How to buy a house in Montreal?
Thinking of buying your first home in Montreal? The process can be daunting and draining. With the help of this guide, you’ll be able to navigate it like a pro. We’ll provide you with information on everything from pre-approving a mortgage to finding the right neighbourhood for you. Whether you’re a first-time homebuyer or just want to brush up on your skills, read on for helpful tips!
Determine your budget for your Montreal home
Homeownership is a great experience, but it’s not for everyone. Before you decide to buy a home, make sure the costs of owning a home fit your budget and lifestyle! CMHC recommends that housing costs should not exceed 35% of your gross monthly income. This includes mortgage payments, utility bills or any other recurring debt. Your overall monthly debt level should not exceed 42% of your gross monthly income.
Do your research
Once you have an idea of what you can afford, start exploring the different neighbourhoods that fit your budget. Each neighbourhood has its own unique character and advantages. Here are 3 tips to determine if you’ve found the right neighbourhood:
- Is there access to the nearby highway?
- Is it possible to take the subway or bus near your property?
- What is neighbourhood life like?
Save for the down payment
To purchase a home, you will need to put down a deposit that ranges from 5 to 20% of the price of the home in Montreal. You will also have costs for things like closing costs and welcome tax which should not be overlooked either! In the event that the down payment is less than 20%, you will need to obtain loan insurance.
What is loan insurance?
Mortgage default insurance is an important part of the mortgage process. It protects lenders in case you decide not to pay your debts.
How do you put money aside for your down payment?
Automatic savings can be the key to a down payment. It takes the guesswork out of how much you should save and what your goals are. It’s a good idea to get help from a financial advisor to determine how much to put aside each week.
Don’t forget the Home Buyer’s Plan (HBP)
You may qualify for the Home Buyers’ Plan if you want to buy or build a qualifying home. One thing you need is money registered in your RRSPs. The HBP allows users to withdraw funds from their plan without penalty, so it’s as easy as pie! Note that the Home Buyers’ Plan has a maximum withdrawal limit of $35,000.
Find a reputable real estate agent
When the time comes to buy a home, it helps to have someone on your side who knows the ropes. A good real estate agent will guide you through the process and make sure everything goes smoothly. A real estate broker working for an agency is the best choice.
How to find the right real estate broker in Montreal?
- Make sure they are familiar with the area you are interested in.
- Make sure you choose someone who is available and proactive. Things move fast, very fast in real estate. You don’t want to miss an opportunity because your broker didn’t answer the phone.
- Carefully read the reviews of your broker on Google.
Apply for a mortgage pre-approval
You can’t buy a home without getting pre-approved for your loan. The mortgage pre-approval process is a great way to find out how much you could borrow, and it shows that you are serious about your intentions. Mortgage pre-approval makes it easier to buy a home, certifying your ability to buy. It indicates the maximum price of any future home based on your reality. It also gives buyers an advantage when dealing with their real estate broker or someone who sells properties.
Get ready for the bidding war!
In a competitive market like Montreal, competition for desirable homes can be fierce. Sometimes several buyers make offers at the same time, so be prepared to exceed your initial offer price. By working with a real estate broker, he or she will know how to defend your interests without you having to exceed your budget.
How to win a multiple purchase offer in Montreal?
- Have your mortgage pre-approval at hand
- Work with a good broker to represent your interests
- Present yourself in the best light to the seller
- Increase the price and your down payment if necessary
- Be flexible about the terms of the home purchase.
Prepare your offer to purchase
The offer to purchase is a contract between two parties that presents all the information necessary for them to reach an agreement. The real estate broker will take care of writing this part if you have one. Afterwards, you will have to sign the papers at the notary’s office before formalizing the purchase of your home.
Find your house in Montreal with Samia Ouertani
Buying your first house in Montreal can be a daunting process. First, you need to evaluate your borrowing capacity. Then you have to determine what the down payment will be for the house you want. On the other hand, you will need to obtain a mortgage pre-approval to be considered a serious buyer. Since 2001, Samia Ouertani has helped thousands of people buy and sell their homes. From the first meeting to the signing of the papers at the notary’s office, Samia will be there to defend your interests. Want to find the right house in Montreal? Make an appointment here.