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Military Relocation – Buying a Home

Our Military Relocation blog provides a complete and comprehensive guide for military families navigating the complexities of frequent moves. It highlights the uniqueMilitary Relocation - Home Purchase challenges faced by military families, such as tight timelines and financial pressures, and introduces the Military Relocation Professional (MRP) as a crucial resource to mitigate these difficulties. The guide then explains key concepts like House Hunting Trips (HHTs) and the financial benefits available, particularly focusing on the assistance provided by Realtors and mortgage professionals experienced in military relocations. The ultimate guide of this blog is to empower military families with the knowledge and tools to make informed decisions throughout the stressful process of military relocation.

Why You Need an Approved BGRS Realtor

Using an approved BGRS (Brookfield Global Relocation Services) Realtor when buying a home in Canada offers several benefits, especially for members of the Canadian Armed Forces, RCMP, or federal employees participating in a relocation program. Here’s why it’s advantageous:

1. Expertise in Relocation Needs

  • Approved BGRS Realtors are trained to understand the unique requirements and timelines associated with relocations.
  • They are familiar with the specific challenges military and government employees face, such as short-notice moves and strict budgets.

2. Access to the Integrated Relocation Program (IRP)

  • These Realtors are knowledgeable about the policies and benefits under the IRP.
  • They help you maximize entitlements and reimbursements for expenses like moving costs, house hunting trips (HHTs), and temporary accommodations.

3. Streamlined Process

  • BGRS Realtors are already approved vendors, which simplifies paperwork and ensures compliance with the program’s guidelines.
  • They work seamlessly with BGRS to provide the required documentation for claims and reimbursements.

4. Local Market Expertise

  • Approved Realtors often have extensive knowledge of local housing markets, helping you find suitable properties within your desired area and budget.
  • They can identify neighborhoods that cater to military families, with proximity to schools, amenities, and base facilities.

5. Priority and Efficiency

  • They understand the urgency of finding a home during an HHT and prioritize your needs.
  • Their experience enables them to quickly identify homes that meet your criteria, saving valuable time.

6. Financial Benefits

  • BGRS Realtors are familiar with the financial aspects of military relocations, including mortgage options, allowances, and benefits available.
  • They can guide you to lenders and programs designed for military or government personnel.

7. Support and Advocacy

  • These Realtors advocate for your interests in negotiations, ensuring you get the best possible deal on your home.
  • They provide continued support throughout the relocation process, from initial searches to final closing.

Conclusion

Using a BGRS-approved Realtor ensures a smoother and more efficient home-buying experience tailored to the unique needs of those in relocation programs. Their specialized knowledge and ability to navigate the system provide peace of mind during what can be a stressful process.

Military Relocations: Questions and Answers

1. What unique challenges do military families face when relocating?

Military families often experience a high degree of stress and financial strain due to frequent relocations. They typically have to sell their current homes or break leases quickly and find new housing in a potentially unfamiliar location, all within a short timeframe. These moves can be emotionally challenging, disrupting family life, children’s schooling, and spouse’s careers, while also leading to rushed decisions in the home buying/selling process due to tight timelines. Limited housing inventory, potential for lower sale prices, and the possibility of double mortgage payments add to these difficulties.

2. What is a Military Relocation Professional (MRP) and why should I consider working with one?

An MRP is a real estate agent who has specific training and understanding of the complexities of military relocations. They are members of the National Association of Realtors and have completed a certification process that equips them with knowledge about military benefits, VA loans, and the unique needs of military families. Working with an MRP is advantageous because they are familiar with military acronyms, understand the short timelines involved, can provide “boots-on-the-ground” support if you can’t be present for all the steps, have knowledge of the local market and related resources, can help you determine the best way to use your benefits, and can look ahead to the next potential move. They also have a network of other service providers and MRPs that can be invaluable during the relocation process.

3. What is a House Hunting Trip (HHT) and what is its purpose?

A House Hunting Trip (HHT) is an authorized trip provided to military members and their spouses to travel to their new posting and secure housing. The HHT typically lasts five days and is intended to allow military families to explore different neighborhoods, view potential homes in person, and coordinate other details related to their move. HHTs are extremely important in allowing a family to make a more informed decision, especially when they may have little other opportunity to view properties in person.

4. What financial benefits and support are available to Canadian Armed Forces members during a relocation?

The Canadian Armed Forces Relocation Directive (CAFRD) provides several benefits to cover relocation expenses. These include core relocation benefits for housing-related costs, such as Realtor commissions, legal fees, inspections, and cleaning services, customized benefits to cover costs like meals, transportation, and shipping, housing grants to offset any losses on home sales, and temporary dual residence assistance (TDRA) to cover the costs of owning two properties when a home can’t be sold before a move.

5. How can a Realtor assist in the selling and buying process during a military relocation?

A Realtor who has experience with military relocations can help in multiple ways, such as: listing your current home for sale promptly to alleviate time pressure and help achieve a better sale price; providing advice on preparing the home for sale; efficiently organizing house-hunting tours to maximize time; connecting you with reputable third-party providers such as inspectors and lawyers; and providing detailed insight into specific properties and market conditions. A good realtor can walk you through the full process and answer questions that you may have.

6. What should military members consider when choosing a home in a new posting?

Military members should consider several factors when choosing a home. They should assess the overall market conditions and mortgage interest rates, and compare the costs of buying versus renting. They need to determine if it will be a short-term posting or longer. Additionally, it’s important to consider household income versus monthly costs, factoring in regular maintenance, commuting costs, and location within the community. Families should discuss their individual housing needs, preferences, and required amenities to make the best decision. Pre-approval for a mortgage is highly recommended prior to arriving on a HHT.

7. How can mortgage professionals support military members with their unique circumstances?

Mortgage professionals with experience in military relocations can assist by providing tailored mortgage solutions, often working with lenders who offer military benefits, and helping families with pre-approvals. They understand the need for swift action due to short notice relocations. They can protect interest rates for extended periods, ensure mortgage transferability without excessive penalties, and help with complex scenarios like those involving the DND Clause, and also assist in reducing interest rates using military benefits.

8. Besides location and price, what other factors should be considered when choosing a Realtor for a military relocation?

In addition to location and price range, military members should seek a realtor with specific experience and a proven track record with military relocations. They should also look for a Realtor with a strong network of other professionals such as lenders and movers, as well as consider how many military transactions they have closed. The more experience a realtor has in this space, the better they will understand the nuances of a military move. Look for someone who is a good communicator and takes the time to understand your individual needs and preferences.