Buying a Home in Canada

Wishful Thinking


  • “Hello Mr. Buyer. Thank you for considering the purchase of an MLS®listing. My name is Peggy. I am in charge of quality control and to insure that the rules of our system have been properly explained to you, I need to ask you a few questions before I can allow negotiations with the seller’s agent to begin.
  • Question #1: Is the commission going to get split between two real estate firms or are you giving it all to the listing company?”
  • Buyer: “I ain’t paying no commission to no stinkin’ agent what are you talking about?”
  • Peggy: “Oh boy. Sir, the owner of the house you are thinking of buying has agreed to pay a commission. In a majority of cases, this money gets split between the firm that is representing the buyer and the firm that is representing the seller. This is at no cost to you, the money has been secured by a contract and the seller is paying the whole thing. This is the way the MLS®System has worked ever since it was first introduced in the 1950s. So it is up to you. You can hire the REALTOR®of your choice from the firm of your choice to help you negotiate this purchase or you can do it all by yourself – in which case we will simply give the entire commission to the company representing the seller instead of the half it currently stands to receive. So what is it gonna be?”
  • Buyer: “Are you saying that I can be represented by the REALTOR®of my choice, from the company of my choice, that this REALTOR®is allowed to help me negotiate the price of the house down; that I won’t have to pay a red cent for the service; and that things have been this way since the 1950s?”
  • Peggy: “That’s right, sir.”
  • Buyer: “Wow! Has anyone ever turned this down?”
  • Peggy: “It used to be very common for buyers to be unrepresented, but not since we started explaining our rules before allowing deals to proceed. Since then, almost all transactions involve two real estate companies – as they obviously should.”
  • Buyer: “Excuse me Peggy, but I don’t really know who to ask for help and feel that it would be crazy for me not to get someone since it is free. Are there companies that specialize in negotiating house purchases for people like me?”
  • Peggy: “There are. These special REALTORS®are called Exclusive Buyer Agents or EBAs. They work for companies that take no property listings and never represent sellers. These guys have nothing to sell, their job is to advise, represent, and protect buyers like you. So hiring an EBA is clearly your best bet, but a traditional agent can do the job as well. The only thing, is that they won’t be able to fight for you if you choose to buy one if their in-house listings. So if you can’t find an EBA you like, I would suggest you hire the member of a very small real estate firm – a company with only a few listings to minimize the risk of a conflict. So I guess I will have to break another seller’s agent heart and tell him you have decided to hire your own representative. Our initiative has not been popular with traditional REALTORS®, our little talk today has just cost the listing agent half of the commission…"

    Oh, how easy buying a home would be, if there were a real Peggy explaining the MLS®System to buyers before proceeding with a purchase. In no time the word would get out and almost all MLS®transactions would involve two independent and distinct real estate companies – one fighting for the best interests of the buyer and one doing the same thing for the seller.

    Of course, this will never happen and again in 2012, hundreds of thousands of Canadian homebuyers will short-change themselves and fail to take advantage of the free EBA, like myself, that they could hire to protect their bottom line.

    So if you know of anyone that is thinking of buying a home – anywhere in Canada because the system works the same way in every province -- why don’t you forward a link to this text to them? The three minutes it will take them to read it could literally save them thousands.


    Alain Savard

Mortgage Rates

Discounted rates found on the internet on May 17, 2019.

Fixed-Rate Mortgages

1-year closed: 3.09% (3.09%)
2-year closed: 2.89% (2.89%)
3-year closed: 2.94% (2.94%)
4-year closed: 3.04% (3.04%)
5-year closed: 2.74% (2.74%)
7-year closed: 3.24% (3.54%)
10-yr closed:   3.24% (3.44%)

Qualify. Rate:  5.34% (5.34%)

Variable-Rate Mortgages

BofC’s Target:   1.75% (1.75%)
Banks' Prime:    3.95% (3.95%)

5-year: Prime - 1.30% or 2.65%

Some rates may only be available to people with top credit living in specific areas. BofC stands for Bank of Canada. The "Qualifying Rate" is used to qualify borrowers choosing terms of 4 years or less. The rates in bracket are from May 10, 2019.

HBI - Home Buyers Incorporated 22 Giberson Drive, Dartmouth, Nova Scotia B2W 6J6, Tel: 902-452-0969, Fax: 902-435-4701 | Halifax Web Design by: immediaC