Buying a home in Canada

According to a survey report by Genworth Financial Canada, over half of Canada's new migrants buy a home within three years of landing on Canada's shores, a strong indicator of the financial health of the incoming migrants.

There are sometimes difficulties to overcome, but the newcomer is likely to be willing to face whatever challenges are necessary to ensure home ownership, the true symbol of permanence. Lack of practical home-buying information is often what holds migrants back, but the determination to own is there, as witnessed by the rapid rate of increasing home ownership amongst migrants.

Mortgages

One challenge most face is the fact that migrants who often haven’t had the time or opportunity to build long-term credit history in Canada. There are situations where extended good credit in the country of origin can sway the decision in favour of the mortgage applicant.

Canada is home to many mortgage institutions that understand the benefit of working with migrants to help overcome some of the roadblocks. They have specialists who can converse in many of the migrants' native languages, ensuring that the migrant fully understands the issues involved in buying a home and the details of the various transactions.

You should investigate the various mortgage companies in your area to see what each offers. Down payment requirements will vary depending not only on the company itself, but on your financial situation. The offerings of several mortgage companies should be compared in order to make an informed and sound decision.

Look at all the options

All Canadian houses for sale can be found via the REALTOR Multiple Listing Service. It is standard practice for the buyer and seller to each use a realtor in Canada. You can use the same agency, but only if this arrangement is agreed to in writing. Realtors are recompensed by the seller, not the buyer, via a commission on the sale of the property.

Establish your expectations

You should consider what you expect from your home. Clear instruction to your realtor will enable them to find a better selection of homes for you to consider.

When buying a house in Canada, you must make a written offer that contains all elements pertinent to the contract, such as the sales price, date of completion, possession and any relevant clauses. The relevant clauses section is where you would put details of any conditions you want met before the sale, such as the roof to be repaired or the garden laid to lawn.

The offer is passed to the other side where the seller has three options. They can accept or reject your offer. They can also make you a counter offer. This process continues until both parties are happy.

The legal binding stage

Once you sign this offer document and pay your deposit, it becomes legally binding on you, the buyer. If you do not proceed with the property purchase, you face the loss of your deposit and could also be sued. The upside is you know the actual date of when the property will become yours, which makes moving so much easier.

A lawyer or notary public will draw up the final account and has a duty to ensure that monies are paid to the seller, the mortgage is registered and title is transferred to you. Only then will you receive the keys to your home.

Where should I start?

The best place to start is with a real estate agent who knows the ropes and can get you on the path to ownership. Be prepared to ask questions, and to continue asking until you understand what steps you will have to go through for the home purchase.

Qualifying for financing is a big step, and as a potential owner you must know what your buying range is. If an offer is accepted, the papers will be drawn up and signed, and you, the immigrant, will have put down roots for your family as permanent residents of Canada.