Buying


Getting Pre-approved for a mortgage:

If you are not pre-approved for a mortgage you will need to find a good lender to assist you during the purchasing process and for as long as you have your mortgage.

Many different institutions lend money for mortgages such as banks, trust companies, credit unions, caisse populaires, insurance companies and finance companies. It is a good idea to shop around and speak to more than one lender because terms and options will vary.

Some people find it helpful to use a mortgage broker. Mortgage brokers so do not work for any specific lending institution. Their role is to find the lender with the terms and rates that will best suit the buyer

Finding a Real Estate Agent:

When the time comes to select a real estate agent, don’t be afraid to ask questions – especially about any possible service charges. Vendors normally pay a commission to the agent but some agents charge buyers a fee for their services. See a checklist for evaluating real estate agents.

For more information about a real estate agent’s ethical obligations, you can visit the Canadian real Estate Association's website or call your local real estate association.

**Real estate agents are now required by law to ask you for identification and to ask questions about your purpose of your house purchase and the source of your income and down payment.

The real estate will play an important role in helping you find a home. They can:

  • Arrange for you to view a number of properties in your price range and preferred location
  • Give you advice on what to look for in a suitable home
  • Write an offer of purchase
  • Negotiate on your  behalf and advise you on an appropriate price for your chosen home
  • Provide you with important information about the community, help you arrange and coordinate a home inspection
  • They can often recommend a lawyer as well which you will need for a house purchase

The Lawyer/Notary:
You need a lawyer to protect your legal interests, such as ensuring the property you are thinking of buying does not have any building or statutory liens or charges of work or clean-up orders associated with it. He or she will review all contracts before you sign them, especially the Offer (or Agreement) to purchase.

The Home Inspector:
You should consider having any home you are thinking of buying – whether it is a resale home or a brand new home – inspected by a knowledgeable and professional inspector.

An inspection by a home inspector is meant to inform you about the condition of the property you are going to buy. The inspector will tell you if something if not functioning properly, needs to be changed or is unsafe. You will also be informed of repairs that need to be made or they might see as past problems. They will often give you a booklet or binder with advice on home repair and maintenance.

Establishing Credit

Building a credit rating:

A credit rating is important in order to qualify for any loan including a mortgage and to access credit sources.

What is a credit rating?

Your credit history is a list of facts gathered from financial institutions, retailers and other lenders, about how you have handled credit in the past. Canada’s central credit bureaus keep track of how Canadians borrow and repay money, and then create a credit score for each borrower in the country. Your good credit score is proof to other potential lenders that you can be relied on to pay your bills and make payments on time.

*Your credit history from another country is not considered when creating a credit history in Canada.

Helping newcomers with establishing credit:

For people who are new to Canada, one of the easiest, most effective ways to start building a credit history is to get a Canadian credit card. You will need to apply for a credit card at a bank. You will need identification and some personal information. It is important to pay this credit card every month in full as credit card fees will accumulate and you will not develop a good credit rating.

Reasons you might want a credit card:

  • A credit card is essential for certain purchases, such as setting up contracts for a mobile phone, renting a car or shopping online
  • You can often use it as a form of identification
  • It enables you to make everyday purchases without carrying large amounts of cash

Usually people like to know the amount of money they will be able to borrow from a bank to know how much they can afford to spend on a house. If you have some assets or a fairly good job you will be able to speak to a representative of your bank about mortgage pre-approval.

If you are not pre-approved for a mortgage you will need to find a good lender to assist you during the purchasing process and for as long as you have your mortgage.

Many different institutions lend money for mortgages such as banks, trust companies, credit unions, caisse populaires, insurance companies and finance companies. It is a good idea to shop around and speak to more than one lender because terms and options will vary.

Some people find it helpful to use a mortgage broker. Mortgage brokers do not work for any specific lending institution. Their role is to find the lender with the terms and rates that will best suit the buyer

 

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