When you start the process of buying your first home there are many things you need to consider. You will have to think about the location, purchasing price, offer, and mortgage application, just to name a few. If you are not a licensed real estate agent, this exciting time can turn into a stressful situation. That’s why here we will give you some tips on how to buy a house in Toronto.
Buying a house in Toronto could turn into a complicated process if you don’t know the basic steps. Even before you start house hunting, there are things you need to do to prepare six months before the purchase. All of this might sound complicated, but if you follow our list of steps below, you will be able to enjoy this moment in your life.
Before, we tell you the top 6 tips for buying a home in Toronto. First, we need to answer the question that will determine the rest of your journey: how can you afford a house in Toronto?
How to Afford a House in Toronto
It is important that before you start the process of buying a house in Toronto, you determine if you can afford it. There are a couple of ways you can find out if you are ready to make this purchase.
Look at the Housing Market
You need to look up what is the average price of the property you have in mind. Also, ask for the advice of a real estate agent. They can tell you whether the prices are too high or if this is the time to get the deal you’ve been waiting for.
Check out this article for an overview of house prices in Toronto by neighborhood.
Evaluate Your Personal life
If you are thinking about buying a home in Toronto, you need to understand that this is a decision that will impact your life. That’s why we recommend that you don’t purchase a property while you don’t have a stable job or the desire to settle down in the city.
Buying a house in Toronto means you would be staying in the city for at least a couple of years. If that is not the case, the next best thing you can do is rent.
You should study these two factors and determine that you are ready to take this step. You might be wondering how to afford a house in Toronto. The likely answer is a mortgage. Applying for a mortgage is the easiest way to afford a place in the city. However, keep in mind that you’ll still have to pay the down payment from your money.
6 tips for buying a home in Toronto
Now that we know you are ready to settle down and your finances allow you to afford a house in the city. It is time to take a look at 6 tips on how to buy a house in Toronto.
1. Have a down payment ready
Before you think about looking for a property, you need to start saving for your down payment. We understand that this might be difficult since you don’t know the purchasing price. Luckily, here some information about how the down payment is calculated.
- Below 500,000 = 5%
- Between 500,000 – 999,999 = 10%
- Equal to or above $1 million = 20%
With these percentages, you can start saving an approximate amount for the down payment. Remember that this could take a couple of years. Be patient and focus on your goals.
2. Apply for a pre-approved mortgage
First, we need to clarify that getting a pre-approved mortgage doesn’t mean you already have it. A pre-approved mortgage is still pending a final acceptance, but the great thing about it is that it can show you are a serious buyer.
Also, a pre-approved mortgage can serve as a guide to let you know the type of property you can afford. That way, once you start house hunting, you can easily narrow your options.
3. Ask for help
There is nothing wrong with asking for help during this process. That’s why it is crucial to find a real estate agent at the beginning. According to your priorities, the agent will tell you where to buy a house in Toronto, help with your mortgage application and be your ally in a potential bidding war.
To get the right real estate agent, you need to do your research to find out their experience and education. Then, interview with a couple of them before hiring.
4. Patience is key
Especially if you are a first-time buyer, the key to getting what you want is having an endless source of patience. You need to understand that if you are purchasing a house during a high demand season such as spring, chances are there are going to be multiple potential buyers. That’s why you might need to do a couple of offers on different properties.
If you want to succeed, a crucial part is to keep trying until you win a bidding war. Also, trust your real estate agent, they know how the whole process works.
5. “What if’s” can kill your dream
This is something that can happen even to experienced buyers, and it’s the worst nightmare of any agent. Sometimes even when someone has done every step right (saving the down payment, getting pre-approved, hiring an agent, getting ready the closing costs), they start doubting.
Doubt is a dangerous thing especially when you have already made an offer and the seller accepts it. That’s why at the moment you start doubting, you need to talk to your real estate agent.
6. Do your research
Even when a real estate agent can guide you through the process. You can also do a couple of things to speed things up, such as researching where to buy a house in Toronto. Look for the best neighbourhoods, the type of properties available and what the location offers.
Also, educate yourself on all the steps you need to follow for completing the purchase, plus, the costs you have to pay.
With all the tips above, we are sure that buying a house in Toronto will not become a stressful situation. However, we know that you can get caught up in the process once you get started. That’s why once you start feeling insecure or lost, you can always come back and take a look at our list of tips to help you out.
If you’re ready to take the leap and purchase a home in Toronto, check out this page. On it, you’ll find an overview of our homes for sale in various parts of the Greater Toronto Area.