Brianna HarrisonThinking of Buying a House In Toronto? Here’s What You Should Know
Buying a house in Toronto can be an exciting time for anyone, but it can also be stressful as there are many steps to take.
If you're considering buying a house in Toronto, a lot of things go into the decision.
If you're looking at buying your home in Toronto, this article will give you all the information you need.
How to buy a house in Toronto?
Here’s how to buy a house in Toronto:
Read on as we look at each step in more detail.
- Determine your budget and desired neighbourhood.
- Look for realtors or real estate agents who specialise in the area
- Get approved for a loan.
- Look for homes online or in person.
- Make an offer.
- Do a home inspection.
- Sign the agreement.
1. Determine your budget and your desired neighbourhood.
The first thing to consider in buying a house is your budget and your desired neighbourhood.
These two things will determine the kinds of houses available in your price range in a certain neighbourhood, so it’s important to know them before making any decisions about where to look for real estate.
Determine how much money you should be willing to spend on a home.
If you’re interested in buying a house near the lakefront, for example, your budget will likely be higher than if you’re looking in an area where houses are more affordable but still have lots of amenities.
Cost of houses in Toronto
The average price of a house in Toronto is $1 million, but it really depends on the area as the price of a house can vary greatly depending on the following:
- Type of house
- Type of neighbourhood
- Proximity to school or work district
Types of house and average prices
Data from WOWA.ca
Average price of houses in major municipal provinces
Data from trreb.ca
Determine what kind of neighbourhood fits your lifestyle and values.
When choosing your desired neighbourhood, it’s important to be clear on your preferences – urban or suburban, quiet or bustling streets, so on and so forth.
There are many aspects to consider when choosing an area—and it’s important to remember that every neighbourhood has its own set of pros and cons!
Best Toronto neighbourhoods
There are many different neighbourhoods in Toronto, each with its own distinct character.
It’s important that you do some research into each neighbourhood so that you can find the right fit for you!
Here are some of the top ones:
1. East York
Average price of houses: $1,000,000 – $1,500,000
East York is an area of Toronto that’s just west of downtown. It has many large parks, including Humber River Park and Scarborough Bluffs Park, as well as many beautiful parks with playgrounds, walking trails, picnic areas, sports fields, and more.
This neighbourhood is approximately 15-minute drive to the popular Toronto Financial and Entertainment Districts.
2. The Annex
Average price of houses: $1,600,000
The Annex is another popular neighborhood in Toronto. It’s located just north of University of Toronto and Harbord Village.
This area is popular for families that have students and professionals as this is near downtown.
It is ideally near restaurants, pubs and shopping malls.
3. Bloor West
Average price of houses: $1,400,000
Bloor West is known for its beautiful architecture, with many historical buildings to behold.
It also has some great parks and outdoor spaces where you can take advantage of the nice weather.
This area is close to downtown and is near shopping hubs.
4. The Beaches
Average price of houses: $1,500,000
The Beaches are situated on the lakefront in Toronto. Its overall vibe is very laid-back, which drives a lot of people to buy properties here.
5. Don Mills
Average price of houses: $800,000 – $1,000,000
Don Mills is a vibrant neighbourhood with lots of restaurants, shops, and activities for all ages.
Though not as close to the centre of Toronto, it still has great public transportation so residents don’t have to worry about getting around town.
Don Mills offers a balance between city life and countryside living.
2. Look for realtors or real estate agents who specialise in the area.
When you’re looking to buy a house, the most important thing is to find someone who understands your needs.
After all, you’re going to be spending a lot of time with this person if you decide to work with them!
You should make sure that your potential agent has experience selling properties and is willing to put in the time and effort to help you find what you want.
3. Get approved for a loan.
Consider getting pre-approved before making an offer on a house in Toronto! This will save both parties time and energy later on, when both sides are looking for ways to negotiate.
In getting approved for a loan, you need proof of income and a good credit score.
A credit score is a number that represents your financial history and ability to repay debts.
It’s determined by a number of factors, including your payment history, how long you’ve had credit accounts, how much debt you have, and how much debt you owe.
It’s also important to understand what kind of loan options are available to you.
Some mortgages usually have higher interest rates than other types of mortgages and may naturally require higher income levels as well.
A mortgage broker will be able to help you find the right loan type and rate based on your current situation and financial goals.
Average Toronto mortgage rates
Data from RATESDOTCA
* Insured rates are rates when purchasing a house with less than 20% downpayment, while 80% LTV rates are for property with mortgage amount between 65%-80% of the property value.
4. Look for homes online or in person.
Now the fun part begins! When looking for homes you can start by checking the MLS (Multiple Listing Service) database.
This is a list of all homes currently on the market in the area you’re interested in. You can do this either online or by visiting your local realtor’s office.
Then you need to call up one of the houses listed and set up an appointment with the agent who manages that property.
Ask if they have any open houses scheduled during your preferred date range. If so, attend one!
You can also check out sites like Zillow or Trulia to see available houses for sale within your desired neighbourhood.
5. Make an offer.
In this part you’ll need to make an offer on the house within 30 days of when you find it, or else the seller can offer it to someone else.
There are cases where the seller may want a deposit in addition to the price of the house itself. This is called earnest money, and it’s usually held by either buyer or seller until closing.
In some cases, the earnest money goes directly into escrow but in others, it’s held by a third party until closing (usually an attorney or title company).
Make sure the agent knows what you want. This means telling them exactly how much you’ll be offering, whether you’re willing to walk away from the deal if they don’t come up with the right price, and any other details.
Don’t sign anything until you have all of the documents necessary for closing in order, especially if those documents include warranties or inspection reports on building materials or structural integrity.
6. Do a home inspection.
A home inspection is important when you’re buying a house in Toronto because it will tell you what you can expect from the property, and it will let you know if there are any problems that need attention before you purchase.
If you have a good inspector, they’ll be able to give you an accurate report on the condition of the home, as well as its value.
They’ll also be able to point out any issues that need to be fixed immediately so that when you do buy the home, they won’t be a surprise.
You’ll know exactly what needs work before moving in and how much it will cost to bring everything up to snuff.
7. Sign the agreement.
When you’re looking to buy a home in Toronto, it’s important to understand the legal process involved.
You’ll need to have your lawyer review the contract before signing it. They’ll make sure that everything is as it should be and that there aren’t any surprises that could come up later on.
Your lawyer will review the key components of a house purchase agreement, such as the following:
- Address and description of property
- Information of buyer and seller (name, address and contact information)
- Purchase price
- Terms of the sale
- Closing date and cost
It’s important that you don’t sign anything without knowing what’s in it! Make sure that you understand everything in the contract before signing it.
Finally, the document should be signed by two witnesses who were not involved in the selling process (and who do not know each other).
Tips on Buying a House in Toronto
Buying a home is a big decision. It can be stressful, confusing, and exciting all at once. Here are some important tips when looking for your Toronto home:
1. Save for a larger downpayment.
A larger downpayment will help you save more money in the long run. You’ll pay less in interest and have more equity in your home.
If you’re a first-time buyer, the minimum down payment in Toronto is 5%. If you have more than that, save up for a higher down payment.
2. Get pre-approval before starting your search.
Pre-approval is a good indicator of how much you can afford.
It shows the lender that you’re serious about buying a house and what kind of mortgage they should try to approve.
Start your home search with a pre-approval letter. This will help you determine the price range that fits within your budget.
It also gives you an idea of how much money you need to save up in order to purchase a home.
3. Do your research.
It is very important to do your research before buying a house in Toronto. This is so that when it’s time for negotiations with the seller and lender (if applicable), there’s as little red tape as possible getting in the way.
You should know the area you want to live in, the type of home you want, and how much it costs.
This will help you narrow down your search for a house and make sure that when a property comes up for sale, you’re ready to act on it.
4. Pick a good real estate agent.
If you need to buy a house in Toronto, plenty of real estate agents want to help you.
It’s important to find a good agent who can help you through the process. They should be knowledgeable about the market, have experience dealing with clients like you, and know how to negotiate well on your behalf.
Make sure that your agent is licenced and registered with the Toronto Regional Real Estate Board (TRREB), so they’re part of a professional organisation that protects buyers and sellers from fraud.
5. Make the most of your open house visits.
When buying a house it is important to go through an open house visit.
This is when the seller will let potential buyers into their home for a tour to see how the home looks and feels.
The purpose of these visits is to give potential buyers an idea of how the home will feel when they move in.
6. Pick a good real estate lawyer before closing the deal.
A good real estate lawyer can help you with the closing process, mortgage process, and more. They will also be able to advise you on the real estate law and contract that applies in your case.
He or she will help you avoid any potential legal issues and ensure you get the most out of your deal.
It’s also important to choose a lawyer who has experience in your local market, as rules vary by state, county, and city.
7. Don’t be afraid to ask questions.
Ask as many questions as you need to – don’t be afraid to nitpick! Buying a house is a big decision, so it’s important to clear things out before doing the purchase.
Asking these questions before you make an offer ensures that you’re getting what you want and avoiding any surprises down the line!
FAQs on buying a house in Toronto
Is it worth buying a house in Toronto?
It is worth buying a house because it is one of the best investments you can make, especially in Toronto.
That said, there are a lot of factors to consider before taking the leap, so be sure to do your research and think it over before deciding.
How long does it take to buy a house in Toronto?
It takes about 6 months to buy a house in Toronto. That said, it generally depends on your personal situation.
If you have a mortgage, it will take at least two months before the bank gives you approval.
After that, it usually takes another four to six months to find and buy a house in Toronto.
What kind of housing is there in Toronto?
There are many different types of housing available in Toronto.
You can find single-family homes, townhouses, condos, and apartment buildings. You can also find houses that have been converted into apartments or condos.
Do I need to live in Toronto to buy a house?
You don’t need to live in Toronto to buy a house.
You can buy a house in Toronto and rent it out, or you can live somewhere else and use the house as an investment property.
As you can see, buying a house in Toronto isn’t terribly difficult, and the market is wide open for those who are willing to get into the market.
By knowing what to expect and planning ahead, you and your realtor can navigate through this process together with (relative) ease.
