Step 1 – Searching for a property and a mortgage
Are you looking for a property, while at the same time, looking for a loan to
finance this acquisition project? This is an excellent strategy. The search for the
property of your dreams should ideally be done in conjunction with taking the first
steps to obtain financing. The future prospective buyers (that you most likely are)
would be best served by consulting one or more bank(s) BEFORE looking for an
apartment or a house. Better still, you may call on a broker to centralise this
important step, a worthy precaution which can result in a proposed borrowing
package for you to buy the perfect house or ideal apartment.
The parties involved
For this stage of finding the right property and credit, you should meet several
parties, most importantly:
- Your mortgage broker.
- Your real estate agent.
The phase of searching for the ideal property, as well as the first contact for
funding opportunities, requires few documents. Information about your personal
and professional situation will be requested by the mortgage broker. On the
property search side, you can explain to the agent what your heart desires and
what you are looking for in terms of price and location.
You should ideally take notes! Between the tips that are going to be given to you by
your mortgage broker, or the suggestions made by the property agency, write down
all the recommendations. Don’t hesitate to ask questions. This is the moment to
investigate the slightest query about a mortgage, and to understand the rules that
govern the calculation of your solvency. Your mortgage broker is there to answer all
In search of a mortgage
- Ask yourself how much of a personal contribution or down payment you can
make for your real estate purchase. If you have savings, you could use some
of them towards this project.
- Define your ability to borrow and to repay. You must determine how much
you can borrow according to your financial profile, and the monthly
repayments you can make, all without making your budget balance wobble.
In search of properties
- Have specific criteria. For your search to be successful, it is important to
have search criteria, and possibly to reduce the scope to target fewer
- Visit, visit and visit again. Have a look at several properties that match your
criteria to find ‘the one’.
- Have you found the ideal property? Check the local planning rules and in
particular the local urbanism plan and upcoming projects, and look at the
costs linked to the property (housing tax, energy costs, etc.).
Deadlines to respect
This first phase of searching for a property and getting prequalified for a loan is
usually not the most stressful. In fact, the more you anticipate your property
purchase project and your quest for financing, the more time you have to think
before acting. It is possible to obtain an estimate of your borrowing capacity using
our services. We can conduct a study to give you an analysis of your purchasing
power, so that you can target properties within a specific price range.
The hunt for real estate and the best financing is only the first step before the
second step of decision-making and the signing of the preliminary sales contract
(“promesse” or “compromis de vente”). You’ll find details in our next dedicated
article for step 2: the signing of the preliminary sales contract.