The Ladder of Investment
The definition of investment is different for every investor, now making an investment of any kind doesn't just mean setting aside an extra set of hundred dollar bills. With realestate investment, there are specific rules and processes that are defined in order to ensure that your money will be going to the right place. If you are investing in real estate, you will want to know what initial investments will be.
If you have identified a home and are beginning a process of buying the home, you will begin to make some initial investments soon after your offer to purchase the home is accepted. Most real estate investments will require a down payment and closing cost which varies based on your credit history, the fact whether you own another home or not and your income source (business or job) and yearly income. Your down payment will then be put on your credit towards the investment that you are making e.g if you purchased a home for $500,000 and you paid $10,000 down payment then your balance owing would be $490,000 + closing cost. If you have extra money set aside, you will want to put it in the down payment as this will not only help you reduce your monthly payment, the total interest paid on mortgage but your CMHC insurance fee will go down or be zero at 20% down payment.
The other additional cost that you can expect would be home inspection ($250 ~ $450), lender fee (1% to 3%) and lawyer fee ($1,000 ~ $2,000)
Before you begin house hunting, make sure that you have a clear understanding of initial cost and monthly mortgage payment. We encourage you use the closing cost and mortgage calculator available on my website https://www.wittysingh.com/Calculators