Toronto is the largest city in Canada, the fourth largest city in North America, which makes it an exciting place to live in.
But as with other major cities, finding the perfect place to move to can get tricky. If you’re planning on buying a home for the first time in this city, it is indeed a big decision and there are things you should know in advance.
Don’t worry, this guide will help explain the basics of what you as a buyer should know when you decide to buy a home. It will make you feel like a true expert during the buying process.
Decide what type of home you are looking for
There is no right answer to what makes a good home. It all depends on your preferences and needs as the resident. It is, therefore, a good idea to determine as early as possible which features of a home are important to you. If you are buying a home and moving in with someone, it can be a good idea for both of you to make a list and compare.
Toronto is a city that offers different styles of living accommodations and its neighborhoods are quite versatile and diverse, same as the people living there who come from all parts of the world.
The most common forms of housing and real estate opportunities in this city include bungalows, two-storey houses, split-level homes, and the very popular Toronto condos. Due to the high property values, the city boasts of construction of many condominiums as they are a more cost-efficient choice and provide a plethora of benefits.
When you decide on the type of home you want to buy, it is good to do some research and learn the biggest differences between them.
What to think of when choosing homes in Toronto
There are certain things you need to consider when choosing your home in this city.
Being close to the things you need to visit every day makes life a lot easier. Pay attention to the proximity to shops, preschools, schools, and your job. In addition, access to good public transportation is crucial. Being able to move around the city easily and the opportunity to commute is important to many.
Know that having a balcony can significantly increase the value of your home and improve your well-being. Being able to move easily in the area is something that many people underestimate, but can be very convenient, and this is why you should see if there are good cycles and walking paths.
And finally, make sure that the house is well designed which is a quality that does not disappear with the age of the house or with renovations.
Set your budget
Before you start the search for your new home, you must know how expensive of a home you can buy. It is preferable to know in what price range to look for. The budget is usually decided based on your mortgage and how large are the monthly costs you can handle.
A mortgage is always about a balance between risk and income for the bank. The higher the risk for the bank to lend to a particular home, the more expensive the mortgage will be. When it comes to the bank’s reasoning when applying for a loan, it is in principle always a question of whether you as a borrower will be able to repay the mortgage.
The bank also takes into account your financial history. If you are a person who has managed your finances well, the chance increases that you will get your mortgage approved. If, on the other hand, you have a bad reputation with banks, it is weighed in as an aggravating circumstance.
Find interesting homes
Once you have determined your budget, it is important to find homes that are for sale in your preferred Toronto neighborhood and that meet your requirements. To find your dream home, you can get help from a good real estate agent or actively search among housing ads online or through daily newspapers.
If an agent has sold a home in an area you want to live in, there is a chance that other homeowners will enlist the help of the same agent to sell their home. It is also not uncommon for them to know about homes that are to be sold within a short period. An agent can also mediate the contact between you and a potential home seller. With a little luck, you can buy a home before it is up for bidding or similar, which can give you a faster and cheaper housing deal.
Submit Your Offer and Sign the Contract
When finding the perfect home for you, you must act quickly since the real estate market in Toronto is quite competitive with many potential buyers like yourself. The first thing to do is submit your offer. The seller can accept it, refuse it or send back a counter offer.
Once you have gone through all the points above, it’s time to buy the house and sign a purchase contract. The contract is binding and it is often the moment you need to submit the deposit which in Toronto is up to 5% of the sale price. Once all legal and financial obligations have been met, you can officially call yourself a proud homeowner.
Buying your first home in a city like Toronto is a big decision, and quite frankly, a big deal. Even though it’s a new exciting chapter in your life, you should still be very careful.
Buying a new home is as much about emotions as it is about research. For the gut feeling to be able to lead you to the right home, it may need a little help along the way. With our housing guide, you can enhance your knowledge, so that you can feel safe and secure when set off to buy your new home.