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Buying Real Estate in Toronto; First Time Buyers

How do I Buy a House, Condo?
What steps do I takein Buying a Home, Condo?
What do I need to do when buying Real Estate; Home, Condo?
How do I go about buying Real Estate; Home Condo?

First Time Buyers need to understand the costs and need to know what to expect. Keep in mind that costs related to buying a property include three major items:
1) Mortgage
2) Taxes
3) Utilities and or Maintenance Fees

Steps below outline the basics:

1) First and most important is to get Pre-Approved for a mortgage.
- Call your bank and asked to be Pre-Approved for a Mortgage.
- Banks in Ontario require a minimum of 5 % Down Payment (Although some still will offer mortgages with 0% down).
- Your bank (or mortgage broker) will be able to tell you the maximum amount you qualify for and also supply you with the interest rates and payments per month.

2) Decidehow much you personally want to pay per month (you do not have to borrow the maximum your bank is willing to give you). Keep in mind your payments are: Mortgage, Taxes and Utilities/Maintenance Fees.

3) Find a Real Estate Agent (only one; OREA does not allow agents to interfere with each other) that you trust and feel comfortable with. A good agent will not pressure you and will show you as many homes/condos as it takes (not like the programs you see on TV where the Buyer has a choice of only 3 properties!). Take your time and really look (this is the most money you will spend in your life.

4) Once you find that perfect home/condo your agent will help you determine a price point and will prepare an offer on your behalf. This offer may be accepted or may go back and forth a couple of times or may even just be rejected (if you low-ball an offer this is possible).

5) You will also need a lawyer (one experienced in Real Estate). It is a good idea to have a lawyer review your offer prior to submitting it. Your Real Estate Agent may ask you if you would like to do this or you can request that it be reviewed by your lawyer prior to putting in an offer. Lawyers in Ontario charge around $1200 for buyers (part of your "Closing Costs").

6) If your offer is accepted (usually with at least 2 conditions; financing and home inspection or Status Certificate if it is a condo) you will require a Certified Cheque upon acceptance as a deposit. This money is a deposit and can be applied as your down payment or towards your mortgage once you take possession.

7) Closing Costs; is liquid cash that you will require that is not part of your mortgage; it includes the following:
- Lawyers Fees; around $1200 for Buyers
- Land transfer tax (2 in Toronto; 1 for Ontario plus 1 for Toronto); if you are a First Time Buyer ofproperties under $400,000,Toronto LTT is almost zero but Ontario LLT will be around $2475(ask your lawyer).
- Moving expenses: Movers plus all costs associated with transferring over or setting up phone, cable TV, Internet.....


- Most Banks require a 5% down payment
- A 5% deposit is required upon acceptance (liquid cash you need; this can be used as your down payment or be applied to your mortgage when closing)
- Closing costs: around$1200 for your lawyer plus adjustments. If you purchase a home/condo for under $400,000 and are a First Time Buyer, Toronto "Land Transfer Tax" will be almost bezero but Ontario LLT will be around $2475(ask your lawyer).

So Total Closing costs for a First Time Buyer ($400,000 property)in Toronto will be ($1200 for Lawyer plus LTT $2475)around $3675.

Max Mortgage Calculator:
Find out maximum mortgage you qualify for!

Mortgage Monthly Payment Calculator:
Calculate monthly payments for a mortgage or calculate Land Transfer Tax

Hope this information was helpful for Buying your first home/condo in Toronto and GTA.

David Hutchison: RREA

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