Whether you are an expat looking for apartments or townhouses for sale in Calgary or comparing prices for entry-level homes, there are some factors that you need to consider before buying property when you are a foreigner in Canada. Even though the country has a more open-door policy when it comes to non-residents who are looking to buy property, there are however some cities that have strict guidelines that need to be followed before you can make a purchase. This article will highlight some of the most significant guidelines that are essential for the buying process of non-residents.
Obtain a Pre-Qualified Mortgage
The Canada Mortgage and Housing Corporation states that the value of your monthly housing expenses should not be more than 30% of your monthly gross income plus your entire monthly debt amount should not exceed 40% of your monthly gross income. So, before you apply for a mortgage, you need to ensure that when you do your calculations, these numbers stay within the stipulated margins.
Find Your Property
You would be surprised to find out how many people speak to a realtor before deciding on the type of property that they want to purchase. It is always great to know what type of property you are looking for and where you are looking before you speak to a realtor. This will save you time and money because you will have an idea of how much you can afford before you have your first appointment with your potential realtor. You can start by doing research online to compare property prices across the country to determine where you would be most likely to afford to stay for at least five years.
Find a Realtor
The general rule of thumb is that the majority of house sales are conducted by two realtors- one for the seller and the other for the buyer. Usually, when the seller has a realtor, they incur the costs associated with the realtor’s fees. However, if you are a buyer and the seller has not enlisted the services of a realtor, you have to establish who will pay these fees before you conclude on the sale, because failure to do so could lead to these fees could end up being paid by you.
Find a Real Estate Lawyer
Even though it is common practice for homebuyers to involve real estate lawyers at a later stage of the transaction, finding one in the early stages could be an advantage for you. A reliable and experienced lawyer could help you mitigate risks early on because they have the technique necessary to go through the paperwork, help you conduct a title search, assist with the transfer and help you avoid any potential traps that you may not be able to observe on your own. If you do not have close friends or family that can recommend a credible lawyer, then contacting a law society near you can help you.