How to Buy Real Estate in Canada?
Canada, like the United States, has a well defined and mature process when it comes to buying real estate. A lot of attention and focus is given to protecting the rights of both the buyer and the seller.
If you are planning to buy real estate in Canada get yourself pre-approved. A pre approval will provide you with an estimate of the loan they can qualify for as well as give the seller the necessary confidence your financial ability
A good place to start is to find a licensed real estate agent. With their experience and resources, more often then not they can find the property that you want much easier than if you do it yourself. A licensed real estate agent can also help you to prepare and submit purchase offer, negotiate with the seller or the seller’s agent and help ensure that the entire process is smooth and transparent to the buyer.
You will also need the need the services of a lawyer or a notary if you are purchasing the real estate in Quebec. The lawyer (or the notary) will ensure that all the processes are followed and help ensure the legal interest of the buyer of the real estate.
Once you have identified the property, the next step is to furnish a legal document to the seller known as an ‘Offer to Purchase’ or ‘Agreement of Purchase and Sale’. Typically, the document undergoes several revisions as the seller and yourself review it to ensure that you are honored in the document. Once the terms and conditions have been agreed, the agreement becomes final.
The buyer of real estate in Canada should be cognizant of the costs involved in buying a property. Listed below are some of the costs that the buyer has to incur:
- Mortgage insurance and loan application fees
- Appraisal fees and Survey cost
- 5% deposit on acceptance of offer
- Down payment of around 25% less the 5% deposit
- Home inspection fee
- Land and deed registration fees
- Prepaid property tax refund
- Home and title insurance
- Legal fees
The last and final step in the process is closing of the escrow where the transaction is completed and ownership transferred to the buyer.