Buying a home in Canada is a joy. You have many great housing and neighbourhood options to choose from. Its major cities offer some of the best living spaces and communities as well.
However, buying a home is also a major undertaking. You need sufficient funds and preparations for a hassle-free process. Top real estate agents in Toronto are ready to help you purchase your dream home, but you need to be prepared in different aspects. Consider this short guide to streamline your purchase steps for this major life decision.
Prioritise Your Pre-approval Letter
Do some preliminary research on the lender of your choice based on their interest rates and terms. Once you’ve decided on your lender, apply for your mortgage and a preapproval letter. The preapproval will state the loan amount you will receive. Since you know how much your limit is, you can easily look around for housing options within your budget.
Another advantage of an early pre-approval letter is that the lender will honor the agreed interest rate for 120 days. If there are increases or changes to this rate, you will still use the agreed interest rate despite any changes.
The pre-approval also qualifies you to the seller, and this makes the negotiations part easier. The seller has no risk dealing with your offer since the lender has agreed to the loan. This will avoid long delays that can mean lost opportunities or even another buyer edging you out of the deal. Local real estate agents can help with your house shopping process and negotiate with the seller just in case. After these steps, be prepared for the upcoming costs.
Secure Your Finances
Pre-approval will determine how much you can loan so you can shop around and have housing choices that fall within your budget. Make sure you have enough funds for the downpayment and other expenses, such as closing costs and other fees.
Take note that there are corresponding down payment thresholds according to house prices in the market. The highest prices from CAD 1 million and up demands a 20 percent down payment. For houses at CAD $999,999 to $500,000, it’s 10 per cent. For houses priced at below CAD 500,000, it’s only 5 per cent.
Choose a Good Home
It’s easier to list down your choice of homes when you know your budget limit. Aside from choosing your possible dream house, you have to consider the price and the conditions of the house, even if it’s brand new. Doing an inspection will help you negotiate later with the seller when finalising your choices and the deal price. The location and surrounding areas of your future home are also important.
At this point, you may want to check with local real estate agents who can help you make the best choices. Their knowledge of the industry and access to more homes to choose from will give you even better options. They are also in a better position to negotiate after inspections and viewing.
Congratulations on your first step to owning a new home. It’s a major undertaking that demands secure funding and the right choice of house. Remember to take each step towards your goal carefully to be better prepared for your decision. In many cases, the help of a good real estate agent is key to purchasing that well-chosen dream home.
We at Sold With Presta can help you maximise your options and secure the best housing deal. We are one of the top real estate agents in Toronto with our award-winning main agent Andrew Presta. Sometimes, all you need in choosing a home is a little help from an experienced and knowledgeable agent. Contact us today and get that house you deserve!