Affordability often influences location, and sometimes your desired location may not align with your budget. When faced with this, ask yourself what’s most important and what you’re willing to compromise on—proximity to daily activities, space requirements, or staying where you currently live while purchasing in an affordable area. You could even consider renting out the property in the interim, allowing it to appreciate in value, and later using the equity to buy in your preferred location. These are strategic conversations you should have with an experienced realtor to make the best decision for your situation.
Downpayment
Understanding what you can afford starts with knowing the down payment options available. The most common option is a 5% down payment, but it’s important to note that this applies only to purchases up to $500,000. For amounts above $500,000 and up to $1,500,000, a 10% down payment is required on the portion over $500,000.
For example, if you’re purchasing a home for $700,000, the minimum down payment would be $45,000. This is calculated as 5% of $500,000 plus 10% of the remaining $200,000. Purchases over $1.5 million require a minimum down payment of 20%.
The most common down payment percentages are 5%, 10%, 15%, and 20%. It’s important to note that any down payment under 20% requires mortgage insurance and typically comes with a 25-year amortization period. However, new reforms now allow first-time homebuyers to access a 30-year amortization period.
If you’re purchasing a newly built home as your primary residence for up to $1.5 million, you can still qualify for a down payment of less than 20% and benefit from the 30-year amortization period.
Opting for the lowest possible down payment you can comfortably manage is a smart strategy for your first purchase. This approach allows you to allocate remaining funds toward other investments, such as building a real estate portfolio. Having these conversations with an expert like myself can help you navigate these options effectively and plan for your financial future.
For first-time home buyers purchasing outside of Toronto, closing costs are typically around 1.5% of the sale price, thanks to the first-time home buyer rebate and the fact that only the Provincial Land Transfer Tax applies. However, for properties in Toronto, both the Provincial and Municipal Land Transfer Taxes apply, which can increase closing costs to approximately 2% or more of the sale price.
For second-time and subsequent home buyers, closing costs generally range from 2% to 2.5% of the sale price. These costs include lawyer fees, land transfer taxes, e-registration, title searches, lien checks, and other administrative processes. A reliable real estate lawyer is essential to handle these matters efficiently.
Income verification is a crucial step. It can come from various sources, including full-time employment, contract work, corporate roles, business ownership, part-time jobs, or gig economy roles like Uber driving. Regardless of the source, you need proof of income to support your application.
The next step in your real estate journey is choosing the right Realtor. This decision is as important as any other part of the process because it reduces your burden and ensures your success. You don’t just need a sales representative—you need a one-stop-shop professional who:
An investor-focused Realtor brings a broader perspective, helping you plan not just for today but for the next 5-10 years. With the right Realtor, you can transition from owning one property to building a portfolio, all with a strategic plan in place.
As a one-stop-shop Realtor, I bring more than just experience—I bring a network of trusted professionals, including mortgage brokers, real estate lawyers, home inspectors, movers, and contractors, all of whom I’ve worked with over the years. My clients benefit from my accessibility, commitment, and ability to guide them toward their goals.
Don’t just take my word for it—search “Benson Oluwasina” on Google and check out our reviews to see what my clients have to say.
Let’s make your real estate journey seamless and rewarding. With my expertise, we’ll create a plan tailored to your needs and set you on the path to building lasting wealth through real estate.
Here’s what your Realtor provides throughout your journey:
Home insurance is often required by mortgage lenders and must be in place before your possession date. It provides coverage for fire, theft, and liability, offering you peace of mind.
Your municipality calculates property taxes based on the assessed value of your property and local tax rates. These taxes fund essential municipal services.
If you’re purchasing a condo, townhouse, or a home in a gated community, you may incur monthly condo fees. These cover maintenance and operations for shared spaces like landscaping, snow removal, and security.
These include heating, electricity, water, telephone, internet, and cable. Costs vary based on your location, provider, and usage.
Your mortgage payments include both the principal amount borrowed and the interest charged. Payments can be made monthly, bi-weekly, or on another agreed schedule, helping you build equity over time.
As a homeowner, you’re responsible for general upkeep, such as snow removal, lawn care, and repairs. Proper maintenance preserves or increases your property’s value.
Congratulations on your new home! Homeownership comes with responsibilities, but with careful planning and support, it’s a rewarding journey.
Now that you’re well-informed, have a reliable Realtor, have been pre-qualified, and have a solid plan in place, it’s time to begin the search with confidence. With a clear understanding of the process from start to finish, you’re equipped to avoid surprises along the way.
During the search, your Realtor will consistently run and save searches for you, ensuring you’re notified the moment a new listing that matches your buying criteria hits the market. This is especially important in competitive markets where homes can sell within days. If you come across a property that interests you, simply send the address or Multiple Listing Service (MLS) number to your Realtor so they can perform due diligence.
It’s easy to get emotionally attached to a property, but your Realtor’s role is to assess it objectively. They’ll point out any flaws or concerns based on your preferences, lifestyle, and investment goals. Their expertise ensures that the property you choose is not only a good fit for you now but also has strong resale potential. Factors like the land size, location, layout, and finishes are all considered to maximize your future return.
If you notice any flaws during a viewing, share your concerns with your Realtor so they can address them with the seller’s representative before finalizing the deal. Some issues may lead to repairs, compensation, or an “as-is” agreement.
Remember, the list price is just a starting point—the focus should always be on the final sale price of comparable properties in the area. Whether you find your dream home on the first visit or after multiple viewings, when you find the right property, it’s time to make an offer.
Drafting and presenting offers requires a strategic approach. You might find yourself in a multiple-offer situation, but with an experienced Realtor, the process is handled with precision. The goal is to secure the property at the best price possible without losing it over minor price differences that add only a small amount to your mortgage payments. A Comparative Market Analysis helps ensure your offer is competitive, and inspections provide peace of mind.
Once your offer is accepted, you’re required to provide the agreed deposit within 24 hours. Failure to do so could jeopardize the deal.
If you decide not to waive conditions within the set timeframe, the deal becomes null and void, and your deposit is returned. If you waive the conditions, the deal goes firm, and you prepare for closing.
While waiting for the closing date, here are a few steps to prepare:
The moment you’ve been waiting for is finally here! A few days before the closing date, you’ll meet with your lawyer—either in person or virtually—to:
On closing day, after everything has been successfully finalized, you’ll receive the keys to your new home. This could involve meeting your lawyer in person to pick them up or obtaining a lockbox code to retrieve them.
Realtor | Certified Negotiation Expert
Powered by Benson Oluwasina and Associates
Contact us! Our real estate experts are here to guide you in buying, selling, or exploring pre-construction opportunities.
