Over the years, buying a home in the city of Toronto has become a distant dream for many. To keep up with the soaring market prices, one needs to take a long hard look into their finances and have a pre-approval in place before beginning the house search. By providing the price you can afford to spend, a pre-approval will allow you to focus on homes within your budget.
With years of experience and market knowledge, Real Pavel can guide you through the home buying process. Apart from pre-approval, here are some important considerations to buy a house in Toronto:
Important factors to keep in mind during the home buying process:
Can you handle the costs of owning a home?
In Toronto, owning a property usually requires consistent maintenance work, as there are many older properties in the city. It is a good idea to budget 10% of your mortgage amount towards possible repair or maintenance tasks that will be needed from time to time. Setting aside 1-2% of the home’s value each year for upkeep purposes is an additional suggestion.
In terms of costs related to buying a home, they involve land transfer tax, closing costs, as well as realtor and lawyer expenses. You must also consider the cost of CMHC mortgage insurance if you are purchasing a home with less than a 20% down payment. Lastly, along with a firm offer bid, you must prepare a certified deposit cheque with between 5-10% of the purchase price.
Are you buying a property to live long-term or for investing?
In the case of buying your own home, you can be approved for as low as a 5% down payment. However, this is based on other qualifications and the purchase price of the property. On the other hand, if a property is bought as an investment, a minimum of 20% down or more is needed due to the unavailability of CMHC mortgage insurance for rental properties. So if you wish to buy an investment property, be ready to pay more as down payment.
Do you have a preferred neighbourhood in Toronto to buy a house?
Apart from money matters - figuring out the right location and neighbourhood of the house is a crucial part of the home-buying process for aspiring buyers. To zero-in on the neighbourhood of your choice, you must consider two things:
Does the vibe of the locality match with your lifestyle?
Have the prices of properties in the neighbourhood appreciated enough in the past few years?
These questions would help you decide the perfect location for your new dream home.
Ready to buy a home in Toronto or GTA? Browse our website and contact Real Pavel today, the ideal real estate agent for homebuyers in Toronto.