Tips for First Time Homebuyers


Are you a first-time homebuyer in Toronto? Are you searching for tips to help you in making an informed decision buying a home in the volatile Toronto real estate market? How can you buy the home of your dreams despite the changes or new mortgage laws in Toronto?

Here are the tips to guide:

1. Get Pre-Approved

First thing to do when buying a home in Toronto is to find out the amount your bank can lend you.

Several factors get considered when you want to be pre-approved for a mortgage including your income, debts, credit history, and down payments. Getting pre-approved will provide you with the amount of a loan to expect from your lender allowing you to have a clear idea of what your price range will be when you start your house shopping.

2. Create a Wish List

Once you are pre-approved, put together your wish list for your home. Write a list of what your home must have such as the number of bedrooms you need, the type of outdoor area, types of layouts, floors, and appliances, etc. Remember to keep your pre-approved budget in mind when putting your wish list together.

3. Choose a Team

Purchasing a condo or a house in Toronto will probably be one of the biggest purchase decisions you will ever make. You should pick a lender and a realtor to kickstart your process, but also keep in mind that you will also need a lawyer and home inspector as well once a purchase is under way. Ask for recommendations from your friends, family, and colleagues.

Get updates on the newest listings

Sign up to get the newest real estate listings right to your email

4. House Searching

Having a mortgage pre-approval, a wish list and a team, it is time to search for your dream home. Your realtor will provide you with custom listings according to your budget and wish list. You will need to screen these listings and set aside time to view those listings with your realtor that meet your wants and needs.

5. Show Interest

Now that you have seen the perfect home according to your wish list and price range, you need to make an offer. Your realtor will help to draft the Agreement of Purchase and Sale (APS) – a document comprising all the relevant information such as the amount you want to pay, list of what you want in the home, ideal closing date (when you take ownership of the property), and the conditions to be satisfied before the deal can be closed. Submit the offer and wait for the seller’s decision-accept, reject, or return a counter offer.

6. Satisfy Conditions and Make a Deposit

Once the offer has been accepted, a deposit cheque must be exchanged within the next 24 hrs from the purchaser to the listing brokerage, where the deposit is held in a trust account until closing.

If there are conditions in the APS, the deal is deemed “sold conditional”, pending fulfilment of the specified conditions. Having met the conditions, the contract is now considered “firm”, and you would need to wait for the closing date.

7. Finish the Contract

This is the stage when the possession and ownership of the house are handed over to you from the seller. The closing takes place when all the financial and legal conditions have been satisfied. Note that your realtor, lender and lawyer will take part in closing the contract.

Comments (3)

[…] Related Article: Tips for First Time Homebuyers? […]

[…] Related Article: Tips for First Time Homebuyers  […]

Leave a comment

You must be logged in to post a comment.