Any seasoned real estate investor will attest to the fact raising funds to buy property in Canada is not an easy thing. This is especially true when it comes to qualifying for a mortgage with friendly terms. Thus, before buying property in Canada, seeking finance should be a crucial part of your investment strategy. Ideally, the goal here is not just to find a loan; you also need to position yourself as a low-risk client and get friendly rates.
Have a Goal
What are your investment goals? Your mid or long-term investment goals should be clear before you start looking for finances. The type of financial aid extended to anyone investing in real estate depends on the nature of the investment.
For a fact, the loan extended to someone looking for a single-family home should be different from that extended to investor buying an apartment. You need to have a clear goal before you start looking for financing.
Proof of Down Payment
Most banks require proof of down payment before extending a loan. In most instances, the amount should be almost a quarter of the loan amount. Most lenders will also be keen to ensure that the down payment is not borrowed as this could lead to a conflict of interests. Some lenders might also require you should have tangible proof about where you might be getting your down payment.
Details of Other Properties
If you have other properties, you might be expected to share financial details about these properties. This might include things like mortgage statements, property tax statements as well as lease agreements if they are rented. Ideally, the essence of showing this is to convince the lender that you can be able to service your loan.
Work with an Expert
Working with a real estate agent, an insurance broker, or a mortgage professional improves your chances of goes a long way in ensuring you get the best out of your investment efforts. Most of these professional know lenders that offer the best terms and some will be willing to go about of their way to ensure you get the best deal.
Besides the tips shared here, you also need to have a good credit score, proof of income, and some emergency or closing finds to be an attractive client to lenders. Access to finance is a fundamental tenet of real estate financing considering that properties, especially for properties that tend to be relatively priced.