|Buying a real estate property in the province of Quebec is an important step that everyone should take in consideration before renting an apartment or investing when immigrating to the province. In the following paragraphs I would like to explain the process of purchasing a property in Quebec, types of properties you might be attracted to and the process of getting financed for the purchase.First, here is a description of the types of real estate that is available for purchase in Quebec: Single Family homes, Condominium (co-ownerships), Revenue properties of less than 5 dwellings, Revenue properties of 5 dwellings or more, secondary residence and commercial real estate. Here’s a chart with the type of targeted properties in 2010 for the next 5 years with the average sale price.Submit your Questions for a Real Estate Agent Now
What is the process to purchase a property?
After you have made up your mind on the type of property you have most interest in, that it’s a revenue property or a primary single family home, you need to select an area and the property that will suits you most. I recommend consulting a Real Estate Broker who will eventually help you throughout the entire process. Once the selection is completed and the conditions have been fulfilled according to the agreement between the buyer and the vendor, you must consult a financial institution to obtain the finances for the purchase. When you get approved for the mortgage, you need to visit a notary to transfer the ownership of the property.
Types of Mortgages offered
Before I explain the types of mortgages that are available, it’s crucial to understand who the Canadian Mortgage and Housing Corporation are. The “CMHC” are a co-signer on a mortgage when the down payment is lower than 20% of the price of the property. Their role is to pay the bank that lends the money when the lender defaults on a payment. In other words, it’s possible to purchase a single family home or a duplex with as low as a 5% down payment and get financing for 95%. In this case, the bank will demand the CMHC to co-sign on that mortgage in case there will be default payments. To get exact CMHC primes, you must consult a mortgage specialist.
Minimum Down Payment
Here is the minimum down payment that you must put in when buying a property.
You can find bellow a chart with interest rates offered by financial institution in Quebec.
Rates are valid as of January 20th 2011 and can be changed without any notices. Please consult a mortgage specialist.
Purchasing Real Estate in Quebec is a great investment with low mortgage rates available and low DP required, the risks are minimal especially that Real Estate grow in value of about 5 to 10% annually depending on the region. For further questions, please contact us by e-mail.