Ron Matin
One of the most important tips for someone who wants to buy a home in Canada for the first time is to learn the steps of buying a home. To have enough information to make a correct decision, let’s compare the benefits of renting and buying a home.
Benefits of renting a home
Renting is great for people who want to change their homes frequently. Here are some of the benefits of renting:
- Easy to move
- Less responsibility
- Rental costs are fixed
- Money opportunity (leaving you with more money)
- If you do not invest in housing, you will probably make more money from other jobs.
- Increase diversity in the habitat
Benefits of buying a home
Some prefer to invest their finances in real estate because of the high amount of interest. Additionally, there are other benefits such as
- Buying a home is one of the momentous events of your life
- The pride of owning a home and the confidence that comes from it
- Saving money
- Potential for earning money by renting out unused home space
Mortgage
A mortgage is a loan that a bank offers to individuals to buy a home. Since large amounts of money are usually transferred in real estate transactions, the bank mortgages the house documents as collateral or guarantee. If a person cannot repay his loan to the bank and does not comply with the mortgage agreement, the bank will have the right to seize his home in his favor. Mortgages usually have two parts. The first part is the bank’s money to the loan applicant, and the second part is its interest. When the borrower repays the loan in full along with interest to the bank, the house will be his in full. A mortgage is one of the main steps in buying a home in Canada for those who do not have enough money.
Financial management and planning for the future
Buying a home in Canada is not a procedure to happen overnight. Becoming a homeowner requires planning and financial management. Keep in mind that a mortgage is the largest loan you will probably take out in your lifetime. So be careful and make all the necessary predictions and plans. You will have to work hard for months or maybe years to pay off the loan.
Do not forget the costs associated with concluding a home purchase contract
The main cost to buy a house is the down payment which needs planning and saving. After the initial payment, the expenses related to concluding the contract are also substantial. According to the Canadian government, 1.5 to 4 percent of the total house price should be spent on a contract. This is not part of the amount of the house, but in addition to paying the amount of the house, you have to pay a fee for concluding the contract. So, plan to save this money and consider it a step in buying a home in Canada.
Use the advice and help of professionals
A crucial step in buying a home in Canada is to seek professional help and advice. Real estate consultants at MatinHomes can help you a lot and make your way to purchasing a home in Canada easier and faster. Here are some services offered by professional real estate agencies;
- Real estate consultants
- Real estate lawyers
- Home and property inspectors
- Insurance brokers
- Real Estate Appraisers
- Surveying companies
- Mortgage brokerage agencies
Each of the above categories will increase your knowledge and awareness about the home you will buy.