• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
5 Things you should know about financing a condo
 

5 Things you should know about financing a condo

on

  • 137 views

There are many items you should be aware of before buying a condo, in my opinion the 5 most important ones from a financing perspective are included in these slides.

There are many items you should be aware of before buying a condo, in my opinion the 5 most important ones from a financing perspective are included in these slides.

Statistics

Views

Total Views
137
Views on SlideShare
137
Embed Views
0

Actions

Likes
0
Downloads
1
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    5 Things you should know about financing a condo 5 Things you should know about financing a condo Presentation Transcript

    • 5 THINGS YOU SHOULD KNOW ABOUT FINANCING A CONDO Jackie Woodward // Mortgage Broker // TMG Visit: www.mortgagegirl.ca // Phone: 780.433.8412 // Email: info@mortgagegirl.ca
    • 5  THINGS  YOU  SHOULD  KNOW  ABOUT  FINANCING  A  CONDO   A condo or condominium is one of a group of housing units where each homeowner owns their individual unit space and all the dwellings share ownership of the common areas. Condos can include high-rise and low-rise apartment units, townhomes and some duplexes depending on how the title is registered. The biggest difference between a condo and a house is if you buy a condo you will not own a specific plot of land. Instead, you own a unit in a building on a plot of land. As well, instead of the homeowner making all of the decisions about their home, with condominium ownership a condo board that is comprised of unit owners makes decisions about the building together. Jackie Woodward // Mortgage Broker // TMG Visit: www.mortgagegirl.ca // Phone: 780.433.8412 // Email: info@mortgagegirl.ca
    • 5  THINGS  YOU  SHOULD  KNOW  ABOUT  FINANCING  A  CONDO   There are many items you should be aware of before buying a condo, in my opinion the 5 most important ones from a financing perspective are included in these slides. As lenders condo guidelines vary, it is important your mortgage professional knows the condo details so they can place you with a lender who fits your mortgage needs. Your realtor can give you more information about the condo purchase process, I will only touch on the condo details that can also affect your mortgage financing options. Jackie Woodward // Mortgage Broker // TMG Visit: www.mortgagegirl.ca // Phone: 780.433.8412 // Email: info@mortgagegirl.ca
    • 5  THINGS  YOU  SHOULD  KNOW  ABOUT  FINANCING  A  CONDO   1. Condo Fees you  are  responsible  for  the  repairs  and  maintenance  of  your  personal   property  and  surrounding  land  when  you  own  a  house  however  it  is  not  the   same  with  a  condo.       As  you  own  the  unit  and  the  common  areas  are  shared  you  pay  a  monthly   condo  fee  based  on  the  size  of  your  unit  and  a  porKon  of  those  funds  are   used  for  maintenance  and  repairs  of  the  common  areas  among  other  things.     You  will  be  personally  responsible  for  some  of  the  costs  relaKng  to  your   individually  owned  unit  though  there  will  be  some  excepKons  where  condo   fees  will  be  used  to  cover  repairs  related  to  the  building  even  if  it’s  in  your   personally  owned  unit.       Condo  fees  are  calculated  into  your  mortgage  qualifying  ra4os.   Jackie Woodward // Mortgage Broker // TMG Visit: www.mortgagegirl.ca // Phone: 780.433.8412 // Email: info@mortgagegirl.ca
    • 5  THINGS  YOU  SHOULD  KNOW  ABOUT  FINANCING  A  CONDO   2. Age Restrictions Some  condo  complexes  have  age  restricKons  such  as  no  one  under  age  55  is   allowed  to  live  in  that  complex.  Be  aware  there  are  less  lender  opKons   available  with  the  age  restricted  condo  purchases  and  you  could  be  asked  for   a  larger  downpayment,  or  be  charged  a  higher  interest  rate.   Jackie Woodward // Mortgage Broker // TMG Visit: www.mortgagegirl.ca // Phone: 780.433.8412 // Email: info@mortgagegirl.ca
    • 5  THINGS  YOU  SHOULD  KNOW  ABOUT  FINANCING  A  CONDO   3. Square Footage Lenders  are  being  more  selecKve  about  the  properKes  they  have  in  their   porPolios  these  days  and  some  lenders  even  have  a  minimum  square  footage   requirement  for  condo  purchases.       Ensure  your  desired  property  meets  the  lender  minimum  before  removing   condiKons.   Jackie Woodward // Mortgage Broker // TMG Visit: www.mortgagegirl.ca // Phone: 780.433.8412 // Email: info@mortgagegirl.ca
    • 5  THINGS  YOU  SHOULD  KNOW  ABOUT  FINANCING  A  CONDO   4. Renter Population If  you  are  going  to  owner  occupy  your  new  condo,  ask  how  many  other  units   are  also  owner-­‐occupied  as  some  lenders  have  concerns  with  complexes  that   have  a  high  renter  populaKon.   Jackie Woodward // Mortgage Broker // TMG Visit: www.mortgagegirl.ca // Phone: 780.433.8412 // Email: info@mortgagegirl.ca
    • 5  THINGS  YOU  SHOULD  KNOW  ABOUT  FINANCING  A  CONDO   5. Condo Documents THIS  IS  AN  IMPORTANT  ONE!  I  can’t  stress  enough  how  important  the  condo   documents  are  to  you  if  you’re  thinking  of  purchasing  a  condo.       Condo  Document  Review  is  almost  like  a  home  inspecKon,  however,  instead   of  inspecKng  the  home,  you  are  reviewing  the  health  of  the  condo   corporaKon  and  how  it’s  run.       More  lenders  are  asking  for  condo  documents  upfront  as  part  of  the   mortgage  condiKons  as  they  are  looking  for  specific  details  to  ensure  the   building  and  how  it  operates  meet  their  requirements.     Jackie Woodward // Mortgage Broker // TMG Visit: www.mortgagegirl.ca // Phone: 780.433.8412 // Email: info@mortgagegirl.ca
    • 5  THINGS  YOU  SHOULD  KNOW  ABOUT  FINANCING  A  CONDO   5. Condo Documents - CONTINUED Here  is  a  list  of  what  documents  I  would  like  to  see  if  I  were  buying  a  condo:     MEETING  MINUTES     CONDO  BY-­‐LAWS     BUDGET/FINANCIAL  STATEMENTS     ESTOPPEL  CERTIFICATE         Keep  on  sliding  for  more  details  on  the  above  documents  à  à  à   Jackie Woodward // Mortgage Broker // TMG Visit: www.mortgagegirl.ca // Phone: 780.433.8412 // Email: info@mortgagegirl.ca
    • 5  THINGS  YOU  SHOULD  KNOW  ABOUT  FINANCING  A  CONDO   Meeting Minutes These  are  wri[en  accounts  of  all  the  talk  that  went  on  at  the  condo  board   meeKngs.  They  detail  everything  the  board  deals  with  day-­‐to-­‐day  which   involves  the  building  or  its  occupants.  I  mean  everything!      These  minutes  will  tell  you  what  work  needs  to  be  done  and  do  they  have   enough  funds  on  hand  to  complete  the  work.  If  there  are  not  enough  funds   will  there  be  any  special  levies?  Which  means  each  unit  may  be  required  to   come  up  with  a  large  sum  of  money  to  contribute  to  any  immediately   required  repairs?         Jackie Woodward // Mortgage Broker // TMG Visit: www.mortgagegirl.ca // Phone: 780.433.8412 // Email: info@mortgagegirl.ca
    • 5  THINGS  YOU  SHOULD  KNOW  ABOUT  FINANCING  A  CONDO   Condo By-laws Govern  how  the  unit  occupants  are  allowed  to  act.  This  one  isn’t  as  important   to  lenders  as  it  should  be  to  you.       Make  sure  the  condo  bylaws  don’t  limit  your  lifestyle  as  they  address   restricKons  regarding  pets,  smoking,  renKng  out  etc.       Jackie Woodward // Mortgage Broker // TMG Visit: www.mortgagegirl.ca // Phone: 780.433.8412 // Email: info@mortgagegirl.ca
    • 5  THINGS  YOU  SHOULD  KNOW  ABOUT  FINANCING  A  CONDO   Budget/Financial Statements Lenders  like  to  see  the  most  recent  budget  and  financial  statements  as  this   will  show  how  effecKvely  the  condo  corporaKon  is  managing  the  building   finances.  They  allow  you  to  see  how  your  condo  fees  are  spent  and  how   much  money  the  condo  corporaKon  has  in  their  bank  accounts.     Jackie Woodward // Mortgage Broker // TMG Visit: www.mortgagegirl.ca // Phone: 780.433.8412 // Email: info@mortgagegirl.ca
    • 5  THINGS  YOU  SHOULD  KNOW  ABOUT  FINANCING  A  CONDO   Estoppel Certificate The  lawyer  pulls  this  closer  to  your  possession  date  to  confirm  there  are  no   judgments  or  lawsuits  against  the  condo  corporaKon  that  could  affect  your   new  purchase.   Jackie Woodward // Mortgage Broker // TMG Visit: www.mortgagegirl.ca // Phone: 780.433.8412 // Email: info@mortgagegirl.ca
    • 5  THINGS  YOU  SHOULD  KNOW  ABOUT  FINANCING  A  CONDO   I  hope  this  didn’t  scare  you  off  as  I  believe  condos  are  a  great  opKon  for  many   homebuyers  as  they  can  be  quite  affordable  and  low-­‐maintenance.      If  I  can  stress  one  thing  before  buying  a  condo,  it’s  to  get  a  professional’s   help!  This  could  be  a  realtor  or  your  lawyer  who  can    help  you  with  the   purchase  and  all  of  the  addiKonal  condiKons  involved  when  buying  a  condo.     From  a  financing  perspecKve,  just  be  upfront  and  advise  your  mortgage   professional  ahead  of  Kme  that  you  are  thinking  of  buying  a  condo  so  we  can   structure  your  pre-­‐approval  effecKvely.   Jackie Woodward // Mortgage Broker // TMG Visit: www.mortgagegirl.ca // Phone: 780.433.8412 // Email: info@mortgagegirl.ca
    • 5  THINGS  YOU  SHOULD  KNOW  ABOUT  FINANCING  A  CONDO   Looking for more articles about condos? Check out our BLOG at mortgagegirls.wordpress.com Questions? Contact us at the info below OR FOLLOW ON TWITTER @MORTGAGEGIRLCA LIKE US ON FACEBOOK.COM/MORTGAGEGIRL.CA   Jackie Woodward // Mortgage Broker // TMG Visit: www.mortgagegirl.ca // Phone: 780.433.8412 // Email: info@mortgagegirl.ca