What to look for when buying a home in Canada

Many of us like to have a beautiful home and find a great lifestyle in Canada. It does not matter if you are a Canadian citizen or a permanent or temporary citizen. You may spend time over there and may buy a house for yourself and call it home.

Well! You should be entitled to buy a house in Canada

Canada has its own rules and regulations, and not everyone could buy a house or property. An individual who is nonresident has all ownership rights what residents and citizens have in Canada. Also, no signs have been shown that anything would change soon but soon the prices of property will shoot up in various areas for foreigners. Like in April 2017, the government in Ontario made a Non-Resident Speculation Tax (NRST), which is a 15% tax on the purchase of any residential property in various areas like the Great Golden Horseshoe region in Toronto for people who are non-residents of Canada.

Many best places are in Canada for buying a house

It totally depends on the buyer, where the buyer wants to buy a house like what buyer is after, and whether needs house in cosmopolitan living or near shorelines along with craft shops and many more. You will find a huge number of choices in Canada.

The most important factor is the Cost. According to statistics of a survey done by the annual cost of living done by Mercer, An MNC is Toronto and Vancouver joined together in the 109th edition of the league table for Most expensive cities in the whole world. Montreal and Calgary are on the list. According to another survey done by Slice.ca revealed, Canada’s five most cheap places are located in Quebec such as Terrebonne, Levis, Saguenay, Laval, Sherbrook and many more. 

85So, a question arises which is the best place to live, according to a conclusion by moneysense.ca, Oakville Ontario has got a strong economy, great weather, low crime rates. Hence it is the best place to live in Canada who are new. It is the third and fifth best place to retire and raise a family.

How much are you able to afford?

If you are looking for a mortgage, you need to know the answer to this question with no uncertain terms. As per the rule of thumb, CMHC also known as Canada Mortgage and Housing Corporation has a rule that your monthly EMI for a mortgage loan should not exceed 30% of gross monthly income and should be less than 40% if other loans you have.

How to look for a property?

It is a difficult task to search for property. It is very important for you to look into your dream house after you look into a mortgage and get pre-approval. You should know what you can afford and what you cannot afford. Various realtors won’t help you until you have a clear understanding of mortgage amount and you should have preapproval for a mortgage loan.

Once you have preapproval for the mortgage you know how much you can afford. You should search for the house accordingly.  You may look for houses on realtor.ca website.

Why do you need Realtor and who pays?

A realtor has a good role since many house sales are done by Realtor and it plays roles from the buyer’s side as well as the seller’s side. Brit had a great reaction since we are so much inured to the notion which is completely ridiculous.

So, if any seller takes the help of any realtor, the seller needs to pay fees of both yours and realtors. And if it’s a direct deal without realtors, a buyer and seller need to decide who will pay realtor’s fees. 

How should you avail Mortgage loans in Canada?

so, you might have many questions about the maximum mortgage amount and how to look for a mortgage and many more. 

In Canada, minimum you need 5% of the total price of a house for a down payment and if you are going to give down payment less than 20%, you need to mortgage from CMHC or some private insurer. In need to obtain the trust of people that you will make repayments. 

If you are a non-resident and you have only 65% to borrow the total price of the house. Also, you need to give around a 35% down payment. Since foreign banks don’t have registration for mortgages in Canada, hence you need to use a local bank. Even if you have money, you need to give a huge number of interviews and fulfill or endless demands for various documents and information.

Where you should go for a mortgage?

A buyer may easily go to a bank or some broker who provides mortgage loans. Well taking a loan from the broker has advantages since the broker knows ins and outs of all marketplace which provides mortgage. Also, the broker will provide you access to all preferential prices. Also, brokers are aware of everything and would help you if you fall outside the category of easy to assess “Payroll monkey”. Such is self-employed, contractor or business owner. And if you are not a resident then you need to choose a broker who is familiar with all the mortgages given to foreign buyers.

What are the costs involved in the purchase of the house?

It is essential for you to determine a suitable price range and you should be sure about your budget. You may take the help of a realtor. Various costs could not be obvious.

  • The purchase price
  • Taxes for Land transfer and property.
  • Different appraisal fees in bank
  • Inspection costs for the home.
  • Insurance and many more.

How should you decide whether you need a realtor or no?

Well, there is no reason that you won’t need a realtor. A seller would pay all the realtor’s fees. 

Who is a realtor?

  • An individual who would help you to find an ideal home for you.
  • It will bring valuable knowledge about every bit of the house.
  • It will negotiate for a price on behalf.
  • It will help with legal deals.

A real estate person is one who would find a house as per your interest with crossing bound of code of ethics.

Well here is the summary of all the things you need to do in stepwise order to buy your house.

Step 1: 

You need to make a budget. 

If you have a budget it would help you to make a better plan and keep your money safe. You should be well aware of all the additional costs and payments. It will help you to determine the price or money you need to buy a house and what can you afford.

Step 2:

You need to know about various mortgage choices.

It is very important you finalize a mortgage and get pre-approval since it would help you to find a house in your budget.

Step 3: 

Well, you need to have Realtor.

A realtor would play a major role in getting you a house. The best realtor would give you advice in all domains as a negotiator, consultant, personal advisor and much more. Also, it will shortlist houses as per your choice would guide you till the house is bought and all the document work is completed.  A Realtor would also help to negotiate for the price of the house.

Step4: You need to get a lawyer.

It is very important for you to hire a lawyer since the lawyer has a significant role to play. If any bidding war happens lawyer would help you. A real estate lawyer would help you to conduct a title search and look for all the pending taxes and liens for the house.

Step5:

You need to do a house hunt.

  • You need to make a wish list and note down all your essential needs for the house like what you need in a house. How big house should be? And many more.
  • Also, you need to have a checklist that would help you to find a house with all the needs. With a checklist for various houses, you will look during a house hunt that would help you well to compare between.

Step 6: 

You need to make an offer.

If you like a house and ready to purchase, you should make an offer.

Step 7: 

When you buy a house, you need to have a new home warranty.

It is good to have an inspector for real houses. With the help of inspection, you can make your offers with conditions. Also, an inspection would reveal all the major problems.

Step 8:

You need to finalize the deal.

Once everything is done and your own mortgage preapproval you should finalize the deal.

Step 9:

Need to move in house.

It is best to step, since, after everything, you will own a house.

Step 10:

It is the closing day when you will get possession of your house. All the paperwork would be done by the lawyer. 

Hence you own a house, which is as per your aspirations.