Buying A Home
Buying a home is one of the most important personal and investment decisions of your life. Let the Downtown Montreal Condo team help you through the process. Our track record of success and years of experience will ensure that the house you want, is the house you get.
Choose Your Agent
Find someone you can trust, who listens and respects your views. The right agent will tell you what you need to know, not what you want to hear. Your Downtown Montreal Condo agent will discuss representation with you and may request your commitment in writing for their level of service.
What an agent does for you:
- Calculate expenses
- Provide you with the highest standard of care and extreme loyalty to you as the client
- Understand your specific needs and wants, and locate appropriate properties
- Assist you in determining how much you can afford
- Help you get pre-approved for your mortgage
- Preview and/or accompany you in viewing properties
- Makes suggestions and recommendations based on your specific needs
The Importance of Not Overspending
Real estate experts cite overbuying as one of the most common mistakes homebuyers make. Getting pre-approved for a mortgage protects you from going overboard. Determine how much you can truly afford by meeting with a mortgage representative at a financial institution.
Cost of Home Ownership
Buying your first home involves more than just saving for a down payment. Other expenses you’ll need to prepare for can include moving expenses, connection fees and deposits for electricity, phone and other utilities.
This is the first step you take when you’re ready to make an offer to purchase. It is a sign of good faith to put down a deposit and often may be required. The amount depends on your area, the purchase price of the home, and your situation. This deposit will be held in trust as part of your down payment and deducted from your total purchase price.
Once the offer has been accepted and all of the conditions of sale have been met, your down payment will need to be placed. You will be required to put down a minimum of 5% of the purchase price; however, the larger a down payment you’re able to make the better, because that means you’ll have to borrow less.
Mortgage Loan Insurance
If your down payment is less than 20% of the purchase price of your home, you are required to have mortgage loan insurance, also known as high-ratio mortgage insurance. It protects your lender — not you — in case you default on your mortgage.
Your mortgage lender will require you to have property insurance in place on closing day. Since the property is actually the security against the loan amount, the lender wants to make sure insurance is in place to cover the cost of replacing the home and its contents, should something happen.
Title insurance is yet another type of insurance you will be required to obtain. This type of protection insures you against any defects of title to the property. For example, if the previous owners undertook major renovations without proper permitting, you would be protected against any costs required to bring the house up to code. Typically, this one-time premium costs less than $500.
Your mortgage lender will likely require an appraisal to ensure the property is worth what you are offering. The fee for such an appraisal is typically between $250 and $350.
Legal fees for buying real estate range in price, are dependant on your situation, and must be paid upon closing. When purchasing brand new condos, since such deals can involve more paperwork, the cost might be higher. Your agent can provide you a local lawyer if you don’t already have a relationship with one.
Don’t entertain the thought of buying a home without having a proper inspection done first. In fact, your lender may insist on one to verify the condition of the home. The cost of an inspection starts at $350 and depends on the size, condition, and age of the property. Rest assured this is money well spent and an expense that you simply should not avoid.
Loans and Interest Rates
Searching to find the right home is a process you should undertake thoroughly and carefully, and you should be just as diligent in sourcing the loan suited to your best interests.
Once your offer has been accepted, there’s usually a 10-day conditional period, during which you take all the necessary steps with regard to financing, home inspection, and everything else that needs to happen before you officially seal the deal.
GET IN TOUCH
ADDRESS OF THE PROJECT
1030 De Bleury Street, Montreal
385 Viger Avenue W., Montreal, H2Z 2B8