Contrary to most African countries, and even Europe, it is fairly easy to buy a home in Canada or USA. This comes as good news to most African immigrants who have already had to deal with moving to a new country and adapting to a new culture and lifestyle separate from the African culture and lifestyle they left behind in their home country. Below is some helpful information for African immigrants wanting to buy a home in Canada or USA.
Mortgage Payment versus Rent
One advantage to living in Canada and USA is that mortgage payments on new houses have the potential to be similar in rate to renting a house or apartment. This means that it makes perfect sense to try and purchase a home as early as possible. Some people get caught up renting and years down the line they are no closer to owning a home and have spent thousands of dollars. Additionally, owning a home may help with any sense of pride for the African diaspora by providing African immigrants with a space of their own.
Build Good Credit
Building good credit is an extremely important factor when it comes to purchasing a home in any country. Obviously, most African immigrants do not have the kind of income to purchase a home at face-value in one, complete payment. For this reason, building a good credit score could be the determining factor on whether or not you will be able to purchase your own home in Canada. A great way to start building good credit is to apply for a secure credit card or a store credit card that offers a small credit line. Using a credit card for purchases and paying it off on-time can help raise your credit score. Never miss payments on any bills either to ensure credit stays up.
Small Home Down Payments
For most homes, only a 5% down payment is required at purchase. As for the rest of the payment, a mortgage can be taken out to be paid over time. With such a low down payment being needed, it is much easier for Africans to purchase a home in Canada. Additionally, if you want to put a down payment on a home, you always have the possibility of renting out rooms in the house for additional income to help pay off the mortgage.
Research House Prices
It always pays to do your homework, literally. Checking out Canadian house prices online using sites like http://www.mls.ca or any other property sales website can help give African immigrants a better idea of what the housing market looks like on a whole. Using the internet, you can search by city or price to find the perfect home. In researching housing prices before purchasing a home, you can be sure to make certain that you are not being taken advantage of in the housing market. Always remember to place an offer to try and save money.
Know Your Budget
Buying a house is always a major financial decision, under any circumstances. Don’t get carried away by the emotional excitement of your dreams like meeting a beautiful African girl or receiving a marriage proposal by an elegant African man.
Instead, use one of the many budget tools available online and determine exactly what you can afford, not only immediately but also under different work and revenue circumstances. Always remember why you left your native African country and exercise as much financial discipline as you can, in line with the frugal living so common in the African culture.
Get Pre-Approved by a Bank
To take the guesswork out, go to a bank and try to get a mortgage pre-approval. Your banker can help you determine exactly what you can afford and any other conditions you need to meet to get a mortgage. You may check out our other blogs about Africa and African immigrants, or ask your questions in our online African forum for recommendations about bankers or mortgage brokers that other African immigrants on this social networking site have worked with in the past.
Find an African Realtor
There are many African realtors in Canada and USA who can help African immigrants with searching for and purchasing their first homes. Additionally, many African realtors, some of them on this Africa MeetNet social networking site, have been in the same shoes as you are, so turning to them for advice may not be a bad option.
When it comes to purchasing a home in Canada or USA, it may not be too difficult for most African men and women in those two countries. The most important thing is that potential home-buyers do their research and learn as much as they can before purchasing.
