How to Own a Condo in Canada: The Comprehensive Guide
If you’re looking to buy a condo in Canada, you’ve come to the right place. In this comprehensive guide, we will outline everything you need to know about the process of purchasing a condo in this country. We will cover it all, from finding the perfect property to getting approved for a mortgage! So, whether you’re a first-time homebuyer or you’re simply relocating to Canada, this guide has everything you need.
The Canadian Property Market
The first thing you should learn is that the Canadian property market is very different from other countries. It is more expensive than many places worldwide and has its own laws governing what buyers can purchase. For someone to be able to buy a condo in Canada, they must be:
- Permanent residents or citizens of this country (with exceptions).
- 18 years old or older.
- Do not have any outstanding debts with banks or other financial institutions (there are exceptions for those who do).
Permanent residents and citizens can buy up to 100% of the value, while non-permanent residents must put down at least 35%. There is also a limit on what type of condo you can purchase – if it’s a new development, the building must have been constructed after October 31, 1991.
Types of Condos in Canada
There are three types of condos in Canada: high-rise, low-rise, and townhouse. High-rise buildings are typically found in larger metropolitan areas, while low-rise townhouses can be found anywhere you expect to see single-family homes.
Condos in Canada come with all of the same benefits as their counterparts, including access to amenities such as a gym or pool (in some cases), proximity to public transportation hubs, and more! High-rise buildings are also more energy-efficient than other structures due to their height and design, so this can help lower utility bills.
When looking for a condo, you should consider your lifestyle. If you are someone who likes having everything within walking distance of where they live (restaurants, shopping malls, etc.), then high-rise buildings may be more suitable for you; if not, low-rise townhouses could also be a great option.
Financing a Condo in Canada
The next step is to get approved for a mortgage. The best place to start is speaking with your bank or another financial institution about what programs they offer. To be eligible, you will need to meet the following requirements:
- Be 18 years of age or older.
- Be a Canadian citizen or permanent resident.
- Have a good credit history.
- Earn a minimum of $25,000 per year (or have spouse earn this amount).
If you can meet these requirements, there are many different mortgage programs available to you – including government-backed ones like the CMHC (Canada Mortgage and Housing Corporation), which offer lower interest rates as long as you have at least 20% of the purchase price for your down payment.
The advantage to using a government-backed loan is that it has less risk than other types of mortgages; however, there are also disadvantages, such as …
Condos offer many facilities at a reasonable price. If you own a unit, you can enjoy all the facilities without being bothered with the membership fee and such because you own them. All the facilities in a condo building belong to all the units owners.
No condos are built in an area with difficult access. Most are located in urban areas and are facing the beautiful local scenery. However, you must know that condos are designed in such a way that the building dwellers will not be disturbed by noises, commotion, and pollution.
If you live in a condo, like or not, everyone must attend the owner meeting as agreed. The condition makes everyone in a condo building knows each other. What will be most discussed is things related to facilities and amenities management. The owners will decide if replacement or upgrades are needed. And that alone already puts everyone to be in a social occasion.
As opposed to single houses that tend to be in seclusion and far away from town centers, condos are primly located. They are near town centers where public transport is in plenty. They are also near places of work so you can always walk to work anytime you feel like it.