Buying Your First Condo in Toronto? Here is What You Need to Know!

Are you thinking of buying your first condo? If so, you’ve come to the right place! Buying your first home is an exciting, but stressful process. At the end of the day, it will all be worth it as this will be your greatest investment yet. Say no more to pay your hard-earned money on rent, instead, you can put your income towards home to call yours.

Questions about the buying process? Email us at nicole.li@century21.ca and we’ll answer your questions one-on-one.

Here’s what to prepare for before jumping into the buying process:

• How much can you really afford? The best way to know is to book a consultation with a mortgage broker or lender. They’ll provide a mortgage pre-approval based on your credit score, income, tax returns, down payment and debt load. Don’t forget about monthly maintenances fees, land transfer taxes, home insurance, lawyer fees, monthly utility bills, mortgage interest. We know this seems like a lot, but trust us, taking awareness of these upcoming costs will save you a lot of financial pressure later on.
• Be clear on your condo requirements such as location, budget, and layout. Narrowing down your criteria will give you a clearer picture of where and what you should be looking for. Requirements such as your preferred location, closing date, size, layout, budget, and parking are all key factors to consider.

• Be knowledgeable about first-time homebuyer incentives. As a first-time homebuyer, you can receive government incentives such as tax returns from the Home Buyers’ Amount. You’ll receive the return after you’ve purchased your home and eligible individuals may receive up to $5,000. The First Time Home Buyer Incentive allows you to borrow 5-10% of the purchase price of your condo and pay back the same percentage amount once it sells in the future. For more info about first-time homebuyer incentives in Ontario, check it out here.

 

The Buying Process

• Get your mortgage pre-approved. Before diving into your condo search, you need to get your finances figured out. Ask your mortgage broker or lender to provide you a mortgage pre-approval to know exactly how much you can afford. This step is crucial because you’ll need the funds to close otherwise it will be a stressful and complicated process for both parties.
  
  
• Work with a professional real estate agent/broker who knows the market well. Do your research and find a trustworthy realtor who has an in-depth understanding of Toronto’s real estate market. Ask yourself these questions before hiring a realtor. Do they seem trustworthy and confident? Are you comfortable working with him/her? Do they have excellent Google reviews? Are they knowledgeable about the market? Are they hardworking?

• Condo shopping with your realtor. Now that you know how much you can afford and have an understanding of your condo requirements, now it’s time for your official condo search! Your realtor will send you a list of properties within your criteria and book showings upon your request.
  
  
• Making an offer. Once you found your dream condo, your realtor will put in an offer based on market value and a price you’re comfortable with. A prudent realtor will do their research and have an estimate of what a specific property will sell for. The most common conditions are finance and status certificates. Going firm on an offer without any conditions will increase the chances of your offer being accepted. An offer with a good price, having the deposit herewith, and no conditions will have a much higher chance of securing a deal.
  
  
• Stay in the know about condo closing fees. Once the deal is firm, you’ll need a real estate lawyer for title transfer and other closing processes. Closing fees include lawyer fees, monthly maintenance fees, mortgage, mortgage interests, land transfer taxes, utility bills and etc.

Buying a condo is one of the greatest investments you’ll make in a lifetime and that’s why we’re here to guide you n every step of the way. We always put our client’s needs first through our results-driven approach. If you have any questions regarding the buying process, connect with us down below by filling out your contact info and we’ll reach out to you as soon as possible!