Buying a home might be the most significant financial decision of many of us. There are lots of factors that we need to consider, and as a result, we might be frustrated.
The diversity of condos and apartments might sometimes make the problem even worse because we don't know which one we should choose to buy.
In Canada, for example, you'll have lots of options to buy, and it will make the purchasing decision difficult.
However, if you have a good consultant and pay attention to some key items, you'll find your dream home without any problem.
That's why we gathered a list of important tips to help you find and buy a condo in Canada.
Know the difference between a condo and an apartment
"Condo" is the short term for condominium, which is a type of independent home within a residential building.
It can be separately sold or rented, and this is exactly what makes it different from an apartment.
In an apartment, the whole building is owned and managed by a corporation. On the contrary, a suite in a condominium building can be owned by a single person. In fact, condominiums are common-interest properties and are prevalent in North American countries.
In a condominium, you'll share some spaces and amenities like parks, pools, playgrounds, and gyms with your neighbors. These common spaces are usually managed by the condo association.
Therefore, you need to pay a fixed monthly fee to provide the association with enough budget to cover all the common expenses.
Balance your budget and lifestyle
Now that you're familiar with the concept of a condominium, you need to decide which one you like.
You need to consider all the expenses a detached house or a condo might have. Also, you have to determine whether you like to do some chores by yourself. For example, if you dislike mowing the lawn or trim the hedges, you'd better think of a condo rather than a house.
On the other hand, if you like having a large personal yard to unwind, buying a condo is not a wise course of action.
So try to consider both your budget and your lifestyle and decide whether it's good for you to buy a condo or a single-family house.
Learn about condo assignment resales
If you're serious about an apartment lifestyle and want to have an independent suite, a condo is your best choice.
The question is which condo you have to buy. Fortunately, the condo industry in Canada has various options to offer, and therefore, you are highly unlikely to have any finding your dream condo. You have two major options: Buying a pre-occupied condo or buying a condo assignment resale.
If you don't want to buy a condo that is previously occupied by another family, you can go for condo assignment resales. Assignment sales are really popular among condo buyers who want to buy a pre-construction condo project.
Condoly is one of the best companies that simplify the process of finding and buying condo assignments in Canada. This is your best chance to find a condo with modern architecture and amenities and buy its assignment before it is occupied.
Find a condo that is approved by FHA
A Federal Housing Administration (FHA) loan is a mortgage for homebuyers in Canada. You might also be willing to use its loan, so you have to find an approved condo.
Getting a loan for a condo might be even more difficult than it is for other types of homes. The reason is the condo development process is also considered by FHA, and it needs approval if buyers want a loan.
This organization provides the list of approved condos on its website. You'd better get a consultant from a seasoned mortgage expert to avoid any misunderstanding.
Find the best mortgage option
Depending on your situation, different mortgage options might be suitable for you. The mortgage rate is one of the most important factors in choosing them. The interest rate is constantly changing, and you need to find the best one when buying a condo.
Here are different types of mortgage in the real estate industry of Canada:
If you choose a closed mortgage, you don't have the chance to renegotiate, refinance, or repay unless you act according to the mortgage's terms. Open mortgages, on the other hand, have more flexibility, but they usually have higher interest rates.
This type of mortgage is about the percentage of a down payment. In a low ratio mortgage, the down payment is at least 20%. If you want to pay less than a 20% down payment, you need a "high-ratio" mortgage.
If you choose a fixed-rate mortgage, you can't change it according to the term of the mortgage. But if you select a variable or adjustable-rate mortgage, the interest rate can be changed at intervals according to the term.
HELOC: Home Equity Line of Credit
With this type, you can borrow money against your current home's equity, but you also have the chance to use it instead of a traditional mortgage.
Buying a home is one of the most important decisions in your life. So you need to pay attention to many factors to find your dream home at a fair price. The real estate industry of Canada offers you lots of options, and if you consider the mentioned tips in this article, you won't face any problems in buying a home.