Are you considering buying a townhouse in Canada?
This house type can offer a happy medium between a single-family home and an apartment.
Townhouses offer greater space and privacy than apartment units while relieving you from the burden of maintaining the entire property like a single-family home.
If you’re considering buying a townhouse, you may wonder how to finance the purchase.
In this article, we’ll discuss buying a townhouse with a mortgage in Canada and what you need to know before taking the plunge.
What Is A Townhouse?
It is a multi-unit dwelling type of house. Each unit in a townhouse complex shares common walls.
Townhouses are typically two or three stories high and have an open floor plan for easy living and entertaining.
Each unit has a private entrance from the outside.
Townhouses can be found in urban and suburban neighbourhoods and are often popular with young professionals and families.
Townhouse communities are often large, with several buildings close to each other.
Advantages Of A Townhouse Living
Townhomes are becoming a more popular choice for housing, especially in larger metropolitan areas.
There are a few critical reasons for this:
- Reasonable Living Space: Townhouses have more square footage than condos. Its multi-level structure allows more bedrooms, bathrooms and larger common spaces like the living room, kitchen, and dining area. This makes them perfect for families or anyone who wants more space.
- Great Amenities: Townhouses are often associated with higher amenities than condos. Its larger floor spaces allow for better design. Townhouse complexes often have more luxurious amenities not typically found in condos.
- Affordability: Townhouses are typically less expensive than single-family homes. One reason for this is that townhouses generally are smaller than single-family homes. They require fewer materials and labour to build, reducing the overall cost. Townhouses typically have fewer amenities than single-family homes, reducing their purchase cost.
- Privacy: Townhomes typically offer more privacy than condos. This is because townhomes are typically arranged to separate each unit from its neighbours by at least one wall. In contrast, condos are usually built on sharing walls with one or more other units.
- Outdoor Maintenance: They typically have smaller yards that are easier to maintain than those found on a traditional suburban lot.
Disadvantages Of A Townhome Living
While some downsides are minimal, others can be pretty intrusive in day-to-day life:
- Not enough privacy: You won’t have as much privacy in a townhome because of the shared walls. Simply listening to music while doing chores, playing loud video games, or having a party for friends may disturb your neighbours.
- Small Living Space: The living space is usually smaller for townhouses than a detached or semi-detached house. The average size of townhouses is 1500 sqft.
- Less authority: You have less ability to change your house’s exterior looks. There are a few restrictions on what you can do outside your unit.
The Essential Steps for Buying a Townhouse in Canada
Determine your Budget:
Knowing your house-buying power will help narrow your search to only those townhouses you can afford.
You should start by considering your income, credit score, down payment and monthly expenses.
These factors will give you a good idea of the price range you can afford.
It’s important to be realistic when determining your budget so you don’t fall in love with a townhouse outside your financial reach.
Remember, the goal is to find a home that fits your budget and lifestyle, so you can enjoy it for years to come!
Get Pre-approved for Mortgage:
The next step to buying a townhouse in Canada is getting pre-approved for a mortgage.
Getting pre-approved for a mortgage has several benefits. First, it gives you a better idea of your budget and what price range you should consider.
This helps you avoid wasting time looking at properties out of your reach and instead focus your search on townhouses within your budget.
Second, being pre-approved lets, you move quickly when you find a property you want to make an offer on.
The seller will know that you have been pre-approved, which gives you a stronger position when negotiating the price and terms of the sale.
Overall, getting pre-approved for a mortgage is an important step in buying a townhouse in Canada and will help you make a confident, informed decision.
It is easy to get pre-approved with approvU.
Learn More: approvU for Mortgage Pre-approval
Choose a Real Estate Agent:
Choosing the right real estate agent is key when buying a townhouse.
A good agent can make the process much smoother and less stressful.
Licensed real estate agents have the knowledge and experience to guide you through the process, from finding the right property to negotiating the best price on your behalf.
When searching for a real estate agent, look for someone who specializes in townhouses and has a good reputation.
Ask for referrals from friends and family or research online to find a trustworthy agent who will work hard to help you find the perfect townhouse.
Start House Hunting:
Now that you’ve sorted your budget and mortgage pre-approval, it’s time to start the exciting part: house hunting!
You can start looking for townhouses that fit your criteria and preferences.
This is your chance to get a feel for different properties and neighbourhoods, so feel free to take your time and visit as many open houses as you need.
Paying attention to the details and asking plenty of questions is essential during this stage.
Take note of the features you like and don’t like, and ask your real estate agent about the surrounding areas.
What kind of amenities are nearby?
How’s the traffic?
What’s the general vibe of the neighbourhood?
These are all important things to consider before making a final decision.
Make an Offer:
Making an offer is an exciting step in buying a townhouse.
After you’ve found a property you love, your real estate agent will help you draft an offer that includes the details of your proposed purchase.
This will include the amount you’re willing to pay for the townhouse, the desired closing date, and any conditions you want to include.
Having your real estate agent guide you through this process is important to ensure your offer is fair and competitive while considering your needs and wants.
You’ll be one step closer to becoming a proud homeowner with a solid offer.
Close the Deal:
Closing is the final step in the townhouse buying process. Everything comes together, and you officially become the new owner.
Once your offer has been accepted, you’ll need to sign the final agreement and settle a down payment.
You’ll also need to arrange to finance if you still need to.
This may involve working with a lender to secure a mortgage, including an appraisal, a credit check, and employment and income verification.
After you’ve taken care of all the necessary details, you’ll be ready to take possession of your new townhouse and start calling it home!
Learn More: approvU for House Purchase
Before becoming the townhouse owner, it’s important to do a final inspection.
This is a chance to look closely at the property and ensure everything is in good working order.
You can do it yourself or hire a professional inspector to check for potential issues, like leaky faucets, broken appliances, or structural damage.
This way, you can be confident that the property you’re about to buy is in good shape and ready for you to move in.
Don’t skip this step; it can save you from headaches and costly repairs.
Buying a townhouse with a mortgage in Canada can be intelligent, but it requires careful consideration and planning.
To ensure a smooth and successful buying process, it is important to determine your budget, get pre-approved for a mortgage, choose a reputable real estate agent, start house hunting, make an informed offer, and close the deal.
Following these steps, you can find your dream townhouse and become a proud homeowner.