5 Traps First-Time Condo Buyers Should Avoid
Buying A Condo : Tips And Tricks To Make The Right Choice
Believing that they’ll be able to purchase a condo with the mortgage amount for which they’ve been pre-qualified by the bank
Make a budget and remember that housing costs (mortgage, property taxes, condo fees and heating) should not exceed 40% of your gross salary.
Thinking they’ll find a 1,000-square-foot penthouse in downtown Montreal for $200,000
First-time buyers sometimes have unrealistic expectations. Tour different projects in various neighbourhoods to get an idea of the costs per square foot, and then consider which compromises you’re willing to make.
Thinking that condo living is just like owning a freestanding home
Condo living has certain obligations and restrictions. Co-owners are responsible for the building’s common areas and must comply with the regulations established in the condominium’s declaration of co-ownership.
Being unprepared for the meeting with the notary
A buyer should make sure that their mortgage file with the bank is ready, have a proof of insurance, and bring a bank draft for the predetermined amount. If just one of these conditions isn’t met, the notary won’t be able to sign the deed of sale and you won’t be able to take possession of your condo.
Forgetting about the other costs of condo buying
In addition to the cost of the condo, there are several other fees that you should expect to pay: notary fees, condo fees, hook-up costs for cable, telephone and internet, movers’ fees, home insurance, the “welcome” tax, and the tax on the mortgage loan insurance, if applicable. You should also budget for furniture, curtains, appliances, etc.