Buying a new
condo is a daunting prospect for people who haven’t been through the process
before. For those who have, it’s a little easier, but not by much.Here are some
sensible steps that anyone should follow when looking towards getting a condo.
Budgeting and Saving
There is a lot to consider when buying a condo in Canada. You certainly want to
budget well for all the costs associated with the purchasing like surveyor
fees, moving costs, etc. However, you’ll also be required to save for a
mortgage. At least 20 percent is advisable, but the more funds you have
available, there’s a greater possibility of getting a better rate.
research on the typical condo costs if you’ve always rented condos before. Some
of the expenses are different as an owner. Not least of which, the insurance
policy is not the same and must cover that part of the building’s value – not
just the home’s contents as a renter.
well as a renter allows you to have confidence in both your budgeting skills
and your spending habits. This equally bodes well as a homeowner too.
What’s the Best Mortgage for You?
many types of mortgage to choose from in Canada now. A repayment mortgage requires
a minimum of 5 percent down payment, but works best with at least 20 percent
put towards the home’s cost, excluding fees.
also the option to put less money towards the home but then you’ll be required
to pay for mortgage default coverage, an insurance policy against
defaults that increases the total repayment cost as a result.
It’s a good
idea to get pre-approval for a mortgage before you go looking for a condo. That
way, you know that a) that you’re approved; and b) how much you have to play
with. This is highly informative when shopping for a condo. You’ll know what
parts of town/city you can afford and which you cannot. It’ll also be more
obvious whether you can afford a one- or two-bedroom condo.
a Good Realtor
go without saying – get a good realtor. Realtors need to be people you can
trust who have a good take on the local market.With clarity about how much you
can afford, they can help find suitable properties within your budget. They
also help make the purchasing process – especially for first-time buyers – an
Narrowing Down Your List of Wants
think about what your list of wants are for a condo. You cannot have everything
on your wish list. It’ll be necessary to pick and choose by prioritising what
your most important considerations are and those that aren’t as important.
checklist of the things that are most vital to you. Bring it along to showings
to remind yourself about what your priorities are.
Hire a Lawyer Early
Find a good lawyer who has experience with negotiating
real estate deals and hire them early. If they have a working knowledge about
buying condos for clients, even better. They can check the title on a property
you’re interested in and determine if there’s liens or taxes owing on the
It’s not too difficult to buy a condo in Canada. When you follow some necessary steps, you’re well on your way to getting a good deal. But first, you must find your dream place!
Image Credits: New Condo from Dmitri Ma/Shutterstock