Montreal real estate is booming. More investors than ever before are now looking to own a piece of property in this architecturally diverse and beautiful city. And since the city imposes stringent regulations and low interest rates on real estate deals, this makes both Canadians as well as foreigners attracted to it in the hope of living a rewarding and quality life.
Naturally, buying the first home in Montreal will be a huge milestone in life. It’ll also be one of the largest financial decisions you will make in the entire lifetime. While the entire process can be rewarding, you may also face some challenges along the way, especially if you’re not adequately prepared for it.
In fact, for most people, the experience to buy the first house is always full of surprises for various reasons. So, the trick is to be informed about everything to minimize those surprises and make the transaction smooth.
In this post, you will find some helpful tips that would prove quite handy in helping you through the buying process of a new house in Montreal.
Research the neighourbood thoroughly
As a first-time home buyer, your utmost responsibility is to do some basic research about the city, neighbourhood and the process. Even when you have set an eye on a Montreal locality, it does not harm to widen the horizon and learn about different neighbourhoods to improve the chances of getting better deals. You should collect information about the local schools, shops, restaurants and area demographics.
Figure out what you need in a home
As a home buyer, you’d be better off when you have already figured out what you need in a home rather than deciding upon the property inspection. The latter often delays the purchase and even puts the broker in a fix. After all, how can an agent search for houses for sale when they don’t know what you exactly look for? From the type of the house to the size, the age to number of bedrooms to level of renovation needed, these are some of the features you should have in mind before searching for the house.
Assess your repayment ability
Homes in Montreal are definitely not as affordable these days as they used to be. But this does not mean you can’t afford them. The right strategy would be to first assess your repayment ability and then make the move. Another option to consider is going for a property that could help you with the mortgage. In fact, it would be of great help if you consider buying a small plex or a house with a basement suite so that there is some extra income. And with that income, you can not only boost your repayment capability but can pay off your mortgage sooner.
Know about the financial assistance
If you’re planning a buy a home in Montreal, you should then know the city’s subsidy program which can benefit you as well. The good thing, this program ensures financial assistance on a purchase of any piece of property be it a residential building, a house or condos for sale. Under the subsidy program, there will be a lump sum payment to a buyer when they purchase a new property. Though the extent of financial help may vary, all types of households will be eligible for it. For a new home, the assistance is between $5,000 and $15,000.
Once you have zeroed in on your dream house, the next step should be to know two key things – first, the kind of down payment you will need and second, the extent of mortgage you could quality for. Many buyers do the mistake of first falling in love with a property and then setting out to know those two key facts. It’s always a good step to contact a reliable mortgage broker to get a competitive rate, and also to get educated about the whole mortgage process.
Build credit score & income stability
The down payment is not the only concern you should be having when you decide to buy a home. You should also know that most lenders will also assess your risk profile as a borrower. They will assess you on the parameter to repay. So, they will be concerned about your credit score and the source of income you have. Naturally, maintaining a good credit score means more lending options will be available with lower mortgage rates.
Find a good real estate broker
Property investments are a big hassles as long as you do things on own. The moment you decide to seek professional help, everything starts to fall into places in the way you’d expect. The broker will have experience of the market you’re interested in. They can search the best property in the area of your choice, can help with the paperwork and ensure value at each step of the way. The broker will negotiate on your behalf, so you can always be sure of the best deal.
Owning a property in Montreal is nothing less than an achievement. And when you have decided to buy one, the best strategy is always to approach the entire process after a research and seek some good advice from a broker.