Preparing for your first property purchase

Ask yourself the right questions about your real estate purchase

Let’s start at the beginning! First and foremost, it’s important to ask yourself the right questions regarding this first property purchase. Take some time to answer them; you’ll see things much more clearly and move in the right direction (and if we start this adventure together, it will help us a lot, too!).

Ask yourself, for example, what the purpose of this first purchase is. Do you want to make it your primary residence, make a rental investment, or use it for occasional rentals? How long do you plan to stay in this home? Is this a lifelong purchase or just a cozy nest for the next two years? 

You should also think about where you want to live. At Maison Kyka, we highly recommend prioritizing a great location. More on that in our article Succeeding in your first real estate purchase. So, back to the question: where do you want to invest? Keep in mind that the neighborhood where you like to go shopping isn’t necessarily the one where you want to live. Or, if you love peace and quiet and sleeping like a baby, you’ll need to prioritize a courtyard-facing apartment or a quiet neighborhood… 

You also need to take your lifestyle habits into account. If you love to get away and often leave the capital, do you need to live near a train station to head out at the first sign of sunshine? Do you have children: are you targeting a specific school or daycare? What are your childcare needs? … 

As you can see, these simple questions are part of the equation for your comfort. And since we only want your happiness, we think it’s important to reflect on them carefully before you get started! At Kyka, we take all these requirements into account to track down the apartment that’s right for you. 

Assess your borrowing capacity for your real estate purchase

Yes, to buy your first property, you need to know what you can afford! Even better, get the golden ticket: a financing certificate. 

Come on, enough suspense, we’ll explain everything in detail!

Head to the bank

First, contact your bank and get an initial estimate with them. This way, you can inform them of your desire to buy. Then, because it never hurts, check out the competition and get comparative estimates. 

Show them you’re reliable! 

Be careful with how you manage your accounts; this is the time to show your banker that you know how to handle your money. If possible, put some savings aside every month, even a small amount. You will need to provide the bank with your bank statements from the last 3 months.

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The golden ticket: the financing certificate

This official document confirms your ability to finance a property. Although it is not mandatory, it is highly recommended because you will score points during your viewings with real estate agents and owners. Your Kyka advisor will also ask for it during your first meeting. With it, we can best estimate your project and hit the mark!

Should I use a mortgage broker? 

A mortgage broker or advisor can help you find the best loan for your situation, negotiate favorable terms, and guide you through the entire process. Their expertise and support can save you time and help you make informed decisions. Brokerage fees are quickly offset by the benefits and savings they can secure for you.

For a fast and efficient experience, we recommend our partner, Pretto. With their online simulator, you can quickly estimate your borrowing capacity and obtain the necessary certificate for your real estate project.

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Prepare the necessary documents

To get your estimate, you will need to provide a few documents (yes, your word alone won't be enough!). Bankers and brokers will need these items to put your file together. When you go to your appointments, remember to bring: 

• Your last three pay stubs 
• Your last three bank statements 
• Your employment contract
• Your most recent tax notice

If you are borrowing with someone else, each party must provide these documents.

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Your personal contribution

Your final budget is not limited to your borrowing capacity; you must also include your personal contribution. In fact, very few banks will finance your entire project (i.e., without a down payment). Even if they do, they will ask you to provide the funds necessary to cover closing costs (notary fees, application fees, guarantee fees, etc.).

Keep some savings aside! ‍

It is best not to put all your hard-earned money into your project. Even if it is your first home purchase or you are young, having some savings in reserve is essential! 

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Conclusion

Feeling confident about your property purchase project? Then, book an appointment with one of our Maison Kyka advisors to create your dream home, turnkey!