4 Things to Consider for First-Time Home Buyers and the Reality of Buying in Today’s Climate, Millennials update.

So much has changed for Canadians looking to buy their first home in Ontario. Today’s climate still marks a great opportunity for first-time home buyers however there’s a lot to consider. Be it buying a single-detached, semi-detached, townhouse, or condo, buying property in regions like Toronto and Peterborough does not have to be so complicated. This is our quick guide on the 4 things to consider if you’re a first-time home buyer about to enter into today’s real estate market.

House hunting with a real estate agent

Create a checklist of ‘needs’ and ‘wants’ for your first-time home. As a first-time home buyer, finding and securing the right property can be a very time-consuming and overwhelming experience. It’s highly recommended to partner with a real estate agent who can do all the legwork for you – answering questions, negotiating on your behalf, prevent you from entering a bad deal, and finding exclusive listings you won’t find online. Real estate agents can also help to determine the right neighborhoods to look in and how to successfully navigate a bidding war.

Deciding on the terms of your mortgage

After finding the right property, deciding on what kind of mortgage you want is one of the more important choices you’ll make. There are many different components that go into a mortgage, including the loan term, amortization, whether it’s open or closed, what size you qualify for, where to find the best rate, and whether you want a fixed-rate or variable rate mortgage. Always ensure to select terms that suit your long-term financial stability. The last thing anyone wants to be is saddled with a mortgage they cannot comfortably cover.

Knowing the extra costs of home ownership

There are many additional costs that can rise and fall over the course of own’s home ownership journey. Land transfer taxes, appraisal fees, title insurance, and utility adjustments are all immediate costs of buying a home in Toronto or Peterborough. Then, long-term, there’s property taxes and rising interest rates which are expected to continue through the foreseeable future. Be cautious and ensure that your financial stability is not being threatened by buying a property beyond your means.

How much your down payment should be

Down payments cannot be financed by your mortgage and are paid upfront to secure the property. The larger your down payment, the less your mortgage needs to be and the more money you’ll save in the long-term in interest. It’s ultimately up to the home buyer to decide how much they want to put on their down payment however in Canada, there is a minimum percentage required depending on what price bracket one’s property falls into. For example, a home that costs less than $500,000 requires 5 percent in its down payment while a home that costs $1 million or more requires 20 percent for down payment.

Are you buying your first home in Ontario this year – give us a call! We’ve helped many first-time home buyers find and secure the right property for their needs. Helping the next generation of Ontario homeowners, we can provide guidance on where to look and how to negotiate.

For more information on home financing, real estate, and how to add value to your property, visit back often!