mortage condo or rent

[ciscoccie]

i have checked websites and found out that an average apartment/condo will be around 1200 CAD per month but one of my friend told me that most of the people here would give 5% down payment and then go for a mortage and ultimately after 10-15 years the condo will be there .

Is it easy for a new PR to get mortage easily and is this practise done my a lot of people , it sounds attractive because you need to pay money every month in both cases but the good thing about mortage case is that one day the condo will be your own ...

 

[steaky]

Do your own math while deciding rent or own!

 

[torontosm]

i have checked websites and found out that an average apartment/condo will be around 1200 CAD per month but one of my friend told me that most of the people here would give 5% down payment and then go for a mortage and ultimately after 10-15 years the condo will be there .

Is it easy for a new PR to get mortage easily and is this practise done my a lot of people , it sounds attractive because you need to pay money every month in both cases but the good thing about mortage case is that one day the condo will be your own ...

Mortgages are available to new immigrants, although the banks may require a larger downpayment for those without an established credit history or a job in Canada. Typical amortization periods are 25-30 years, NOT 10-15 years. Mortgage payments (including property taxes) are generally higher than rent payments unless you have a significant down payment. also, if you put 5% down, you have to pay the CMHC insurance premium at the time of purchasing the property.

 

[NewCan]

Banks usually consider three things to lend you the money
1. Your creidt hisotry in Canada 2. Your income 3. The money you owing
As a new comer you won't have any credit history, you probably wont have a job but you still need money to pay for your groceris, life insurance, car, car insurance, childrens education, gas etc....
Some situations, bank will still lend you the money to buy the house if you put down large down payment incase if you dont pay they can re possess the house and sell it to someone wihout loosing too much money.
When you comparing rent V buy , you have to consider all the other expenses associated with home ownership such as Mortgage payment, mortgage insurance, home insurane, property tax, heating cost, hydro cost, city utility taxes etc.... you will always ended up way more than the rent for home ownership. Do your maths and see if you can afford all this as a new comer. Good luck.
*** NewCan

 

[krishnalynn]

Personally, even if the financial benefits of buying are better, it may be worth something to get settled in Canada and adjust to the way the financial system works here before making a massive commitment to buy property.