Successfully buying your first property

Step 1: Define your needs and budget

Plan ahead: we invite you to (re)read our tips for Preparing for your first home purchase

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Step 2: Find the right property

Location: the number one selection criterion

Location is the golden rule. If there’s only one, this is it. It’s important to understand that in big cities, it can come down to a single street.

Criteria you shouldn't overlook

Whether you want to invest in a property that needs work or one that is move-in ready, there are essential criteria to consider during your viewings. We summarize this advice as follows: pay attention to everything you cannot change. Let us explain:

Quietness. It is sometimes possible to cheat by adding insulation, partitions, or double glazing, but it is important to be able to open the windows without it being unbearable. Prioritize quiet, at least for the bedrooms.

The building and the co-ownership. A beautiful Haussmann-style building, a well-maintained facade, a welcoming and well-kept stairwell. These are things beyond your control, but they add real value to your project. Don't hesitate to find out what is on the agenda for the next General Meeting!

Light. It goes without saying, but on a daily basis, it is very important to choose an apartment with good orientation—either on a high floor with direct natural light (the best), or indirect light by choosing buildings with bright, light-colored facades opposite. To maximize light, look for large windows... And for renovations, choose window frames with thinner profiles.

Volume. Did you know that a 25m² apartment with high ceilings will feel larger than a 30m² one? You need to be able to visualize the floor plan to let the volumes stand out. Open the kitchen to the living room, or create an alcove for a bedroom. Even in small spaces, it is possible to play with volume. Afterward, decoration (wall colors, wallpaper) can help play with perspectives and highlight certain features. You're in luck—at Kyka, we are experts in this field.

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It is always possible to compromise on one of these criteria if the rest of the property is truly above average. Our expertise lies in knowing how to compensate and finding the best compromise to maximize the value of your real estate investment.

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Step 3: Secure financing for your home purchase

Source of funds

Your financing generally consists of two parts: a mortgage loan and your personal down payment.

The mortgage: while tedious and sometimes complicated to obtain, it is important to use the leverage of a mortgage to make a real estate purchase. By borrowing, you don't have to fund your acquisition entirely with your own capital. Real estate is, in fact, the only financial asset that can be purchased on credit. You’ll never get a loan to buy stocks or invest in cryptocurrencies.

Your final budget also includes your down payment. Few banks will finance your entire project. Even if they do, they will require you to provide the funds necessary to cover closing costs (notary fees, application fees, guarantee fees, etc.).

One more tip: don't invest all your money into the down payment. Keeping a cash reserve allows you to handle unexpected expenses and also reassures the banks. We recommend keeping an amount equivalent to 6 months of your current expenses.

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Obtaining your loan

Once you have signed a purchase offer and the preliminary sales agreement, you can finalize your project by securing your mortgage.

When you assessed your borrowing capacity, you likely visited your bank, checked out competitors, or chose a broker to ensure you got the best possible options. Remember that it is essential to compare and negotiate: interest rates, bank fees, loan duration, early repayment terms... All these financial elements can vary from one lender to another.

Now it is time to confirm your choice of the financial partner who will support you in your real estate purchase. Once done, you can submit a loan application to the selected bank or financial institution. You will need to provide the required documents and fill out the necessary forms.

Next, the bank or financial institution will review your application and assess your ability to repay the loan. They will check your credit history, income, expenses, and more. In particular, they will ensure that certain ratios are met, such as the debt-to-income ratio, which generally must remain below 33% (this point is currently under government review, but it exists to prevent over-indebtedness).

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If your application is approved, you will receive a loan offer. Take the time to read the terms and conditions carefully (yes, all the fine print!), including interest rates, loan duration, repayment terms, and so on.

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If you are satisfied with the offer, you can sign the mortgage contract. Make sure you understand all the clauses and don't hesitate to ask questions if anything is unclear. In any case, you always have a 10-day cooling-off period during which you can withdraw if necessary.

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Once the contract is signed, the funds will be released. Be aware that some banks need to be followed up with regularly to ensure they keep the sale completion dates in mind. Without the funds in the notary's account by the hour before the signing of the final deed, the sale cannot proceed.

Know that Kyka is here to help you gather and send all the documents regarding the apartment. We then help you move the file forward with your bank. We also help you decipher the fine print and other asterisks. So don't panic, we are by your side.

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Step 4: Signing the final deed of sale

All parties are ready; it's time to return to the notary for the signing of the final deed of sale. This document reiterates the elements stipulated in the preliminary sales agreement.

During this appointment, you will be asked to pay:

The balance of the property price (the total amount minus the deposit paid during the preliminary sales agreement).
Notary fees (approximately 7% of the property price).
The financial pro-rata related to the property. This corresponds to the share of property-related expenses already paid by the seller for the current year (property taxes, condo fees, etc.).

On one hand, the bank transfers the approved loan amount, and you pay the remainder using your personal contribution.

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Any final expert advice for a successful first property purchase?

Surround yourself with professionals: mortgage brokers, notaries, architects, contractors... You might see these as extra costs, but trust us, their expert advice will quickly pay for itself. The advantage with Kyka is that we offer comprehensive support to manage your project.

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To sum up?

To successfully carry out your first real estate project:

Anticipate and prepare your project by asking the right questions and evaluating your borrowing capacity.
Search for your gem while keeping in mind the criteria you won't be able to change.
Secure your financing by comparing several offers and choose the one best suited to your situation.
Sign the deed of sale.

The best part? Surround yourself with professionals whose expertise will guide you through this incredible project.

Want to discuss your project with our advisors? Book an appointment with them here !