Moving to Toronto is definitely a huge step towards the betterment of life. Of course, who doesn’t want to live in one of the best cities in the world with a low crime rate and a booming economy? However, if you are planning to move there permanently with your own house and all that, it could be a tricky process. Because, let us assure you, buying a house isn’t easy, even if you are not new to the city and have been living in Toronto for a long time.
You might be completely throwing yourself in the process – looking into listings and booking viewings – but if you don’t plan every step strategically and efficiently, you might just walk into your worst nightmare.
That is why you need to be completely careful about the whole house buying process to start your big city life. And that is where we are going to help you.
Below are some things that you need to consider before taking one of the biggest decisions of your life.
Evaluate Your Finances
Even if you are sitting on a pile of cash that is specifically saved for a new house in Toronto, you need to evaluate your current finances. That is because affording a house at a certain time is not as important as being able to stably live in that house for the great part of your life.
Your employment should be stable and secure, and you should be able to afford a good realtor to get a good house. If you have investments where you can expect heavy returns in the near future, even better.
Moreover, if you aren’t sitting on a pile of cash, you need to get validation for your credit score, save money for down payments, and make sure you are in a state of getting a good loan amount with a low-interest rate.
Save Enough for Down Payment
Houses in Toronto aren’t cheap, even in the relatively cheaper neighborhoods. What’s more troubling is the fact good houses don’t even stay for longer in the market before a buyer comes and gets a hold of them. Therefore, even if you are not ready to make full payment, you should at least be able to make a down payment to secure a good house.
On a property value of $500,000 or less, at least a 5% down payment is required. For property valuing more than $500,000 but less than $1,000,000, then at least a 10% down payment is necessary. For a luxury property with more than $1,000,000 price, a 20% down payment is to be made.
There are more factors at play here, including mortgage and default insurance. You will get to know more about it once you dive into Toronto Homes for Sale.
If you aren’t going to pay cash for the house, which most people don’t, it is highly recommended that you get pre-approved before you start contacting agents.
Getting pre-approved basically means that the lender has approved your credit score and is ready to give you the loan amount – payments of which you will make periodically in the future.
It is going to add a bit of hard work to your already challenging process of buying a house, but it will help you get a grip on the estimation of your mortgage payments.
Get a Good Real Estate Agent
You can’t get a good deal unless you get in touch with an experienced and professionally acclaimed real estate agent who knows how Toronto real estate market works. They should be well-versed in the neighborhoods you want to live in, and we would prefer if they are also quite known among the locals.
The more testimonials and references you can get, the better.
If you have a good agent, they will guide you through every step till the end of the day. Moreover, they would put the client-agent relationship above the money, which means you can trust them for advocating on your behalf while making an offer.
Moreover, good real estate is more familiar with the market, and they can show you better house options than the one you specifically liked. The icing on the cake is that the agent’s fees are covered by the house seller, so why not take full advantage of it?
If you can take our word, then we’d say having a perfect real estate agent is the most important key to finding a good house in Toronto.
Hunt Your House Strategically
House hunting is a very critical part of the whole process. And you need to keep your mind on full alert when hunting houses. First of all, do not compromise on location or layout – you have got to go after the most demanded neighborhood, of course, depending on your affordability.
If you are planning to spend a handsome amount of money on your house in Toronto, you might as well milk it for all its worth.
Secondly, look past the décor, don’t let it fool you. Another important thing is to research about neighborhood yourself and not only rely on the realtor’s word. You need to get as much information about the neighborhood as possible – including the growth state of the neighborhood, the business potential in the area, future value of your potential house, prices other houses have been sold for, how good are schools in the neighborhood, etc.
Most people in Toronto don’t buy houses with a plan to sell them in the future, however, it is perfectly good if you do. If you are thinking about selling your house ahead after buying it, even on the slightest level, you need to keep in mind that you are making an investment for the future, and it should be able to give you the maximum possible returns.
Now that you about the main things to consider while buying a house in Toronto, we believe you can make a wise decision about your future.