If you’re a newcomer to Canada and are looking to buy a home in the Collingwood, Wasaga Beach, The Blue Mountains, Grey County or the Meaford area – welcome! We’re so pleased you’re here! It’s a magical area and we know you’ll love it year-round! You’ll need to know how the home-buying process works so that everything runs smoothly, so we’ve put together some helpful tips to help you make your experience an enjoyable, successful one.
• Mortgage application and pre-approval
Since most people need a mortgage to finance their home purchase, be sure to work with a reputable bank, lender or accredited mortgage broker. Don’t forget to shop around for the best mortgage rates! It’s always a good idea to get a mortgage pre-approval as it will let you know how much mortgage you can afford so you know what type/size/location of house you can buy that fits in with your budget. It also helps you when you’re looking at houses, as it puts you on the list of ‘serious buyers’ and makes your purchase offer more appealing. A mortgage pre-approval can take weeks, especially if you need to gather financial documents and banking information from other countries, so be sure to allow extra time as needed.
• Canada Housing & Mortgage Corporation (CHMC)
For anyone in Canada who doesn’t have a minimum of 20% for their down payment toward their new home, mortgage insurance is needed – as it’s considered a slightly more risky purchase. The CMHC is the most popular organization for mortgage insurance, and they also have buying tips in several languages for newcomers on their website that you can check out here. Your Realtor® or lender will be sure to advise you accordingly on how to apply and what the process is.
• Credit Rating
Banks and lenders look at all applicants’ credit history when applying for a major loan or mortgage in order to determine the level of risk and how good you are at paying off bills, credit cards and other debt. If you’ve only been in Canada a short time, you might not have established a credit score yet, but don’t worry. You can start right away by building a good credit rating; talk to your lender for ideas and find out what other options are available to verify your income and help you along with the process.
• Find a great Realtor®
There are a lot of benefits to working with an experienced Realtor® whether you’re new to Canada or not. It’s a complicated, legal process with a lot of areas where things can be misinterpreted or go wrong. Here are some of the benefits that come with working with a Realtor®:
1) Education and training – they’ve passed their courses, are licensed, know the industry trends, and follow a strict code of ethics.
2) Knowledge – they understand the local market, the best neighbourhoods, comparable home prices, what to look for, what to avoid, zoning information and so much more.
3) Negotiating skills – Realtors® are highly skilled negotiators, helping you get exactly what you want…from the purchase price, closing details, fixtures, and so on, they handle it all with expertise and ease so you don’t have to.
4) Protection – your Realtor® understands the legal details of a home purchase, and they are obligated to work with honesty and integrity.
If you’re new to Canada and thinking of buying a home, we welcome you to connect with us at Clairwood Real Estate. We’re here to help you along the way and make sure the process runs smoothly! Our team of expert Realtors live and work in this area and are here to help you find your dream home. Call us today at 705-445-7085!