What Does Buying a Home in Canada Look Like?
Moving to a new country is a very exciting time for many, igniting feelings of new beginnings and hope for the future. However, despite the many positive attributes that coincide with relocating, finding a home in a new country can feel overwhelming at times. Choosing the right REALTOR®, the right city, the right neighbourhood, and the right house is a tall order, especially so when you are new to the country.
Fortunately, new Canadians have not shied away from home ownership, they actually account for every 1 in 5 homes sold. There are many factors that make this so achievable, including the wide range of homes available “For Sale” from coast to coast. These homes range from condo apartments, townhouses, duplexes, and single-family homes, including some designed for multigenerational families. With a little saving and a lot of planning, homeownership in Canada is achievable for anyone,
There are several factors to consider when planning to purchase a home in Canada; these include:
Most Canadians do not have enough money to pay the entire purchase price of the home at the time of purchase. Buyers typically require a mortgage, which is simply a loan secured from a bank or other financial institution that is used to purchase the home. With the variety of different mortgage rates and products offered, it’s imperative to shop around before committing to any one lender. Using a mortgage broker can be a useful tool to help you compare a variety of mortgages to find something that best suits your unique situation.
With any mortgage, there are different interest rates and time frames to pay it back. These rates can be either fixed or variable. The amount of your mortgage will be the price of the home minus the amount of your down payment, and you will pay it back through regular payments over the chosen time frame. As with any bank loan, interest will be charged to borrow this money, which is why a sizable down payment and shorter term can lessen the time and overall amount to pay off the mortgage.
First-Time Home Buyers in Canada can secure home ownership with just a 5% down payment, as opposed to the 20% minimum required if you already own a home. It is important to note that if the down payment is less than 20% of the price of your new home, mortgage loan insurance will be required. This insurance protects the lender if you fail to pay back the mortgage.
Good credit history is also very important when you are trying to get a mortgage. As a newcomer to Canada, you may not have a credit history that Canadian lenders recognize. If you want to buy a home, you should start building up a strong credit history as soon as possible.
If you gather all the necessary information with a team of professionals you trust, the process of purchasing a home in Canada can be simple and straightforward.
Luckily, Real Estate in Ottawa is filled with vim and vigor and with the right Royal LePage TEAM Realty agent, finding the perfect home for your family is guaranteed. Our diverse team of agents have neighbourhood expertise, well rounded knowledge and much experience helping buyers who are new to Canada find the home of their dreams in this beautiful city.
Home ownership is just a phone call away. We look forward to hearing from you!
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