Monday, 23 July 2018
Agent Resource Center
This Old House - Do-it-Yourself

How To Buy Real Estate in Canada For Almost Nothing Down

Written by Posted On Tuesday, 26 December 2017 22:11

Buying real estate is a major financial decision for anyone. One of the biggest obstacles to purchasing real estate is saving the down payment. There are various people who have trouble saving up a large amount of money to purchase a home.

 

After the housing crash, many banks made a large down payment a requirement to purchase a home. As the housing market has started to improve, banks have relaxed some of their standards. If you are looking for a home in Canada, you can purchase one for almost nothing down by using several different payment options.

 

Financing Plans

Financing is a critical element of purchasing any home. There are few people who have the cash on hand to purchase real estate without a loan. Some banks require a large down payment before a person can purchase a home.

 

However, there are numerous financing options for people who cannot save up a large down payment. Not only that, but there are financing options where the down payment is not required at all. It does take some work to get approved for these financing plans. With a smaller down payment, the bank is taking on more financial risk. The good news is banks are more willing to sign for these payment plans than in years past.

 

Before signing up for any loan, it is critical to conduct proper research. There are some people who wrongly assume that all financing plans are the same. You need to know exactly how much your monthly payment is going to be every month. The smaller the down payment, the higher the monthly payment will be. Some people do not analyze the numbers as closely as they should and they later regret purchasing a home.

 

Distressed Property

Another great way to get a deal on a property for almost nothing down is to buy a distressed property. Many times, a bank will own a distressed property in your area. After speaking with the bank, one of the ways to purchase a property is to buy it without a down payment.

 

However, in these types of properties, there is often a lot of work required in order to repair them. Finding a floor refinishing service near me is vital for anyone buying a property. In many cases, the floors in these homes are in terrible condition. The easiest solution is to just remove the floors and put new ones in. Although this is not cheap, you should view it as an investment in the home.

 

If you do not have the cash for repairs, you can borrow money on top of the mortgage. This is a great way to spread the cost out over many years. Once you have a tenant in the home, you can use the rent to pay the mortgage and the additional repairs.

 

Auction

Buying a home at an auction is a non-traditional way to find real estate. However, there are some great deals at various auctions if you get lucky.

 

Before buying the home, you can negotiate the terms of the deal. In some cases, the seller will agree to transfer the mortgage to you on the current amortization period. This is a huge financial benefit for the buyer. Not only do you save money on the closing costs of the mortgage, but you also get a loan that is maturing in the amortization period. As a result, a higher percentage of the payment each month will go to the principal.

 

Finally, this type of transaction ensures that you will not have to save up a large cash payment to put on the home. When buying a home in this manner, it is a good idea to work with a real estate expert who can guarantee the transaction goes through smoothly.

Rate this item
(0 votes)

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.