Looking to buy a home in Toronto? There's a lot that goes into buying a new home, whether it's your first time or if you're a seasoned homeowner.
We broke down the process, so you know what to expect when you start and you're prepared for everything ahead. Keep reading to see what you need to know before, during, and after the sale!
Prepare Your Finances
Before you begin your house search, make sure you have your financials in order so you're ready to buy when the time comes.
You should have money set aside for downpayment. According to Young&Thrifty, people usually spend 5%-20% of the home purchase price on their downpayment. So know how much you have in the bank you can stay within your budget when you start househunting.
It's recommended that you get pre-qualified for a loan, so when you start shopping, your realtor and the seller know you mean business. A pre-approval will tell you how much you can afford, what your interest rate will be, and what your mortgage monthly payments will be.
Another thing to consider when preparing to take out a mortgage loan is your credit score. The higher your score, the better chance you have at getting a good loan.
According to Borrowell, a credit score of 680 or higher is required to qualify for the best mortgage loan rates in Canada.
Start House Hunting For a Home in Toronto
Once you have your pre-approval and you know what kind of house you can get, you can start house hunting! Sites like realtor.ca are a good place to start to get ideas on what type of house you want and what area you want to live in.
When you're ready to start viewing houses you might like to buy, you'll need a few people to help you through the process smoothly: a real estate agent, a lender, and a real estate lawyer.
A real estate agent will be in your corner during this process to work in your best interests. So, it's important to use your own real estate agent and not the agent of this person selling the house you're looking at.
Your lender is a bank or mortgage broker who will guide you through making financial decisions and keep you on track.
A real estate lawyer will guide you through the legal aspects of home buying and help you bypass hidden obstacles that could hinder the smoothness of the process.
Closing the Deal
So you found the property you want to buy? Now it's time to make an offer. You will need to give the seller an offer for purchase. This is a legal contract, so you will have your real estate lawyer go over this.
With your offer, you will also want to detail the following: the price you are going to pay; the deposit amount you are going to put down; inclusions you want with the house; the closing date, and other conditions that need to be met (i.e. a house inspection or land survey).
Your agent will submit this offer and if your seller agrees, you're almost done! If the seller may send back a counteroffer, and then there will be some negotiations that your realtor will do.
When your offer goes through, all you have to do is close! Once you have the keys all you have to do next is move in!
Home Sweet Toronto
The home buying process is made so much easier with a team backing you. So, when you start your process, don't forget to find a good real estate agent, lender, and real estate lawyer.
Picov & Kleinberg Barristers & Solicitors will be able to assist you with real estate law, so you're prepared for the homebuying process. To learn more, contact Picov & Kleinberg here and start your search for your Toronto dream home!