If you are contemplating buying a house in Canada, follow these steps to complete the purchase.
The fact that you don’t have to be a resident makes the prospect of buying a house in Canada enticing. You can invest in a property even if you are not a citizen, with the sole requirement that you spend six months living in Canada every year. Canada’s open-door policy means that many people head there to build a better future. If you are contemplating buying a house in Canada, follow these steps to complete the purchase:
1. Assess Your Needs
Buying and maintaining a home is a huge responsibility that you cannot take lightly. Before making the decision to buy a house, you need to assess your financial situation. Since you will be responsible for making regular payments and handling other costs, you should be aware of your financial situation. Your future financial standing is as pertinent a factor as your current income.
In some cases, renting seems a more favourable idea, largely due to the negligible maintenance costs. In addition, you don’t have to make a long-term commitment by renting a house instead of buying a home. Moreover, your monthly costs will be lower.
2. Set a Budget
Selecting a house becomes easier if you set a budget at the start of the process. Ideally, you should do this before you embark on your house-hunting quest. When determining your budget, make sure you are not optimistic in your approach and consider every cost. Keep in mind that you must make a substantial down payment. In addition, do not forget the home insurance and property tax either. Once you account for all these expenses, you can set a realistic budget.
In addition, you also need to learn about the mortgage options available to you. With the proper financing, you can increase your budget. However, keep in mind that you need to pay off the mortgage over time. Therefore, look for a mortgage option that offers an affordable rate; you will need a strong credit history to be eligible for a good financing option.
3. Choose the Right Location
Once you know the price range that you can afford, it is time to choose the right location. Canada is a big country and the weather in each city can vary considerably. Therefore, find out which city you wish to live in and then start looking for a home. Toronto and Vancouver are the two most popular cities for newcomers.
4. Understand the Process of Home Buying in Canada
In Canada, the buyer contacts the realtor and looks around at different property options. Once you finalize the house, the realtor sends in an offer to the seller. Therefore, rather than the seller contacting a realtor, it is the buyer who does so.
5. Look for a Realtor
Your experience with the home buying process in Canada depends significantly on the kind of realtor you choose. Therefore, it is very important that you choose one who is aware of your requirements and knows how to negotiate well. If it is your first time buying a property in Canada, you should expect the realtor to guide you throughout the process. A realtor who focuses only on making a sale might end up making you buy a house that does not fit well within your requirements.
6. Seek Help from a Lawyer
Apart from having a good realtor in your house-hunting team, you should also consider adding a lawyer to the mix. A lawyer can help you check the tax status of the property, as you need to be certain there are no outstanding taxes on the property. Moreover, your lawyer can also carry out more research and give you the go-ahead to buy the property.
7. Decide on a Home
From day one, you should have a clear idea about where you want to buy a house and how big/small the house should be. You should also share with your realtor your idea of an ideal home so that they can help you find one. However, if you find an ideal house but feel the neighbourhood is not what you expected it to be, you should probably look at one or more properties before reaching a decision. Create a checklist for your house-hunting process and you will find it easier to decide on a single home.
8. Put Forth an Offer
If you and your realtor have decided on a home and your lawyer has given you the go-ahead to buy the property, you are ready to make an offer. The realtor will be responsible for making the offer to the seller and will draft a document that will cover the important aspects of the deal. Some essential additions include conditions, price, deposit, and closing date. The seller will accept or reject your offer. However, before all this takes place, you should hire home inspection services and make sure that the house you are considering buying passes a professional home inspection test.
Before you can finally move in, you need to address a couple of things. These include giving a notice to your previous landlord (if applicable) and changing your address where necessary. You should also finalize a date to move in and hire movers that will help you settle in your new house.
10. Close the Deal
The day on which you take the legal possession of your home is the closing day. You will need to sign the important documents and will most likely need to meet in your lawyer’s office to carry out all the important paperwork. Your lawyer will pay the seller and register the house in your name. After that, you receive the deed of the house and its keys.
Once you complete this process, you are ready to settle in your new home with your family. There is no better feeling than owning a home and you are now free to decorate and entertain guests in your perfect abode.