You’ve been working for several years, saving (and sacrificing) and accumulating a sizeable savings account ready for a downpayment. You’re excited to make that first home purchase, but how do you know if you’re ready to buy a house in Toronto?
1. Talk to your Mortgage Specialist
First things first, you need to know if you can afford to buy. Your mortgage broker will offer you pre-qualification service, which is to say they will take a snapshot of your entire financial situation. They will review your income, assets, debts, credit history, available savings and give you an estimate of the loan you’re eligible for.
If you think you are financially ready, get “pre-approved”, which is when a lender agrees to fund your mortgage based on your financial situation.
2. Talk to your Real Estate Agent
Buyers need an advisor throughout the home buying process, someone who has a fiduciary responsibility to advocate on their behalf (unlike the seller’s agent) and knows the Toronto Real Estate market. If you aren’t already working with an agent, or you aren’t sure how to hire one, there are many tips available here.
Your buying agent will listen to your needs, understand your budget, when to buy a home, and show you listings available within your budget and neighbourhoods. The search process can be time-consuming, so the earlier we get started, the better.
3. What House is Right For You
You are going to spend a lot of time looking at homes, online and in person. Get to know the type of home that suits your needs (move-in-ready vs renovations), different neighbourhoods (gentrifying vs. established), wants vs. needs, lifestyle, amenities and location (close to work/schools).
Homeownership is about responsibility. You’ll need to be prepared for the expenses that come with ownership: new monthly mortgage payments, insurance, taxes, maintenance fees (condos) and other repairs and maintenance (1% of homes value/year).
1. Are You Financially Ready to Buy a Home?
2. Have You Found a Trusted Real Estate Agent?
3. Are you Ready for the Responsibility of Homeownership?
Can you answer yes to all of the above?
The purchase of your first home will be one of, if not THE biggest purchases you will make in your lifetime. The best way to achieve this goal is to educate yourself, ask lots of questions, surround yourself with financial and real estate experts and be prepared.
Think you’re ready? Feel free to peruse my much more Comprehensive, Step-by-Step Guide to Buying a House in Toronto here.
The Toronto Buyer’s Market can be a competitive place, but with a little knowledge, guidance and expert advice steering you in the right direction, you’ll be ready to make a sound, informed decision, one you can feel good about!
Ready to jump into the Toronto Real Estate market? Want to know more about how buying works in Toronto? Need some help taking the stress out of buying? I’d love to help. Contact me anytime. No pressure, no pushy sales talk. Just the answers you need.