8 steps to buying a home in Canada- Blog

Cindy and Ben are finally ready to make the biggest investment in their lives. Yes, they are choosing their first home in Canada! Since this is their first property purchase they are unsure what homes are worth and whether to invest in detached homes, semi-detached homes or town homes. We helped them with 8 easy steps to buying their first home. They are here for your reference.

Here are 8 steps to consider when buying a home

Step one: Financing

First Cindy and Ben will need to visit their bank and maybe mortgage broker too to consider financing options – most homeowners require a mortgage and it is good sense to know what you could be approved for. They brought along recent tax returns and proof of income for their appointment to obtain pre-approval for a mortgage and the amount they are pre-approved for.

Step Two: Location,Location,Location

The next step  is to decide on some factors that will form the basis of your home search – proximity to well ranked schools, hospitals and major highways. Of course this would need to be matched to the price range in that area and the type of house you are considering. Apart from homes, which are out of reach for many, condominiums are becoming a preferred choice for those with limited budgets, however, the condo corporation owns the land and monthly maintenance fees can range from $300-900 per month!

Once Cindy and Ben had determined their pre-approval they decided to go for a detached home in East Gwillimbury as the listings were showing an average price of $650,000*** Although a detached home commands a higher premium over a semi or a town, they wanted the extra space to accommodate their growing family. They also wanted to own their home outright so they decided against a condo.

Step 3: Choose a Real Estate Professional

Once you understand your budget and the options available to you for financing,and type of home/location you want you can begin the search for your home. This is where a real estate agent steps in.

As experts in their field, an agent will look for options in your price range. They will also arrange viewings and take you to open houses.  Once you want to make an offer, they suggest the offer price and handle negotiations. Overall, a good real estate agent becomes the hub for communication throughout the process.

Step 4: The home for you

Your agent will usually provide options but do not hesitate to suggest properties you would like to view while searching for a home. Attend open houses, book viewings through the sellers agent and consider the advice your real estate professional provides. Bring friends and family to view the space too – it can help to get someone else’s opinion that your trust!

Step 5: Negotiation Begins

Once Cindy and Ben had decided on the property they wanted to buy, their agent arranged an inspection of the house to be done by all three of them:  The agent, Cindy and Ben. Since the home inspection went as planned, Cindy and Ben put down a deposit that was necessary to secure the listing and their agent negotiated the closing date.

Step 6: Inspection

Once this step is reached, a property inspection must be scheduled. Inspections are non-invasive examinations of the home you will be purchasing and they are conducted by licensed professionals.  Keep in mind this comes at an extra cost – approximately between $400-$700 depending on the size of the home.* Note that findings of an inspection can lead to further negotiations. Often conditions are applied to an agreement that will help determine the grounds for these negotiations or how to proceed.

Step 7: Financing pt 2

We are almost at the final step. With all the confirmed information for the sale you can now re-approach your bank to firm up the mortgage agreement and get the exact terms of the mortgage.

Step 8: Insurance, Lawyers and paperwork.

After you have everything in place you can obtain home insurance (always a requirement by mortgage lenders), obtain signatures from the lawyer’s office, collect ownership documents and get the keys to your new home.

And with 8 easy steps you too can buy your first home in Canada!

Contact us to help you choose a tried and tested real estate professional and also a mortgage broker if you need one.

The Actor Will Rogers said “Don’t wait to buy real estate. Buy real estate and wait.” If you are already in Canada you can act now and start building towards the future you want to see.

* See https://www.solexgroup.ca/home-inspection-fees for more info

**See our education blog for more information about Cindy and Ben

***valid as of January 2019. Information anecdotal and available homes searched via https://www.homefinder.ca/homes-for-sale/1742-mount-albert-real-estate

General note: names and stories are not specific to any individual. Any resemblance is coincidental, the stories give an idea of possible paths for buying a home in Canada

Blog Authored by:  Guest Blogger, Amanda Piron

Author: Arkangel Inc.

The team at Arkangel Inc. provides helpful tips and advice on living and working in Canada. We are a fully licensed Canadian Immigration Consultancy so you can rest assured that you are in safe hands.

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