Buying a house whether in Montreal or any place else is one of the largest financial decisions one can make during their lifetime. Making this purchase can be one of the most wonderful and exhilarating experiences but can also be full o f surprises which is why being informed and prepared can create a smoother transaction for the educated buyer. Whether you are a first time home buyer, someone looking to upgrade or someone planning to relocate to Montreal, I believe you will find these Montreal buying resources helpful.
1) Get Pre-Qualified. Before even searching for your dream home, it’s important to know what kind of a down payment you will need as well as how much of a mortgage you qualify for. Better to do this work before than find out after you’ve fallen in love with a property.
I can recommend a few trusted mortgage brokers that will provide you with not only an excellent quality of service, and extremely competitive mortgage rates but they will also help educate you in the whole mortgage process.
If you would like to get pre-approved by a mortgage banker, please complete the form below and we will put you in touch with our trusted partners.
2) Research: Use my neighborhood pages to learn about the different Montreal neighborhoods. Each page can tell you the local schools, community information, maps , area demographics, as well as restaurants and local shops.
3) This is not mandatory, but it’s not a bad idea to consult with your accountant if you are moving here from another country to be informed about our tax laws.
4) If you’re purchasing a condo you will be receiving and reviewing the condo meeting minutes and financials to know about the past, current and future state of the building and any assessments. Aside from these documents I highly recommend that my clients personally consult with the condo’s building administration to know as much as they can about the condition of the building.
The seller has professional representation on their side. By negotiating directly with the sellers agent you are putting yourself at a severe disadvantage since their agent is legally bound to share everything you tell them in order to get the best deal for their client. You wouldn’t go into a courtroom without a lawyer, so why risk the biggest purchase in your life in buying a house without representation.
Information: The only way to determine the correct price of a home is to analyze the prices at which similar homes recently sold in the same neighborhood that can only be provided by having access to the Multiple listing Service or MLS.
Experience: The knowledge professional realtors have from working with varied clients throughout their career is invaluable when it comes to helping you pick the right Montreal house, on the right street, in the right neighborhood. This experience also comes into play when they are negotiating on your behalf as they often have intimate knowledge of the market. They will also help you locate a great inspector, negotiate repairs with the seller, get estimates from trustworthy contractors and obtain financing from the most reputable mortgage specialists.
What are the costs related to purchasing?
Looking at a previously-enjoyed home? The good news is that there is no provincial sales tax on resale properties. However, sales tax does apply to new properties, both houses and condominiums.
Here are some fees to budget for when buying a house:
Building inspection: $600 – 800 + taxes (approx.)
Notary: Signing deed of sale $800 – 1,300 + taxes (approx.)
Moving: (depends on who you hire, how much furniture you have, and how far you’re moving – ask several movers for estimates)
Transfer tax rates vary per municipality:
|0.5 %||1st $50,000|
|1 %||$50,000 to $250,000|
|1.5 %||$250,001 – $ 300 000|
2 % $300 000 and more
**Welcome Tax formula varies depending on the municipality
Q. What steps should I take when buying a property?
1) Meet with a mortgage broker to reserve a mortgage rate and obtain pre-approval for the maximum amount the financial institution is willing to lend you.
2) Determine the area that interests you as well as your search criteria.
To receive a list of ideal properties yp preview, click on the “Buyer’s Form” at right to send me your details.
3) When you’re ready to make an offer, a promise to purchase will be filled out by you and the broker.
4) The promise to purchase is presented to the vendor (existing home-owner) by the broker representing you.
5) The parties negotiate through their respective real estate brokers until an agreement is reached.
6) The buyer hires a building inspector.
7) If the property is a condominium, the purchaser must review the following documents: declaration of co-ownership, financial statements and condominium committee meeting minutes. If buying a condominium it’s important for the buyer to check with the building administration to know the building’s history and review any past or upcoming assessments as this can effect the value of the immoveable.
8) The broker will send the accepted promise to purchase with all annexes to the buyer’s financial institution for final approval.
9) Buyers must now choose a notary to execute the deed of sale.
10) The parties (all buyers, sellers and brokers involved in the sale) will meet at the signing of the deed of sale and delivery of the keys.
At the signing of the deed of sale, the notary will address such issues as tax adjustments, utilities, condo fees and any other expenses or revenues relating to the transfer of the property.
Looking for a new property? Fill out the “Buyer’s Form” below to send me your details.
Learn about Montreal’s financial assistance programs for new buyers,
Learn about the Rénovert Tax Credit Program