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Mortgage Dictionary -> Condominium

Buying a Condominium in Canada and the US

In today's world many people, in both the US and Canada, are beginning to prefer condominiums over single residency housing and apartment dwellings. In fact, many real estate developers have begun to build pre-construction condominiums, often selling them before they've been completely built.

There are several reasons people invest in condominiums. One is that they want a home that's located in or near a recreational area, a place to vacation or later retire. Another reason is that they want a condo as a permanent residence. The appeal is that often home repairs and lawn maintenance are taken care of. They have all the amenities of apartment living along with the benefits of owning a home.

Sometimes a young couple or first-time buyer cannot afford to purchase a new home. In this case, buying a condo may be their best choice. Some buyers of pre-construction condos sometimes find that once the condo is built and ready for occupancy, they have decided to live or purchase elsewhere. If the property has appreciated, they may sell it, realizing a net gain.

If you're thinking about purchasing a condominium, be sure to choose the one that suits your lifestyle and your ideal location. Be sure you understand all the terms and conditions associated with purchasing your condo. Look for any additional fees that you aren't aware of. Find out what amount your mortgage lender is willing to lend you. Finally, before closing, be sure to consult a real estate attorney to make sure the contract is acceptable to you.

Whether your condominium of choice is a waterfront villa or a high-rise in a large urban area, be sure that you have enough purchasing power to not only buy it but to maintain other expenses that will occur as well, such as insurance, utilities, condo fees, mortgage insurance etc.

In Canada, you may buy condominiums with a participating mortgage. A participating mortgage is a loan that allows the lender to participate in the revenues of the property.

As in any real estate purchase, be sure you're informed before signing the sales contract. Even if you haven't hired a real estate attorney to oversee the purchase, it's helpful to hire one to read and explain any contracts before signing. Purchasing and living in your new condo should be a pleasant experience. Knowing all the pros and cons beforehand will allow you to know upfront what to expect so you can enjoy all the amenities and have no worries.