You have just arrived in Quebec and you’re looking to acquire a home? The following is important advices for finding and buying the perfect place for you.
When acquiring a property, there are several administrative elements that are taken into consideration: your credit history, your employment stability, and your down payment. First of all, to obtain a good credit rating, your credit must have been reimbursed up to 90% for a minimum of 6 months to ensure the banks confidence. You also have to demonstrate your income stability by presenting a work contract lasting more than 3 months. Finally, to complete your file with any bank, you will need a cash down payment to obtain a mortgage. Your status in Quebec determines the amount of cash down that will be required. If you have permanent resident status, the minimum down payment is 5%.
If you are a non-resident applying for residency and do not yet have any assets or credit history in Quebec, you will be required by lenders to put down a 35% minimum cash down payment.
If you do not plan to live in Canada at least 6 months a year and plan to be renting out the property for revenue, then you will not be able to obtain a mortgage unless you are purchasing a property over $1M CAD with a large cash down payment. If you wish to make your purchase entirely in cash, the funds will have to go through a Canadian Bank account; there may be other requirements as well.
And of course, you also need to look at what kind of housing you want and its availability. In order to become familiar with the Quebec market, the best solution would be to rent for a few months to allow you time to explore various neighbourhoods, type of housing desired such as the number of rooms, the surface area, the location, proximity to shopping and the transportation system, be it by car or public transportation (bus, subway). In Quebec, types of dwellings can be different than in other countries. You should expect to have a majority of wood floors as this is the main way properties were built, with the exception of very recent properties. To avoid any pitfalls, a competent real estate broker will guide you throughout the process of finding and acquiring your new home with their expertise and knowledge of the market.