For most people, buying a house, a condo or any other type of property is one of the most important projects of their life. It is also one of the largest investments they will make during their lifetime. Put the odds in your favour and make this project a source of happiness, rather than financial worries. Find out how buying a property could impact your financial security.
Your financial services professional will find solutions adapted to your situation, while taking all aspects into account to ensure that the purchase of your property is a safe transaction.
Personal finance management
Evaluate your financial situation
|There are major costs associated with buying a property. Evaluate your financial situation financial situation to determine if you have enough money for the capital outlay (the initial cash disbursement).|
Plan for the capital outlay
|Use your RRSP for the capital outlay by taking advantage of the Home Buyers Plan (HBP), a government program that enables you to borrow from your RRSPs to buy or build your home.|
Evaluate the basic costs of your project
|In addition to the capital outlay, you will also have to plan for the following expenses: |
- Notary or lawyer fees to close the mortgage loan;
- The evaluation fees required by your lending institution; and
- Other fees such as the municipality’s duties on transfer or the sales tax if you are buying a new house.
Take out life insurance to cover your mortgage
|Life insurance lets you cover the value of your mortgage loan in the event of your death. The amount of insurance might be fixed or decreasing, which means that the amount decreases in line with the balance of your mortgage loan throughout the duration of the loan.|
Legal aspects related to buying a property
Surround yourself with experts
- Consult a lawyer or a notary – especially if both of you are buying the property or if you are de facto spouses.
- Include your property (house, condo) in your co-habitation contract, in the list of assets you acquired together.
- Specify how the assets will be shared if you should ever separate.
Review your will
|If you are de facto spouses and want to will your assets to each other, you should both review your wills.|