We want to make your home buying experience simple and stress-free.

Let’s Do this.

Jennie, Bonnie and Tracy Tao have the knowledge and experience to assist you from when you start your new home search to when you move in.

Tao’s Tips

Answers to some of our most frequently asked questions.

What are the benefits of buying a new home?

Purchasing a new home provides you with many benefits:

  • You get to pick your floorplan and preferred location within a property,
  • Customizations such as selecting your colour scheme and upgrade options,
  • Warranties on your new appliances and the 2-5-10 Year Warranty on your home,
  • Flexible and later completion dates which may provide you with more time to arrange for down payment funds and align with anticipated changes in personal circumstances.

Buying a newly constructed home also affords you the peace of mind to enjoy your home without having to endure renovations and costly surprises that can be uncovered over time.

Steps to Buying a New Home

Once you have confirmed your decision to purchase a a home with Dawson + Sawyer, the process begins:

Generating A Contract of Purchase + First Deposit
Action Items:
Dawson + Sawyer creates a Contract of Purchase Your First Deposit of $5000 is due

In order for us to generate your Contract of Purchase, we ask you for the following information:

  1. Copy of government-issued ID
  2. Current address
  3. Phone number
  4. Email
  5. Occupation
  6. Resident Status
  7. Realtor Name with brokerage details (if applicable)

The Contract is emailed to you to sign through a secure digital signing program, such as ‘DocuSign’. If you are working with a Real estate Agent, they can help you with this process. As well, Dawson + Sawyer is available to assist you in person or over Zoom. Upon signing your contract, your first deposit is due.

Acceptance Date
Action Items:
Your Acceptance Date is established 7 Days to finalize your purchase

The date when Dawson + Sawyer signs your contract is your Acceptance Date. You have 7 days from your Acceptance Date to finalize your purchase. This is called your Rescission Period.

Rescission Period
Action Items:
Mortgage Approval Accountant Consultation Lawyer Consultation

During the Rescission Period, we recommend you obtain mortgage approval, and consult with your family, accountant, and lawyer, if needed. If you would like to cancel your Contract, you can do so prior to the end of your Rescission Period without penalty.

Finalized Contract
Action Items:
Second Deposit is Due

At the end of your 7-day Rescission Period, an increase in deposit is due and your Contract is now firm and binding. Congratulations! Now you get to start planning for your move into your new Dawson + Sawyer home!

Do I need a mortgage approved during the 7-day Rescission Period?

Mortgage Approval
Action Items:
Obtain mortgage approval in writing before your Rescission Period is over Once your Rescission Period is over and your Contract is firm, you are financially obligated to complete your purchase

We recommend having your mortgage approved with a commitment in writing from the bank by the end of your Rescission Period. If you are already pre-approved, expect your bank to:

  • Check your credit
  • Confirm your employment
  • Confirm your sources of income

To prevent any unexpected surprises that prevent you from obtaining mortgage approval, it’s best to secure this confirmation before your Contract is firm and binding. If you need to cancel your Contract, there is no penalty for doing so during the Rescission Period.

Builder Capped Rate Mortgage
Your mortgage terms are secure until your future Completion Date regardless of:

  • future interest rates
  • changes to your employment
  • changes to bank or government lending policies

To assist purchasers buying a pre-sale home, we have partnered with top banks and lenders to offer a Builder Capped Rate Mortgage. These trusted mortgage professionals are able to hold your mortgage approval until your completion date, even if it’s a year or two away! Once you are approved, this program protects you against changes to your employment and personal circumstances, future increases in interest rates, changes to bank or government lending policies, and subjective appraisal values – all of which can negatively affect your mortgage approval. Speak to a Dawson + Sawyer Sales Representative for more details.

What is the difference between a Deposit and a Down Payment?

When signing a Contract for a new home purchase, a deposit is due. The Deposit is the amount the developer requires a purchaser to pay in order to secure the home to show ‘good faith’ intentions to purchase the home. The deposit amount is usually expressed as a percentage of the purchase price and may be paid in multiple installments based on a pre-determined deposit structure. As the deposit structure may be different for each property and is subject to change, please speak with a Dawson + Sawyer Sales Representative for more details. The deposit forms part of the purchaser’s total down payment.

A Down Payment is the total amount required to be paid by a purchaser (upon closing), when purchasing a new home. The balance of the purchase price, if any, may be mortgaged or borrowed. The down payment required is based on many factors including the purchaser’s personal income, financial liabilities, type of employment, credit rating, and resident status. As everyone’s circumstances may vary, it is recommended to speak with a mortgage specialist to determine what the Purchaser’s down payment requirements are and whether they qualify for a mortgage.

For Canadian residents, the minimum down payment also depends on the total purchase price of the home, after any upgrade options and GST is added:

  • for a total purchase price below $500,000 it is 5%
  • for a total purchase price between $500,000 and $999,999 it is 5% on the first $500,000 and 10% on the balance
  • for homes priced at $1,000,000 or more, or if you are purchasing the home for investment, the minimum down payment required is 20%

What is the Estimated Completion Date?

Estimated Completion Date
Quick Answer:

Estimated Completion Date – The date that Dawson + Sawyer anticipates the home to be ready by

At the start of sales, the construction team gives an Estimated Completion Date for when homes are ready. As construction progresses, the Estimated Date may be revised by delivery of a written notice from the Vendor (Dawson + Sawyer) to the Purchaser called a Notice of Estimated Completion Date.

Completion Dates are estimates only and are subject to change. Due to the nature of large projects with the many trades and supplies to manage and the necessary inspections to co-ordinate with the City, unforeseen delays can happen. Depending on the actual time it takes to build your home, your Completion Date may be adjusted with a minimum of 30 days notice. We are proud that Dawson + Sawyer is a full-service developer where management of construction is completely in-house. This gives us maximum construction over construction costs, quality, and timing.

Are Assignments allowed?

Quick Answer:
Assignments, or the transfer of your contract to a new purchaser, are not permitted.

Partial assignments, such as removing a spouse or adding an additional purchaser for financing purposes may be permitted with prior consent of the builder. Assignment fees and a minimum of 60 days notice to Dawson + Sawyer is required from your Completion Date. Speak with a Dawson + Sawyer Sales Representative for more details.

Are there any rental restrictions?

Rental Restrictions
Quick Answer:
There are no rental restrictions in the Bylaws that prohibit you from renting out your new home.

As the original owner, you will always have this right to rent. This offers maximum flexibility in the event you decide not to move into your new home or if you decide to live in the home and then rent it out in the future. Please note that changes in your home ownership can have tax implications. Please speak with your accountant or another tax professional to confirm, if necessary.

What is included in the Strata Fees?

One of the biggest perks of townhome or condo ownership provides is the freedom of a maintenance-free lifestyle.

Your monthly strata fee covers your portion of the shared expenses such as:

  • Professional property management
  • Building insurance
  • Landscaping & in-ground irrigation maintenance
  • Municipal utility for water & sewer
  • General maintenance and repairs (such as annual gutter cleaning and power washing),
  • Garbage and recycling pick-up
  • Snow removal
  • Pest control
  • Maintenance of common areas and amenities.

For more details, see a Dawson + Sawyer Sales Representative.

What are the Taxes?

Quick Answer:
GST – 5% of the Purchase Price
Property Transfer Tax – 1% on first $200,000 plus 2% on the remaining value of the home

There are two taxes payable when purchasing a new or pre-sale home in BC: GST and Property Transfer Tax (if applicable). Taxes are due at the time of Completion.

GST is calculated at 5% of the Purchase Price. You may be eligible for the maximum rebate of $6300 (36% of the 5%) if you meet certain criteria and the price is less than $350,000. For a home between $350,000 and $449,999, you may be eligible for a partial rebate, and above $450,00 there is not GST rebate.

To qualify for the GST New Housing Rebate, you must meet all of the following criteria:

  • You must be an individual and not purchasing the home under a company name, corporation, or holding company
  • You must be using the home as your primary residence or if the home is a rental property, you must have signed the lease of a minimum of 1 year to provide to the CRA
  • You must be a Canadian Citizen or Permanent Resident

Property Transfer Tax is calculated at a rate of 1% on the first $200,000 plus 2% on the balance of the Fair Market Value of the home (under $2,000,000). There is an exception available on new homes if the Fair Market Value is under $750,000, a partial exemption for homes up to $800,000, and no exemption for any home $800,000 or above. As with the GST New Housing Rebate, there are requirements that need to be fulfilled in order to qualify for the exemption or partial exemption:

  • You must be an individual and not purchasing the home under a company name, corporation, or holding company
  • You must be a Canadian Citizen or Permanent Resident, not a foreign entity
  • You must be using the home as your primary residence
  • You must reside in the home for a minimum of 1 year
  • You must move into the home within 92 days of completion

It is your responsibility to ensure you meet the requirements to be eligible for rebates or exemptions. We recommend seeking legal advice to confirm your eligibility and consulting a mortgage professional if you intend to finance the GST along with your new home. The Property Transfer Tax cannot be financed along with the price of your new home and must be paid separately upon completion.

What is the difference between completion date and possession date?

The Completion Date is the confirmed closing date specified by written notice from the Vendor to the Purchaser. The Final Notice of Completion Date will be issues with at least 30 days notice from the date of delivery.

The Possession Date is the business day following the Completion Date where the Purchaser receives their keys and takes possession of their home provided the Vendor has received the Balance of the Purchase Price in accordance with the Contract of Purchase and Sale.

Have a question? Just ask us…

Hear It From A Homeowner

Peter and Angella, THE GREAT ONE