Buying a secondary home in four steps
(Article of the OACIQ published on Protégez-Vous.ca website in August 2016)
Buying a secondary home is an exciting project! Whether you are looking for a chalet to spend the weekends or earn rental income, this transaction should be taken seriously and thoroughly analyzed.
Here are a few points that the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ) advises you to consider before taking action.
Step 1: Identify your needs
Start by identifying your needs. How far are you willing to travel? Do you want to practise motorized water sports or prefer the tranquility of an ecological lake? Do you intend to go there all year round or only to enjoy snowy ski slopes? Would a turnkey solution be ideal or are you looking for a renovation project?
Step 2: Assess expenses and your financial capacity
As for the purchase of a new home, it is vital to establish a realistic budget before you start searching for a secondary home. This budget must take into account your lifestyle and your goals.
The purpose of this exercise is to set a purchase price that suits your situation. In this way, your search will be more effective and you will avoid being tempted by a property that is above your means!
To help you, see the chart “Calculating your monthly housing budget” available in the Buyer’s Guide, a practical tool designed by the OACIQ.
Step 3: Analyze your borrowing capacity
Once your financial capacity is known, you can estimate the amount of the loan a mortgage lender may be prepared to give you.
A mortgage broker is a professional authorized by the OACIQ who can help you analyze your financial situation: credit rating, borrowing capacity, debt, downpayment, etc. He will answer all your questions and help you determine exactly how much you can invest in a secondary home.
Step 4: Start your search
Once your financial capacity is known and your budget is established, you may start your search to find the secondary home of your dreams. To do this, we recommend that you enlist the services of a real estate brokerage professional authorized by the OACIQ. He or she will help you at every stage of the transaction and ensure that all the necessary steps are completed in accordance with the Real Estate Brokerage Act and its regulations.
Want more information? Visit the OACIQ’s website for a wealth of information relevant to your transaction or contact Info OACIQ.
We wish you a very successful transaction!