Archives des location - Courtier Immobilier Montréal Yanick E Sarrazin https://yanicksarrazin.com/en/immobilier/tag/location-en/ Plateau Mont-Royal, Outremont, Rosemont La-Petite-Patrie, Mile-End, Ville Marie Wed, 26 Feb 2025 14:19:06 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.5 https://yanicksarrazin.com/wp-content/uploads/2020/11/77174542_2673133149440852_8670214071997431808_n-60x60.png Archives des location - Courtier Immobilier Montréal Yanick E Sarrazin https://yanicksarrazin.com/en/immobilier/tag/location-en/ 32 32 How much do you need for a down payment? https://yanicksarrazin.com/en/immobilier/real-estate-news/how-much-do-you-need-for-a-down-payment/ Sat, 13 May 2023 20:21:13 +0000 https://yanicksarrazin.com/?p=19838 Buying a property is an investment involving different stages. An essential step in this process is to finance the property that you want to buy: it is the down payment. But what exactly is the down payment? What are the different down payment percentages depending on the type of property? Here’s a quick overview of […]

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Buying a property is an investment involving different stages. An essential step in this process is to finance the property that you want to buy: it is the down payment. But what exactly is the down payment? What are the different down payment percentages depending on the type of property? Here’s a quick overview of what a down payment is to facilitate your understanding.

Down payment : what is it?

A down payment is a portion of the amount you will need to take out of your savings to complete the purchase of the desired property. Mortgage loan insurance, commonly known as mortgage, will then pay off the remaining balance of the property.

It is important to know that the higher the down payment, the lower the loan and the interest. The lower the down payment, the higher the mortgage will be. Also, depending on the amount of the property, as well as the type of property (residential or commercial), the down payment rate will differ.

Residential properties

Single-family and duplex homes

Property of $ 500,000 or less

The minimum down payment for a property of $ 500,000 or less is usually 5% of the purchase price for the owner-occupier. For example, if the property was worth $ 400,000, the amount paid for it would be $ 20,000. The mortgage amount will then be $ 380,000. However, it should be noted that interest rates and additional amounts are added to this mortgage.

Property from $ 500,000 to $ 999,999

The down payment for a property of $ 500,000 or more is 5% of the first $ 500,000 and 10% of the amount exceeding $ 500,000. This then means that for a property of $ 600,000, the down payment will be $ 35,000.

This amount was obtained by calculating:

5% x $ 500,000 = $ 25,000

10% x $ 100,000 = $ 10,000

So $ 25,000 + $ 10,000 = $ 35,000

Property of $ 1,000,000 or more

The down payment for a property of $ 1 million or more is 20%. For example, if a property is sold for $ 2 million, then the down payment for that property will be $ 400,000.

Triplex and quadruplex

Property of 500 000$ or less

The minimum down payment for a triplex or quadruplex of $ 500,000 or less is usually 10% of the purchase price for the owner-occupant. For example, if the property was worth $ 400,000, the amount paid for it would be $ 40,000. The mortgage amount will then be $ 360,000. However, it should be noted that interest rates and additional amounts are added to this mortgage.

Property from 500 000$ to 999 999$

The minimum down payment for a triplex or quadruplex of $ 500,000 or less is usually 10% of the purchase price for the owner-occupant. For example, if the property was worth $ 400,000, the amount paid for it would be $ 40,000. The mortgage amount will then be $ 360,000. However, it should be noted that interest rates and additional amounts are added to this mortgage.

Property of 1 000 000$ or more

As with single-family homes and duplexes, the down payment for a triplex or quadruplex of $ 1 million or more is 20%. For example, if a property is sold for $ 2 million, then the down payment for that property will be $ 400,000.

Rental properties

It should be noted that if the owner does not live on the premises of his property, that is to say that he is not an occupying owner and that he has his accommodation(s) rented, he will then have to pay a down payment of 20% for a single-family house, a duplex, triplex or quadruplex.

In the current market, for buildings with five or more units, a down payment of 30% to 50% is required by the majority of financial institutions, regardless of whether the owner remains in the property or not.

The FHSA

The Tax-Free Savings Account for First-Time Home Buyers (FHSA) aims to assist first-time buyers in saving for their down payment. The primary idea is to help young individuals become homeowners amidst the real estate frenzy. The FHSA combines various advantages of the Tax-Free Savings Account (TFSA) and the Registered Retirement Savings Plan (RRSP). For more information on the FHSA, please refer to our article on the subject.

Down payment is a fairly complex concept and will vary depending on the type of property and its purchase price. For single-family and duplex homes of $ 500,000 or less, the down payment is usually 5%. Properties between $ 500,000 and $ 999,999 have a down payment of 15% while those with an amount of $ 1 million and more will require a down payment of 20%. For triplexes and quadruplexes up to $ 999,999, the down payment will be 10%. It should be noted that properties that are not occupied by their owner choose a down payment of 20%. Rental properties can vary between 20% and 25% of the down payment depending on the type of property.

It should also be noted that the down payment for foreign investments differs and is at least 35% for residential properties and revenue buildings. See our article on the Prohibition on the Purchase of Residential Properties by Non-Canadians Act for more information on foreign investment. 

With this wealth of information in mind, it is recommended that you be accompanied by your financial institution and by a real estate broker who will explain in detail the intricacies of the down payments required for each type of property.

Contact one of our real estate broker for additional information

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]]> Lease renewal : what you need to know https://yanicksarrazin.com/en/immobilier/news/lease-renewal-what-you-need-to-know/ Fri, 31 Mar 2023 19:28:12 +0000 https://yanicksarrazin.com/?p=38953 Lease renewal : the important points As the deadline for lease renewal approaches, it is appropriate to point out a few details of the law governing the conditions of the lease. In a residential context, whether by an individual or through a real estate broker, the lease is a written contract that defines the terms […]

L’article Lease renewal : what you need to know est apparu en premier sur Courtier Immobilier Montréal Yanick E Sarrazin.

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Lease renewal : the important points

As the deadline for lease renewal approaches, it is appropriate to point out a few details of the law governing the conditions of the lease.

In a residential context, whether by an individual or through a real estate broker, the lease is a written contract that defines the terms and conditions of the rental of a property (apartment, condo, house) between an owner (landlord) and a tenant. It is therefore binding on both parties and the terms must be respected.

Thus, if a landlord wishes to make changes to the lease, certain rules must be respected within the legal framework of the Tribunal Administratif du Logement (TAL).

Our real estate brokers have taken their pen to enlighten you on the subject.

What is a lease renewal ?

A lease renewal, commonly referred to as a lease rollover, occurs automatically without the landlord or tenant having to exchange any notice. However, it is different if the landlord decides to change the terms of the lease or increase the rent.

In this case, the landlord must respect certain deadlines, depending on the length of the current lease.

See the table below for the deadlines.

Lenght of the leaseTime limit for the notice of renewal of the lease
12 months or more3 to 6 months before the end date of the lease
Less than 12 months1 to 2 months before the end date of the lease
Indefinite term1 to 2 months before the desired modification date

Considering that in Quebec the majority of leases end on June 30th and start on July 1st, some tenants have already received notices since January 1st, since the landlords have until March 31st to manifest themselves.

The contents of a notice of lease renewal and the tenant's options

The notice must be in writing and clearly state the proposed changes to the renewal of the lease, whether it is the rent or other terms of the lease, such as the term of the lease or the removal of the right to use the yard or parking lot.

The notice must also state the time limit for the tenant to refuse the requested changes, which is 1 month from the date of receipt of the notice. The notice must be dated and signed by the landlord.

In the case of a rent increase, the law allows the landlord to choose among three formulations: the proposed new rent in dollars, the increase in dollars or the percentage of the current rent.

Following receipt of this notice, the tenant has several options available to him or her:

– Accept the new agreement.
– Refuse the changes.
– Do not renew and vacate the unit at the end of the lease.

If the tenant does not respond to the notice, the law considers the changes to be accepted.

The right to maintain the premises

The right to maintain the premises is the law that establishes that a tenant may remain in his or her dwelling as long as he or she wishes; however, he or she must respect all the conditions of his or her current lease. This law allows the tenant to refuse the changes required by the landlord and still remain in the unit.

If the tenant decides to refuse the changes proposed by the landlord, he or she must respond to the notice by clearly indicating this. The same applies if the tenant wishes to leave the unit at the end of the lease. If the tenant refuses, the landlord has the right to request a hearing at the Tribunal Administratif du Logement in order to counter this refusal.

Rent Setting in the Tribunal Administratif du Logement

In the case of a dispute over proposed changes, the tenant and landlord can meet to try to reach an amicable compromise. However, the landlord may also apply to the Tribunal Administratif du Logement (TAL) to set the rent or to have the TAL rule on the disputed change. The landlord has one month after receiving notice of the tenant’s refusal to apply to the TAL to set the rent. If the landlord does not do so, the lease will be renewed under the same conditions as before.

The TAL will then determine the appropriate rent amount, taking into account the standards set out in the Rent Determination Regulation. In accordance with the regulation, the TAL will take into consideration various operating expenses such as municipal and school taxes, insurance premiums, electricity and gas costs, maintenance expenses, and repairs and improvements made to the unit. All of these expenses allow the TAL to adjust the rent in a fair and equitable manner.

In this case, it is the landlord’s responsibility to provide supporting documentation to the TAL to substantiate the expenses that justify a rent increase.

Repossession of a dwelling by a landlord

There is only one exception to the right to maintain a dwelling: repossession by the owner.
A landlord may take back one of his dwellings to house himself, his children, parents or any other relative or ally of whom he is the main breadwinner. They may also take back a unit to house a spouse for whom they remain the primary supporter after separation, divorce or dissolution of a civil union.

In order to take over a dwelling, the landlord must notify the tenant in writing and respect certain deadlines depending on the length of the current lease. In the case of a lease of more than 6 months, the landlord must send a notice to the tenant 6 months before the end of the lease. In all cases, the repossession is only effective at the end of the lease. If the tenant does not respond, it is considered a refusal to vacate the unit, so the landlord must apply to the TAL within one month of the refusal or expiration of the tenant’s response time to request repossession of the unit.

The landlord may therefore repossess his or her unit through this process EXCEPT if the tenant is a person over 70 years of age, has been occupying the property for more than 10 years, and has an income at or below the maximum income eligibility for low-income housing. The exception to this is if the owner is himself a person over 70 years old, wishing to take over his property to house himself or a person of that age.

You are an owner or a tenant ? Contact our real estate brokers to enlighten you on the subject.

Read more from our real estate blog

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]]> Buying a property: what are the costs for buyers? https://yanicksarrazin.com/en/immobilier/buyer-information/buying-a-property-what-are-the-costs-for-buyers/ Wed, 29 Sep 2021 18:09:47 +0000 https://yanicksarrazin.com/?p=20359 Cost of buying a home – Key informations Buying a property with a real estate broker is an important event in anyone’s life. However, it requires many additional costs to the house itself. A budget must therefore be planned for this important transaction. Here is a summary of the costs for a buyer when purchasing […]

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Cost of buying a home - Key informations

Buying a property with a real estate broker is an important event in anyone’s life. However, it requires many additional costs to the house itself. A budget must therefore be planned for this important transaction. Here is a summary of the costs for a buyer when purchasing a home.

Pre-purchase inspection fees

When buying a property with or without a real estate broker, it is important to hire a home inspector who will assess the condition of the property in question. It is recommended that the inspector be part of a professional order. It should be noted that there is no Order of Inspectors. However, there are associations like the Association of Building Inspectors of Quebec (ABIQ) or orders like the Order of Architects or the Order of Engineers of Quebec in order to find the appropriate inspector for the type of property to inspect. Thus, this provides additional protection for the buyer. The cost for the inspection will vary depending on the size of the property, its age and dimensions.

The inspector will be able to determine whether the property presents problems that were not observed during the brief visit to the building. With the pre-purchase inspection, the inspector can also detect hidden defects. The inspector will then make his written report. Depending on the results of the inspection report, if these prove to be problematic, then the buyer may revise the price of the property downwards or even withdraw from the offer to purchase. For more information on withdrawing from an offer to purchase after an inspection, please read our blog article on the subject.

The notary fees

Once your offer has been accepted with your real estate broker on your desired property, you must book a a notary to formalize the real estate transaction. The choice of the notary is determined by the buyer. The cost of the notary’s fees will depend on different factors like region, number of homes, type of property etc.

The notary will prepare the deed of sale, the deed of mortgage loan and will publish the deed of cancellation with the Land Regime. Land tenure is a report that determines property rights. The act of radiation in the Land Regime then allows the removal of the right to property. The notary then formalize the sale of the property.

Taxes

Taxes will vary depending on the value of the property and the area in which the property is located.

Property transfer duties

After the notarized deed of sale, the new buyer must pay property transfer duties to the municipality. The amount of the duties will depend on the value of the property. Indeed, a percentage will be imposed on different price brackets.

For the first $ 50,000 bracket : 0.5%

For an amount of $ 50,000 to $ 250,000: 1%

For a bracket of $ 250,000 or more: 1.5%

For a bracket of $ 500,000 or more (in Montreal): 2%

Property transfer duties are compulsory and payable only once after the deed of sale has been notarized.

School and municipal taxes

School and municipal taxes are taxes that must be paid each year. The municipal tax period begins on January 1st and ends on December 31st inclusive. The school tax period begins on July 1st and ends on June 30th inclusive.

These taxes help, among other things, finance various services such as road maintenance and repair, heating of schools and public transport. When buying a property, the future owner becomes aware of these amounts.

The school tax statement indicates the amount to be paid annually. It also shows the evolution of the value of the property in recent years. The municipal tax bill details the amounts imposed by the municipality and the borough. It is the notary who will calculate the amount of taxes to be paid at the time of the transaction for the new buyer. Your real estate broker can help you and explain the intricacies of these fees.

Additional charges

In Quebec, when the seller of the property is accompanied by a real estate broker, it is important to know that the compensation of the broker-collaborator is generally paid by the seller.

The purchase of a property involves many other costs following the notary. In fact, these costs can range from moving, to renovating the property, buying appliances and home insurance. However, these costs are necessary to acquire the dream property.

Buying a property with or without a real estate broker involves different costs. These costs range from the down payment, pre-purchase inspection fees, notary fees, taxes (property transfer duties, school and municipal taxes), as well as other additional costs that may be payable following the acquisition of the new property.

The down payment

In addition of various fees, the down payment is a portion of the amount you will need to take out of your savings to acquire the desired property. The mortgage loan insurance, commonly known as a mortgage, will then pay off the remaining balance of the property.

For more information on down payments in Montreal, please read our down payment blog article.

Contact one of our real estate brokers for your questions about the costs related to the purchase of a property

Consult other real estate news

L’article Buying a property: what are the costs for buyers? est apparu en premier sur Courtier Immobilier Montréal Yanick E Sarrazin.

]]> Leasing your property with a real estate broker https://yanicksarrazin.com/en/immobilier/news/leasing-your-property-with-a-real-estate-broker/ Wed, 25 Aug 2021 20:28:39 +0000 https://yanicksarrazin.com/?p=19157 Leasing your proprety with a real estate broker – Key Information Residential renting is a common practice in Montreal, both among tenants and landlords. In the city of Montreal, the vacancy rate is very low and the boroughs are mainly tenants. These factors make the residential rental market quite fierce. It can be complex for […]

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Leasing your proprety with a real estate broker - Key Information

Residential renting is a common practice in Montreal, both among tenants and landlords. In the city of Montreal, the vacancy rate is very low and the boroughs are mainly tenants. These factors make the residential rental market quite fierce. It can be complex for a tenant to find the right property and landlords to find suitable tenants they will trust.

Dealing with a real estate broker for the purchase or sale of a property is a well-known practice. However, few know that it is possible to be accompanied by a real estate broker for the rental of a property. Renting with a real estate broker can remove weight from your shoulders, in particular by ensuring protection thanks to the law on real estate brokerage. But what are the different advantages and specificities surrounding this support?

For a landlord

''Home staging''' and photographs

Working with a real estate broker to rent out your property helps ensure that the property in question is showcased in the right way. In fact, when taking pictures of the property, your real estate broker will use the “home staging” technique. This effective technique can declutter, depersonalize your property and enhance its appearance so that potential tenants can imagine themselves living in it. By combining “home staging” with quality photographs, taken with the help of a professional photographer, your real estate broker will be ready to promote the property online.

Online promotion

Centris publication

The rental property will then be published on the Centris.ca website. This website brings together more than 43,000 properties for sale or for rent in Quebec. On Centris, properties are displayed by their characteristics (eg: number of bedrooms, surface area, etc.), a description, location and accompanied by photographs. By having a presence on Centris, the real estate broker increases the chances of ensuring good visibility of the property for rent.

Social media marketing

Social media marketing is essential to showcase a property. With the help of a specialized marketing team, your broker will be able to find the online platforms to ensure that the property has good visibility and that it is assured of engagement on social networks. Thus, the rental process could be faster and more efficient.

Management of calls and emails

Your real estate broker will also make sure to filter the many calls and emails to properly inform interested parties about the characteristics of the rental property. This rigorous management will then make it possible to find potential tenants to visit the premises.

Management of visits

The visits of the property will be organized and taken care of by the broker who can then find the suitable tenant.

Suitable tenant

Credit investigation

Finding the right tenant can be difficult. Once the potential tenant has been found, the credit investigation (or the pre-rental investigation) is an important step carried out by the real estate broker. A written certificate from the tenant in question authorizes the credit investigation. The landlord must know if the future tenant has the financial capacity to ensure the rental of his property. By having access to the credit file, it is then possible to determine if the potential tenant is a “good payer”, therefore that he is on time for payment and has a good credit rating.

Criminal record

Through extensive credit investigations, it is also possible to gain access to the potential tenant’s civil and criminal record. It is important to know as much as possible about the future tenant, because he remains unknown. It can then be very difficult, if not impossible, to reverse your decision following the signing of the lease. Your real estate broker will then help you take these precautions.

Promise to lease

For tenants who are not accompanied by a real estate broker, the broker representing the landlord of the property will help them fulfill the residential promise to lease. This mandatory form is made up of various information, among other things, the identification of the parties (e.g. the landlord and the tenant), the subject of the promise to rent, the description of the premises, the rent and the rental conditions, as well as the various obligations of the tenant and his landlord.

Signing of the lease

Signing the lease is the final step in the rental process. The signature signifies compliance with the clauses of the contract. The real estate broker will ensure that there are no omissions in the lease and that all stakeholders are aware of their obligations.

Costs incurred

Just like selling a property, being accompanied by a real estate broker incurs certain costs. For residential rentals, this represents on average one month’s rent.

However, being accompanied by a real estate broker has many advantages. For an owner (landlord), peace of mind and complete support are the advantages of being accompanied by a broker. From the “home staging” of the property, the photographs taken, its online promotion on social networks to the management of calls, emails and visits: the benefits are numerous. These different steps then allow you to rent your property to the right person.

Contact one of our real estate brokers to lease your proprety

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