Are you looking to begin investing in Canadian real estate? This may be the biggest decision in your life. Because this is such a big decision, it is important to ensure that you equip yourself with the knowledge and resources necessary to make an informed decision
Be sure to consult with experts who can help you along the way. While buying Canadian real estate can be a challenging experience, it is a highly rewarding one. Now could be the best time to buy a house in Canada.
According to the Canadian Real Estate Association (CREA), home sales went down by 57.6% in April compared to the same time a year ago. As such, there is less competition for those intending to buy a new property, meaning there could be better deals and more options.
Here is what you should know about Canadian real estate before buying.
You probably know that you are required to deposit money while purchasing real estate in Canada. However, you require more than deposit money.
While you should prioritize saving money for a deposit, you should put aside money for closing costs. The closing costs are generally about 2 to 5% of the home purchase price. Ensure you have this money beforehand to prevent being on the red when signing the contract.
2. Get Pre-approved
Getting pre-approved means that a lender has checked out your credit report and approved you for a certain loan amount.
This process may be long and tiresome, but it will help you estimate your mortgage payments and understand the maximum amount you qualify as a mortgage.
While it is possible to look at a home, make an offer, and sign the contract independently, you can make the entire process a lot easier if you work with a realtor.
A realtor’s full-time job is to find real estate properties for you, negotiate for the best possible price, and shield you from any illegal or sketchy deals. A realtor will also advise you on how to save money, especially with first-time homebuyer incentives.
Like the Home Buyer’s Plan, some of these incentives allow first-time homebuyers to withdraw a substantial amount from their retirement plan to finance a down payment.
4. Home Inspection
After choosing a house, make sure you hire a home inspector before finalizing anything.
A home inspector will assess the house and tell you about the condition of things like roofing, flooring, plumbing, and many more. This information will help you make a decision before buying the property.
Also Read: 5 Tips for a Successful House Remodel
The truth with real estate is that no home is perfect. Your home inspector will always find some existing faults.
If there are issues that you can fix, you can negotiate with the seller and ask for credits towards your closing costs to make up for the issues. Alternatively, you can ask the seller to fix them before you sign any contract.
No matter how prepared you think you are, buying a house requires ample preparation and knowledge. Save money and look for real estate information on Urban Condos.