Straight answers from Maya Okafor about buying, selling, costs, timelines and working together.
In Canada the minimum down payment is 5 percent of the first $500,000 of the price and 10 percent of the portion above that, for homes under $1.5 million. Anything under 20 percent down needs mortgage default insurance, which your lender adds to the loan. Budget separately for closing costs such as legal fees, a home inspection and title insurance.
Read the reserve fund study, the latest financial statements, board meeting minutes and the bylaws. Those tell you whether the building is saving enough for big repairs, whether a special assessment is coming, and what the rules are on pets, rentals and renovations. I make the offer conditional on reviewing them, and a condo document reviewer can go through them with you.
Yes, get pre-approved first. A pre-approval tells you a realistic price range and shows sellers you are ready, which matters when a good condo gets more than one offer. It is free, it does not commit you to that lender, and it usually takes a few days.
You and I agree on how I am paid before we start, in a written buyer agreement. In most Calgary purchases the buyer agent is paid out of the sale proceeds under the listing, but the agreement spells out what happens if a seller is not offering that. You will know the numbers before you view a single home.
Plan on four to eight weeks from accepted offer to getting your keys. The condition period for financing, inspection and condo documents is usually one to two weeks, and possession dates are negotiated with the seller. The search itself can take a weekend or a few months depending on what you want.
Condo fees replace costs you would otherwise pay yourself, such as building insurance, exterior maintenance, snow removal and often heat or water. Compare the fee to what it covers, not to zero. A low fee with a thin reserve fund can cost more later than a fair fee in a well run building.
Yes, many newcomers buy in Calgary, and some lenders have programs built for recent arrivals. The rules for financing and for foreign buyers depend on your residency status, so speak with a mortgage broker early. I can introduce you to people who work with newcomers every week.
