Buying a house is a major step in a couple's life. It's much more than a simple real estate transaction; it's a life project that requires thought and planning.
To help you make the best decision for your future, here are 9 key considerations:
1- Communicate openly about your needs
Don't start visiting properties or figuring out finances until you've talked about what you each envision in your future home. Make a list of your essential needs and wants:
- What type of property are you looking for?
- What location do you prefer?
- Which nearby services are a priority for you?
- How many bedrooms and bathrooms do you need?
- Are you willing to renovate?
- What are your priorities for the outdoor space?
- What are your aesthetic preferences?
And don't forget to list the things that are deal-breakers for you. 🙅🏽
2-Think long term
If your property is a long-term investment, you may need to sit down and discuss certain aspects. For example: How do you see your life evolving in the coming years? Will you have children? Do you plan to work from home? Etc.
Your answers can make all the difference in your search.
3- Make a realistic budget
Before you start your search, you need to get clear on a few things:
- Will each partner contribute the same amount? In equal shares or not?
- Will the money come from your RRSPs, TFSAs, savings, or other sources?
- Co-owner or single owner?
Then, make an appointment with your financial planner or mortgage advisor; you'll be able to get an accurate idea of the possible mortgage loan amount. Together, you can develop a solid and clear financial plan so you can buy a house that fits your shared budget.
Don't forget to include the purchase-related costs in your budget:
- Inspection fees
- Appraisal fees
- Notary fees
- Tax adjustments
- Moving costs
- Transfer duties (welcome tax)
- Etc.
This step is a bit more sensitive, but it's important to do to avoid problems down the road.
Read our article 10 costs to consider when buying a home.
4- Consider renovations
Even if you find the house of your dreams, it's likely that it will need some renovations. Are you comfortable doing them yourself, or would you prefer to hire professionals? Regardless of your answer, it's important to evaluate the extent of the work required and include these costs in your budget.
5- Plan for a shared emergency fund
It's always wise to have a shared emergency fund to cover unexpected expenses like repairs, upgrades, or a sudden financial setback.
6- Be accompanied by a good real estate broker
Your real estate broker will accompany you throughout your purchasing process. They will help you find the ideal property for your couple, negotiate the price, and manage all the administrative formalities that can cause stress in a relationship during major events.
7- Visit the neighborhoods
Don't limit yourself to visiting only the properties, but also visit the neighborhoods that interest you.
8- Protect yourselves with a cohabitation agreement and a notarized will
If you are not married, we strongly recommend that you sign a cohabitation contract. This legal document defines the rights and obligations of each party in the event of separation or death.
A notarized will is another crucial tool for common-law partners. Contrary to popular belief, if one partner dies, the other doesn't automatically inherit their assets, even if the property deed is in both names. A notarized will clearly defines each person's wishes and ensures that their assets are passed on to the people they choose.
Read our article What couples need to know about buying together.
9- Sign the purchase agreement together
The best way to ensure you receive your fair share of the real estate assets in the event of a separation is by becoming a co-owner.
👉🏽 Want to learn more? Consult with an experienced real estate broker who is regulated by the real estate brokerage act and committed to providing you with expert advice.
