Whether you are looking for a house or condo, the path to homeownership has many steps. Below is an outline of the buying process and what you should expect on the path to buying your home or condo. This quick guide gives you a clear overview of how to successfully navigate the home buying process.
Your Realspective Buyer Specialist will be with you every step of the way. They know the process and can explain the home buying process in more detail. With years of experience and backed by a Management team ranked in the top 1% of Agents in the city, you can trust that you're in good hands.
Step 1: Get Pre-Approved For Your Mortgage
Not being approved before viewing homes is like putting a blindfold on and driving a car. It's a recipe for disaster! The "mortgage" word sounds a lot scarier to people than it actually is. Getting pre-approved for a mortgage really just gives you the ability to understand how much you can afford when buying a home or a condo.
Talk with your bank and a Mortgage Broker. The banks literally say all the time "get a 2nd opinion" anyway 😉 . They'll look at your financial situation and what you are looking to buy (pre-approvals for houses and condos are actually calculated differently) and let you know what the maximum you can afford is.
A good Mortgage Broker will also help you decide on what a comfortable home purchase budget would be based on your financial situation.
Using a Mortgage Broker is FREE and doesn't commit you to anything. It's simply a way to lock in rates and understand your financial situation better before house hunting. Mortgage pre-approvals are typically good for 120 days, so you'll have plenty of time to buy. If you're not buying right away, just let your Mortgage Broker know, they can hold off on a formal approval until the time is right.
Be Aware Of The "Hidden" Costs Of Buying
Most people know that you need to save up a down-payment to buy real estate, but not everyone is prepared for the "hidden" costs of buying a home for the first-time, or for the first-time in a long time, as there are several costs to be aware of.
Beyond the down-payment for your home you'll have some other expenses that may include:
- Legal Fees
- Land Transfer Taxes (LTT)
- Municipal Land Transfer Taxes (MLTT)*
- PST on Mortgage Insurance
- Home Inspection
- Home Appraisal
If you're a non-resident you may have to pay a Non-Resident Speculation Tax (NRST) when buying in the GGH (Greater Golden Horseshoe). For more information on that NRST please click here.
Your Realspective Buyer Specialist will help you make sure there are no surprise costs when you buy with us. If you want more info on how much each of the above costs click here.
Step 2: Create That Wish List
This step is easy for most buyers. Before you get too deep into the home buying process you should create a wish list of "must have" and "nice to have" items. Maybe you desire an Instagram 📸 worthy view or maybe you have a husky, so A/C and a pet-friendly building are a must-have for your pup 🐶 ... Whatever it is write it down.
Some factors you'll want to think about when creating your wish list:
Access to Public Transit
Parking (buy or rent)
Location. Location. Location.
Monthly Carrying Costs
House, Condo, or Townhouse
Urban vs. Suburban
Type of finishes in the home
Once you have this list, discuss your wish list with your Realspective Buyer Specialist. They have a wealth of market knowledge and will be able to help you figure out what's realistic and what's going to be tough to find on your budget. We know though that whatever you're looking for we can help you find the right place to call home.
Step 3: The Home Search Process
We're excited to start searching for the right place for you to call home. Once you are pre-approved and have your wish list complete, we can start the home search! Our website is a great place to view different properties and get a sense of the market, but once your search reaches this point you need real-time data and properties.
We give you access to a powerful search tool that gives you real-time property alerts that put the hottest new properties in your inbox instantly (or as frequently as you wish, we know you can't just surf real estate all day at work). Collaborate (Collab for short) gives you the same MLS system that Real Estate Agents have access to.
Just like your favourite dating app, Collab allows you to like, share, and chat with your Realspective Buyer Specialist about listings during your search for a place you'll ❤️ to call home. If you don't find Mr. or Mrs. right online... we'll at least help you find the right place to call home.
Collab is exclusive and you must be invited by a Toronto Realtor. Click the button below to email us for access to this tool.