Sotheby's
International Realty Canada, BrokerageBuyer's Guide
While every financially significant investment poses risks, the 2017 Canadian real estate market offers more opportunities than ever before. Whether you are an experienced real estate investor with a sophisticated and diverse portfolio, or a first-time homebuyer contemplating the purchase of your first home, it’s important to educate yourself on the latest economic and real estate market trends, the basics of the home buying process and to understand the unique local market trends impacting your neighbourhoods of interest. It’s also essential that you select a skilled an experienced real estate advisor to help you navigate the process.
Sotheby’s International Realty Canada provides homebuyers with expert advice, accurate market and property information, prompt access to coveted properties and the highest level of service and discretion. We offer skilled and authoritative assessment of real estate opportunities, as well as exclusive access to some of the best properties on the market —many of which may never be available to the public on MLS.
This 2017 Home Buyers’ Guide provides a general overview of basic essentials you need to understand in order to navigate today’s real estate market. To receive full-service support and real estate advice tailored to your needs, contact Louisa to schedule a personalized and complimentary consultation.
The Home Buying Process: A Basic Overview:
- Home that is dependent on the sale of another property
- Vacation home
- Canadian property from overseas
- Property located outside of Canada
- Secondary or multiple investment property
- First home
If you are interested in buying a home, a Sotheby’s International Realty Canada associate can help. Contact Louisa to schedule a complimentary consultation.
Secure Financing
Before starting your home search, it’s important to evaluate your financial situation, confirm your budget, familiarize yourself with mortgage options and secure pre-approval from your lender. This will help you conduct your search with confidence and negotiate your desired home successfully.
Establish Your Budget
As a general guideline, total monthly housing costs for your primary home, including mortgage payments, taxes, maintenance fees, insurance, interest charges and utilities, should not exceed 32 per cent of your gross monthly household income.
Many financial advisors also suggest that total monthly debt, including mortgage payments, credit card and car payments, should not exceed 40 per cent of your gross monthly income.
Those purchasing a real estate investment property should consult their real estate and financial advisor to understand tax and financial implications of their purchase.
Confirm Downpayment
If your downpayment amount is less than 20 per cent of the total purchase price, you will need to purchase mortgage loan insurance that guarantees the debt against default. In most cases this will be added to the mortgage loan.
Check Your Credit Rating
Your credit report plays an important role in your mortgage approval process and in determining the interest rate and other loan terms that a lender offers you. Before meeting with a potential lender, you may wish to confirm your credit rating so you have time to resolve any issues. Contact Trans Union of Canada: 1-800-663-9980 or Equifax Credit Information Services Canada: 1-800-465-7166 for more information.
Understand Mortgage Basics
INTEREST RATES
Mortgage interest rates are fixed, variable or adjustable.
- Fixed: A fixed mortgage interest rate is a locked-in rate that will not change for the term of the mortgage.
- Variable: A variable rate fluctuates pending market conditions while the mortgage payment itself remains unchanged.
- Adjustable Mortgage Interest Rate: With an adjustable rate, both the interest rate and the mortgage payment change based on market conditions.
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