Home ownership is one of your best long term investment. Before jumping in, do your research!
Here’s my guide for buying a property in Ontario:
- Hiring a Real Estate Agent: Buyers have an opinion in their minds that hiring an agent is an expensive idea. But actually, having the guidance of a seasoned agent will help you know the various options available in the market. They can also assist you in the valuation of a property in hopes to avoid over paying for your home.
- Closing Cost: When buying a property in Ontario, there are fees required in order to close your home. In addition to your down payment, you require fees like, Land Transfer Tax, legal fees, home insurance, home inspection and utility hook-up. Some new build homes have a development cap fee, therefore you need to plan for these expenses in your budget.
- Credit Score: Your credit score is very important when purchasing a home. A good credit score will enable buyers to get a mortgage with competitive interest rate.
- Zero Down Payment:It is true that loans with zero down payments are available – word of caution for buyers opting for such offers. These options involve higher interest rates, and the overall cost at the end of the loan will be significantly higher than a traditional mortgage loan with a down payment.
- Season Buying: Some people think that a particular season is better for buying a property in Ontario, but there is no truth to that. Property prices vary with factors like demand, availability and location.
- No Debt:While it is better to pay-off all debts before purchasing a property, it is not a requirement. The lender will look at your loan-income ratio to approve you for a mortgage. Obviously, the more debt you have, the higher your debt ratio preventing you from getting a mortgage.
- Location:Location of the house is not the only factor when making a decision to purchase your home. Of course, it is a big factor, but other factors like age of the property, lot size, square footage and amenities are important too.
- CMHC (Mortgage Insurance Premium): If you have less than 20% down payment, you are required to pay mortgage premium.
- Budget Based on Loan Approval:Depending upon your income, credit score, repaying capacity, you may be able to get a higher amount of loan from your lender. But you should plan your budget as per your needs and affordability rather than looking at the amount available through the mortgage.
- Timing of Purchase: There is actually no right time to purchase your home. At any time you can plan to purchase in real estate. The only thing you need to consider is your budget. Have some awareness and guidance from an expert real estate agent.
- Builders: There may be some builders who are deceitful but the same is not true for all. There are builders who value the needs and comfort of their buyers. So one has to look for the credibility and past experience of previous projects.
- Legal Review:This is always advisable to get the Purchase Agreement reviewed by a lawyer in order to be aware of the terms & conditions of the agreement.
- Price Non-Negotiable: Generally, the buyers have the notion that the prices offered by the builders are fixed and not negotiable. There is always room for negotiable!
- Surprise: You should always look at the other buildings built by the same builder and have a feel of what you are likely to get as a final construction.
Be aware and do your research. Buyers that are well-informed make good decisions before purchasing.
If you are still confused and seeking expert assistance, you can rely on Catherine Nacar, the trusted realtor in brampton. You can call at +1 905 867 4828 or email us at firstname.lastname@example.org to get the best assistance in finding your dream property in Ontario.