A high rise Condo Development in Downtown Toronto

Home ownership is an exciting thing! To wake up in the morning and know that the money that you pay month by month is paying your mortgage instead of your Landlords mortgage, is quite remarkable! After a hard day’s work and when you finally prepare to leave office knowing well that you have a claim to the property where you now call home, just keeps adding to that awesome feeling of home ownership.

But there is something that you need to know before you venture into the biggest purchase of your life time.

Plan well before you embark on buying your property

Planning is so very important to guarantee that the home you plan to own will not turn to be your biggest nightmare. Before you even think of buying a house you ought to make sure that all other areas that take prominence such as the well being of your family and a reasonably good job is in place. You should not let emotions take over your house purchase but serious thought needs to be given to the type of house you require and it is absolutely crucial that you figure out whether such a purchase will burden your ability to pay or whether you’ll be comfortable paying the required payments on time. Remember a Mortgage ( Housing Loan) needs to be paid back or you may stand to lose all the money you’ve put in way of a down payment and all monthly mortgage payments you’ve already made towards your housing loan in the past.

Sit with a Real Estate Agent/Mortgage Specialist

It is very important that you sit with a professional such as a Real Estate Agents, Mortgage Specialist and figure out what type of house at what price would meet your needs without causing unnecessary pressure on your family’s financial well being. Affordability is KEY. There are several types of houses that you can buy and depending on where they are located the prices vary. It is important that you ask your real estate agent to give you all the information needed and typically a real estate agent will advise on the type of house that will meet your needs while a mortgage specialist will be able to give you sound advice on affordability.

Make sure that you tell your real estate agent and your mortgage specialist the exact amount you earn so that these professionals will be able to figure out whether the time is right for you to buy a home or whether you should wait for a while and perhaps collect more money, or wait for a promotion that will bring you more money before you embark on this mission of purchasing a house.

Do not sign documents before you’ve had the chance to understand everything well!

Note: Make sure you do not sign any document from your real estate agent or your mortgage specialist without fully being able to understand the terms and conditions of the said documents. Millionaires typically take two days before they sign any document. So take at least two days for emotions to cease before your impulse get’s you to sign some thing that will cause unnecessary pain in the future

Selecting the proper dwelling.

There are various types of houses. Depending on how big your family is a Real Estate Agent will be well equipped to serve you. Condominiums, Town Houses, Semi Detached Homes,Detached homes are among the most typical types of dwellings that Canadians tend to buy.

Using a Real Estate Agent will produce to be much helpful as you need not pay the party for his/her service as the seller would be responsible to pay your realtor once a transaction goes through. It is also crucial to buy a property which is not too far away from your work place to avoid hours of unnecessary travelling.

How can I obtain a Housing Loan (which is called a “Mortgage” in Canada)

An average starter home in the suburbs of a major city would cost approximately $250,000. If you do not have the cash to buy the property it is definitely not the end of the road for you. Lending institution such as banks would ask you to utilize your savings and make a deposit called a “ Down Payment” towards the purchase of your home. This usually represents 5% of the value of the house you are interested in purchasing. As per the house price we’ve used earlier of $250,000 your deposit which is known as your down payment will now amount to $ 12, 500.

This $12,500 will represent your down payment and the bank after giving careful thought to your income, job stability and your credit history will arrange to provide you with a mortgage representing the value of the balance 95% of your house at a prescribed interest rate and a payment period of typically 20 years. It may cost you approximately $600 for every $100,000 you would end up borrowing from a financial institution.

For expert advice on obtaining the mortgage that fits your need and your income please get in touch with a mortgage professional or speak to your bank’s lending officer.

Hire a Real Estate Lawyer

It is necessary that you hire a lawyer who specializes in real estate. Since documents that you’ll be signing to buy a house involves a large amount of money changing hands it is crucial that you make arrangements to meet with a lawyer.

Your Solicitor will be able to go through all the documentation and advice you of any terms in the contract that may affect you negatively. Your initial consultation will be at no cost to you with most solicitors. However, please do check with your lawyer when you call to make your initial appointment.

Home Inspectors

It may be useful to have the home you are buying inspected by a professional home inspector who will be able to identify possible problems. Cracks in the structure that you were unable to detect and brought into light by a home inspector can save you thousands. Certain faults may cause your property to deteriorate in price over a period of time and it is well worth it to protect your investment by using professional help. This may help you save thousands & thousands of dollars in way of repairs and serious thought needs to be given to this area.

Other Cost that may catch you off guard

There’re several other costs that may sink your bank account. It is important that you have a full understanding on all the hidden costs that goes with purchasing a house.

Please speak to your Real Estate Agent, Mortgage Specialist, Lawyer and people who have recently bought homes on other related costs. Some of the other costs that will catch you off guard would be property taxes, Lenders fees, Lawyers fees ( courier charges etc) , Moving charges, Utility bills, an unexpected deduction from the Mortgage (loan) proceeds from your Bank , cost related to delays in closing date, etc. Be sure that you’re well prepared to avoid any surprises as theses can add a lot of unnecessary stress.

Once again, planning is the most important think when you’re venturing into this exciting but challenging new chapter of your life. CanadaSriLanka.com wishes every happiness that purchasing a home can bring!- Blessings!