Smart Solutions for Buying Your Next Property
Whether it’s purchasing a duplex as a rental property, or finally owning that cabin by the lake, Mortgage Connection wants to help you achieve your goals. Our experienced mortgage experts know all of the exciting benefits and potential pitfalls of these types of properties, so you can focus on the big picture.
Mortgage Connection is on your side. We’re here to handle the details and help you develop a plan to reach your property goals in the most cost-effective way.
The Investment & Vacation Property Buying Process
Step 1: Mortgage Pre-Approval
With consistent mortgage rule changes, starting with mortgage pre-approval is very important. Pre-approval gives you and your realtor more defined search parameters; you’ll know what you should be looking for and what kind of interest rate to expect. This should help you build a budget, and protect you if interest rates increase while you’re property hunting. Remember that pre-approval is not final approval, and you’ll still want to write any offer with conditions such as mortgage financing.
Step 2: Offers & Negotiations
Once you’ve found the right property, your realtor springs into action. They’ll handle all the paperwork, which includes submitting an offer and protecting your interests. Your realtor will also specify the conditions of the sale, such as completing a property inspection and securing financing.
Assuming the offer is accepted, it’s time to clear the conditions. This is where Mortgage Connection turns your pre-approval into an approval. We’ll help you select the right mortgage option and get all paperwork approved and signed off.
Step 3: Closing the Deal
Now it’s time to contact a real estate lawyer. If you need help finding one, Mortgage Connection can give you a recommendation. Your lawyer will take your down payment (minus the deposit you put down on your offer), register mortgage charges on title, request mortgage funds, disburse funds to the seller’s lawyer and change ownership of the property over to you! At this point, you’ll sign with your lawyer, handle any closing costs (like pending property tax), and finalize the last of the details for your purchase.
Step 1: Mortgage Pre-Approval
With consistent mortgage rule changes, starting with mortgage pre-approval is very important. Pre-approval gives you and your realtor more defined search parameters; you’ll know what you should be looking for and what kind of interest rate to expect. This should help you build a budget, and protect you if interest rates increase while you’re property hunting. Remember that pre-approval is not final approval, and you’ll still want to write any offer with conditions such as mortgage financing.
Step 2: Offers & Negotiations
Once you’ve found the right property, your realtor springs into action. They’ll handle all the paperwork, which includes submitting an offer and protecting your interests. Your realtor will also specify the conditions of the sale, such as completing a property inspection and securing financing.
Assuming the offer is accepted, it’s time to clear the conditions. This is where Mortgage Connection turns your pre-approval into an approval. We’ll help you select the right mortgage option and get all paperwork approved and signed off.
Step 3: Closing the Deal
Now it’s time to contact a real estate lawyer. If you need help finding one, Mortgage Connection can give you a recommendation. Your lawyer will take your down payment (minus the deposit you put down on your offer), register mortgage charges on title, request mortgage funds, disburse funds to the seller’s lawyer and change ownership of the property over to you! At this point, you’ll sign with your lawyer, handle any closing costs (like pending property tax), and finalize the last of the details for your purchase.
Things to Consider
Location
Whether it’s an investment property or a second home, location is crucial. For a vacation property, is the property close enough and accessible enough to make regular visits worth it? If you’re planning to rent out your vacation property when you aren’t using it, will you be able to find renters during the slow or offseason? Location is equally important for investment properties. How close is the property to public transit, schools, and other amenities? Does the neighbourhood have a good reputation? What direction does the property face?The Extras
There will always be extra costs associated with property ownership. Seasonal properties like vacation homes need to be maintained during the offseason. Rental properties undergo enough daily wear and tear that occasional repairs will be necessary. Be sure to consider the costs of caretakers, property management, insurance, and other necessary expenditures that might come up.Tax Implications
Owning a second property that isn’t your primary residence will have tax implications, especially if it’s an income property. Even if you only rent out a vacation property for a week or two a year, that may qualify it as an income property, and that income would be taxable. Be sure you understand and have accounted for any additional taxes that you may have to pay before pursuing your second property.
Whether it’s an investment property or a second home, location is crucial. For a vacation property, is the property close enough and accessible enough to make regular visits worth it? If you’re planning to rent out your vacation property when you aren’t using it, will you be able to find renters during the slow or offseason?
Location is equally important for investment properties. How close is the property to public transit, schools, and other amenities? Does the neighbourhood have a good reputation? What direction does the property face?
There will always be extra costs associated with property ownership. Seasonal properties like vacation homes need to be maintained during the offseason. Rental properties undergo enough daily wear and tear that occasional repairs will be necessary. Be sure to consider the costs of caretakers, property management, insurance, and other necessary expenditures that might come up.
Owning a second property that isn’t your primary residence will have tax implications, especially if it’s an income property. Even if you only rent out a vacation property for a week or two a year, that may qualify it as an income property, and that income would be taxable. Be sure you understand and have accounted for any additional taxes that you may have to pay before pursuing your second property.
The Mortgage Connection Difference
Mortgage Connection is here to help you with all your mortgage financing needs. Money matters require expertise, experience, and connections. We pride ourselves on finding solutions to whatever financial scenario you bring us.
Our team simplifies and streamlines the process as much as possible, keeping you totally informed every step of the way. Mortgages can be intimidating, but they don’t have to be. Let Mortgage Connection do the heavy lifting and make it a great experience for you.
Our team stands on an incredible foundation of experience, which can make all the difference when it comes to saving you money. As experts in our field, we’re dedicated to continuing our education and staying current with the market’s latest offers and products. Through constant learning, we can better meet your needs, work towards your goals, and guide you through the process.
Think Mortgage Connection, and discover a truly different mortgage experience.
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Contact Mortgage Connection for more information
Telephone 587-830-2059info@mortgageconnection.ca
Main Office: 110 1121 Centre Street NW, Calgary, AB T2E 7K6
Secondary Address: 1417 9 Ave SE, Calgary, AB T2G 0T4
Ontario Address: 1765 Rosslyn Road, Thunder Bay, Ontario P7K 1J3
Thunder Bay Phone Number: 587-830-2059
British Columbia Address: 1096 Quatsino Drive, North Saanich, BC V8L 5R8
Edmonton Address: #203 - 10706 124 Street NW, Edmonton, AB T5M 0H1
FSRA Brokerage License #13097