Finding your future home is a process.
This guide is about understanding that process and putting yourself in the most favourable position to secure the home of your dreams.
You can choose the right advisor to help with home buying by interviewing, seeking referrals, and researching prospective salespeople. Since you only work with one Realtor®, it should be someone you like, trust, and respect.
GET PRE-QUALIFIED
Pre-qualification is the lender’s estimate ofyour borrowing power, which is determined
by your application, credit history, income, and debts.
GET A PRE-APPROVAL
Pre-approval formalizes the estimate and concludes with a letter or certificate of commitment from a lender that confirms approval for a specified amount at specified terms.
TOTAL DOWN PAYMENT
You must invest this money in a down payment and closing costs. Your equity can be added to this total if you own a home. You can determine an estimation by talking with your lawyer or financial advisor.
Toronto’s housing stock is diverse and gives home buyers limitless options. Most neighbourhoods offer a variety of housing styles. Often, the housing style is determined by your budget.
CREATE A WISH LIST
Home purchases require compromise, so you must prioritize your needs and wants before beginning your search. Share your wish list and your price range with your salesperson so they can find properties that fulfill your needs requirements. Keep your Sage Realtor® advised of any changes to your requirements.
LOOK AT EVERYTHING
Your Realtor® can show you any listed homes. As you view various homes, start to narrow your search by defining more specific parameters and assessing alternative housing styles, configurations and conditions.
USE THE INTERNET
Realtor.ca is your friend and the most
comprehensive source of listings on the market.
When you find the home you want, it is time to make an offer. Here are the most common elements of an offer:
• Price is determined based on comparable listings, sales, and current market conditions. It is essential to understand that the listed price is a marketing price and often doesn’t reflect the actual market value of the property. Your Realtor® can access market value and advise you accordingly.
• This stipulates that you will buy the home subject to obtaining a mortgage in a specific time frame. This condition is unnecessary if you have been preapproved for a mortgage. Generally speaking, the fewer conditions, the stronger your offer will be.
• A thorough inspection of the property protects you against structural or material problems. The buyer is responsible for hiring and paying the inspector but this is money very well spent.
• The deposit amount secures the contract until the closing and will be applied to the down payment and closing costs. The bigger the deposit, the better. In Toronto, you should provide a minimum of 5% down.
• The date when ownership changes hands. Flexibility can give a buyer a big advantage and occasionally allows for you to negotiate more favourable terms.
• There is often a fair amount of negotiation before both parties are satisfied. Your Realtor’s® experience and market knowledge will be invaluable during negotiations.
The buying process involves many legalities, so it’s best to use a lawyer with real estate experience. Although most transactions close without any problems, an experienced real estate lawyer is helpful if difficulties arise. Toronto lawyers typically charge a flat fee for home buyers. Disbursements will be in addition to the quoted fee. Your lawyer can provide you with the exact disbursement expenses for your transaction.
Many different insurance types are associated with home ownership, some mandatory and some optional. See below for a few examples:
1. Homeowner’s Insurance
2. Mortgage Life Insurance
3. Mortgage Insurance
4. Title Insurance
Shortly before closing, your lender will forward all loan documentation to your lawyer. You will be responsible for bringing the balance of your down payment and closing costs to your lawyer, typically in the form of a certified cheque or bank draft.
Decide whether to move yourself or hire professionals.
Make reservations with a moving or truck rental company well before your move date to ensure availability.
Tip: Call three companies for estimates to compare.
Sign up for services at your new address. The typical providers include:
The sale of a house often entails considerable negotiation. A seller can accept the offer as is, decline the offer outright or make a counteroffer.
Friends and family, banks, insurance companies, credit card companies, and other financial institutions. Magazines and newspapers, doctors, lawyers, accountants, and other service providers. Also, update your driver’s license, health card at the Canada Revenue Agency.
A “Sold” sign will be placed on the lawn (for freeholds), and the sale will be reported to MLS®. Then you can expect the following to happen:
I know buying a home can be daunting, but it doesn’t have to be!
If you feel ready to discuss the next steps, feel free to reach back out to me. We can have a more in-depth chat and I would be happy to answer any questions you may have.
Derek is an incredible realtor. I would recommend him without hesitation to colleagues, friends, and family. He helped us navigate the search and purchase of our first home in Toronto's crazy market.
- Carly H.
I highly recommend working with Derek; he was a pleasure to deal with from beginning to end. Patient, empathetic, straightforward, proactive, and responsive, Derek was there at every step of the way as we bought our new home and listed our original home.
- Rob & Andrea L.
After signing the final paperwork to complete the purchase, you are now the owner of a new house. It may take a few days for your loan to be funded once the paperwork has been returned to the lender, but once that check is delivered to the seller, you’ll be all set to move into the home of your dreams.
Whether buying or selling, we provide expert advice and local market insight to help you achieve your real estate goals. Our dedicated team works tirelessly to deliver a smooth, successful transaction tailored to your needs.
