Before buying a property
Before looking or buying a property, it is important to carefully follow the process. Take the time to get your affairs in order and do things properly so that you will be happy once you move into your new home.
Establish your ability to pay
Buying a property within your means requires calculating your borrowing capacity and other factors before you start your search. Costs associated with purchasing property include one-time costs, recurrent costs and maintenance costs.
One-time costs
- Legal fees (notary)
- Inspection fees (to uncover defects in the property )
- Transfer tax (often called “welcome tax”)
- Real estate agent commission (if necessary)
Recurring costs
- Mortgage payments
- Insurance
- Municipal taxes and school tax
- Utilities (electricity, internet, telephone, etc.)
Maintenance costs
Keep your home in good condition to protect your investment
- Potential maintenance costs (roof replacement, doors and windows, renovations, etc.)
- Condo fees (applicable to condo ownership)
Get a mortgage pre-approval
Before starting on your property search, you can get a mortgage pre-approval. This is an agreement between you and a lender for a specific amount with specific terms (interest rate, possibility to make additional payments, closing costs etc.)
This agreement does not commit you to anything and is usually valid for a period of 90 days. This gives you the opportunity to validate your ability to pay for a home of your own. A Multi-Prêts broker can help you obtain a mortgage pre-approval.
Narrow down your property search
Before you start house hunting, define the type of property and area where you want to live, based on your current and future needs.
Property type
- Condo
- Single family dwelling
- Townhouse
- Other
Property characteristics
- number of bedrooms
- number of bathrooms
- city vs suburb
- with a garage
- with a pool
- etc.