Real Estate Information |
|
Unravelling The Real Estate Buying Process in Canada
If you're a foreign national thinking about investing in the real estate market in Canada here's a run down of the typical buying process you should expect to encounter together with a general explanation of mortgages available to assist with the purchase. First things first though, you have to find your ideal property of course! But let's assume you've done that with the help of a good estate agent and you're ready to move forward with an offer. It's important to know that from the outset the entire process surrounding the buying and selling of real estate in Canada is a regulated process. This means the process should follow the basic format as described below and that you will be protected throughout by the rules governing the process and the actions of those involved in it. Once you find your dream home in Canada you make a financial offer to purchase to the vendor - probably via your agent - which your estate agent is legally bound to submit to the vendor whether or not it matches the asking price. Negotiations proceed until a purchase price is agreed upon between you and the vendor, at which point both parties sign the 'Offer to Purchase' - also known as 'Agreement of Purchase & Sale'. This is a preliminary contract and it is either 'firm' or 'conditional' A conditional preliminary contract usually contains terms relating to the successful securing of finance to buy, or to the satisfactory completion of building surveys etc., and it only becomes firm when all the conditions have been met. If you are using a mortgage to purchase your home it is essential to have this noted as one of the terms, because if you fail to secure your mortgage and the contract falls through you will want your deposit back! A firm preliminary contract is not subject to any terms or conditions, if it is broken by the purchaser they lose their deposit, if it is broken by the vendor they may be subject to a financial penalty. Your deposit will be required when signing the Offer to Purchase, and the contract will contain your completion date. When the completion date is reached and all conditions for the fulfilment of the contract have been met, the remainder of the purchase price together with all fees will be payable. Monies are paid to the vendor via the solicitor or notaire handling the legalities of the sale. At this point both the purchaser and the vendor sign the 'definitive contract' which is called 'Acte de Vente' in Quebec. If purchasing in Quebec this final part of the sale is managed by a notaire who in this case is a government official - s/he is responsible for the conveyancing and as a result s/he represents both the purchaser and the vendor...it therefore makes sense to employ your own legal representative in Canada to make sure your best interests are served and protected throughout the process. Fees you will likely incur on top of mortgage arrangement fees, legal and survey fees include provincial fees and land transfer taxes. Provincial fees are around CAD 100 depending on the province in which you're purchasing, and they are charged for transferring the title of the property etc. Land transfer taxes are again determined by each province and they are calculated as a set percentage of the purchase price. If you are interested in securing a mortgage to fund your purchase it is interesting to note than depending on your country of origin and circumstances, there are a number of major financial institutions in Canada willing to lend to non-resident buyers. The following is only meant to serve as a general guide to Canadian mortgages - it may not apply in every case. Most Canadian mortgages are what's known as "full status" - a full status loan is where complete checks are made on the borrower's credit history and income. To apply for such a mortgage you will have to have proof of income and outgoings. Such finance can be raised for the purchase of property, the renovation of real estate or for house construction purposes. Generally a 35% deposit is required and the purchaser is also responsible for all legal fees involved in the arrangement and purchase process. 35% is just a guideline, some provinces require deposits of up to 50%, and in special circumstances a deposit lower than 35% may be acceptable. Most mortgages are repayment over a maximum of 25 years with pay back due for completion before the purchaser's 70th birthday. Most lenders make life cover a further lending requirement. When it comes to eligibility for a loan and size of a loan you need to know the following: - - Eligibility is based on the applicant's current ability to fulfil the financial terms of the loan, it is not based on any potential rental income the applicant may generate from the property he is hoping to purchase with the mortgage. - Taking the applicant's gross income into account, 40% should cover all existing outgoings and commitments AND the monthly repayments for the proposed new mortgage. - If you're self employed then your income will be taken as the average of your last three years' net income. - If you have existing rental and/or investment income this may be taken into consideration as well. - Outgoings in this context are any current mortgage or rent you pay, any personal loans or credit card payments you have and any child support payments you have to make. If your mortgage application is successful it will of course be secured on the property you're buying in Canada and not on any property you currently hold in which ever country you are a resident. The mortgage company carry out a valuation of the property you're looking to buy to make sure it's worth the purchase price, and you'll probably end up paying any fees they incur making this valuation. Finance arrangement fees can sometimes be charged as well, they are usually 1% of the loan amount. The money you borrow will be paid to the vendor via the solicitor or notaire responsible for the completion of the purchase contract and process. That's it in a nutshell! As stated though, the entire real estate purchase process and application for a mortgage will depend on personal circumstances. Rhiannon Williamson is an experienced publisher who has produced articles for leading travel and tourism guides and financial magazines. Her specialist knowledge about both travel and finance gives her site Shelter Offshore the unique ability to literally cover every single aspect of moving & living abroad - including the often less discussed offshore tax advantages that can be available when leaving our homeland. Check out her website to find out how you can escape from the rat race, relocate overseas, and profit from your move!
MORE RESOURCES: Refined Real Estate: Unique Leschi home with lake views lists for $1,395,000 seattlerefined.com Real estate mogul cautions about avoidable mistake when buying a home, explains how to avoid 'drowning' Fox Business Erie County real estate transactions Buffalo News Worcester County real estate transfers, Sunday, May 19 Worcester Telegram Portside Real Estate acquires Belgrade Lakes brokerage Kennebec Journal and Morning Sentinel Berks County real estate transactions for May 19 Reading Eagle The same, yet different – seniors and real estate in the Tri-Valley danvillesanramon.com Slow April real estate market among Pueblo's top business news Pueblo Chieftain REAL ESTATE | A look inside The Lofts at Cedar Lake on the campus of Cedar Community washingtoncountyinsider.com Illinois real estate: Home sales in Peoria, Tazewell, Woodford counties Peoria Journal Star Agent Spotlight: Andrea Haitz Grand Junction Daily Sentinel Hawaii Real Estate Sales: March 11-15, 2024 Honolulu Star-Advertiser Letter to editor: On recent misinformation regarding upcoming changes to the real estate industry Woodland Daily Democrat Massachusetts real estate transactions for Hampden, Hampshire and Franklin counties May 19, 2024 edition MassLive.com Luxury Homes Are Booming in These 10 Unexpected Cities in 2024 Norada Real Estate Investments REAL ESTATE | Check out Braund's Flooring & Remodeling LLC in West Bend, WI washingtoncountyinsider.com Wellesley resident Peter Covo joins Conn Kavanaugh as partner in firm's real estate practice The Swellesley Report Revised Mortgage Rate Predictions Signal HIGHER Rates in 2024 Norada Real Estate Investments Top 10 Brooklyn Listings: A Flatlands Standalone Brownstoner STAR resource center Department of Taxation and Finance Increases in interest rates stress commercial real estate Richmond Times-Dispatch Celebrity Real Estate Realtor.com News Egypt boasts real estate portfolio valued at $200bn, ready for international export - Dailynewsegypt Daily News Egypt Private Advisor Group LLC Purchases 1425 Shares of Doubleline Commercial Real Estate ETF (NYSEARCA:DCMB) Defense World Connecticut real estate law changed after MV Realty investigation Eyewitness News 3 Coloradans negotiating lower fees for real estate agents with new law on horizon Colorado Public Radio Real Estate Mogul Grant Cardone Closes Largest All-Cash Multifamily Deal In South Florida This Year Yahoo Finance Real estate transfers: May 17, 2024 RiverheadLOCAL Robert Willett may be targeting female Realtors in Northeast Ohio Akron Beacon Journal Amalgamated Bank Trims Stock Position in Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) Defense World China Says It Will Start Buying Apartments as Housing Slump Worsens The New York Times Mid-May Greenwich Real Estate Market Report Greenwich Sentinel Kenosha CubeSmart storage facility sold to new owner Kenosha News Religious order on the ground in Ukraine: “No one knows the real state of occupied zones” ROME REPORTS TV News Agency London Real Estate Is About to Get the ‘Selling Sunset’ Treatment Hollywood Reporter Real Estate Briefs: Lakeside homes, new condos, and more news Rough Draft Atlanta Real Estate Newsletter Articles this Week: Housing Starts Increased to 1.360 million Annual Rate in April Calculated Risk What's real estate wellness? Fortune Dodge County Real Estate Transfers Fremont Tribune Billionaire Frank McCourt raises his hand to buy TikTok Business Insider $6 million home was Houston's top residential real estate sale of its week (PHOTOS) The Business Journals Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) Stock Position Reduced by Victory Capital Management Inc. Defense World Home listings are on the rise in southern Colorado, while other indicators show a slowing real estate market Colorado Public Radio News anchor sells luxury Scottsdale home he built for $6M The Business Journals Ellison sues real estate broker Chad Banken over alleged schemes involving contracts for deed Star Tribune Busch relative settles squabble with Clayton investors over real estate trust St. Louis Post-Dispatch Southern fast-food chain Cook Out buys Tampa real estate The Business Journals MCB Real Estate Revives Long-Awaited Viva White Oak Mixed-Use Project Source of the Spring |
RELATED ARTICLES
First Impressions Will Sell Property Fast! First impressions count, buyers will have already formed an impression before they step into your property. A well-kept garden, pathway and fence, plus a freshly painted front door are immediately appealing, whereas a scruffy outdoor space with a litter bin outside the front door may turn many prospective buyers away. The Costs of Transforming Your Home into a Buyers Dream House Turning your house into the home of a buyer's dreams doesn't have to cost a great deal of money. In fact, armed with some paint and the determination to work hard, most home sellers usually need to invest only about $500 to spruce up their homes for a quick sale. Residential Income Property Financing: Part 2 of 3 Welcome to the second segment of a three-part series about income property. In this second segment we will be discussing financing options for residential income properties as well as the upside (and downside) of owning this type of property. Selling Houses: Flooring & Feelings Buyers think they love Italian tile and other hard floor surfaces, but they actually feel happier when they're walking on softer surfaces such as padded carpeting and padded laminate. Even so, you'll want to give some serious thought to the floors in your home if you want to sell quickly, and for the highest profit. How Real Estate Investors Use Mortgage Note To Purchase Properties Many of you may not be aware of the various ways notes can be used. The average person's understanding about notes is that people create them because they are desperate to sell a property. 10 Frequently Asked Short Sale Questions 1. What happens to the seller's credit rating when they allow an investor to short sell their property?What typically happens is the loan will show up as "paid" on their credit report; however there will be a notation that says "settled for less than originally owed" or something along these lines. Attention To Details Helps Homeowners Sell Fast In A Buyers Market Your boss has just given you the career opportunity of a lifetime, but the job is in another state.Soon you discover that moving your family to another city may be one of life's hardest tasks. Fixing Houses: Using Psychology for Profits Real estate investors who specialize in fixing houses for profit gain new insights from Interior Design Psychology ideas. Increase your profit potential in the new buyer's market with these new transformation strategies. Property Investing Secrets 2 Property Investing Secrets:How You Can Turn A Below Average Deal Into Streams Of IncomeWhen property investing, sometimes you'll get a seller who will say: "Sure, I'm retiring, and I need some cash flow, I need some money but if I deposit it in the bank, I'm not going to get much for it. The property market is falling, there aren't a lot of buyers and they are all beating me up on the price of my house. The Most Sensible Investment Decision Youll Ever Make So much advice is bandied about on the internet and even on the street about what makes a sensible investment, what makes a good investment and what makes a secure investment.Well - when you consider that for most of us our own home is actually our number one asset and that it is a strong capital appreciating asset, surely the most sensible investment decisions we can make will be locked into that real estate. Buying Land Online In the old days people generally only bought land and improved Real Estate in the areas in which they lived or traveled often. Today, thanks to the blossoming of the Internet, one can purchase land all over the United States from the comfort of home. Staging Your Home for Sale: a Superior Real Estate Home Marketing Technique: Part 1 Every Realtor KNOWS that a home should be shown in its best light to help sell it faster and for more money! We also know that, properly done, it Is a lot more than putting fragrant pies, breads or cookies in the oven, opening the drapes and turning on all the lights; although even that helps greatly.Setting the stage to obtain the highest value, fastest, for a home has recently evolved into a real estate specialty that can pay of grandly for the seller and help the buyer overcome the immense emotional strain of making a decision on which, of many similar properties, to purchase. The Many Ways To Profit From O.P.P.s Multiple Cash Streams In a previous article we introduced you to the concept of O.P. Fixing Houses: Mixing Your Own Paint for Savings and Harmony To make the maximum profit on your investment properties, you'll need to save money wherever you can. One way to save significant amounts of money is to mix your own paint. Good Tenants - Learn Twelve Ways Landlords Keep Them Happy, Long-term Good Tenants Paying On TimeHow to Create a Win-Win Relationship for the Both of You!After you've found your tenants, how do you keep them? Establish a friendly, pleasant, business-like relationship with your tenants, so they'll want to renew again each year. By using one or a few ideas below, you will learn how to keep good tenants. Green Building Media Fact Sheet - Past, Present & Future PastSpecialized, niche home builders began constructing resource-efficient, environmentally sensitive homes in the early 1970s. The home building industry coined the phrase "green building" in the late 1980s/early 1990s, turning a movement into a quiet revolution. Safe, Scenic & Secure Sussex County Delaware As I write this, there is a considerable concern about the dangers of urban life, triggered by the terrorist attacks on the USA. As some of you know, I have been a student of disaster preparations and a real estate consultant for those seeking "secluded and survival properties" for over thirty years. Hurricane Katrina And The Impact On Real Estate Prices In the wake of Hurricane Katrina's wide path of destruction, the real estate market will be affected perhaps in ways not fully understood or expected. If recent hurricane recovery history holds true there will be several good things to come out of all destruction. Las Vegas Real Estate - Luxury Properties Las Vegas is known for it's over the top hotels and casinos, larger than life celebrities and jaw dropping shows.Over the past couple of years the Real Estate Market has taken center stage breaking national sales records in 2003 and 2004 with record appreciation rates as high as 52%. Real Estate Research By Talking Real estate research might start with a look at the U.S. |
home | site map |
© 2006 TIGER MEDIA |