Buying your first home in Canada can be overwhelming and why not, it’s a big deal. As an Indian Immigrant, dealing with foreign real estate processes can be challenging. Although Canada is an immigrant-friendly country, still dealing with foreign rules and regulations would require oversight from an expert.
From finding a neighbourhood to doing paperwork, every step can put you in a daze and confusion. If you do not have trusted guidance or prior knowledge, dealing with Canadian real estate as an Indian immigrant is scary.
If you understand the ins and outs of the Canadian real estate market, you will be able to make smart decisions about your dream home. The problem that an immigrant faces when you buy a home is the unfamiliar legal systems, financial requirements, and cultural differences that you have to face.
Don’t worry!!! In guide is here to help you out. This guide provides you with the ins and outs of the entire real estate market of Canada. From getting a home loan to finding a good real estate agency we have covered all aspects so that you as an Indian Immigrant would not face any issues.
So, if you’re ready to make Canada feel like home in every sense of the word, let’s get started!
Understand the Canadian Housing Market
Canada’s Housing Market is continuously growing and has gained momentum for two years. November sales hit 44,590—a 27% increase compared to last year—marking the strongest month since April 2022. This boost is due to interest rate cuts that made borrowing money from banks more affordable. Here are some insights into the Canadian Housing Market-
- Benchmark Home Price: $707,100 (down 1.7% YoY, up 77% over the decade)
- Average Home Price: $694,411 (up 7.5% YoY)
- Sales-to-New-Listings Ratio (SNLR): 59%, maintaining a balanced market overall.
Seller’s vs. Buyer’s Market:
Most provinces in Canada are leaning towards a seller’s market with an increase in demand outpacing supply giving rise to the prices of houses. Notably, New Brunswick leading the way with a 95% SNLR however Ontario and B.C. are still providing balanced markets providing more options to buyers.
Regional Insights:
Atlantic Canada registered a strong growth especially in Nova Scotia (+8.4% YoY) and Newfoundland (+11.4% YoY), with Halifax prices rising to $576,484. Montreal and Quebec City see double-digit growth making it a hotspot for sellers. Alberta and Saskatchewan are still maintaining steady growth.
Assess Your Financial Situation
After finding the insight into the Housing market of Canada now comes the major factor in getting your dream home, is your budget. Your budget should have two parts which are-
- Down Payment
- Loan amount
The down payment in Canada usually tends to be 5% for homes under $500,000. For higher amounts, you’ll need 10%-20%.
The rest of the payment is done through a Mortgage loan. To secure a mortgage loan, you need to have a good credit score preferably above 650.
You also have to consider other expenses like legal fees, land transfer taxes, and home inspection fees, which can add up to 3-4% of the home’s price.
How to Find the Best Mortgage Lender?
Usually majority of the cost of property is covered through a mortgage, you have to find the best mortgage lenders to ensure you get the best deal. You can compare Lenders by Checking interest rates from banks, and credit unions, or get help from a mortgage broker to bypass all the hassles.
Finding a Good Neighbourhood?
Finding a good neighbourhood is everything. This is something that you cannot go wrong about. You have to take into consideration like commute, amenities, safety, community, etc.
There are some things that you have to look for in a location which are as follows-
- Commute and Amenities: You have to look for areas that are close to public transit, schools, and grocery stores
- Community Feel: As an Indian Immigrant you often look for neighbourhood with cultural familiarity. Mississauga, Brampton, and Surrey are popular choices for their vibrant Indian communities.
- Growth: You have to invest in areas with potential for property value appreciation
Work with a Realtor
The best way you can go about finding the best realtor is they simplify the process and represent your interests. The agent’s experience with immigrants is something that you can look for as this would help you in connecting with them better.
An experienced realtor will guide you through listings, negotiations, and paperwork. In Canada, Realtors are paid by the seller so this service is usually free for buyers.
Steps to Initiate the process
Here’s how you can initiate the house hunting process-
Start House Hunting
Now that you’ve understood the insider’s view of the housing market in Canada, now is the time to start house hunting. You can use online platforms like Realtor.ca or Zolo to explore listings, where you’ll find many residential properties in Brampton, Mississauga and other cities.
You can use filters to select preferable options and then visit those houses as well. You must consider things like commute, location, prices, and other important factors to find the best deal. Don’t stretch your budget, as this may be risky.
Make an Offer
Once you find “the one”, it is time to quickly make your move to acquire your dream home. You can consult a realtor to determine a competitive yet fair price. Make sure you add a few terms and conditions that will protect us legally. Ensure you include a home inspection and Financial approval to protect yourself legally. Negotiate and counteroffer and stand on your budget do not stretch it.
Secure Financing
After striking a deal, you have to secure mortgage financing, you can find various mortgage brokers in Canada who can help you secure mortgage loans. Make sure you take insurance if your down payment is under 20%. The insurance is called CMHC Insurance. Another thing that you have to keep in mind is that the mortgage loan that you are securing is of Rate lock type where the interest rate will be locked and doesn’t fluctuate with the market.
Conduct a Home Inspection
It is a good idea you conduct a home inspection especially if it is a resale unit to ensure that your house has no structural problems, plumbing issues, or electrical issues. If significant repairs are needed, you might renegotiate the price.
Close the Deal
When everything shows green, you can go ahead and close the deal. The final stretch involves paperwork and payments to be made. You can hire a real estate lawyer to handle the title transfer and review contract. You can pay the closing cost ensuring you’ve saved enough to cover additional expenses. Once everything is signed and sealed, collect your dream house key and settle in.
Conclusion
Buying your first home in Canada as an Indian immigrant is a journey that requires research, planning, and a bit of patience. By following this step-by-step guide, you’ll be well on your way to achieving this milestone. So, buckle up, and get ready to make Canada your forever home!
