Do you have enough money for buying a home in Toronto?
There are many costs affiliated with buying a home. Before starting your search, you must have pre-approval in place. A pre-approval will give you the price you can afford to spend and help the process by only looking at homes within that budget. It is such a competitive market in Toronto that there is a very high probability that you will be in a multiple offer situation. Chances are when you find a property there will be other offers and they are more inclined to take the offer without finance conditions.
Getting a pre-approval put in place before your search will help you understand how much you can afford and alleviate that burden. When you work with us we can help navigate you accordingly and find you homes within your price range. We have great relationships with trusted mortgage brokers who can help you with the pre-approval process.
Can you handle the costs of owning a property?
Owning a home in Toronto requires constant maintenance as they are much older. You should be budgeting 10 percent of your mortgage amount for any incidentals or ongoing maintenance that is needed. An emergency fund is essential to help you out of a bind without racking up a bucket load of debt. As condominium buildings have maintenance fees you should keep an oh sh*t fund for all home repairs needed. We suggest that you should budget 1% to 2% of your home’s value for home maintenance costs and upkeep every year
There are many fees associated with buying a home you should remember and prepare for. This will include land transfer tax, closing costs, and lawyer fees. You can use the Land Transfer Tax Calculator in order to budget that into the costs of buying a home in Toronto. You also have to consider CMHC insurance, as it must be purchased for all homes with less than a 20% down payment.
In Toronto, the common practice is you will need a deposit cheque certified with between 5 to 10 percent of the purchase price on hand along with a firm bid of your offer. In Toronto, if there are multiple offers, the next similar home will go for more money. While it may seem like you are buying high, the market in Toronto is continuing to rise.
Use a trusted professional who will be able to guide you correctly in the market you are in and the neighborhood you’re looking at. With our Mortgage Affordability Calculator, you can begin the process and determine the monthly payments you can afford.
Are you buying a place to live in or you are investing?
When you are buying your own home you can be approved for as little as 5 percent down depending on the purchase price and your qualifications. Whereas if you are buying a property as an investment you need a minimum of 20 percent down or more because CMHC insurance is not available on rental properties.
When helping you buy a home to live in or an investment property is very different. I have plenty of experience myself buying a number of properties but no two clients are ever the same. Working with a great Real Estate agent is imperative as they can provide you with knowledge of the current market and neighborhoods to help guide you through any uncertainty. I work hard to provide a unique experience for all of our clients and cater to each of their specific needs. Real Estate is one of the best investments that your money can buy.
Do you think that you will live there in the foreseeable future?
Real Estate is a long-term investment and buying a home is a huge decision. You want to buy a home that you can see yourself in for the foreseeable future and absolutely love it. We know how important it is to find your dream home, and we have a proven track record of successful sales to guide you through the process.
When you are buying a home in Toronto, finding the right location and neighborhood is important. Houses are not meant to be short-term investments. Owning a home long term allows you to gain wealth by building equity in their home. A great Real Estate agent can help guide you in neighborhoods with expanding population growth that will help your property appreciate over the years.
If you are going to purchase, do you need a realtor, or you will do it yourself?
When you buy a home in Toronto all the costs affiliated with using a Real Estate agent are free. When you work with us we will help you find your dream home in your budget all for no cost. A Realtor can save you from making a huge mistake by telling you valuable insight. I am constantly entrenched in the market and provide a team of trusted professionals to help make a successful experience for you.
We will provide everything you need and ensure a stress-free process for you. We work with lots of buyers from luxury, investors all the way to first-time buyers. There is a huge value in using a Realtor, that can guide you and sometimes even access properties that you aren’t aware of yet.
Buying a home in Toronto can be quite a process and extremely stressful for people. While we take care of every step along the way, it’s good to be informed on the ins and outs of how to buy a home in Toronto in order to ensure a smooth home buying experience. Download our in-depth Buyer Guide FREE to help prepare you for one of the biggest purchases you’ll make. Book a call with us today, and will help guide you through the process of buying a home in Toronto.