How to Buy a Condo in Vancouver
Purchasing a condominium in Vancouver might appear as a complicated process, and you could get confused and caught up in the details. Researching condominium prices and knowing how much of a mortgage you can afford will cut down on your worries.
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Do You Have Enough Saved?
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Banks look at your finances and your earning ability before offering you a mortgage. Before considering a condominium purchase, you need to check your finances to make sure you can afford to carry a mortgage. Banks look at your earning ability, your credit and any collateral you possess before offering you a mortgage. You should not purchase at the limit of your allowable purchase price.
Down Payment and Insurance
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You should put at least a 25 percent down payment on a condominium. Ideally, you should put 25 percent down on a condominium purchase to minimize your overall mortgage. First time buyers may put five percent down but it does elevate what you will pay monthly. If you put anything less than 25 percent down you will need to purchase mortgage loan insurance to protect your lender. Your monthly payments total should not exceed 32 percent of your earnings.
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Research Before You Buy
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Research before you purchase a condomiunium and know what you buy. Shop around before you buy a property; don't buy the first one you see. Buy a property close to work, shopping or any other convenience you deem important. Look at resale values in case the time comes where you wish to sell the condominium. In addition, if it is a resale you buy, look at the strata for anything unusual that might not suit you, such as not being able to change the front door or take out walls. Strata is a form of ownership for multi-level apartments.
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- Photo Credit sobe condo skyline image by Wimbledon from Fotolia.com bank image by Pefkos from Fotolia.com canadian 20 image by dwags from Fotolia.com condo image by Adrian Hillman from Fotolia.com
