FAQ
Frequently Asked Questions
What happend if i sell my property without a real estate broker?
1- You can be defrauded.
2- You can encouter a plethora of legal problems wich may result in failed closings, lawsuits and compensations of the buyer.
3- you sell for less than the property is worth.
What kind of credit score do i need to buy a home?
Most Loan programs require a FICO score of 640 or better. Borrowers with higher CREDIT SCORES represent less risk to the lender, often resulting in a lower the down payment requirement and better interest rate.
What Is pre-approved?
A good way to know if you’ll receive mortgage approval before you actually apply is to get pre-approved, which most potential homeowners will do 60 – 120 days before they plan to purchase a home.
One important thing to understand here is that the pre-approval is optional and does not actually guarantee that you’ll be approved for the amount you’re pre-approved for in the first place. It’s also a way of knowing your true price range and showing your lender that you are serious about buying a home.
how much do i need for a down payment?
To become a property owner in quebec, one needs to make a down payment equivalent to at least 5% on the property’s purchase price.
should i order a home inspection before buying?
YES! In the end the most important reason to have a home inspection before you buy is to really know what you are buying, Home inspectors can help you make a decision based on your curent budget as well as your future time and money investment.
What are the costs usually associated with a purchase of a property in montreal?
Three important points to consider:
1- Inspector’s fee, which can range from $300-$600 depending on the size of the property.
2- Notary fees which around $900-$1300
3- Welcome TAX, break down as follow:
– 0.5% of the first $50,000 and $250,000.
– 1% of the amount between $250000-$500,000.
– 2% between $500,000 and $1,000,000
– 2.5% on anything over $1,000,000
Kindly note: In Quebec Calculation is different for a city to another.
how can i get the money for my down payment?
The down payment could come from your cash saving, investment, a gift, an inheritance or even your RRSP funds.
Have you thought about the home buyers’ plan (HBP)? it’s a federal goverment program designed to make the purchase of a home accessible to the average household. If you have RRSP, you could takeadvantage and withdraw up to $35,000 to use as a down payment. Kindly note:
- The withdrawal is not taxable.
- You must strat repaying your RRSP in the second year following the withddrawal.
- You have 15 years to repay what you withdrew.
(Some conditions applied)
buying a first home: 7 steps to follow
- Calculate your borrowing capacity
- Determine your down payment
- Plan for additional costs
- Request a mortgage pre-aproval
- Find your home
- Make your offer.
- Obtain your mortgage loan
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