Few things announce “I’ve arrived” like the purchase of your first house. It’s a whole new level of accomplishment if you can achieve that milestone in the beautiful and exciting City of Toronto!
Every modern convenience is suddenly at your fingertips, along with access to outstanding schools and the best entertainment scene anywhere, at least in our opinion. Your first home purchase gives you much to look forward to, although it can also be an intimidating process.
This is one of the most valuable and significant assets you will ever acquire, and the implications of homeownership can be as sobering as they are exhilarating. Generally speaking, the sooner you get into the market, the better, but everyone’s path is different. In this post, we’ll walk you through the steps of buying, from knowing when you’re ready and how to create a winning strategy to finding the right home at the perfect time.
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Are You Ready for Homeownership?
The truth is that homeownership isn’t necessarily right for everyone. Though there are financial benefits, there are also risks and challenges. Getting into the market in the first place requires a large outlay of cash, as well as the ability to borrow vast sums of money. In addition, you’ll need to set aside between 3 to 5% of the purchase price to cover your closing costs. The new guidelines for down payments are as follows:
- 5% ($25,000) on the first $500,000
- 10% on any amount from $500,000 to $1.5 million
- 20% from $1.5 million and up
The amount you need depends on the lifestyle you want to enjoy and the type of house you have your eye on. For example, condos are typically the least expensive option unless you’re looking at a luxury penthouse in a high-demand area. A detached home with a private driveway and a backyard is likely your most expensive choice. Semi-detached houses and townhouses will fall somewhere in the middle. Access to sufficient funding is the first step to becoming a proud new homeowner in Toronto, but it isn’t your only consideration.
Toronto real estate is diverse and varied! The posts below will help you narrow down your options:
- Is an Upgraded Midtown Toronto Home Right For You?
- Should You Buy a Resale or a Pre-Construction Condo?
- How to Spot a Great Home in Toronto
Considerations Beyond the Dollars
Some people, even those who enjoy a high level of affluence, don’t want the commitment that goes along with buying and owning a house and still prefer to rent. If you plan to travel the world and want to live in multiple cities over the next few years, you may not be ready to settle down just yet.
If you have the financial ability and plan to spend the next five years or more here in Toronto, now just might be the perfect time to purchase your first home! It doesn’t just give you a place to call your own. There are many financial benefits of owning real estate over the long term.
Think of how much housing prices have risen over the last decade. Though values can fluctuate here and there, we have every reason to expect that prices will continue to rise over the long term. Every time they do, your equity as a homeowner will increase.
Curious about the home-buying process? The posts below will give you some ideas on what to expect:
- Is an Unconditional Offer a Good Idea When Buying a Home?
- How Can a Pre-Approval Help Buy a Toronto Home?
- How To Find The Best Midtown Real Estate Team
Your Roadmap to a Successful Home Purchase in Toronto
The path to buying your first home may seem long and winding, but a comprehensive plan will help you stay the course. The key is to strike the right balance between being determined and being flexible. You may need to be assertive during some aspects of the transaction and patient at the same time.
If you’re still in the deciding stages, a pre-qualification is a great way to start the ball rolling. You can do a quick assessment by answering a few questions online and get a rough idea on how much you may be able to borrow.
If you’re 100% sure that you want to move ahead, we recommend getting a mortgage pre-approval. This is more involved than a pre-qualification, but it also gives you a very accurate estimate as to how much you qualify for – as long as your financial picture doesn’t change.
In other words, we recommend not taking a fancy vacation on credit, at least until you get your keys. As an added benefit, a pre-approval can give you a competitive edge if other buyers are interested in the same house as you.
Finetune Your Wishlist
Create a detailed list of everything you want (and want to avoid) in your home. Think of whether you want a condo or a detached house, a new-build or something in an established neighbourhood, and the overall layout you prefer. Remember that you can change some attributes of the home easily enough, like the paint colour. Other features, such as the location and lot size, are set in stone.
Establish a firm ceiling on your budget before you begin looking at listings. Overpaying is a common mistake, one that you can avoid by being prepared in advance. Though you may fall head over heels in love with a particular home, it’s important to know that there will always be another opportunity. Being willing to walk away is critical to getting the best value, whenever you decide the time is right to buy.
Knowing where to buy is a key part of your strategy when planning for your first home. The posts below can help you find the ideal location:
- Everything You Need To Know About Buying A Home In The Annex
- Midtown Public Schools You Need To Know About
- 5 Midtown Neighbourhoods That Are Perfect For Families
Understand the Value of Professional Expertise
An experienced local real estate agent can help you uncover listings you might not otherwise know about, as well as negotiate the best possible price and terms on your new home.
If your vision is hazy, we can help bring clarity – all while guiding you to the most suitable options possible, whatever your price range. Knowing that you always have a knowledgeable expert you can turn to means you can make your first home purchase in Toronto with confidence.
When you are ready, the Batori Group can walk you step by step through the entire process of buying your first home. Contact us at david@batorigroup.com, bobby@batorigroup.com or call (416) 485-7575 for more information.

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