Buying a house in Canada can be a challenging process – especially in a hot market.
Most Canadians do need a mortgage as their own saved funds won’t cover the full cost of a house. In a hot market, buyers will sometimes be required to commit to a house purchase even before they have an approved mortgage. This may be stressful, but our aim is to minimize this stress by leading a seamless process.
This is why our process starts with preparing all of the documentation needed. The best terms for mortgages are given to foreign investors as well as to Canadian citizens, people on working visas, or permanent resident holders with no income to show. Mortgages are offered to buyers with as little as 3-5% down payment, as well as to those who are salaried or self employed. For each category there is a good mortgage that can be arranged, but still the good preparation will make a huge difference and save money.
Working with our clients as a team, we pre-qualify you as an applicant, as well as looking at the building and the house you’d like to purchase. We start with reviewing all income documents including recent pay stubs, a job letter, and tax documents. We also confirm bank statements to show the source of down payment. Our lenders are asked to review the credit score, other commitments the buyer may have, and incorporate this with the income information, as well as the down payment.
The second aspect lenders are asked to approve is the quality of the building, especially in condos. Here the realtor enters the picture to review all strata documents. They make sure there are no red flags this building and there are no existing assessments. The house is also confirmed with the insurers to make sure there is no negative data accumulated on the building.
For a debauched house, it’s highly recommended to have an inspection done to make sure the house does not have any problems. Another required step in approving the house is an appraisal to confirm the price.
Most of the above can be done in the preparation phase, even before moving ahead to put an offer to purchase. Our buyer, coming after completion of preparation, will have stronger power in a bidding war if this is the market situation. To read more about the process click here.