Where to Start

Are you planning to purchase real estate in the province of Quebec? Then this section is for you. I will tell you about the nuances associated with buying a house or an apartment.

So, the real estate market in Canada is competitive, regulated, and transparent. There are many real estate agencies with thousands of realtors working there.

Firstly: the most important thing is that we have only one database of all available properties. As soon as one of the thousands of realtors signs a contract for sale, whether it's an apartment, a house, a commercial or  apartment building, that property immediately becomes available in the general database.

Secondly: the process of buying real estate in Montreal is not simple. There are many nuances and 'tricky details' that you had better know and be prepared for them.

In Canada, it is customary for all parties involved in a real estate transaction (buyers and sellers) to have their own realtors. This is necessary to protect the interests of both parties.

The realtor acts as a guarantor of safety for both the seller and the buyer (for example, an inexperienced buyer, unaware of market prices and details, may easily make a mistake and buy a 'problematic' property at an inflated price).

Realtor services for buyers are free. For this reason, everyone works with trusted realtors whom they trust and recommend to their friends and acquaintances.

Working with a Realtor

A realtor plays a crucial role in the buying and selling process. A real estate agent possesses up-to-date market information, verifies the property legitimacy, and assists in the documentation process. Just as when you need to win a case in court, do you aim to hire the best lawyer to protect your interests, right? A similar principle applies in the real estate field.

Every seller wants to sell their home at the highest price and under the best conditions, and a realtor helps them achieve that. Besides the price, specific transaction conditions, which will be discussed in the next section, are also essential.

But let us return to the property value. If the seller is interested in selling the house/apartment at the highest possible price, the buyer and their realtor are interested in the opposite. Their goal is to acquire real estate as inexpensively as possible.

How can you act most effectively in these conditions? To ensure your interests are satisfied, it is essential to choose a realtor with experience in conducting such negotiations. A real estate expert in selling or buying will dissuade you from an unsuccessful option and draw your attention to an interesting opportunity that can be profitable in the future when you decide to sell.

Realtors have access to all data on sold properties in Montreal and the province of Quebec. We can always check in which year and for how much a specific property was sold. Additionally, the database may include photos of the property at the time of its sale.

Thanks to professional experience, knowledge, and skills, I will help you complete one of the most important transactions of your life comfortably, safely, and stress-free. To ensure everything goes smoothly, maintain patience and trust your realtor. As a result, you will become the owner of a new apartment or house at an attractive price and within the necessary timeframe.

Budget

Before buying a house or apartment, it is essential to determine one’s budget. Every buyer has an idea of their actual financial capabilities and the biggest price they are willing to pay for the property.

So, the overall budget for acquiring real estate is calculated as follows:

•   Down payment (available funds)
•   The mortgage amount that the bank is ready to lend you.

It is crucial to understand how much a bank can loan you before starting the property search. To do this, be prepared to provide the bank with up-to-date information about your official place of employment, the duration of your employment in that company, and your income level.

Additionally, the bank checks clients' credit histories. If you have existing loans and outstanding debts, it can complicate the loan application process. It is very important to monitor your credit history and maintain a positive rating.

Once the bank verifies the information about you, we will receive a letter of pre-approval for the loan. After that, we can begin the search for housing.

The buyer needs to have a minimum amount in their account, at least 5% of the property value. The standard mortgage amortization period is 25 years. If you can make a larger down payment, 20% and above, in this case, you can take a 30-year mortgage. Thus, the monthly payment on the mortgage loan will be lower.

In Canada, people usually change homes every 5-7 years. You always have the opportunity to put your house or apartment up for sale after a certain time. This way, you will pay off the bank loan, return the down payment, and receive the price difference (housing costs in Canada are constantly rising). Many clients use this money to purchase another, more attractive property.

There are dozens of financial institutions ready to finance your purchase in Canada. I work with trusted mortgage brokers who have proven themselves over many years of collaboration. My partners will thoroughly analyze your dossier and assist in obtaining a loan on favorable terms for you. If you contact me, I will provide all the necessary recommendations.

Property Search

All real estate properties in Canada are registered in a unified database. Our task is not to miss new options that come up for sale.

For the convenience of property searching, we have a unique capability to set up automatic email notifications. In this way, all new offers for sale of houses or apartments will be sent to both the realtor and the buyer simultaneously. The filter settings include:

•   The area for property search
•   Maximum budget
•   Number of bedrooms
•   Garage availability (yes or no) and other criteria.

Once we receive a new email notification, we have the opportunity to analyze it to determine its relevance and if it meets our criteria. If it aligns with our requirements, I arrange a viewing of the property. For the convenience of clients, there are no restrictions on the number of property viewings.

Once the property is chosen, and the buyer wants to purchase it, we move on to the next stage – the official offer on paper. In the document, we specify the desired date for the notary transaction and the price for which we would like to acquire the property. All negotiations for the sale/purchase transaction between the two parties are conducted only through official documents and never verbally.

After both sides discuss the details, agree on the price, determine the date when the apartment or house will be vacated, and set the closing date, the buyer applies for a mortgage loan from the bank. The processing time for the application for funds is typically around 15 days.

During this period, the seller is not allowed to sell their property to another person (the agreement between the buyer and the seller is documented). If the buyer obtains the mortgage within the specified period and provides the seller with a confirming document from the bank, the property is officially considered sold. After this, neither the buyer nor the seller can back out of the deal.

If, for certain reasons, the buyer cannot obtain the mortgage from the bank within the specified timeframe, the seller has the right to terminate the agreement and seek a new buyer for their property.

In the process of buying/selling apartments and houses, there are always nuances, so it is crucial to know how to avoid mistakes. During our collaboration, I will explain how to minimize risks and not lose the property.

Additionally, one of the conditions for purchasing real estate in Canada is an inspection.

Inspection

This is an important stage in the process of purchasing real estate in Montreal. Once we have made an offer to purchase, and the seller has accepted it, we need to fulfill the following conditions:

• Obtain financing for the purchase of the property (apply to the bank and secure the loan within the specified timeframe).
•  Conduct an inspection of the property we are acquiring.

While the bank is analyzing our dossier, we simultaneously inspect the real estate. To do this, we hire an inspector who thoroughly examines the condition of the property.

The cost of an inspection is typically around $400 for an apartment and $500-800 for a house.

 Why is inspection important? This procedure is necessary for the buyer to understand the real condition of the home. The inspector checks for cracks in the foundation and its condition, as well as the roof, attic, electrical wiring, plumbing, and much more.

If defects and discrepancies related to the condition of the house are discovered after the inspection, we have the right to cancel the purchase of the house and annul the deal unilaterally.

Inspection also has its nuances. However, my clients do not need to worry about it. I will assist in canceling the deal or conducting additional negotiations with the sellers if necessary.