The first step in buying a condo is getting pre-approved for a mortgage loan. Once the building is registered with the city, the buyer must sign a contract. This gives him or her the right to live in the unit in the future. A down payment of at least $5,000 may be required. The remaining amount may be paid over the next three years. However, there are many ways to pay this money.
The down payment is usually the smallest amount, so it’s worth spending a bit more. Some people choose to save up a lump sum of money. While this may seem like a huge sum of money, it’s not. A minimum down payment is just the beginning of a long financial commitment. If you can afford it, you can move into a condo almost immediately. If you can’t save for that long, you can always opt to borrow more money. This way, you can have the condo you want at a lower rate, while still paying rent.
Before you apply for a mortgage, make sure to check your credit score. It’s important to check your score before applying for a loan, as it will have an impact on your security deposit. Also, consider your other move-in expenses. If you have the money, pay them separately with a separate check or electronic transfer. Once you have all the paperwork in hand, the lender will provide you with a checklist of fees and deposits that you’ll need to pay.
After determining your affordability, you need to decide on a condo that fits your budget. You can use an affordability calculator on the developer’s website or talk to the sales center staff. You need to be prepared to answer some basic questions. You should be able to estimate your monthly income, debt payments and down payment, if any. You can find a condo that suits your financial situation, while still paying rent.
When buying a condo, you’ll need to pay the land transfer tax. Toronto property owners have to pay this tax on the properties they buy. It is one of the biggest closing costs. It’s also the only tax that a seller must pay on the property. If you’re planning on buying a condo, make sure you have money set aside for this tax. This will help you avoid paying late fees and other unnecessary fees.
There are several steps that you need to take before you can start moving into your new condo. Before moving in, you should have your financing pre-approved. You should also consult with a lawyer about the contract to ensure that you have a clear understanding of the terms and conditions. When you’ve been approved, you’re ready to start the home-buying process. If you’re looking for pre-approval, you can begin the paperwork.