Whether you’ve just decided to move to the city or you’ve been renting a home here for a few years, perhaps you’ve finally decided to take the plunge and purchase a property. Buying a home is the biggest investment you will ever make, so it is important that you are well-informed about the process. Here are the steps that we think you should follow when buying a home in Toronto:

1 – Get pre-qualified

The first part of buying a property is to find out how much your bank is willing to lend you. Pre-qualifying for a mortgage will allow you to know exactly how much you can spend on a home, which will give you a better idea of what you can afford. When you pre-qualify for a mortgage, your lender will take a look at your income, your debts, your down payment, and your credit history. Pre-approval should be written and must include a guaranteed interest rate, which is typically valid for 90 days. Pre-qualifying for a mortgage will allow you to focus on your house hunting efforts by providing financial security as you find your perfect home.

2 – Make a list

Knowing what you want and need in your home is important for your journey of finding the right property. Consider the features and characteristics you want and absolutely do not want in a home in order to narrow down the prospects. Take some time to learn about the locations and neighbourhoods you are interested in as well as what kinds of amenities you might need.

3 – Find an agency

Buying a home will likely be the biggest purchase you’ll ever make, so you shouldn’t do it alone. This is why you will want to find the right real estate agency for you. An agent will be able to get you through the whole process of getting a home in Toronto. Not only will they be able to help you with the financial aspects of buying a home, but they will also understand the legal nuances associated with the process. These qualified professionals are well-versed in their field and will save you a lot of time and research with their expertise. They will be by your side on your house-hunting journey and will be able to show you places that might be of your taste and within your budget. Now is the time for you and your agent to go hunting for the perfect home!

4 – Make an offer

You’ll probably be very excited once you’ve found a home that satisfies all your wants and needs that also agrees with your budget. The logical step, then, is to draft an Agreement of Purchase and Sale, also known as an APS. This is a legally binding document that will contain everything from your price and everything that is included with the house, as well as the date that you take possession. It will also list out the conditions that need to be met for the deal to go through. Once you have submitted your offer, you must wait for the seller to either accept, reject, or even submit a counteroffer. The back-and-forth movement of negotiation may bring out a few small things you and the seller have to compromise on. A good realtor will be able to help you through every step of this bidding process.

5 – Submit a deposit

There should be a clause regarding financial conditions in your Agreement of Purchase and Sale, which will give you more detail on the amount you are to pay for your deposit. After you submit your deposit amount, which is usually 5% of the purchase price, the amount is held in trust until closing time. At this point, it’s just a matter of waiting for the closing date.

6 – Seal the deal

If you’ve reached this step, congratulations! You’re on your way of becoming a Toronto homeowner! Now comes closing time, which is when then ownership and possession of the property are transferred from the seller’s name to yours. Once all the legal and financial obligations have been met, your lawyer and lender will help you to close the purchase. It will be a team effort that will finally allow you to buy the home of your dreams!

If you’re looking to buy real estate in Toronto, get in touch with us today – we’re happy to help.