BHW: Save today and build tomorrow
Now that Sophie and Mark are in a civil partnership, they are thinking more and more about building a house. Sophie already sees herself planting roses in her…
The price of your dream house falls easily within your financing plan, thus so far so good! Now, you just need to commit to purchasing the property by signing a sale agreement with the current owner or the real estate agent. The sale agreement is generally valid for 30 days, and where a loan is required, it can be highly useful to include a suspensive condition allowing you to cancel the agreement if your loan application gets refused by the bank.
Your home loan advisor will help you calculate the total amount that you need to borrow. This includes the price of the property and an estimation of associated charges, such as notary fees, renovation costs, and, depending on your situation, the cost of residual debt insurance, which will provide you with coverage in the event of death. On top, there are fixes charges such as the bank’s application fee and any possible mortgage establishment costs. The final borrowed amount corresponds to the difference between your own equity and the total cost of the acquisition.
Once you have given these documents to the bank, you will receive a definitive loan offer that sums up all the essential information, such as the amount, the rate, the types of insurance chosen, etc.
Once these formalities have been settled with the bank, you just need to sign the deed of sale for the property. The only thing left to do then, is to pack up your things and move in!