Tips for Buying a House in Toronto for 2020

Close Up of Lennox Logo on Furnace

The start of a new year is always a good time to make big changes, especially ones that’ll help in achieving a major goal. One example is getting a place to call home, a move that can be seen as either a milestone, personal achievement, or both.

There’s a lot of research and paperwork involved in the house-buying process. Then, there’s the matter of choosing one out of many great options. Here are a few things to take note of before checking out homes for sale in Toronto.

Know Your Budget

Because buying a home is a major financial move, you must determine how much you’re willing to spend on it. Aside from narrowing down your options, this will also help you prepare for the down payment and other expenses ahead of time.

Keep in mind that prices don’t just solely depend on the house’s features but its location, as well. So, a two-story, four-bedroom home in Toronto might not cost the same as one in North York.

Look at Available Loans, Rebates, and Incentives

If you’re thinking of taking out a home loan, look at your credit score. Banks and other lending institutions use this figure as a basis for approving your application. The better your rating, the more likely you’ll get a mortgage.

Another requirement of getting a mortgage is the stress test, which checks how your finances will fare in case of a setback. It tells if you’re prepared to deal with the costs that come with owning a home. The lender will look at your income, debts, and credit history, as well as the down payment for the potential house. To pass the evaluation, you must qualify for a 5.19% mortgage rate. If you’ve already settled on a negotiated figure with the lender, add 2% to it.

If this is the first house you’re going to purchase and own, a buyer may have a down payment as low as 5% of the purchase price for a pre-owned and 10% of the purchase price for a newly built one.

Couple Looking at Furnace at Store

Create a Dream Home Wish List

Now that you’ve set up a budget and have a good idea of available payment programs, it’s time to choose from the homes for sale within your price range. In this phase, it can be easy to get carried away by all the different features of various houses. To keep yourself from buying the wrong place, come up with a home wish list. This includes the number of beds and baths that you’ll need and how big you want the living room, dining area, and garden to be.

If you want certain features, like a specific type of flooring, staircase shape, appliances, and so on, take note of them, too. Writing down a list of must-haves, nice-to-haves, and super-bonus items will help you stay in line.

Get in Touch with Professionals

Visit Merenda Real Estate Group’s website to consult a real estate agent in Toronto. They’ll help you avoid unnecessary expenses and find the perfect home for you and your family. Their in-house experts can also assist you in managing and selling your residence when you feel that it’s time to move on to a new one.