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:
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.
