Research the Market
Before you start your search for a home, research the local market conditions to get an idea of what’s available and at what prices. You can also look into recent sales in the area and any new developments that may affect future prices. This will give you a better understanding of what type of properties are currently on the market and whether they fit within your budget.
Consider Your Mortgage Options
As a first-time buyer or investor, you should consider all mortgage options available to you. A mortgage broker can help you find the right product for your financial situation. Factors such as loan terms, interest rates and down payment amounts should all be taken into consideration when comparing mortgage products. A mortgage broker has access to a wide variety of lenders and various different programs to assist with new Canadians obtaining home ownership.
Prepare Your Down Payment
When purchasing real estate in Canada, you will need to provide a down payment of at least 5% of the first 500K and 10% of the remainder to a max of 999,999.00 purchase price in order to secure financing from most lenders. It is important to have your down payment ready before starting negotiations so that sellers know you are serious about buying their property. Anti Money Laundering rules put out by the federal government legislate that the funds need to be in an account for a min of 90 days. Down payments can also be gifted by family members.
Review Financing Options
When shopping for a mortgage, review various lenders and compare their financing options based on interest rates and fees. Although one lender may offer slightly better terms than another, it is important to factor in other fees like closing costs or early repayment penalties when making your decision. Working with a trusted mortgage broker can help reduce complexity when selecting a lender who meets your needs.
Understand Closing Costs
Before signing any paperwork on purchasing real estate in Canada, make sure both parties understand who is responsible for what closing cost expenses like appraisals, title insurance or legal fees associated with the transaction. Knowing these details ahead of time will prevent any unpleasant surprises as you move through the process towards completion of your sale.
Conclusion
Buying real estate in Canada as a new Canadian can be overwhelming but understanding the process will help ensure that you secure financing and find the best home possible that fits both your budget and needs. Working with an experienced mortgage broker can be extremely helpful throughout this journey and make sure everything goes smoothly from start to finish!
