With world-class conveniences and amenities, a thrilling entertainment scene, and breathtaking scenic beauty all around, who wouldn’t want to live in West End Toronto? As long-time residents ourselves, we never grow tired of what this incredible city has to offer.
That’s just one of the many reasons why we are so dedicated to helping anyone who has (understandably) set their sights on buying a house in Toronto. There’s nothing like witnessing the pure joy a new buyer feels when getting the keys to a gorgeous home in a dynamic neighbourhood.
Maybe you’re a first-time buyer who is finally ready to move out of your apartment and into a place of your own. Or perhaps you’re looking to upsize into something more spacious for your whole family to enjoy. No matter what your goals may be, it always helps to have a handy guide to help you stay on track as you find your little slice of paradise here in Toronto. In this post, we’ll highlight a few of our best home-buying tips.
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Organize Your Finances
West Toronto real estate prices reflect the high demand and it’s no secret that buying a home here is expensive. That’s why it’s imperative to understand your financial resources and to get as organized as you possibly can. Your ability to save money and your borrowing power will be critical as you move forward with your plans.
Check Your Credit Score
A mortgage is likely the biggest loan you will ever require, and knowing your credit score is a crucial first step you should take when you are considering buying a home. It’s not that you necessarily can’t qualify for a mortgage if your rating is less than stellar.
However, your credit score shows how dependable you are in paying your bills – which directly affects the interest rate on your mortgage and the amount of your monthly payments. A good credit score ranges around the 700s to high 600s. Most lenders require a minimum of about 625 for a mortgage.
If your score is not too high, it’s a good time to start trying to lift those numbers – pay off any debts, avoid buying things over budget or that you cannot afford, and be sure to make all bill payments on time. Another thing to watch is your credit ceiling. Lenders consider how much debt you already have, so we recommend avoiding any more credit applications if you can help it.
Want to get to know the neighbourhoods of West Toronto a little better? Here is some related reading that you’re sure to love:
- Why The Junction is Perfect For Families
- 5 Reasons To Love Living in Swansea
- Why Do Families Love Rockcliffe-Smythe?
- 5 Reasons Baby Point is an Incredible Place to Live
- Why We Love Bloor West Village
Start Saving Early
Your mortgage will cover the bulk of your purchase, but you will still need access to a down payment while having funds left over to cover your closing costs and any incidentals. The amount you need upfront depends on the total purchase price, ranging anywhere from 5% to 20%. Regardless of the price, you can save on mortgage insurance if you can manage at least a 20% down payment, so it’s worth saving up for.
- If you’re a first-time buyer, you can take advantage of programs like the First Home Savings Account. This program allows you to contribute up to $8,000 each year to an investment account designed to help you save for your down payment and closing costs. The lifetime maximum is $40,000; however, any dividends the fund earns can also go toward your purchase.
- The Home Buyer’s Plan is another program for first-time buyers who already have funds in an RRSP or other tax-sheltered investment account. This allows you to withdraw as much as $60,000 to buy your West Toronto home. If you’re purchasing with a partner who is also a first-time buyer, you can both take advantage of both programs to maximize their impact.
Learn even more about incentives for first-time home buyers in A Guide To Buying Your First Home In Toronto.
Create A Budget
Once you have a clear financial picture, you can begin working on your home-buying budget. Now is also a good time to tally your current expenses and see where you’re spending your money each month, from paying off student loans to groceries and gas for your car.
Remember that mortgage payments are not the only thing you’ll be saving up for – there are also repairs, homeowner insurance, and taxes. Keep your budget in mind when looking at homes. As a general rule, you should be looking at home prices that are two to three times your annual income, which helps ensure that you’re not taking on a larger mortgage commitment than you can afford.
Find A Great Lender
An experienced mortgage broker can help you even more when it comes to knowing how much purchasing power you have and what kind of home you can afford. Talk to credit unions, local banks, and other financial institutions. A lender will be able to answer your questions and educate you on the process of getting financially ready to purchase a home. If you’re working with our team, we can connect you with some of the top mortgage brokers in the city to help you get the best rate and terms on your loan.
Get Pre-Approved in Advance
Many home buyers skip the pre-approval step, which can be a big mistake. We’re not talking about a simple pre-qualification, either. A mortgage pre-approval is an involved process where you fill out an application and the lender runs a credit check.
The result is your mortgage broker knows how much you can afford based on your financials. Once you’re done, the lender will provide you with a certificate of pre-approval, which you can then show to sellers to prove you qualify for financing.
Many first-time home buyers don’t realize just how much bargaining power being approved in advance can give you. All things being equal, a seller will accept an offer where the buyer is most likely to be able to follow through.
Curious about what’s on the market in Toronto right now? Take a look at our featured listings right here.
Find Yourself An Amazing Realtor®
West Toronto real estate can be a challenging market, and you don’t want to try to navigate it alone. A great Realtor® is a must-have resource if you want someone to help you find your dream house. Just think of the benefits of having an expert there to guide you every step of the way:
- Buying a house can be complicated, but you’ll always have someone knowledgeable to keep you on track.
- You’ll often have access to off-market listings before they reach a wider audience. Not only can this help you find a house you love, but you might save money in the process.
- In a tough market, it pays to have someone to negotiate on your behalf. You never know what small concession might tilt the scales in your favour – until your real estate agent steps up to represent you.
- An experienced Realtor® has seen hundreds, if not thousands of houses before. We can help you spot red flags well before they become a problem for you.
- A well-established real estate team doesn’t work alone. They come with a whole network of experienced professionals that include movers, cleaners, real estate lawyers, mortgage brokers, home inspectors, and more.
A local Realtor® will have great knowledge and can match you with the right home that meets all your needs. They will take into account what you’re looking for in a neighbourhood – schools, close to work, etc. Finally, with your Realtor®, you’ll be able to look at homes and attend open houses to find the one best suited for your wants and needs.
Some background research will help you negotiate your purchase more effectively. The posts below are a great place to start:
- 5 Little Known Things to Look For When Touring a Home
- What Should You Look for in a Home Inspection Report?
- 5 Questions to Ask About a Home Before Making an Offer
Start Making Your Wish List
All of the pieces are falling into place, but there’s just one more step before you officially get out there and start looking at homes. First, you need a clear picture of what you want. As you consider your needs, you’ll realize that some home features are non-negotiable. You may not be willing or able to consider a house without a driveway or a second bathroom.
Other desirable attributes may be worth a compromise, especially if you manage to secure the property at a great price. Start by filling in your real estate agent on what you’re looking for. Together, you’ll brainstorm a list of what you absolutely must find in a home—and which features are simply sweet extras.
Put In An Offer
Once you’ve fallen in love with a property that meets your needs, discuss an offer strategy with your Realtor®. Some markets are more competitive than others. As much as possible, it’s nice to use conditions and contingencies to make sure nothing goes wrong when you take possession. However, you don’t want to miss out on the house of your dreams because another buyer made a slightly better offer.
- If other buyers have an eye on your house, you can find creative ways to guard your interests while still making a compelling offer. For example:
- As we mentioned earlier, getting pre-approved ahead of time for your mortgage can allow you to safely drop the condition of financing.
- Adding a condition of home inspection can hurt your chances if a seller has another offer. However, you can arrange for an inspection at your own expense. It’s well worth the minor cost considering what’s at stake.
- A higher deposit can be a small way to make your offer stand out and show that you are a serious buyer. Best of all, you’re not paying more for the house overall!
Your real estate agent undoubtedly has dozens of ways to help you uncover any advantage you may have while advocating for the best possible price and terms. Early planning, patience, and a little flexibility will go a long way in today’s fast-moving market.
Be Open to Negotiation
Your negotiation strategy as a home buyer in Toronto will depend on the state of the market you are working in. If conditions favour sellers, you may need to go over the asking price and drop some (if not all) of your conditions.
When the market softens, you’ll have more options to choose from, and sellers may be willing to offer some concessions of their own. There will always be some give and take by both parties regardless of the situation. This is yet another reason to have an experienced real estate agent by your side. If they’ve been successful over the years, you can bet it’s because they are skilled negotiators who can represent your interests.
Once you place an offer, the process begins, and you’ll soon get an answer one way or another.
- The seller may accept your offer.
- The seller might decline your offer.
- The seller can counteroffer.
The last scenario is where you really want a skilled and professional negotiator at your side. The seller likes your offer; they may just need a little more to nudge them over the edge. The trick now is to make it more compelling without overpaying or compromising too much on the terms. That said, a little flexibility may be what it takes to secure the deal.
Your goal of owning your home in West Toronto is getting closer by the minute! And here are just a few things you have to look forward to:
- Top Hiking Trails In The West End
- Five Best Skating Rinks in the West End
- Explore the Best of Toronto’s West End This Spring and Summer
Iron Out the Final Details
Once your offer is accepted, it’s on to the closing process. It’s an exciting moment, but you may feel like your “to-do” list just got a lot longer. Taking it step by step will help prevent you from feeling overwhelmed. Now is a good time to ask your friends and family members to save some boxes for you so you can start packing up your belongings.
You’ll also need to attend to a few details to ensure a seamless close. A good real estate lawyer is essential to run a title search and secure title insurance for your new property. Contacting utility companies and changing your address on all correspondence will also be high on your list.
Your real estate agent can still be there to guide you and make sure you don’t forget anything. And if you need help with the packing, just ask – they will undoubtedly have a reputable mover in their contact list. Moving day will be here before you know it. With some friends and a few trusted professionals on your side, you will be ready to greet your new home!
Are you determined to make your home buying goals a reality? Tell us all about your wishlist and our West Toronto real estate agents will help make it happen! Give us a call at 416-769-3437 or email info@sidorovainwood.com to get started.
