According to a recent report over half of Canada’s new migrants buy a home within three years of landing on Canada’s shores, a strong indicator of the financial health of the incoming migrants.
There are sometimes difficulties to overcome, but the newcomer is likely to be willing to face whatever challenges are necessary to ensure home ownership, the true symbol of permanence. Lack of practical home-buying information is often what holds migrants back, but the determination to own is there, as witnessed by the rapid rate of increasing home ownership amongst migrants.
Mortgages
One challenge most face is the fact that migrants who often haven’t had the time or opportunity to build long-term credit history in Canada. There are situations where extended good credit in the country of origin can sway the decision in favour of the mortgage applicant.
Canada is home to many mortgage institutions that understand the benefit of working with migrants to help overcome some of the roadblocks. They have specialists who can converse in many of the migrants’ native languages, ensuring that the migrant fully understands the issues involved in buying a home and the details of the various transactions.
You should investigate the various mortgage companies in your area to see what each offers. Down payment requirements will vary depending not only on the company itself, but on your financial situation. The offerings of several mortgage companies should be compared in order to make an informed and sound decision.
Look at all the options
All Canadian houses for sale can be found via the REALTOR Multiple Listing Service. It is standard practice for the buyer and seller to each use a realtor in Canada. You can use the same agency, but only if this arrangement is agreed to in writing. Realtors are recompensed by the seller, not the buyer, via a commission on the sale of the property.
Establish your expectations
You should consider what you expect from your home. Clear instruction to your realtor will enable them to find a better selection of homes for you to consider.
When buying a house in Canada, you must make a written offer that contains all elements pertinent to the contract, such as the sales price, date of completion, possession and any relevant clauses. The relevant clauses section is where you would put details of any conditions you want met before the sale, such as the roof to be repaired or the garden laid to lawn.
The offer is passed to the other side where the seller has three options. They can accept or reject your offer. They can also make you a counter offer. This process continues until both parties are happy.
The legal binding stage
Once you sign this offer document and pay your deposit, it becomes legally binding on you, the buyer. If you do not proceed with the property purchase, you face the loss of your deposit and could also be sued. The upside is you know the actual date of when the property will become yours, which makes moving so much easier.
A lawyer or notary public will draw up the final account and has a duty to ensure that monies are paid to the seller, the mortgage is registered and title is transferred to you. Only then will you receive the keys to your home.
Where should I start?
The best place to start is with a real estate agent who knows the ropes and can get you on the path to ownership. Be prepared to ask questions, and to continue asking until you understand what steps you will have to go through for the home purchase.
Qualifying for financing is a big step, and as a potential owner you must know what your buying range is. If an offer is accepted, the papers will be drawn up and signed, and you, the immigrant, will have put down roots for your family as permanent residents of Canada.
Condominium living in Canada
Immigrants coming into Canada have a number of options for living arrangements once they land on Canadian shores. Many stay in apartments from the beginning, but, at some point, the prospect of branching out becomes attractive.
Condominiums (condos) are in many respects a step up from apartment dwelling. Generally speaking, a condo is an apartment that is individually owned.
Often the owners purchase condo units as an investment and rent them out. In these instances, an immigrant will still be paying rent, but the accommodations will likely be superior to most apartment complexes. These are available in short-term and long-term leases, and some may even come fully furnished.
The urge to buy a home and put down roots is a reality for a large percentage of immigrants. They may not want to move out to the suburbs where single family dwellings proliferate, and instead may prefer to stay in the city.
Condos are the path to home ownership for many of these immigrants. They get to enjoy the benefits of home ownership without giving up their enjoyment of the city and all its amenities.
Advantages and disadvantages of condo living
The advantages of condo living, as opposed to single-family dwellings, include proximity to the city with its shopping, cultural events and nightlife.
An individual condo owner doesn’t have to be concerned with such chores as lawn mowing and landscaping, painting, and other outside maintenance. The condo association takes care of such maintenance through the dues paid by each condo owner.
Most condominium complexes provide extras such as swimming pools, tennis courts, exercise rooms, and clubhouse facilities for entertaining.
On the flip side, condos present a living situation where a resident will have neighbours very close by. There may be noise from conversations, televisions, radios, and other media, as with apartment dwelling.
There is a loss of autonomy in condo living since there are rules and regulations regarding what one can and cannot do. Decorating, parking and pet restrictions may be uncomfortable for some who might prefer having the freedom of answering to no one.
Get professional help
The first thing homebuyers must do when considering the condo option is to find a real estate agent. It’s important to have someone who understands the market and is familiar with the procedure for making their dream come true.
Additionally, you will want to speak to a real estate lawyer who is knowledgeable about condominiums, a qualified home inspector and your bank manager or financial advisor. Canada Mortgage and Housing Corporation (CMHC) suggests condo purchasers investigate the financial well being of the condominium corporation they consider buying into. Printed and electronic copies of the Condominium Buyer’s Guide can be ordered free from the Canada Mortgage and Housing Corporation.
Buying a condo is similar in many ways to buying a single-family home in that the purchaser must quality financially for the home. Once an offer is made, the buyer can expect a counter offer, and negotiations will ensue until both parties agree on a price. Nothing says permanent residency better than home ownership.
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