Deciding to buy your first home is exciting! Planning to purchase in Toronto can be a little overwhelming. We’ve broken down our top 5 tips every first-time buyer should know so you can avoid common beginner mistakes, and get into the home you love with less stress and more money in your pocket.
1. Figure out your finances before you shop
Many first-time buyers make the mistake of beginning their house-hunting journey before solidifying their finances. There are several costs to consider when buying a home in Toronto, so knowing your budget and potential costs before entering the market is important for your success.
- Determine how much money you’ll be approved for to get a mortgage loan.
Your realtor can refer you to an experienced, trusted financial advisor or mortgage specialist to find out how much house you can afford. This will help focus your search, and position you as a serious buyer to sellers. - Consider the costs outside of your mortgage and down payment, including house insurance, mortgage insurance (if you’re paying less than 20% down payment), property tax, monthly utilities, land transfer tax, closing costs, etc.
Knowing all the payments you’ll be responsible for before you start looking for your dream home means you’ll save time and money on your search.
Try our Buyer Calculator here to calculate your approximate costs.
2. Prepare your wish-list
To make the most of your time in-market and find your property match as soon as possible, you need to know what you’re looking for. You may think you have an idea, but until you actually explicitly list your criteria for a new home, you won’t have a clear picture of where to look.
Consider factors like:
- Location. Think not only of your favourite neighbourhood to visit or hang out in, but also about your professional commute, distance from family and friends, and proximity to schools when considering where your ideal community will be.
- Property type. Think intently about your lifestyle. You may initially think you want a detached home in the city, but might realize a boutique condo suits your needs better.
Discover our full-service buying plans here.
3. View homes in-person
This is the fun part, but make sure you go into the viewing process with purpose. Seeing homes in-person with your realtor will show you what homes in your price range are available, and what they’re really like. Evaluating properties with the input and expertise of your realtor will make you an educated buyer, and savvy homeowner.
A good realtor will use every showing as a learning opportunity, pointing out areas of concern as well as stand-out features to love. As you go through the viewing process, you may start to adjust your criteria.
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4. Manage your expectations
Bidding wars, conditional offers, fast-paced markets…this is Toronto real estate. But this also means that there are a lot of options available. Just because you don’t get the home you want at the time, doesn’t mean the perfect match isn’t out there.
- Understand that you may not get the house you want right away—even if you’ve done all the right things to prepare and you present a solid offer. Sometimes, it just doesn’t work out in your favour. Knowing this before you get started will save you the disappointment of losing out on a home you love.
- Keep an open-mind. A house with a good structure, in a prime location, that’s within your budget, but may be a little dated or lacking your ideal floor plan can become the home of your dreams with a little vision.
Your realtor will be able to find you other listings that match your criteria, and help you see the potential in a home, so don’t get discouraged. Become familiar with the reality of buying a home in the city, and your experience will be that much more stress-free.
Book a buying consultation here.
5. Always work with a professional
It may be tempting to represent yourself. Maybe you’ve heard anecdote “success stories” or you think it’ll be a good way to save money. But the reality is that real estate is a complex industry—especially in Toronto. Simply put, why take a risk with one of your biggest investments? In a market like this, where average home prices can easily sit in the millions, working with a vetted real estate agent is the only way to protect yourself.
The seller is going to be represented by an agent who is paid to protect them, you should do the same. And the best part about hiring a buyer agent? It’s free for you. The commission is paid for by the seller. So make sure you protect yourself. Always conduct several interviews, ask important questions, get referrals, and be sure you like and get along with the agent you choose—you’ll be working together for a while!
Stepping into the real estate arena in Toronto for the first time can feel overwhelming at first. Following these 5 steps will help start your journey on the right foot.
If you have real estate questions or need help with your property purchase, our team of local experts is waiting to help. Call or email us to get the help you need.
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