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How to Buy a property in Canada - For newbies in Steps

Thursday May 09th, 2019

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Purchasing first property in Canada can be very struggling if you dont have a reliable agent to guide you through the legal process and financial planning.

We have jolt down the process in steps to make it easy for your understanding.

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1)      Making up your mind (list of wants / desires) , assessing capability  and finances vs the wants

The first step can only be – your own mind, your own desires and your own choices; it is imperative to be clear in one’s mind as to the specifics of your choice : in residential terms as well as in terms of desired amenities, location vis-à-vis school and office {it is usually a trade-off}, shopping etc. The next thing to do – assess probable estimated costs of choices, and adjusting your desires to the available choices : a simple cost-benefit trade-off

2)     Location choice

From the above comes the next logical step – make a list of locations which basis available information seem to suit the final trade-off range of amenities vis-à-vis price that you have decided on. Do this yourself, or through  trusted friends, colleagues; in the information age it is easy to the desired information through Googling! Also, visit, if possible, a few locations, realtors, agents etc to get a personal feel of the market.

3)     Choosing Legal aid, realtor, agent etc

You will now need to appoint a realtor, and a lawyer to assist and smoothen your purchase process. A realtor guides you, advises, consults – and negotiates on your behalf. He/She will show you homes, guide you through the purchase, deliver your closing documentation. You will also need a lawyer who specialises in Real Estate; the lawyer will assist you in bidding, looking over the offer and the documentation, title search, checking for outstanding taxes and/or liens on the property

4)     Assessing Mortgage options

Now we get to the crux : the Mortgage Options! I need not over-emphasize this step’s importance; as there are multiple options {conventional orhigh-ratio; interest rates types and the rates themselves, repayment schedules, open or closed etc} …  you need to find one that suits your needs and finances.

5)     Mortgage Process simplified

Before you start the purchase process, you need to have a mortgage pre-approval. Here, a mortgage professional has to assess your finances and guage the mortgage amount you are eligible for; this is in two stages – pre-assessment and pre-approval. The first is a discussion on your finances, employment, credit etc; the second is more rigorous – involving a credit application,  authorization to review your credit file, along with the needed proofs. Remember to ask for a pre-approval certificate.

6) Purchase, Price Discovery

Now we are in the key stage : house shopping, price discovery and the final choice. Price discovery involves a study of the relevant market on your part, as well as excellent coordination with your realtor who can guide you in this process. The more you research, the better your chances of getting a better price for your choice. Once chosen – you have to make an offer to purchase through the correct form – your realtor can help you here. Once your form is accepted, you have to then give the deposit.

Mortgage

Photo by Helloquence on Unsplash

7)     Mortgage approval

At last, we come to  the final mortgage approval process; this is quite similar to  the pre-approval process; only now you will specify the precise purchase and price. Ensure you send your mortgage person a copy of the purchase agreement and the property  information sheet. After a proper review of all your documents, your mortgage professional will submit it to the lender; you should ideally hear back from your vendor in about 2-3 days, who will provide a conditional approval and a list of required documents. At this stage, the mortgage professional will make a final review of your file, ask for any documents they will necessary, and process for final approval. Once the final approval is in, the realtor can then advance the matter with the seller further and close the process! 

 
First time buyers enjoy tax exemptions and certain benefits on purchase of first property from government. Check more details on this page

Team Sunny Patheja have a passion for assisting clients with various real estate needs. We are a trusted and well trained professional who strives to provide you with the best solution.

We provide guidance and our professional service to help you purchase the home of your choice. Visit our services page for more details on services provided by us

Follow us on Social Media Platforms for updates on Canadian Real Estate and Mortgage Industry and share this post with your friends to help them purchase their first house.
 

 

 

 

Tags: Canada - Condo - House - Purchase - Tips

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