Getting your mortgage pre-approval is the very first step in the process! It will strengthen your position when you're ready to submit an offer and help you focus on amazing opportunities within your budget. Consult with your bank and a mortgage broker, they will look over your current financial situation and pre-approve you for a mortgage. If you don’t have someone to help you with this process, I would be happy to introduce you to one of my preferred lenders.
One of my responsibilities is to ask all the right questions that will help you create your wish list.Location?, Home or condo?, Schools?, Amenities?, Number of bedroom?, Number of Bathrooms? Etc.
After getting pre-approved, understanding the cost associated with purchasing your new home and creating your wish list, the fun begins! Now we dig deep into seeing what’s on the market, setting up your email system, so you will be the first to know about new properties that hit the market in your specific criteria. Once we find a property together that fits all the boxes it’s time to book and appointment and go visit!
When you submit an offer, the main components for you to be aware of include:
*Offer Price: How much have we decided to offer?*
Deed of sale | Occupancy date
This is the date that take title (ownership) of the property and the date you take possession.
*Inclusions and Exclusions
When submitting an offer, list items you wish to include or exclude from the purchase.
It’s imperative that you know the costs to be aware of when buying a home because they can add up quickly, But don’t worry! My job is to make sure you are informed and prepared, so I have broken down all potential costs in detail for you.
If you do not put 20% down payment on your home, you may be required to pay a mortgage insurance premium, usually by CMHC, Genworth or others. This should be further explained in detail by your mortgage brokers since rates will vary on each particular situation. Here are some details;
Mortgage default insurance rates
The CMHC insurance rate varies depending on your down payment percentage:
Taxes de Bienvenue
This tax requires the new owner of property to pay a certain percentage of the value of the property to the municipality, with the value of the property being determined as the highest of either the sale price or the market value determined by municipal assessment.
About four to six weeks after you sign the contract of ownership over the new property, the municipality will send you an invoice of the tax that must be paid within 30 days.
It is important to note that there is a difference in the cost of the tax between Montreal and the rest of Québec, where there is an extra percentage added onto higher tax brackets in Montreal.
For example: If you purchase a home for $600,000 the welcome tax on the island of Montreal would be $7,836 and the rest of Quebec would be $7,448.50