The moment you decide you want to be a first time home buyer is an exciting day. However, it’s a long road towards homeownership if you haven’t started saving for your first real estate buy in Toronto.

It’s not like you can stop renting today and buy a house tomorrow. A house is the biggest purchase most people make in their lifetime. It requires planning, getting your finances in order, closely examining house listings, and more.

If you’re ready to buy your first home, here are the steps you need to take as a first time home buyer.

Save For A Down-Payment

You need a minimum of 5% for a down-payment on any home up to $500,000 and a minimum down-payment of 20% for any home above $1 million. The more you are above that, the better. Saving for a down-payment will be daunting but the more money you walk in with, the less your mortgage will be.

Determine A Budget For Your Home

In addition to your down-payment there are many other expenses to plan for when buying a home. Closing costs are 3-4% of the purchase price of the home and will require thousands of dollars to cover the house appraisal, land survey, title insurance, legal fees, and land transfer tax. There is also a price tag associated with home inspections, moving costs, home insurance, property taxes, and condo fees, if applicable.

Make A Wish List For Your Home-To-Be

Think about what kind of house you’re looking for. Think about location, age, type of house, condo or freehold, size, renovated or fixer-upper, a resale or a new build, and a large or small lot.

Research First Time Home Buyer Incentives

There are lots of incentives to help first time home buyers in the lead-up to buying their first Etobicoke home, such as the FTHBI, HBP, FHSA, and HBTC – all programs that help you save and can make homeownership more affordable.

 About to buy your first home? Give these other blog posts a read!

Build Your Credit Score

As you’re saving for a down-payment work up your credit score to as close to 900 as you can get. Demonstrate to lenders that you can manage credit and that you are not a mortgage risk. Request a credit report from Equifax or TransUnion to monitor your score.

Get Mortgage Preapproval

A mortgage preapproval verifies how much a lender will lend you – using income, down-payment, debt levels, assets, and credit score to determine this number – and essentially allows you to walk in ready to buy a home.

Connect With A Real Estate Agent

Seek out a real estate agent who can help you find properties in line with your needs and expectations, and who can answer questions as well as negotiate on your behalf. A real estate agent can offer their expertise in home-buying, ensuring you don’t make any mistakes in your journey.

Not sure what to expect from the home buying process? These blogs can help you feel ready ahead of the market.

 Make An Offer

Find a home you’re confident in that meets your criteria? Get a home inspection done. Then, make an offer through your real estate agent. Ensure it is structured per the guidance of your agent and be prepared for the seller to return with a counter-offer that you can either approve, reject, or amend.

Finalize The Sales Agreement

Congrats, you’re a first time home buyer! Once your offer is accepted all you have to do is finalize the details.

Are you looking to buy in South Etobicoke? Contact Adrian + Andrea. We can help you search for potential homes, negotiate the asking price, and nab the fairest, best deal possible for your future home. We’re just a phone call away. Reach out!