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: Blackstone's Beleaguered Real-Estate Fund Stems Exodus The Wall Street Journal $700000 Homes in Kentucky, New Hampshire and Minnesota The New York Times Agencies' headquarters in DC remained 'nearly empty' in 2023, real-estate board finds Federal News Network Charlotte County cash buyers bolster mixed real estate market Gulfshore Business Judge Approves $418 Million Settlement That Will Change Real Estate Commissions - The New York Times The Folly of China's Real-Estate Boom Was Easy to See, but No One Wanted to Stop It The Wall Street Journal Real Estate Taxes Due, Wednesday, May 1 | Boxford MA Boxford MA | Homebuyers and sellers might spend less following major real-estate settlement - Evanston RoundTable Homebuyers and sellers might spend less following major real-estate settlement Evanston RoundTable Joel Heydenburk Discusses Evolution of Fort Worth Real Estate on 'Location Cubed' Podcast – Jackson Walker Jackson Walker LLP University of San Diego real estate team wins first place in 2024 ARGUS University Challenge Daily Commercial News Pinellas Beaches Real Estate April 11-19 The Gabber Newspaper Reversing the Real-Estate Doom Loop Is Possible. Just Look at Detroit. The Wall Street Journal Atlanta Real Estate Investor's Sales Pitch Is a Curveball: Lease Office Space, Become Co-Owner CoStar Group Commercial Real Estate Pros On the Finance Market: 'Not a Typical Cycle' – Commercial Observer Commercial Observer Top Payment Trends in Commercial Real Estate: A talk with JPMorgan Chase's Lisa McDonnell Commercial Observer Manhattan Real Estate Update: "Embrace the Boredom" westsiderag.com Episode 193: From Real Estate Mogul to Live Theater Producer Biz New Orleans Real Estate Transactions Business West Banks Believe They Are Well-Prepared for Commercial Real Estate Fallout The Wall Street Journal CoStar eyes virtual reality as integral player in future real estate deals - Washington Business Journal The Business Journals Former HGTV star gets jail time for real estate fraud PIX11 New York News Real Estate Sales Include Two Falconer Commercial Properties Jamestown Post Journal Two Palm Beach billionaires linked to $108M house purchase in Aspen Palm Beach Daily News ACCENTRO Real Estate AG (ETR:A4Y) Stock's 31% Dive Might Signal An Opportunity But It Requires Some Scrutiny Simply Wall St VIDEO | REAL ESTATE | Jackson restaurant for sale by Wendy Wendorf - Homestead Realty washingtoncountyinsider.com Kanye West drops price of Malibu estate from $53 million to $39 million San Francisco Chronicle Is The Housing Market Going To Crash? Bankrate.com Letter to FERC: TDP real estate ad sparks Cheat Lake resident's concern about removing Cheat Lake land from federal ... The Dominion Post The agency imperative to manage real estate more effectively Federal News Network Bill Vanderstraaten, Scott Rohrman to join North Texas Commercial Real Estate Hall of Fame The Dallas Morning News 10 Real Estate Charts Showing What's Next for Housing: Ivy Zelman Business Insider 21 Largest Real Estate Companies in the World Yahoo Finance REAL ESTATE | Open House event April 25, 2024, at Love Hope Faith Home in West Bend, Wi | By Charmaine Brea washingtoncountyinsider.com Great week for Prodea Real Estate Investment Company Société Anonyme (ATH:PRODEA) institutional investors after ... Simply Wall St Inside Bill Gates' real estate, from his Seattle to Florida houses Business Insider Judge grants preliminary approval of $418 million settlement that will change real estate commissions North Bay Business Journal Dallas real estate investor buys North Side office tower - San Antonio Business Journal The Business Journals Big bill comes due for Martin Selig, giant of Seattle office real estate The Seattle Times Commercial Real Estate Financiers Pivot Plenty in Changing Debt Market Commercial Observer Alternative Lenders Help Fill Commercial Real Estate's Debt Gap Commercial Observer Annie Leibovitz just listed her rural California estate for $8.995M Business Insider Fed Report Warns of High Risks in Real Estate and Housing Norada Real Estate Investments Eliza Solender hosts President's Tea to empower women in real estate Preston Hollow Advocate REAL ESTATE SPLIT CORP. Completes Overnight Offering Yahoo Finance Pennsylvania lawmaker hopes to avoid 'retail apocalypse' with mall redevelopment tax abatement - Philadelphia ... The Business Journals How Alexico's $180 Million Deal With St. Francis College Fell Apart The New York Times Macomb County real estate transfers recorded Nov. 27-Dec. 1, 2023 The Macomb Daily REAL ESTATE | 7 departments respond to fire at Confections for Any Occasion by Joel in Theresa, Wi washingtoncountyinsider.com Jacksonville home prices double over the past several years - Jacksonville Business Journal Jacksonville Business Journal Dr. Phil left speechless after real estate agent claims that squatting is justified by colonization New York Post Airwavz Partners with Nuveen Real Estate to Redefine the Wireless Experience in Commercial Real Estate StreetInsider.com The Real Estate Agent Pledge: The Jason Mitchell Group's Commitment to Transactional Transparency and Fairness RisMedia.com |
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 |