Buying Your First Home or Condo in Toronto

Buying Your First Home or Condo in Toronto 

There may be nothing as exciting as the purchase of your first home in Toronto... the great feeling you get when the keys are handed to you and you're standing in your new living room. Getting to that point is an adventure. It can be daunting and stressful, but if you follow some simple rules, the whole experience will be a positive one for you. Below we present some tips and steps to make sure that you realize your dreams.

Set Your Goals

Your first task is to set your goals. Buying a Home in Toronto can be challenging so do your homework. Write down key elements of what kind of home you want? in what area of Toronto you want to live in? with what features nearby (which Toronto schools, Toronto parks, Toronto recreational facilities, proximity to your work, etc?) in what price range can you afford? Discuss any programs for first time buyers or other financing programs that me be available for you with your iListRealEstate agent. Answering all these questions will allow you to develop an effective plan for searching out that perfect Toronto home. The benefit of working with an iListRealEstate agent is we are very experienced and trustworthy, with full time dedication to helping you achieve all your real estate goals. We promise to provide you with the best service possible. Having an experienced Toronto Real Estate Broker will add a wealth of value to the home buying process. 

Know Your Limits

How much of a mortgage can you afford to pay and qualify for? The rule of thumb is that your Total Debt Service (TDS) ratio should not exceed 40% of your monthly income. You can work this out by dividing your principal, interest, property tax, heating, half of condo fees and any other monthly financial obligations such as credit card payments, car payments, etc against your gross monthly income and multiplying by 100. You will also have to factor in closing costs if your offer is successful. These will include some or all of the following: lawyers fees; land transfer tax; survey; home inspection; CMHC fees if you have a high-ratio mortgage; registration fees; compliance letters; title insurance; utility connection charges, etc. Your agent can help you with all of these details.

Get Pre-Approved for a Mortgage

Nothing is more frustrating than losing an offer on a home because your financing fell through, or that your offer was conditional on getting financing approved. Get pre-approved first. We have experienced mortgage professionals we work with who can offer free mortgage pre approvals for you as part of our service. Our mortgage agents and bankers have extensive knowledge of various mortgage products which they can connect you with to get pre-approved . We will use our resources to shop for the best mortgage rate on the market for you and guarantee to get you setup with your mortgage with no hassles.

Start Looking for a Toronto Home

This is the fun part. Your iListrealEstate agent will search for you on a daily basis for the home that fits the criteria you specified. We will narrow down the listings and only provide you the ones that we think are best suited for you. We will ensure the price of the home is within market value or below market value, we will email you these listings daily for you to review, we will provide you with a list of weekend open houses to go to or we will arrange private viewings of each property that fit your criteria. Its important to take notes to keep track of the homes you have visited.  If you find a home you think is the one, your iListRealEstate agent will prepare a written offer and register it with the other brokerage. At this point, we will start the negotiations of the price and terms of the purchase with the seller of the property. Our goal will be to get you the best possible price on the property with fair terms. After the deal has been negotiated the seller's agent will require a deposit, which varies by area and type of property, but is usually around 5%.  The deposit will be held in the listing agent's trust account until the transaction closes, or is mutually aborted. If interest has accrued on the deposit it will be paid after closing.

The Dance

Negotiating is a delicate dance whereby everyone wants the best possible outcome for themselves. The seller wants the best price they can get, while you as the buyer want the best price you can get. There will be offers and counter-offers, and if there are multiple offers on the property, it may start to resemble a feeding frenzy as agents go back and forth between their clients and the vendor. Again, know what your limit is, and how much you are prepared to go above it, if at all. Your iListRealEstate agent will advise whether it's worth it to sweeten the pot or walk away. Ultimately, however, it's your decision.

The Winning Offer

Congratulations! Your offer was accepted! Now comes the closing phase, where your lawyer and the seller's lawyer transfer title and all the paperwork necessary to put your new property into your name. As stated above you will incur closing costs so make sure those are factored in. On the closing date, the keys will be transferred from the seller's lawyer to yours, and you can walk in to your new home and crack open the champagne.