Buying a new house can be a daunting task for anyone. The feeling of getting a new home in any country or a place is amazing but it involves a lot of effort which is stressful. While buying a new house in Canada whether it is a condo or townhouse or detached house, you need to do some homework. Canada is a very vast country and the choice of place of living will significantly impact the home-buying process. The cost of buying a house is comparatively cheaper in smaller cities and rural areas as compared to bigger cities like Toronto or Vancouver. Here are some of the things you must consider before purchasing a new house:
1. 1. Check your affordability and plan your
budget: First you should be able to plan your budget for the house. This
will be decided on the basis of your requirement of size and number of rooms
etc. of the house and your affordability.
2. 2. Save for
down payment and closing costs:
Before thinking of buying a house you must ensure that you have sufficient
savings to make the down payment, the amount payable upfront at the time of
purchase. The rest of the amount can be arranged through a mortgage. Generally,
the minimum amount of down payment varies from 5% to 20% of the cost of the
house. But the larger the amount of down payment you can make, the easier it
will be to get a mortgage. It will save on mortgage default insurance premiums
and the overall amount of interest to be paid on the mortgage. Closing costs
include some legal and administrative charges which need to be paid at the
closing of a property transaction, so you need to be prepared for the same in
advance.
3. 3. Get yourself pre-approved for the mortgage: It will help you to
access the amount you will be able to get based on your credit score, your
sources of income, the repayment schedule, etc. A good credit score will get
you the best rate of interest on the mortgage. A mortgage broker can be helpful
in getting the required documentation done and get the mortgage approved.
4. 4. Start searching for your home: You can also
search online for your home. You can also hire any of a realtor in Brampton, who can guide you through the process of home buying. Though there is a cost
involved in it as you have to pay the fee to the realtor, but it is worth
spending some money as you may not be having sufficient knowledge of the
factors involved in the process. The agent can help you negotiate the best
price.
5. 5. Make an offer: Once you have finalized the choice of your
house, you can make an official offer specifying the price of the house, down
payment, mortgage, closing date, etc. The real estate agent can guide you in
the process. Once your offer is accepted you will be required to sign the legal
agreement.
Conclusion: Purchasing a new
home in Canada can be an overwhelming experience for anyone. For becoming a
proud homeowner of a new house you will have to go through the process of
estimating your financial affordability, plan savings, get a mortgage, hiring a
real estate agent, search for your house, finalize the offer, close the deal
and get the keys of your dream house.
To help
you to achieve your dream, we at Catherine Nacar are always there to guide and help you.
Please feel free to contact us in case you have any queries and we will feel
pleasure to provide the solution. Contact us at: info@catherinenacar.ca or call at +1 905 867 4828
