Buying an apartment in the city?
Are you thinking of buying an apartment in the city? Here are some considerations for you... I will start this post by highlighting one of the most important things you need to keep in mind before you sign a contract to purchase a house. Always sign a contract of sale "SUBJECT TO FINANCE". The pre-approval I talk about here is in relation to a particular kind of property, not regarding your borrowing capacity. Unless you get a pre-approval from a bank for a specific kind of property (e.g. inner city apartment or a student accommodation), it is always wise to sign a contract with the subject to finance clause. The main reason being that banks will lend differently for specialised properties (anything other than the common stand alone house). As an example, consider that you originally decide to buy a stand-alone house and obtain a pre-approval for a 95% lend. Later you decide to buy an apartment in the city, in one of the high rise buildings as it is convenient for work. If you