Friday, 29 May 2020

Buy a house or an apartment in Quebec – Canada: How?

Written by Posted On Sunday, 29 September 2019 22:11

Buying a home requires a lot of thought and even more care. Real estate transactions are usually done through a real estate broker, although some homeowners themselves sell their home. After evaluating your financial resources and the credit you can get from your bank, setting a maximum price and determining the residential neighborhood where you would like to buy a house or apartment. Visit the area and note the phone number of broker listed on the signs posted in front of the house. Also check out newspaper ads.

During your visit to the homes that you have selected, carefully examine the inventory, ask the seller what he pays annually in taxes and maintenance and, of course, the price he asks. Also find out about the easements associated with the building, that is to say the restrictions on the right of ownership. In addition, you would be advised to have the property assessed by a professional.

As soon as you have made your choice, you can make an offer to buy from the seller. It is always prudent that it be conditional upon obtaining a mortgage loan and inspection of the building by a licensed specialist. The building inspector will give you an inspection report allowing you to adjust your purchase offer according to the repairs to be made. If the seller accepts your conditions, you must take action and the transaction will be concluded by a deed signed before a notary.

Mortgage rate

As a first step, you must establish the amount of money you want to invest in your future property. Often, you will have to take out a mortgage in Quebec, to realize your dream. Financial institutions will offer fixed or floating rates, which can be traded on different maturities: one year, three years, five years or more. These mortgage rates can vary enormously from one financial institution to another. Do not hesitate to tour several of them. You can also use a mortgage broker like Multi-Prêts.

Amount and term of a mortgage

The mortgage loan cannot exceed 25 years in order to limit household indebtedness. We recommend that the amount of your occupancy costs (repayment of your loan, taxes, heating) not exceed 32% of your gross annual income.

Mortgage insurance

If your down payment is less than 20% of the price of the house or apartment, you will have to take out mortgage insurance with the Canada Mortgage and Housing Corporation (CMHC). This insurance makes it possible to become owner by bringing only a minimum down payment of 5% of the purchase price.

Good to know: CMHC gives you the tools you need to make good housing decisions. Its website, dedicated specifically to newcomers to Canada, offers guides, brochures and videos on the rental, purchase and maintenance of a home, as well as various fact sheets on topics such as: tips for good mortgage planning, your credit report and mortgage fraud. The information is available in eight different languages: French, English, Mandarin / Simplified Chinese, Arabic, Spanish, Urdu, Punjabi and Tagalog.

Real estate agencies and brokers

You will often see banners from real estate agencies like Remax, Royal Lepage, Sutton, Via Capitale but they are not the only ones. A broker is a real estate specialist who advises and accompanies on the purchase, sale, mortgage. The profession of broker is supervised by the Quebec Organization for the Self-Regulation of Real Estate Brokerage (OACIQ), the Real Estate Boards of Quebec, the Real Estate Brokerage Act, the Civil Code of Québec and an Ethics Code. Everything aims to protect the customer. It is mandatory for a broker to be attached to a real estate agency. This guarantees the profession its best practices and represents a guarantee of security for the customer.

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