Buying a house in Toronto comes with a flurry of questions and emotions. In all of your enthusiasm, you may be tempted to jump right in and start looking at houses immediately. Perhaps you’re already dreaming about your new neighbourhood. 

However, for the best possible outcome, it’s a good idea to take a step back and ensure you are being fully objective. Although it’s natural to be excited about the big move, it’s critical to make a well-informed decision. In this post, we’ll talk about what to ask when buying a house, before and during the process. 

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Questions to Ask Before Buying a House

You could be buying your first house, or maybe you’ve been through the process a few times before. One thing is certain; the experience will never get old. Your first question of the day is:

Are you truly ready for this?

You need a certain level of financial security to ensure you can comfortably afford your home. This means having a down payment readily available, as well as sufficient funds for closing costs, monthly carrying costs, as well as a cushion for unexpected repairs or maintenance. 

Your financial situation matters, but it is not the only factor. Homeownership requires a new level of commitment. If you’re currently renting and entering the market for the first time, there’s a new sense of both freedom and responsibility. 

When upgrading from a smaller home to a larger space, more maintenance and cleaning will be required. If you’re up for the responsibility, few milestones provide greater satisfaction and joy than moving into a new house!

Thinking about buying a house in Toronto and wondering which neighbourhood is best for you? Here’s The Only Guide You’ll Ever Need to Toronto Real Estate.

Can you pass the stress test?

In Canada, federally-regulated lenders generally require a stress test before approving your mortgage. This is true whether you’re a new applicant or you’re porting and upgrading your loan to buy a larger property. 

The bank will approve your mortgage based on an interest rate of 5.25% or 2% above your negotiated rate, whatever is higher. Even if you already have a mortgage, you’ll need to pass the stress test again when refinancing your home or taking out a home equity line of credit.  

Have you obtained a pre-approval?

Getting a mortgage pre-approval is one of the most valuable steps you can take before you begin searching for your new home. By taking care of it beforehand, you automatically answer many questions about your budget and how much house you can afford. 

The lender will consider your ability to repay your loan based on your current financial picture, which factors in your income and debt load. Once completed, you’ll receive an accurate estimate of how much you can borrow. 

Remember, however, that a pre-approval is just an estimate. It is not a guarantee. If you change jobs or make a large, unexpected purchase on credit, the bank could alter its approval amount or deny your loan altogether. 

Have you completed a wants and needs assessment?

Everyone has big dreams when buying a house. A clear vision can be a double-edged sword. It’s great to know what you are looking for as it saves you time when assessing potential listings. You just don’t want to be so specific or have so many “must-have” features that no house within your budget can possibly fit the bill. 

The last step before going out to view homes in person is to sit down with your real estate agent for an honest heart-to-heart about what you really need. Think of what features you really cannot or will not negotiate on. Then, make a list of what you might love to have but are willing to compromise if you find something you love that doesn’t quite check every box. 

Still curious as to which Toronto neighbourhood deserves your attention? The posts below can help you narrow it down:

What to Ask a Realtor® When Buying a House

Expert representation is an essential ingredient to a successful home purchase. Think of the most ideal outcome you want to see. Chances are, it all boils down to finding a fantastic house at a fair price for the market. 

To achieve all of this, you need a good real estate agent working on your behalf. Finding the right fit means knowing what questions to ask a Realtor®. The list below can help you get started.

How will you uncover new listings that might work for me?

There’s a very good chance you will find your house on the MLS®. However, a good agent will also have a network they can mine to open up your options even more. Your Realtor® should be proactive about finding available homes for you to choose from and not just settle for the low-hanging fruit. 

What area do you specialize in? 

Some real estate agents will work anywhere with anyone. Others will specialize in a specific area, which can be advantageous when you are particular about your location. Local expertise can also help you negotiate the best value since your agent will have a deeper understanding of market comparables. 

Looking for even more home-buying tips? You’ll find plenty in the posts below:

Do you have a network?

Buying a house is not the job for a lone wolf. Most people will need additional support throughout the process. This could mean having access to trusted professionals like contractors, cleaners, and moving companies. During the beginning stages, you might need a home inspector or a mortgage broker. For closing, you will need a real estate lawyer. 

Finding and vetting all of these contacts on your own is time-consuming during a time when you are already busy. The right real estate service will come with a vast network of every other resource you will need. When you’re ready and have a team with your best interests at heart, you will be unstoppable in your mission to find your new home. 

Whether you are buying or selling a house, our Midtown Toronto real estate agents are here for you. Reach out to us at david@batorigroup.com, bobby@batorigroup.com or call (416) 485-7575 with any questions.