Print this page

Buying Housing in Canada: Practical Tips

Written by Posted On Sunday, 29 September 2019 23:26

You have prepared everything, even you have visited to get your visa. Whether you are newcomers or not, buying a home is a beautiful but important decision. Once you have thought through asking the right questions (your financial situation, what you are looking for as a type of home, your lifestyle, etc.) and that you are decided, you can finally embark on the adventure. Here are the essential steps and things to know about buying a home in Canada.

The costs to predict

Owning a home involves significant costs:

- The initial fees, ie the amount you will need to buy your property. These also include the starting bid, closing costs and applicable taxes.
- Occupancy costs, which correspond to the money that you cost the occupancy of the housing (heating, property taxes, insurance, maintenance, repairs, condominium fees if there are any).
- Major repairs, which include renovation and repair work in case of a problem (for example: rebuilding a balcony that threatens to collapse).

When buying, you should also take into account any agency fees if you use a real estate agent, legal fees, notary or sometimes work in the apartment.

Buying a home: the advantages and disadvantages

If it is true that the rental has advantages and disadvantages, it is also the case of the purchase.

This one allows you:

- to have a property that belongs to you and that is in itself a sustainable investment,
- to be able to rent it if you do not live there and thus benefit from a regular rental income,
- to transform and restore your home as you wish.

On the other hand, the purchase implies in particular:

- to be responsible for all occupancy costs and any repair costs if necessary,
- a possible loss of value of the house or apartment when you want to sell it,
- the repayment of a mortgage with interest rates that may increase.

Note concerning non-residents

Under Canadian law, it is entirely possible for a non-resident or temporary resident to purchase housing in Canada. Be aware, however, that the purchase of real estate does not give access to a permanent resident visa. This does not allow you to work or stay longer than your visa permits.
Before you start looking

You need to establish the amount that your situation allows you to pay by taking into account the different costs we discussed above. To calculate this amount, you can use financial experts such as mortgage brokers for example. You can also choose to do the math yourself using a variety of calculators available on the internet and at CMHC (Canada Mortgage and Housing Corporation), a national housing agency in Canada. You must also determine your need (type of dwelling, area, number of rooms, location, lifestyle, etc.).

The main types of housing in Canada

The detached house

It is an autonomous dwelling. The owner owns the building and the land if there is one. He is responsible for all costs inherent to this space.

The semi-detached house

The land and the entrance are individual but at least one of the walls is adjoining another dwelling. The owner is responsible for the costs related to his part of the property.

Condominium or condo dwellings

The owner owns one or more dwelling (s) in a building belonging to several people. He must then pay co-ownership fees to the syndicate of co-owners who will take care of the repairs and the maintenance of the building. It is a fairly affordable option that attracts a lot of people buying their first home.

The duplex, the triplex

It is a building comprising several independent dwelling units often juxtaposed one above the other (two levels of dwelling for the duplex and three for the triplex). This purchase not only allows the owner to have their own individual home if they wish, but also to rent the others at the same time and thus to earn an income.

The townhouse

These are semi-detached houses that usually look exactly the same. They are all grouped together and form long rows. Each person obviously has his own entrance and possibly his land, but the walls are often adjoining on both sides.

Got it? Are you ready to buy one?

Rate this item
(0 votes)
Buffalo Management Group

Latest from Buffalo Management Group