 minutes he returned and helped me plan my counter-offer. Off he went again
to	negotiate	on	my	behalf.	On	his	return	with	a	“firm”	counter-offer	from	the	seller	which	was	higher	than	I	
comfortably wanted to go, Tom was very understanding but never showed any evidence of frustration even
though he had spent all evening with the seller on my behalf. We parted with a warm handshake but not
before he assured me not to worry and that something else would come up and he would be there to work on
my behalf.
                                                                                                                   72   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
The next morning Sally called me to inform me that the seller had made a counter offer and my emotions
were off and running again. However the deal still was not acceptable for me and Sally was understanding and
offered some valuable advice to me re: counter-offers and it was decided to let the vendor “cool off” for a while.
The seller felt I was “nickel and dime-ing” him. Tom also was excellent in providing advice on how to proceed
with things. Tom re-assured me that this was an unusual occurrence but one that can happen and I hadn’t done
anything wrong. Tom advised to wait for a week before making another offer. Even a week later when the seller
got	“cold	feet”	at	the	last	minute,	Tom	was	able	to	use	his	unique	psychological	skills	in	knowing	when	to	press	
on and when to “back off” with the seller. Tom again took a large portion of his evening to negotiate and it still
did not go through. As I had to go to Whistler in the morning on a business trip, I was convinced that nothing
more could be done regarding that particular house and I would have to continue looking when I got back. Tom
told me he would do what he could in the morning on my behalf.

When I arrived at my hotel room in Whistler, I had a message waiting for me to call Tom right away. He had
managed	to	get	the	deal	settled	and	I	was	able	to	finalize	it	through	phone	calls	and	faxes.	Tom	arranged	for	
the home inspection within three days, As I was out of town, Sally kindly gave of her time and accompanied
my daughter at the house for a three hour period while the inspector went through the entire process of going
through the house. I felt so calm knowing Sally was there and that things were being taken care of in such an
efficient	and	safe	manner.	The	inspector	from	Carson	Dunlop	called	me	from	the	house	and	gave	me	a	detailed	
verbal report of the inspection and advised me of the things that would need immediate attention and the
things that could wait until a later time. I was then able to receive the waiver by fax , sign it and fax it back
to Thomas. I was surprised on my return to Toronto to see the extent of the written home inspection book
which was given to me along with many written suggestions on maintaining a house and a place to store all
documents relating to the upkeep of the house.

The next step on my return to Toronto was a visit to the lawyer. Once again I relied on Sally and Tom to
recommend a lawyer. They gave me several choices and after several phone calls I selected Charles Eyton-
Jones. He was obviously well chosen for the task and things again proceeded smoothly. He took time in
explaining everything to me and at no time did I feel rushed or pressured.

My closing day is November 15 and I can hardly contain my excitement. Thank you soooo much Sally and
Tom!!! I AM NOW A HOME OWNER!!. I don’t know if I could have done it without you. Your kindness,
expert knowledge and commitment to me was exceptional and More than I ever would have imagined. I would
certainly not hesitate to recommend you to anyone who was considering buying a house or any other form of
real	estate.	Words	cannot	express	how	genuinely	satisfied	I	am	with		your	services	and	personal	touches	in	all	
aspects of my dealings with you. As a Registered Nurse myself I am very aware of the special traits needed in
dealing with the public in a gentle kinesthetic way and you certainly have all the skills.. You work together as a
“Super Team” and truly compliment each other in all areas. Keep up the good work!!

Best	of	luck	in	helping	others	fulfill	their	dreams.	

Ruth C.
                                                                                                                    73   416-691-8118    George Christopoulos The Mortgage Centre 416-721-9299
                  Resume For Thomas & Sally Cook
After attending Carleton University in Ottawa, Thomas starts the first skydiving equipment business in eastern Canada
- owns and operates 21 sewing machines

Thomas is a member of the St. Andre Ten-Pins skydiving team that wins the Canadian National Parachuting
Championships in Abbotsford, B.C.

Moves to Toronto from Montreal and graduated in September from the Ryerson real estate school to become a Realtor

Becomes a member of the A.E. LePage President’s Club after only 5 months of real estate sales

Thomas joins RE/MAX Hallmark in June because his clients appreciate the entrepreneurial spirit embodied in the culture

Becomes a member of the RE/MAX 100% Club

Thomas is graduated from the OMBA mortgage broker’s course and uses his knowledge to assist families to obtain
financing (from “5% down” all the way to “poor credit” creative lending)... soon meets Sally at a lender function

Sally founds her own successful mortgage company (FFC Mortgage Consultants) after being in the banking and mortgage
industry for several years

After assisting more than 275 families with their real estate transactions, Thomas is inducted into the prestigious RE/MAX
International Hall of Fame for consistent, quality service to his real estate clientele

Thomas and Sally become the happy parents of a healthy baby boy, Rylie Fraser Cook, born on July 18th!!

Sally obtains her real estate license and in November begins assisting Thomas with client service and marketing
responsibilities. Thomas obtains his Registered Relocation Specialist (RRS) designation and is recognized as being in
the Top 100 of Canadian RE/MAX agents. He also becomes a charter member of the RE/MAX Platinum Club -- this is
Thomas’ best year ever in the real estate service business

Thomas & Sally learn how to set up a telephone system to attract literally hundreds of buyers for their listings. They call
it the Knowledge Hotline and set up a local number, (416) 693-2468, to take the calls and provide information to sellers
and buyers alike. It keeps getting better. This is the best ever year to date for Thomas & Sally with almost 70% of their
business coming from referrals!
                                                                                                                        74   416-691-8118     George Christopoulos The Mortgage Centre 416-721-9299
The “information highway” starts to get heavy traffic. By spring, Thomas & Sally reserve more than 12 domain names to
promote their listings and attract buyers on the Internet. The login counter at starts at zero May
1st and they pass the 12,000 mark by December 3rd.

Thomas hears a two-minute conversation at one of the training sessions in Scottsdale, AZ in August about paying down
mortgages faster and a tremendous concept is born! The Mortgage Terminator Program™ teaches anyone how to pay off
their mortgage in TEN years or less without making ANY lump sum principal pre-payments!

Another record year... Thomas & Sally Cook assist almost 90 clients with the purchase or sale of a house or
condominium... thanks mainly to referrals and the Knowledge Hotline!

Another record year! Business grows so much, in fact, that they become: The Thomas & Sally Cook. The addition of
fully licensed real estate agents, called Buyer Specialists, to their team allows them to provide even better service to their
existing and new clients. The team ranks 10th in Ontario and 16th in Canada for RE/MAX agents.

The Thomas & Sally Cook Team break their weekly sales record in April, only to break it again in June... keep those
referrals coming in please! The team ranks #14 for RE/MAX teams across Canada. Once again, this is the team’s best year
ever and the centre helps to move 111 families.

They also add several new websites to their eReal Estate Network. focuses on the needs
of current home owners, appeals to first-time and second-time home buyers who want to
attend a Home Buyer Academy Class to increase their knowledge before venturing out to purchase a house or condo. is aimed at buyers seeking new construction, and focuses on
retirees. Thomas & Sally are now the owners of 290 domain names with website projects planned for mortgage financing,
several Toronto neighbourhoods and a country home referral network.

The RE/MAX Hallmark Real Estate Knowledge Centre Team adds a new buyer program called HomeWatch, a free,
computerized system that automatically emails new home listings to subscribing buyers.

The Home Buyer Academy Classes prove so popular that Thomas & Sally now hold three a month in three different
locations: Yonge & Eglinton, Bay & Front and the Scarborough Town Centre. By the end of 2000, about 1,000 home
buyers have “graduated” from our RE/MAX Hallmark Real Estate Knowledge Centre workshops.

Thomas receives the prestigious RE/MAX International Lifetime Achievement Award for helping more than 1,000
families meet their real estate needs.

Intrigued by the possibilities of, Thomas gets his SRES designation (Seniors Real Estate
Specialist) which teaches Realtors how to better serve the retirement and seniors community with their specific real estate
needs and concerns.

Thomas & Sally obtain the ABR designation (Accredited Buyer Representative) to further add to their knowledge of
expert buyer representation.

                                                                                                                          75   416-691-8118     George Christopoulos The Mortgage Centre 416-721-9299
By year’s end, the Thomas & Sally Cook Team has helped 181 singles, couples and families with their real estate goals
and dreams. It’s our best year ever and it is recognized by RE/MAX! Our Team is now ranked #3 in Toronto, #10 in
Ontario, #14 in Canada and in the Top 125 Worldwide out of over 68,000 RE/MAX agents in 38 countries.

Our Team grows to six licensed agents backed up by our support staff of Client Care Manager and Client Service Co-
ordinators. Thomas and our entire Buyer Specialist Team obtain their ABR designations too… making ours the only Team
in Toronto with this important training!

Thomas obtains his ABRM designation (Accredited Buyer Agent Manager) and attends a Broker Management course to
further his skills of managing the Team, and a Listing course designed by the Council of Residential Specialists entitled
“Listing Strategies For The Residential Specialist”.

With 217 sales in 2002, our Team becomes the #1 ranked RE/MAX Team in Toronto, #4 in Ontario, #5 in Canada and #33
in the world out of over 83,000 RE/MAX agents in 43 countries.

The Thomas & Sally Cook Team has its best month ever in March with 48 sales! Our Home Buyer Academy Classes (for
1st Time and Move-Up Buyers) expand to six locations across the GTA. See for details.

In October, Sally flies to Dallas, TX, and obtains her Certified Luxury Home Marketing Specialist designation and
Thomas obtains his in December.

We’ve now earned the right to call ourselves a “Miracle” Team - every Team member contributes a portion of each
commission to support the CMN (Children’s Miracle Network) which provides funding to the Sick Kids Hospital here in
Toronto. Our professional buyer specialist Team grows to 11 licensed Realtors plus Sally and Thomas with a Client Care
support staff of six on and off-site people.

By year’s end, our Team helped 297 singles and families to make a successful move. Thanks to our “happy clients” we
finished as the #1 Team in Toronto for the second year in a row!

We’re really having fun. Our Team ended the year by helping 350 singles and families with their purchase or sale and
we’re still the #1 Team for RE/MAX in Toronto and #5 in Canada.

Sally and I bought a 2-bedroom cottage in July on Stony Lake (north of Lakefield/Peterborough) and closed in mid-
August. We had a flurry of activity for the first two weeks with all sorts of renos… new laminate flooring, new fireplace,
new wiring, new year-round water line out to the lake with a filtration system, new docks, new roof on the Bunkie for
Rylie… whew !!! It cost a little more than we anticipated… about par for a renovation. We’ve really been enjoying it
though and I’ve created a web site to show photos, etc. Click on and check it out.

It’s been a ‘best year ever’ also for contributions to the Children’s Miracle Network. Our Team contributed over $14,000
in 2004 and our goal is to bring that to $16,000 for 2005.

Referrals and repeat business clients made up a larger part of our 2004 sales… for Sally and I almost 67% over the year
which is our highest ever. Please keep those referrals coming… we love them!
                                                                                                                      76   416-691-8118     George Christopoulos The Mortgage Centre 416-721-9299
2005 and 2006
Life is great. Rylie, our son is now 14 years old and is growing like a weed. He calls Sally ‘short stuff’ now.

Leacia, our daughter, has been working for us in the office while going to school to get her Masters degree. Jodi, our
other daughter, had a lovely baby girl Devyn born April 13th.

In the spring of 2006 we bought and then renovated a building to be our new Team headquarters. We moved into 450
Kingston Road, just 2 lights east of Woodbine Avenue (at the north-east corner of Brookside) in August and it’s been
terrific. We have lovely facilities for meeting with our buyer and seller clients and lots of space for our team of Client
Care support staff.

By the end of 2006 we as a Team have contributed over $55,000 to the Children’s Miracle Network... one of the top
contribution numbers in the RE/MAX network worldwide!

2007 was another banner year for real estate in Toronto. Sales of houses and condominiums hit another volume record and
the average sale price increased across the GTA by an average of 7%.

Condominiums began to take a larger share of the resale and brand new construction market. For the first time, over 50%
of brand new construction was condo high rise suites and in the resale market condominium townhouse and high rise units
accounted for a little over 33% of the marketplace.

Our first full year in our new Team offices at 450 Kingston Road gave us a terrific opportunity to continue and
continuously improve our client service level.

Toronto’s Real Estate Team maintained our high ranking in the RE/MAX network with 238 sales and we are eagerly
looking forward to another succesful year in 2008.

For the first time ever we hosted a Yard Sale For The Cure at our office in May. Many of our clients donated gently used
items and thanks to the generosity of our neighbours we were able to collect almost $1000 for the search for the cure for
breast cancer.

Of course we continued our regular contributions to support the Toronto Hospital for Sick Kids and the Children’s Miracle
Network - our Team’s total donations since day 1 are now approaching $70,000.

Outlook for 2008
It’s going to be an interesting year! Time will tell whether the City of Toronto’s Land Transfer Tax will have a permanent
or short-term effect on resales within the city boundaries (watch our blog at for periodic
market updates).

Due to the real estate crisis in the United States mortgage interest rates will likely trend down over the year.

On the personal front, Sally and I have purchased a new cottage lot just 1/2 mile west of our existing Escape to Serenity
cottage. We are hoping that construction will be complete before summer begins.

Check out our building progress at
                                                                                                                         77   416-691-8118     George Christopoulos The Mortgage Centre 416-721-9299
                 Resume For George Christopoulos
Graduated East York Collegiate in 1977

Attended Seneca College studying Business Administration 1978-1979 followed by University of Toronto in 1980

1981 – Left university early to help run family business

1983-1988 – While still involved with family business began career as realtor. Bought, sold, renovated and
rented out 5 homes before moving into commercial real estate and participated in many transactions involving
mixed used properties

1985 – Enrolled in CGA program

1989-1996 – Starts a catering company focusing on special event/corporate functions. Manages a staff of
50 people. Strong focus on corporate events; working with such companies as McDonalds, Alias Wavefront,
Canadian PGA, and Seneca College

1996	–	Interest	turns	back	to	real	estate.		Sells	steak	house	and	catering	business.		Joins	Equitable	Trust	as	
mortgage business development manager. Learns the mortgage business from the inside: underwriting,
instructing lawyers, working closely with mortgage brokers to close deals

1997 – Completes mortgage broker course at Seneca College to focus on real estate

1998-2000 – Joins National Trust as a Mortgage Specialist, National Trust soon becomes Scotia Bank by way
of	merger.		Receives	award	for	service	&	commitment	in	first	year.		Meets	Thomas	&	Sally	Cook	and	begins	
speaking at home buyer workshops. Works closely with Thomas & Sally’s clients, helping many of them
purchase	their	first	homes

1998 – Joins “By Referral Only”, a North America wide group of realtors and lenders committed to providing
world class service to their clients. Attends many training sessions to help raise the level of service provided to clients

2000 – Accepts a position as a Mobile Mortgage Specialist with Canada Trust and once again is part of a
merger to become TD Canada Trust. Creates another workshop with the Thomas & Sally Cook Team; servicing
clients in Scarborough.

2001 – Achieves membership in the TD Canada Trust Bank “Gold Club”

2002 – Over 200 clients are helped and now becomes a member of the TD Canada Trust Bank “Platinum
Club”. Awarded the prestigious “Warrior’s Award” for commitment to service and business
planning and growth

2003 – 2007 - Will help over 250 people with their mortgages and is one of the top
Mortgage Specialist’s with TD Canada Trust in Canada

Present - Left TD Canada Trust after 8 yrs to join The Mortgage Centre as a Managing
Partner. Now working as an independant Mortgage Broker with over 30 lenders offer a full
range of mortgage’s from companies such as ING , Scotia and TD Canada Trust. Also has
access to many niche lenders and commercial mortgages.

                                                                                                                          78   416-691-8118     George Christopoulos The Mortgage Centre 416-721-9299
 Here’s How To Get FREE Updates ByHOMEWatchAll The
                                   eMail Of
 Homes That Come On The Toronto MLS Each Week
 Now you can get a FREE one year subscription to our HOMEWatch Program. You’ll get
 information on all the new listings that come on the Toronto real estate market in any price
 range and areas you choose.

 It’s easy - just complete the information on this form and fax it to us at 416-699-3516 OR
 visit our website at to get your subscription online
 plus access over 18,500 homes for sale. Either way, your subscription will start right away!

     YES I’d like to get FREE updates of all the homes that come on the market each
 week. Please send me information on the following neighbourhoods:
 _____________________________________ <= areas in GTA

                                                                    Type of home...
                                                                        Detached
                                                                        Semi-detached
                                                                        Condo/Townhouse
                                                                        House with Rental Portion

                                                                    In the following price range(s)...
                                                                          Up to $200,000
                                                                          $200,000 to 250,000
                                                                          $250,000 to 300,000
                                                                          $300,000 to 350,000
                                                                          $350,000 to 400,000
                                                                          $400,000 to 450,000
                                                                          $450,000 to 500,000
                                                                          $500,000 to 750,000
                                                                          $750,000 and up
               Are you currently working with an agent?                   YES  NO
               Name:        _____________________________________
               Address:          _____________________________________
               Postal Code:      _____________________________________
               E-mail:           _____________________________________
               Home Phone #:     _____________________________________
                                                                                                                   79   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
 Mortgage Rate Hold & Mortgage Consultation
               Sign-Up Sheet
Mortgage rates increase and decrease on a regular basis, the rates today are at a 25 year low which is very
attractive for home buyers/owners. But did you know that the rates have risen and fallen by more than 1% in
as	little	as	2	weeks........	without	notice?

By starting the application process now you can take advantage of these low rates and be protected against
future increases AND still be in a position to have your rate lowered if they drop before ‘celebration day’.

Start your application now even if you are not planning to buy in the very near future. Find out how much of a
mortgage you can afford and how much down payment you will need. You may be able to save more by taking
advantage of your RRSP’s.

Remember, your rate hold is good for 120 days and you have my guarantee that you will receive the lowest rate
available during the 120 day period before you close.

Phone - day
Phone - evening
Email Address
Best time to call

Sign me up... I would like to have a

Mortgage Consultation                     Yes / No          Mortgage Rate Hold                     Yes / No

How soon would you like to                1 week 2 weeks 3 weeks 4 weeks 6 weeks
have	your	Consultation?                   2 months 3 months 6 months Other _________
                                          (please circle one of the above)

          Please	fill	in	and	fax	it	directly	to	George	@	1	866	616-9802
                                                                                                                   80   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299

                                                                                                                   81   416-691-8118   George Christopoulos The Mortgage Centre 416-721-9299
               Buyer Consultation Sign-Up Sheet
Time after time we hear from home buyers who started the process using another agent that they ‘wished
that agent had taken the time to listen to what it was they really wanted to buy’. In many cases, time was lost
looking	at	homes	that	didn’t	come	close	to	fitting	their	needs	and	they	felt	‘out	of	control’	because	of	a	lack	of	
knowledge of the process.

You now have the opportunity to make the home buying process very smooth for yourself.

Even if your home buying time frame is out six months or even a year from now, the consultation is very
valuable for you... it will give you a plan to follow for the next 6-12 months for savings and RRSP investment
and	you	can	sign	up	for	our	HOMEWatch	Program	whereby	you	receive	listings	by	email	from	specified	
neighbourhoods to educate and inform you about what’s happening in the market until you’re ready to move
up to our more personalized search (Preferred Buyer Program).

Fill in this Buyer Consultation Sign-up Form and fax it in to start your home
buying adventure!

Phone Numbers                                     Home                               Work
Email Address
What	day(s)	of	the	week	are	best	to	meet?	
What	time(s)	of	the	day	are	best?	
Approximate date when you want to be
‘moved in’ to your new home
Approximate Purchase Price Range                  $
Approximate Down Payment                          $

     Absolutely the only real estate website you’ll ever need!
If	being	a	‘first-time’	buyer	or	selling	a	house	or	condo	for	the	first	time	is	a	bit	daunting,	you	are	not	alone!	
Many	singles	and	couples	are	eager	to	buy	their	first	home	or	sell	their	first	home	and	move	up	to	a	larger	
house or condo but often don’t know where to start.

If you have access to the internet, the Real Estate Knowledge Website is where you need to go! With one stop,
you can browse through many pages of valuable buyer and seller information and access over 15,000 MLS
listings for Toronto.

                                                                                                                      82   416-691-8118    George Christopoulos The Mortgage Centre 416-721-9299

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