Homeownership can be an overwhelming journey but it can be done with proper planning. You will most likely be making the biggest financial investment decision in your life and probably struggle to find a home that satisfies the requirements for your ideal home and location.
The following step by step guide on how to buy a house in Canada will help you navigate through the process of buying your first home. You are guaranteed of getting a new home to raise a family and even entertain your guests without major hiccups.
What You Need To Buy a House in Canada
Prepare a Budget
Start by preparing a budget to help you set aside the amount of money required for the down payment and other associated costs. By knowing what you can set aside for the house, you will be in a position to determine the price of the home you can afford.
Identify Mortgage Options
The market has many different types of mortgages and you need to identify one that will suit your circumstances. It is easier to find a mortgage if you can place a down payment for the chosen home. Typically, people will spend between 5% and 20% of the purchase price of a home on a down payment. There are high ratio mortgages that are aimed at people who can’t raise a down payment.
The mortgage provider will ask for a litany of documents to help them approve you for the mortgage. They will ask for a government-issued identification document, credit scores and information on your debts, evidence of the down payment, information on your other assets, and proof of employment or income to enable the evaluation process. The search for a house will only begin after you have been pre-approved for the mortgage.
Work with a Realtor
A realtor has a vital role to play in the home buying process serving multiple roles such a personal real estate advisor, a negotiator, and consultant. Paradise Developments representatives will guide you on how to buy a new build house from them in Canada. But foremost, the realtor will listen to your requirements in getting an ideal home and work towards finding a home that matches your requirements and lifestyle. After identifying a suitable home, the realtor will be in your corner during negotiations to get the best possible price and help in filling and doing the documentation.
Find a Real Estate Lawyer
For all real estate transactions, it is important to work with a lawyer to look over the different documents such as purchase offers. Other tasks that the lawyer will handle include undertaking a title search and any outstanding taxes on the property.
First, create your wish list of what you want in the new home before commencing the search. Keep in mind that house hunting tends to be a long process and it may be a never-ending one particularly if you are not sure of what you want.
When writing down your requirements, you must consider your immediate needs, your lifestyle, and your future plans. Before settling down for the ideal house, make sure that you have considered the whole property and not the house only. Evaluate the lot, the neighborhood in which the property is located, and other features found in the area such as proximity to services and amenities.
Carry the wish list with you when house hunting since it will help in comparing the different houses that you see. Write down what features in a particular home were to your liking and also note the features that didn’t fancy you. The list also helps to keep track of the houses visited since you will be seeing numerous homes each day.
Place an Offer
How to buy a home in Canada? The realtor will go ahead and make an offer to the seller of the home you have chosen. In the document prepared, the realtor will include the price, the conditions of the purchase, the deposit, and the closing date. The seller will either counter the offer, accept the offer, or reject the offer.
You need to hire a home inspector especially if it is a resale home. Sometimes, the offer for the home purchase is made conditional on the inspection report. If major problems are unearthed during the inspection, you have the option to either withdraw your offer or negotiate the cost of the repair with the seller before closing the deal.
For the brand new home, ask to be provided with a new home warranty by the home builder so that it covers your deposits and completion dates. The warranty should also cover materials and labor for at least one year after the home was built and for structural problems for at least five years.
Finalize the Deal
To finalize the deal, you must get the final approval of the mortgage provider. Thereafter, your real estate lawyer will work on the final details such as a title search and insurance among the other conditions.
Preparations to Move-In
Several things must be done before finally moving in such as lining up utilities and services such as cable, phone, and internet. You will need to forward your mail to the new address. All these things need to be done way before you move to ease the transition to a new home.
The closing day represents the day that you finally get possession of your new home. Your lawyer will complete all paperwork so that the new home is now in your name following the finalization of all payments. It is advisable to save up some money often between 1.5% and 4% of the purchase price of the home to take care of the closing costs. The closing costs will typically include administrative and legal fees all paid at the closing of real estate transactions. Most people have encountered a challenge at this point having used up their savings during the earlier stages of the buy home in Canada process. You will then receive the deed to your new home and the keys. You now become the new, proud homeowner in town. Congratulations!