Let’s face it; the reality is millennials are more inclined to buy a condo as opposed to purchasing a traditional house in the quiet suburbs. There are numerous benefits associated with condominiums, as new projects are continually springing up across our sprawling metropolis. Today, we’ve created a simple guide to buying a condo here in Montreal!
Figure Out Your Budget
This may sound boring or tedious, but it’s crucial to sort out your finances. After all, this will determine whether or not you can actiually afford to buy a condo.
Sit down, whip out that calculator, and crunch those numbers. It can be a wise decision to download the Mint application, which looks at all your purchases and analyzes what you spend the most on. Therefore, you can start budgeting properly and reduce certain expenditures to save for your first property.
We also suggest consulting with a financial advisor who can assess you current financial situation and help you invest wisely. Mutual funds are always a safe investment with a modest return, although investing is a long-term strategy and you may not see any immediate results.
What’s A Pre-Approved Mortgage?
If you’re thinking about buying a condo, you definitely need to get a pre-approved mortgage. In simple terms, a financial institution analyzes all of your finances and determines how much they’re willing to lend you and at what mortgage rate. This gives you a ballpark figure in regards to what kind of property you can afford.
What Is A Mortgage?
The dreaded mortgage section. Relax, take a deep breath, and let us guide you. A mortgage is simply a home loan secured by real estate. What this means is that the bank theoretically owns your home until you’re finished paying off the money you owe.
The Bank Of Canada
To break things down into the simplest form, the Bank of Canada determines the key interest rate. This determines how much interest all financial institutions are allowed to charge consumers and businesses looking to borrow money. Over the past six months, the Bank of Canada has increased the key interest rate from 0.5% to 1%, meaning it’s more costly to borrow. Interest rates typically lower if the economy is experiencing a decline, while they tend to rise if the economy is flourishing.
Different Types Of Mortgages
- Conventional mortgage
- Open mortgage
- Variable rate mortgage
- Capped rate mortgage
- Closed mortgage
- Convertible mortgage
- Reverse mortgage
As you can see, there are several different types of mortgages available on the market. Visit loanscanada.ca to get a complete understanding of each of these options.
If you’re thinking about purchasing a condo in the near future, check out DevMcGill’s new construction projects across the city. Montreal’s currently going through a construction boom, so take advantage of this opportunity by getting your finances in order and scooping up your dream property.
Interested in more information?