Are You Ready to Buy?

 

Whether you are purchasing your first home or a repeat buyer there are first a number of questions you must answer before setting out.

  1. Why do you want to buy?
  2. Do you want to put roots down into a community?
  3. Are you expecting a lifestyle change? (This could be marriage, divorce, income change or starting a family)
  4. What are you looking for in property?
  5. Lastly, what is your time frame for finding a home?

No two people will have the same answers, but the more you know about your motivation and the present Toronto real estate market will better focus your efforts during your home quest. First thing, Do you have the money? You should have enough for a down payment which should represent at least 5% of the purchase price of the property. The next thing is to approach a financial institution to see how much you qualify in terms of a mortgage. They will also lock in a rate for you for 90 days, but while you are there ask about what flexibility they offer in additional payments and penalties. You will be surprised on how much a bank will lend you, but a wise buyer will stick with only borrowing the amount they need.

Closing costs are part of any housing purchase. Here in Ontario we have a land transfer tax, as well those living in Toronto will also be looking at an additional tax. First time buyers are given a break on an home under $400,000 but anything above that a tax levy will be applied. Lawyer fees, moving costs and renovation expenses should also be kept in mind.

Once you tackle this step you will be ready for the next one….Getting a Realtor. I will blog later this week on this one