How to buy a condo
So you're looking at the plans, and you're interested. What's next?
For many people, buying a condo feels intimidating. Maybe it's your first property purchase, and the terms are strange, and what is a condo fee anyway? Well you are not alone, and you don't have to feel silly. You just have to ask when you don't understand - it's important that you know exactly what is all involved.
The first step is to make an appointment with us to get more information. We will set aside as much time as you need to go over the condo plans, the finishings inside your condo, the condo fees, living in a condo, construction timelines and the process of purchasing a condo. There is absolutely no obligation of any kind to proceed with the purchase at this point. We'll probably even offer you a snack. :)
When you do decide to proceed with buying a condo, you will need to have a downpayment. A downpayment is an amount of money you have saved to put towards the condo purchase. The rest of the money is often obtained through a mortgage from your bank, credit union or mortgage lender. If your downpayment is less than 20% of the purchase price, you will need Canada Mortgage and Housing Corporation loan insurance, which is usually built into your mortgage and that your bank, credit union or mortgage lender will help you to obtain. You can often arrange a visit with your financial institution of choice even before you make a purchase offer, and they can run some preliminary numbers for you, so that you have a good idea of what mortgage amount is achievable and sustainable for you.
We will fill out an offer to purchase form with you, which will outline all of the terms of the condo purchase. It is a lengthy legal document, which you are encouraged to go over with your lawyer if you do not understand everything that it is saying. Once the offer to purchase form is signed by the buyer and by the seller (us), it is sent to the buyer's lawyer and the seller's lawyer. Often the official sale of the condo unit is dependent on financing approval (mortgage approval), so that if the mortgage is not approved by the time specified on the offer, the sale is considered to be cancelled. Condo sales are also subject to a 7 day cooling off period, so that buyers can cancel at any time within 7 days of making an offer, for any reason at all.
Once the accepted offer to purchase form and deposit are received, and all financial approvals or other conditions are satisfied, then congratulations - you are the owner of your condo!