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Step-by-Step Towards Your Dream Life:

The First Step to Selling Your Home

Buyer's Guide

Step 1: Assess Financial Situation

Set a Budget: Calculate monthly after-tax income and account for debts (like credit cards or car loans). Use a mortgage affordability calculator to estimate how much you can afford based on income, expenses, and down payment.

Build Savings: Besides the down payment, it’s recommended to have an emergency fund, ideally covering 3-6 months of expenses.

First-Time Homebuyer Incentives: Programs like Canada’s First-Time Home Buyer Incentive can lower monthly payments with a shared-equity mortgage from the government.

Step 2: Understand Upfront and Ongoing Costs

Mortgage Insurance (CMHC): If your down payment is less than 20%, mortgage insurance is required, adding to your monthly payments.

Annual Property Taxes: In Ontario, property taxes are based on assessed home value and may adjust annually.

Monthly Maintenance Fees: For condos, these fees cover shared facilities, repairs, and management. Research the per-square-foot maintenance cost for your desired building.

Step 3: Get Mortgage Pre-Approval

Explore Mortgage Types: Choose between fixed, variable, or adjustable-rate mortgages depending on your risk tolerance and financial goals.

Compare Rates: Pre-approval typically provides a rate lock for 60-120 days, protecting you from rate increases. Compare posted and discounted rates for the best deal.

Mortgage Conditions: Pre-approval isn’t a final guarantee. Final approval depends on any financial changes or whether the property meets loan standards.

Step 4: Define Needs and Wants

Community Research: Consider work, school, shopping, and transit access. For families, research school rankings and neighborhood safety.

Property Type: Decide between a condo, townhouse, semi-detached, or detached home, as each has different maintenance needs, privacy levels, and costs.

Additional Features: List “must-have” features (like parking, outdoor space, accessibility) and “nice-to-have” ones to streamline property searches.

Step 5: Find a Real Estate Agent

Agent Qualifications: Look for agents with GTA experience and strong performance who understand local neighborhoods. Interview to ensure alignment with your needs and values.

Scope of Services: Agents provide market insights, negotiation skills, and paperwork support—ensure they prioritize your interests.

Buyer Representation Agreement: This agreement clarifies the agent’s responsibilities and protects you. Read the terms carefully.

Step 6: Begin House Hunting

Use Online and Mobile Tools: Realtor.ca and the MLS app let you save listings, set alerts, and schedule viewings. Your agent can arrange private showings.

Visit Communities in Person: Explore various areas at different times of day to experience the atmosphere, traffic, and noise levels.

Flexible Timing: Be ready to act quickly in the competitive GTA market, but avoid emotional decisions during bidding.

Step 7: Make an Offer

Pricing Strategy: Balance competitiveness with budget constraints under your agent’s guidance.

Include Key Conditions: Common clauses include:

  • Financing Condition: Ensures mortgage approval.
  • Home Inspection Condition: Allows assessment of potential issues.
  • Status Certificate Review: For condo buyers, confirms financial health and condo rules.

Negotiation Skills: Be prepared for counteroffers. Prioritize essential conditions over “nice-to-haves.”

Step 8: Conduct Due Diligence

Home Inspection: Hire a certified inspector, and if possible, attend to ask questions.

Final Mortgage Approval: Submit the accepted offer to your lender and complete the mortgage process. A property appraisal may be required to confirm the home’s value.

Choose Your Lawyer:

  • Research and Select a Lawyer: It’s recommended to choose a real estate lawyer experienced in Ontario transactions, either via agent or owner referrals or using professional directories.
  • Legal Fees: Real estate lawyers typically charge $1,000 to $2,000, covering document review, title transfer, mortgage registration, and other closing tasks.
  • Meet and Review Documents: Your lawyer will review contracts, mortgage terms, and conduct a title search to ensure there are no liens or claims on the property.

Step 9: Prepare for Closing

Arrange Closing Funds: Ensure the closing costs, including remaining down payment and legal fees, are available in your lawyer’s trust account before closing.

Title Insurance: While optional, title insurance protects against potential title issues, saving legal costs in case of disputes.

Final Walk-Through: Conduct a final inspection one to two days before closing to ensure the property is in agreed-upon condition.

Step 10: Closing Day

Transfer of Funds: On closing day, your lawyer coordinates fund transfer to the seller’s lawyer and registers the title transfer with Ontario’s land registry.

Receive Keys: Once funds are processed, you’ll receive the keys and officially become the homeowner.

Move and Settle In: Schedule movers, update your address, and prepare for utilities on move-in day.