Toronto First Time Buyer Guide
If you are a first time home buyer in Toronto or if you’re even thinking about buying your first house or condo there are a number of steps that need be taken. Once you have a clear map in your mind you can proceed with confidence. Here’s our Toronto First Time Buyer Guide. We recommend further reading with this post about how to buy a house in Toronto.
- Buying Your First Condo Or First House in Toronto
- Know What You Want<
- How To Submit An Offer
- Deposit And Conditions
- The First Time Home Buyer Tax Credit
Buying Your First Condo Or First House in Toronto
If you specifically want a Condo check our How To Buy A Condo In Toronto Guide.
Get Pre-Approved For A Mortgage
Buying a house or condo in Toronto consists of a series of steps that must be taken before the next one. Find out how much your lender is willing to put on the table. It could be a bank, a mortgage broker or even the “Bank of Mom and Dad”. All your relevant financial details and history will be considered. Income, debts, downpayment amount and credit history are some of these. Getting Pre-Approved for a mortgage strengthens your position from the outset. It is one less step to take if financing approval is on the table in an offer. Make sure your pre-approval is in writing and certifiable so any other parties know you’re a serious buyer. Be certain that your down-payment is secure.
Know What You Want
Be clear about what you’re looking for. Number of bedrooms or washrooms, location, counter tops, finishes and floors. Single family Home, Condo apartment, Town House etc. Usually buyers have a must have, nice to have and no way list. Don’t waste precious time running around looking at properties that do not interest you and are not suitable. You may miss the buy of the century!
Choose a Realtor
As a first time home buyer you are looking at the single biggest purchase of your life to date. It’s serious stuff. Our advice for first time home buyers is to get a team of experienced professionals on your side. Finding and choosing a Real Estate Agent in Toronto is a mine field of choices. There are terrible agents, good agents and great agents. We recommend choosing a great agent. 🙂 Someone who knows the neighbourhoods you’re interested in and who is completely up to date with the market. We are Realtors who can access inspectors, trades, lenders and lawyers. Be confident that we will act solely in your best interests. Ask family and friends. If you’re interviewing an agent always ask for references. Here is our post about how to find a great Realtor
Shopping For A House
I know this sounds a bit off the cuff but the principle is the same. When we go to the store with a grocery list we are performing the same function as House Hunting in Toronto. Of course, the budget is much higher, but as good shoppers we know to stick to the list, avoid the impulse buys and shop within your means. Get acquainted with Toronto’s neighbourhoods and house stock. There’s a home for everybody in Tee Dot. Intuition is a powerful force when house hunting.
Submit An Offer
You’ve become an expert house hunter and you’ve gone through more open houses than you’ve had hot breakfasts. Finally, you’ve found the place. You’re feeling good about it. You can see yourself living there. You’ve already placed the furniture in your mind and you’ve picked the spot for that special piece you’ve been meaning to buy. It’s time to make an offer. As your agents we will have all the necessary legal documents ready with the description of the target property. An Agreement of Purchase and Sale will be filled out. We use standard Toronto Real Estate Board documents.
What’s In An Offer?
We provide easy to read copies before we even start so you have a familiarity with the forms. You write in your price, any fixtures that come with the sale (hot water tank, stove, fridge etc), a closing date (possession date) and any conditions that you want fulfilled before the deal closes. The offer is handed in, often it gets returned or countered with changes. This may go back and forth a few times. As your Realtors we will stand for you in your best interests and make sure that you get what you want or at least as close to it as possible.
Deposit And Conditions
A deposit or “consideration” is a cornerstone to any legal offer to purchase property. It shows intent to the vendor and is an act of good faith. The deposit is usually submitted upon acceptance as a bank draft or certified cheque and is held in trust until the offer closes. In Toronto a 5% deposit is considered good business. Any conditions, such as financing or inspection, will then be met in a timely fashion as laid out in the schedules of the offer.
Closing
This is where all the various professionals involved in your transaction, from Agents to Lenders and lastly Lawyers line up all the threads and tie the knot. I’s are dotted, tees are crossed and keys get handed over. It’s also where the disbursements happen. All great Real Estate Agents will make you, as a first time buyer in Toronto, aware of the closing costs associated with purchasing Real Estate. We guide our first time buyer clients from dreaming to thinking to doing. As REMAX Hallmark agents we have a huge network of industry contacts to help you realise your dream.
The First Time Home Buyer Tax Credit
This is one of a number of incentives that the federal and provincial governments have introduced to encourage home ownership in Canada. The amount varies as it it tied to the tax rate of the given year. Other benefits include:
Toronto Land Transfer Tax Rebate
Ontario Land Transfer Tax Rebate
RRSP Home Buyers’ Plan
There are others of course, given that the numbers fluctuate from year to year depending on who’s holding the purse strings it’s always best to talk to your accountant about what’s available.
If you found our Toronto First Time Buyer Guide useful check our blog for more articles. We gladly provide professional advice for the first time Toronto home buyer and seasoned investor alike. Get bespoke solutions for every real estate question you may have.