Tips on Buying a House in Toronto
Anyone who has been keeping an eye on the Canadian real estate market is fully aware that housing prices have been skyrocketing over the past few years.
The increase in housing prices has made it increasingly difficult for homeowners, both young and old, to purchase the right property.
One of the many reasons for the drastic increase in housing prices is that there simply aren't enough homes for Canadian buyers.
So, if you want to buy a home in a popular city like Toronto, you need to form an airtight game plan before starting your search. After developing a game plan, buying a house in Toronto becomes much more manageable.
That being said, finding the right home is never a walk in the park.
That's why we've put together this six-step guide on buying a home in Toronto — continue reading to get started.
START A QUOTEHow to buy a house in Toronto in six simple steps
Feel free to utilize the following step-by-step guide if you're planning on buying a house in Toronto in the near future:
Step #1 — Figure out what you want
Before anything else, you need to take a moment to figure out what type of house you'd like to live in. This is a crucial step in the house-buying process, as it helps narrow down your search later on.
Do you want to live in a house in the heart of the GTA? Or would you prefer something a little more spacious on the city's outskirts? Both of these housing options have their own sets of pros and cons. Be sure to assess your preferences and needs before moving on to the next step.
Step #2 — Getting preapproved for a mortgage
Whether you're thinking about buying a house in Toronto or anywhere else in Ontario, you should consider getting preapproved for a mortgage. Although this adds another step to the house-buying process, getting preapproved for a mortgage can be beneficial.
Getting preapproved for a mortgage makes it clear to sellers that you are actively searching for a new home and not a random buyer making an impulse offer.
As a reminder, if you're getting a mortgage for your home, you will need to purchase a home insurance policy. Mortgage lenders require buyers to purchase home insurance because they want to protect their investment. Remember — your mortgage lender technically owns a portion of your home until the loan has been paid off entirely.
Step #3 — Find a realtor and/or real estate lawyer
Toronto is full of experienced real estate professionals that can help you throughout any part of the house-buying process. Realtors can help you find the home that you want, put in an offer, and much more.
Although you don't have to work with a real estate agent, it can be beneficial in the long run. Working with a real estate agent helps you find a home faster and generally for a better price. Plus, you get access to their invaluable industry expertise!
You may want to consider working with a real estate lawyer for additional peace of mind. Real estate lawyers can help you avoid getting into legal issues while buying property in Toronto.
Step #4 — Start house hunting
House hunting is, by far, the most enjoyable part of the home-buying process in Toronto. Prospective homebuyers can spend the day traveling from home to home and comparing their potential options. House hunting allows you to picture yourself and your furniture in the space. Additionally, getting to see a home in person gives you a better idea of how the space looks and feels (compared to photos).
However, house hunting isn't all fun and games. Be sure to keep the following questions in the back of your mind the next time you go house hunting in Toronto:
- Is the home in your price range?
- Is the home in a safe location with a low crime rate?
- Are there schools, grocery stores, and shopping centres within walking or a short driving distance?
- Does the property have the potential to increase in value in the future?
Step #5 — Make an offer
While house hunting may be one of the more enjoyable aspects of buying a home in Toronto, putting in an offer can be rather stressful.
After making an offer, do your best to stay patient while you wait for a response. If the home seller accepts your offer, you can move on to the final step of the process.
On the other hand, if the home seller doesn't accept your offer, don't be discouraged! Circle back to the previous step and keep looking for your next home.
Step #6 — Get the home professionally inspected
This is one of the most critical steps in the home-buying process. Professional home inspectors are trained to pinpoint minute issues and structural damage within a home.
Here are some examples of things that your home inspector will assess:
- Condition of the roof
- Condition of the flashing
- The home's foundation
- Condition of the chimney
- State of interior components like walls, doors, ceilings, windows, etc.
If the home inspector finds an issue or signs of structural damage, you, as the buyer, can renegotiate with the home seller (lower the price, request that the seller fixes the issue, etc.) or drop out of the purchase altogether.
However, if you don't get a home inspection and there is an issue or structural damage, you will have to deal with the repairs yourself.
And there you have it — the six steps to buying a home in Toronto!
Save up to 25% on home insurance in Toronto with Surex
As mentioned earlier, your mortgage lender will require you to purchase a home insurance policy if you need a mortgage for your new home.
If you're having a hard time finding home insurance quotes that work with your budget and personal preferences, be sure to contact your Surex insurance advisor.
At Surex, we make it easier for homeowners to find high-quality insurance quotes from Ontario's top-rated insurance companies. We do this by working with various providers, allowing us to offer multiple products at different price points and coverage levels.
Best of all, our Surex insurance advisors are fast — we can supply you with a list of competitive quotes in ten minutes or less!
If you currently have multiple insurance policies, don't forget to ask your advisor how you can save up to 25% on your coverage when you bundle your policies with one of our carriers.
