As fun as house purchasing is, it comes with its own advantages and drawbacks. The Canadian real estate has only grown over the years, and the homeowners have promised long term relations. Well, needless to say, being a homeowner will serve you with several benefits such as proper retirement space, the pride of ownership, a roof on your head, and so on.
But, investing in a property or purchasing one is a huge investment. Most people spend their entire life’s savings to purchase the property. So, if you are planning to get one as well, you must do your own research. Purchasing a house isn’t something very cheap because it comes with its own cons. The price of the property highly depends on the locations, and you may often be charged for extra services. So, you need to be ready to face it all.
Some of the prominent things to keep in mind before purchasing the house include the following.
The deposit amount has often been considered to be huge. So, if you are planning to purchase a property, you need to proceed accordingly. The deposit amount is hugely influenced by market conditions. Most homeowners ask for an upfront payment too. The deposit acts as a security that the buyer won’t lose interest in the property. The deposit may also form to be an important part of your down payment.
- Down payment
The down payment amount in Canada has significantly varied. Usually, the minimum down payment that you will be allowed will hugely be influenced by the property you are purchasing. The owners may prefer charging you from 5-20%, depending on your property.
If you pay a lesser down payment, you will have to make a significantly higher mortgage payment. So, expert real estate agents at Baudinet.ca suggest making a down payment of at least 20%.
- Home inspection
Apart from the land transfer tax and appraisal fee, you will also need to pay the home inspection fee if you carry out one. A home inspection is one of the most important processes of home buying to ensure that there are no flaws or faults in the house. The home inspection rate usually depends on the size, age, and condition of the house. So, you may want to proceed with one accordingly.
You must make up property insurance as well to avoid any pitfalls. The real estate agent would charge you differently, so make sure to consider that as well.