3 things to know before buying your first condo in the Plateau-Mont-Royal
Buying your first property is no easy task. Between the fierce competition and the high demand on the Plateau, it can be confusing. If you don’t have any real estate experience, we strongly recommend that you surround yourself with the right people. With more than 20 years of experience in real estate, Samia Ouertani gives you some tips to succeed in buying your first condo on the Plateau-Mont-Royal.
Choose the right real estate broker
First of all, a successful transaction requires the right support. With the arrival of the pandemic in 2020, many things have changed in the industry. New regulations and processes have been put in place. If you have no real estate experience, it’s easy to get lost. An experienced agent knows the intricacies of the industry. Throughout the transaction, he or she will be at your side to defend your interests. In addition to saving time, you won’t have to stress about the details that make the difference when it comes to drafting the deed of sale.
What should I look for when choosing the right real estate agent in Le Plateau?
We advise you, first of all, to look at the reviews that the broker has obtained on the web. Then, check if the person works in a recognized agency.
Get a mortgage pre-approval
Then, you must establish your budget for the purchase of a condo in Le Plateau-Mont-Royal. Do you know how much you can borrow from the bank to buy a condo on the Plateau-Mont-Royal? If you raise your eyebrows after reading the question, you need a mortgage pre-approval. This will allow you to determine the amount you can borrow from the bank. To get the amount, there are two ratios to know: GDS or TDS.
Have a sufficient down payment for the condo
The third thing to have before buying is a down payment. Without a down payment, it is very difficult to get a property. Before granting you a mortgage loan, the banks will ask you for a certain amount of money. This amount will represent a percentage of the value of the condo which is the down payment.
Depending on the value of the condo, the down payment required will differ. For example, if the price is lower, you will have to put 5% of the amount of the house. If the price exceeds $1,000,000, you will have to put down 20% of the price of the property.
What is the advantage of having a 20% down payment
If you pay 20% of the amount, you will not have to buy mortgage loan insurance. Of course, some conditions apply, your mortgage broker will be able to explain this to you in due course.
How do you raise enough money for a down payment?
Set aside part of your salary
On the one hand, it is important to save on a regular basis. We invite you to ask your financial advisor or banker to put a portion of your salary into a TFSA.
Capitalize on RRSPs
On the other hand, you can use your RRSPs. With the Home Buyer’s Plan, it is possible to use a portion of the funds with your RRSP.
Donations from a loved one can help
Finally, you may benefit from a gift from a parent or relative.
Want to buy a condo in the Plateau-Mont-Royal? Contact me now!
Finally, the last step is to call your certified broker on Le Plateau, Samia Ouertani. Since 2001, I have helped thousands of individuals buy or sell their property on Le Plateau-Mont-Royal. Proactive and on the lookout, I will defend your interests from the first meeting to the signing of the papers at the notary. Want to buy a condo on the Plateau-Mont-Royal? Contact me now.