Buying an apartment is a big deal. It’s usually one of the biggest investments in your life. And buying your first apartment in Canada is no different. There are certain aspects of it that you need to consider before you even start looking at available apartments. And when you do find the perfect one, you need to know how to handle buying it. After you have bought it you need to know what to look out for, how to properly manage home renovation and what to expect. So here is a step by step guide to buying an apartment in Canada.
Are you ready for buying your first apartment in Canada?
Before you even start looking at the available apartments you need to know if you are ready to be a homeowner. On paper, it sounds perfect. You will have your own place that you can call home. You can renovate it however you wish. And instead of paying rent to a landlord you will be paying off your own home. But buying your first apartment in Canada carries with it a lot of responsibilities. And you should be sure that you can handle it. First, you need to be financially stable enough to invest. Just because you just got a good paying job doesn’t mean you will always have it. Consider the next 5, 10 even 20 years of your life. Can you reasonably expect to be able to afford it?
Second, you need to be able to handle apartment maintenance on your own. You won’t have a landlord to call when something is broken. It will be your responsibility. And with that responsibility comes a price tag. Repair crews cost money. Fixing almost anything in the apartment is going to cost you. Even some home renovations require special permits. So make sure that you can afford it.
Can your budget handle it?
If you’re already thinking about your budget that means that you already know the approximate price of the apartment you are planning on buying. It’s completely natural to window shop online, look at prices and imagine your future in one of those homes. But before you commit to buying your first apartment in Canada make sure your budget can handle it. Take a good look at how much you are spending. Yes, you won’t be paying rent anymore. And you might be able to squeeze a little bit extra money from your budget. So, you need to be sure that you can afford it. And it’s not just about the monthly rate you are going to be paying to the bank. There’s a large upfront cost for buying an apartment. Things like:
- Home inspection and appraisal fees
- Home Insurance
- Legal fees
- Renovation costs
- Moving costs
Moving is an important upfront cost of getting your own apartment. Therefore, If you are moving from far away you will need to find professionals that can help you move long distance. Moving on your own is next to impossible when it comes to long distance relocation. And you will probably want to renovate your new apartment before you move in. Add all the fees you are going to be paying and you will end up with a large sum of money.
Find a way for paying for an apartment
Ok, you’ve found some really good options out there. And you are confident that you are ready to invest in your future. Buying an apartment is not just about picking the colors of your walls. Or just about the location you are going to live in. You need to be able to pay for it. Therefore, you need to know how to get a mortgage. You need to find a broker or a lender and start a mortgage pre-approval process. Birocracy can be a huge hassle so you need to know what documents you will need to start the process. Here is a list of everything you will need in order to apply for a mortgage. You should have all of that ready even before you meet with a broker or a lender for the first time.
- Government-issued photo ID
- Proof of your income in the past few years
- Proof that you made a down payment for an apartment
- List and proof of your savings and investments
- Any and all details of your current debts
- You credit score
- Contact information for your current employer
Finding the perfect apartment for you
Now that you know a lot more about buying your first apartment in Canada the time has come to make the final decision. There are a few aspects that you need to take into account when picking a place. First of all, you should look at the size of the apartment. Is it big enough for you and maybe your family? Is it maybe unnecessarily big? Bigger apartment cost more so it’s important not to overestimate the size you need. Even a smaller apartment can look great when decorated properly. Look at the state of the apartment. Is it located in a new building or an old one? How much work does it need doing in order for you to comfortably live in it?
Location location location
When buying your first apartment in Canada location is very important. You will be spending many years in that apartment, maybe even your entire life. That’s why it’s important to pick the perfect location. Do you like being close to the central district or would you rather live away from the crowds? Connectin to other parts of the city is also very important. Also, if you are moving from another city or country you want to be able to move there without much hassle. So, you should know that moving experts will help a lot with your Pickering move, and they will be kind and polite. True moving experts will understand your stress and help you do it as easy as possible. Also, they will be able to give you some advice that will help you adjust and explore your new surroundings.
Making an offer for the apartment
You found a perfect place that you can call your home. And you are ready for buying your first apartment in Canada. Now it’s time to make an offer for that apartment. This is usually one of the most stressful things about buying an apartment as it involves a lot of negotiation. You don’t want your offer to be too low or too high, but just right. An offer consists of things like your and sellers name, extra features you want to be included with the apartment, date when you want to take possession and most importantly the price you are willing to pay. The price consists of the deposit that you are paying in advance and the total amount for the apartment. But be aware, you should expect a long negotiation to take place until you come up with the final price.